Finance Act, 1988

Finance Act, 1988 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 1988 Finance Act, 1988 Finance Act, 1988 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 12 of 1988 FINANCE ACT, 1988 ARRANGEMENT OF SECTIONS PART I Income Tax, Corporation Tax, Capital Gains Tax and Pension Fund Levy Chapter I Income Tax Section 1. Amendment of provisions relating to exemption from income tax. 2. Alteration of rates of income tax. 3. Personal reliefs. 4. Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982. 5. Application of section 16 (credit for farm tax) of Finance Act, 1986. 6. Amendment of Second Schedule to Finance Act, 1986. 7. Amendment of section 16 (qualifying trades) of Finance Act, 1984. 8. Amendment of Chapter III (Payments in Respect of Professional Services by Certain Persons) of Part I of Finance Act, 1987. Chapter II Arrangements with regard to Returns, Assessments and Appeals 9. Interpretation (Chapter II). 10. Obligation to make a return. 11. Obligation to pay preliminary tax. 12. Notices of preliminary tax. 13. Making of assessments. 14. Amendment of and time limit for assessments. 15. Inspector's right to make enquiries and amend assessments. 16. Application of section 48 (surcharge for late submission of returns) of Finance Act, 1986. 17. Appeals. 18. Date for payment of tax. 19. Interest. 20. Estimation of certain amounts. 21. Miscellaneous. Chapter III Income Tax, Corporation Tax and Capital Gains Tax 22. Exemption of certain payments by Minister for Labour and An Foras Áiseanna Saothair. 23. Farming: amendment of provisions relating to relief in respect of increase in stock values. 24. Capital allowances for, and deduction in respect of, vehicles. 25. Amendment of section 44 (allowance to owner-occupiers in respect of certain premises) of Finance Act, 1986. 26. Designated areas for urban renewal relief: extension of certain time limits. 27. Amendment of section 23 (deduction for certain expenditure on construction of rented residential accommodation) of Finance Act, 1981. 28. Application of section 21 (rented residential accommodation: deduction for expenditure on refurbishment) of Finance Act, 1985, etc. 29. Application of section 22 (extension of application of relief for conversion of certain buildings) of Finance Act, 1985, etc. 30. Pension funds: extension of tax exemptions to dealings in financial futures and traded options. 31. Tax credits in respect of distributions. 32. Amendment of section 45 (distributions) of Finance Act, 1980. Chapter IV Corporation Tax 33. Rates of corporation tax. 34. Amendment of Part XI (group relief) of Corporation Tax Act, 1976. 35. Amendment of section 39A (relief in relation to income from certain trading operations carried on in Shannon Airport) of Finance Act, 1980. 36. Amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980. 37. Application of section 84 (matters to be treated as distributions) of Corporation Tax Act, 1976, to certain interest. 38. Amendment of section 31 (interest payments by companies and to non-residents) of Finance Act, 1974. 39. Exemption of certain income of Nítrigin Éireann Teoranta. 40. Amendment of section 28 (relief in relation to income from qualifying shipping trade) of Finance Act, 1987. 41. Relief from corporation tax in respect of certain dividends from a non-resident subsidiary. 42. Exemption from corporation tax of profits of Custom House Docks Development Authority. Chapter V Capital Allowances 43. Amendment of section 251 (initial allowances for machinery and plant) of Income Tax Act, 1967. 44. Amendment of section 254 (industrial building allowance) of Income Tax Act, 1967. 45. Amendment of section 265 (balancing allowances and balancing charges) of Income Tax Act, 1967. 46. Amendment of section 11 (wear and tear allowances for certain machinery and plant in undeveloped areas) of Finance Act, 1967. 47. Amendment of section 26 (increase of wear and tear allowances for certain machinery and plant) of Finance Act, 1971. 48. Amendment of section 25 (increase of writing-down allowances for certain industrial buildings) of Finance Act, 1978. 49. Amendment of section 25 (allowance for expenditure on multi-storey car-parks) of Finance Act, 1981. 50. Continuation of certain allowances. 51. Application of certain allowances in relation to certain areas and certain expenditure. 52. Farming. Chapter VI Pension Fund Levy 53. Pension fund levy. PART II Customs and Excise 54. Interpretation (Part II). 55. Tobacco products. 56. Hydrocarbons. 57. Removal of substances mixed with goods liable to excise duty. 58. Confirmation of an Order. PART III Value-Added Tax 59. Interpretation (Part III). 60. Amendment of section 1 (interpretation) of Principal Act. 61. Amendment of section 11 (rates of tax) of Principal Act. 62. Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act. 63. Amendment of Second Schedule to Principal Act. PART IV Stamp Duties 64. Levy on banks. 65. Amendment of First Schedule to Stamp Act, 1891. PART V Capital Acquisitions Tax 66. Amendment of section 63 (allowance for capital gains tax on the same event) of Finance Act, 1985. PART VI Miscellaneous 67. Capital Services Redemption Account. 68. Amendment of section 54 of Finance Act, 1970. 69. Provisions relating to sums advanced to Local Loans Fund. 70. Securities of Bord Telecom Éireann and Irish Telecommunications Investments p.l.c. 71. Poundage and certain other fees. 72. Incentive to bring tax affairs up to date. 73. Deduction from payments due to defaulters of amounts due in relation to tax. 74. Construction of certain Acts in accordance with Status of Children Act, 1987. 75. Guarantee of deposits with Agricultural Credit Corporation plc and Industrial Credit Corporation plc. 76. Care and management of taxes and duties. 77. Short title, construction and commencement. FIRST SCHEDULE Amendment of Enactments SECOND SCHEDULE Tax Credits PART I Amendments Consequential on Changes in Amounts of Tax Credits in respect of Distributions PART II Amendments of Chapter VI (corporation tax: relief in relation to certain income of manufacturing companies) of Part I of Finance Act, 1980 THIRD SCHEDULE Changes in Rates of Corporation Tax: Consequential Provisions PART I Application of sections 6 (3), 13 (1B), 28, 79, 182 and 184 of Corporation Tax Act, 1976, for financial years 1988 and 1989 PART II Amendment of Chapter VI (corporation tax: relief in relation to certain income of manufacturing companies) of Part I of Finance Act, 1980 FOURTH SCHEDULE Rates of Excise Duty on Tobacco Products Acts Referred to Agricultural Credit Act, 1978 1978, No. 2 Appropriation Act, 1965 1965, No. 21 Appropriation Act, 1969 1969, No. 31 Capital Acquisitions Tax Act, 1976 1976, No. 8 Capital Gains Tax Act, 1975 1975, No. 20 Central Bank Act, 1971 1971, No. 24 Companies Act, 1963 1963, No. 33 Corporation Tax Act, 1976 1976, No. 7 Court Officers Act, 1926 1926, No. 27 Criminal Justice Act, 1984 1984, No. 22 Criminal Procedure Act, 1967 1967, No. 12 Enforcement of Court Orders Act, 1926 1926, No. 18 Finance Act, 1920 1920, c. 1 Finance Act, 1930 1930, No. 20 Finance Act, 1950 1950, No. 18 Finance Act, 1967 1967, No. 17 Finance Act, 1968 1968, No. 33 Finance Act, 1969 1969, No. 21 Finance Act, 1970 1970, No. 14 Finance Act, 1971 1971, No. 23 Finance Act, 1972 1972, No. 19 Finance Act, 1973 1973, No. 19 Finance Act, 1974 1974, No. 27 Finance Act, 1975 1975, No. 6 Finance Act, 1976 1976, No. 16 Finance Act, 1977 1977, No. 18 Finance Act, 1978 1978, No. 21 Finance Act, 1979 1979, No. 11 Finance Act, 1980 1980, No. 14 Finance Act, 1981 1981, No. 16 Finance Act, 1982 1982, No. 14 Finance Act, 1983 1983, No. 15 Finance Act, 1984 1984, No. 9 Finance Act, 1985 1985, No. 10 Finance Act, 1986 1986, No. 13 Finance Act, 1987 1987, No. 10 Finance (Excise Duty on Tobacco Products) Act, 1977 1977, No. 32 Finance (Miscellaneous Provisions) Act, 1968 1968, No. 7 Health Contributions Act, 1979 1979, No. 4 Income Tax Act, 1967 1967, No. 6 Industrial Credit (Amendment) Act, 1958 1958, No. 10 Local Loans Fund Act, 1935 1935, No. 16 Mercantile Marine Act, 1955 1955, No. 29 Stamp Act, 1891 1891, c. 39 Status of Children Act, 1987 1987, No. 26 Succession Duty Act, 1853 1853, c. 51 Unit Trusts Act, 1972 1972, No. 17 Value-Added Tax Act, 1972 1972, No. 22 Value-Added Tax (Amendment) Act, 1978 1978, No. 34 Youth Employment Agency Act, 1981 1981, No. 32 Number 12 of 1988 FINANCE ACT, 1988 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. [25th May, 1988] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: PART I Income Tax, Corporation Tax, Capital Gains Tax and Pension Fund Levy Chapter I Income Tax Amendment of provisions relating to exemption from income tax. 1.—As respects the year 1988-89 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended— (a) in subsection (2) of section 1, by the substitution of “£5,500” for “£5,300” (inserted by the Finance Act, 1985 ), and of “£2,750” for “£2,650” (inserted by the Finance Act, 1985 ), and (b) in subsection (6) of section 2, by the substitution of “£6,500” for “£6,300” (inserted by the Finance Act, 1986 ), of “£7,600” for “£7,350” (inserted by the Finance Act, 1986 ), of “£3,250” for “£3,150” (inserted by the Finance Act, 1986 ), and of “£3,800” for “£3,675” (inserted by the Finance Act, 1986 ), and the said subsections (2) and (6), as so amended, are set out in the Table to this section. TABLE (2) In this section “the specified amount” means— (a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £5,500, and (b) in any other case, £2,750. (6) In this section “the specified amount” means— (a) in a case where the individual would, apart from this section, be entitled to a deduction specified in paragraph (a) of the said section 138, £6,500: Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £7,600; (b) in any other case, £3,250: Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £3,800. Alteration of rates of income tax. 2.— Section 2 of the Finance Act, 1986 , is hereby amended, as respects the year 1988-89 and subsequent years of assessment, by the substitution of the following Table for the Table to the said section: “TABLE PART I Part of taxable income Rate of tax Description of rate (1) (2) (3) The first £5,700 35 per cent. the standard rate The next £2,900 48 per cent. } the higher rates The remainder 58 per cent. PART II Part of taxable income Rate of tax Description of rate (1) (2) (3) The first £11,400 35 per cent. the standard rate The next £5,800 48 per cent. } the higher rates The remainder 58 per cent. ”. Personal reliefs. 3.—(1) Where a deduction falls to be made from the total income of an individual for the year 1988-89 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2). TABLE Statutory provision Amount to be deducted from total income for 1987-88 Amount to be deducted from total income for 1988-89 and subsequent years (1) (2) (3) Income Tax Act, 1967 : £ £ section 138 (married man) 4,000 4,100 (widowed person) 2,500 2,550 (widow bereaved in the year of assessment) 4,000 4,100 (widower bereaved in the year of assessment) 2,500 4,100 (single person) 2,000 2,050 section 138A (additional allowance for widows and others in respect of children) (widowed person) 1,500 1,550 (others) 2,000 2,050 section 138B (employee allowance)    700    800 (2) Section 3 of the Finance Act, 1986 , shall have effect subject to the provisions of this section. (3) The First Schedule shall have effect for the purpose of supplementing subsection (1). Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982. 4.— Section 6 of the Finance Act, 1982 , shall have effect for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1988-89, as if in subsection (2)— (a) “1988-89” were substituted for “1982-83”, and (b) “£286” were substituted for “£312” in each place where it occurs. Application of section 16 (credit for farm tax) of Finance Act, 1986 . 5.—(1) Where, but for an insufficiency of profits or gains, a reduction of income tax would have been granted to an individual under the provisions of section 16 of the Finance Act, 1986 , in respect of the full amount of farm tax paid by him on or before 31st December, 1986, he may claim to have his income tax in respect of profits or gains from farming for the years 1985-86 and 1987-88 reduced by the amount by which the farm tax so paid by him exceeds the tax appropriate to the profits or gains from farming in relation to that individual for the year 1986-87: Provided that— (a) the reduction to be granted under this subsection shall be set off, so far as possible, against the individual's liability for the year 1985-86, and (b) no reduction under this subsection shall be allowed more than once in respect of the same amount of farm tax paid by the individual. (2) This section shall be construed together with section 16 of the Finance Act, 1986 . Amendment of Second Schedule to Finance Act, 1986. 6.—As respects any right obtained on or after the 6th day of April, 1988, by an individual to acquire shares in a body corporate, the Second Schedule to the Finance Act, 1986 , is hereby amended as follows: (a) in subparagraph (1) of paragraph 1, by the deletion of the definitions of “full-time director” and “qualifying employee”, and (b) in subparagraphs (1) (a) and (2) of paragraph 5, by the deletion of “full-time” and by the substitution of “an” for “a qualifying”, and the said subparagraphs (1) (a) and (2), as so amended, are set out in the Table to this section. TABLE (a) unless he is a director or an employee of the grantor or, in the case of a group scheme, of a participating company; (2) Notwithstanding subparagraph (1) (a) the scheme may provide that a person may exercise rights obtained under it despite having ceased to be a director or an employee. Amendment of section 16 (qualifying trades) of Finance Act, 1984. 7.— Section 16 of the Finance Act, 1984 , is hereby amended, in paragraph (a) (inserted by the Finance Act, 1987 ) of subsection (2), by the insertion after subparagraph (iii) of the following subparagraph: “(iiia) in respect of a subscription for eligible shares made on or after the 6th day of April, 1988, such cultivation of plants as is referred to in subsection (1CC3) (inserted by the Finance Act, 1987 ) of section 39 of the Finance Act, 1980 ,”. Amendment of Chapter III (Payments in Respect of Professional Services by Certain Persons) of Part I of Finance Act, 1987. 8.— Chapter III of Part I of the Finance Act, 1987 , is hereby amended— (a) in section 13 (1), by— (i) the insertion of the following definitions: “‘authorised insurer’ has the same meaning as in section 145 of the Income Tax Act, 1967 ; ‘contract of insurance’ means a contract between an authorised insurer and a subscriber in respect of such insurance as is referred to in section 145 (2) of the Income Tax Act, 1967 ; ‘member’ means, in relation to a contract of insurance, a person who is named in the relevant policy of insurance and who has been accepted for insurance by an authorised insurer; ‘practitioner’ has the same meaning as in section 12 of the Finance Act, 1967 ; ‘relevant medical expenses’ means expenses incurred in respect of professional services provided by a practitioner, being expenses that are or may become the subject of a claim for their reimbursement or discharge in whole or in part under a contract of insurance but not including any such expenses that— (a) under the terms of the contract of insurance, may (except in the case of certain expenses that, in the opinion of the authorised insurer concerned, are unusually large) be the subject of a claim for their discharge or reimbursement only— (i) after the expiry of a stated period of 12 months in which the expenses are incurred, and (ii) to the extent that the aggregate of the expenses and any other expenses incurred in the said period exceeds a stated amount, or (b) are incurred in respect of professional services provided by a practitioner outside the State; ‘subscriber’ means, in relation to a contract of insurance, a person (other than an authorised insurer) who is a party to the contract and in whose name the relevant policy of insurance is registered;”, (ii) the substitution in paragraph (f) of the definition of “professional services” of “An Foras Áiseanna Saothair” for “An Chomhairle Oiliúna”, and (iii) the substitution of the following definition for the definition of “relevant payment”: “‘relevant payment’ means— (a) a payment made on or after the 6th day of June, 1987, in respect of professional services whether or not such services are provided to the accountable person making the payment, and (b) a payment made on or after the 6th day of June, 1988— (i) by an accountable person mentioned in paragraph (u), (v), (w) or (x) (inserted by the Finance Act, 1988) of section 14 (1) of the Finance Act, 1987 , in respect of professional services whether or not such services are provided to the accountable person, or (ii) by an authorised insurer to a practitioner in accordance with the provisions of section 14A (inserted by the Finance Act, 1988), or otherwise, in the discharge of a claim in respect of relevant medical expenses under a contract of insurance, but excludes— (I) emoluments within the scope of Chapter IV of Part V of the Income Tax Act, 1967 , to which that Chapter applies, and (II) payments under a construction contract within the meaning of section 17 of the Finance Act, 1970 , from which tax has been deducted in accordance with the provisions of subsection (2) of that section, or would have been so deducted but for the provisions of subsection (8) of that section;”, (b) in section 14 (1), by— (i) the substitution of the following paragraph for paragraph (m): “(m) An Foras Áiseanna Saothair,”, and (ii) the deletion of “or” in paragraph (s) and the insertion of the following paragraphs after paragraph (t): “(u) CERT, (v) Eolas — The Irish Science and Technology Agency, (w) An Bord Fuinnimh Núicléigh, (x) a voluntary public or joint board hospital to which grants are paid by the Minister for Health in the year 1988-89 or any subsequent year of assessment, or (y) an authorised insurer.”, (c) by the insertion of the following section after section 14: “14A.—Subject to section 15 (1) (inserted by the Finance Act, 1988), where under a contract of insurance a claim is made to an authorised insurer in respect of relevant medical expenses, the insurer shall discharge the claim by making payment to the extent of the amount of the benefit, if any, due under the contract, to the practitioner who provided the professional services to the subscriber or member concerned to which the relevant medical expenses relate and the subscriber or member, as the case may be, shall be acquitted and discharged of such amount as is represented by the payment as if the subscriber or member had made such payment.”, and (d) in section 15 by the substitution of the following subsections for subsection (1): “(1) An accountable person making a relevant payment shall deduct from the amount of the payment the appropriate tax in relation to the payment. The specified person to whom the amount is payable shall allow such deduction upon receipt of the residue of the payment, and (a) the accountable person making the deduction, and (b) if the accountable person is an authorised insurer, any subscriber or member on whose behalf the accountable person is making the relevant payment, shall be acquitted and discharged of such amount as is represented by the deduction, as if that amount had actually been paid. (1A) Where— (a) in accordance with the provisions of section 14A (inserted by the Finance Act, 1988), a relevant payment has been made to a practitioner by an authorised insurer, and (b) in accordance with the provisions of subsection (1), the practitioner has allowed a deduction of appropriate tax in respect of that payment and a subscriber or member has been acquitted and discharged of so much money as is represented by the deduction, the practitioner shall, if any amount in respect of the relevant medical expenses to which the relevant payment relates has been paid by the subscriber or member, pay to the subscriber or member, as the case may be, an amount equal to the amount by which the aggregate of the amount paid by the subscriber or member and the amount of the relevant payment exceeds the relevant medical expenses. (1B) (a) The Minister for Finance may make such regulations as he considers necessary or expedient for the purpose of giving full effect to this Chapter in so far as it relates to amendments made thereto by the Finance Act, 1988, and, in particular, but without prejudice to the generality of the foregoing, regulations under this subsection may— (i) specify the circumstances and the manner in which a payment (other than a relevant payment) may be made or claimed in respect of relevant medical expenses, and (ii) provide for the indemnification of an individual against claims in respect of relevant medical expenses, or any other claims arising out of acts done or omitted to be done by the individual in pursuance of this Chapter or regulations made under this subsection in so far as it relates or they relate to the amendments aforesaid. (b) Every regulation made under this subsection shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”. Chapter II Arrangements with regard to Returns, Assessments and Appeals Interpretation ( Chapter II ). 9.—(1) In this Chapter, except where the context otherwise requires— “appeal” means an appeal under section 416 of the Income Tax Act, 1967 ; “appropriate inspector” means, in relation to a chargeable person— (a) the inspector who has last given notice in writing to the chargeable person that he is the inspector to whom the chargeable person is required to deliver a return or statement of income or profits, (b) in the absence of such an inspector as is referred to in paragraph (a), the inspector to whom it is customary for the chargeable person to deliver such return or statement, or (c) in the absence of such an inspector as is referred to in paragraphs (a) and (b), the inspector of returns; “assessment” means an assessment to tax made under the Income Tax Acts or the Corporation Tax Acts, as the case may be; “chargeable period” has the same meaning as in paragraph 1 of the First Schedule to the Corporation Tax Act, 1976 ; “chargeable person” means, as respects a chargeable period, a person who is chargeable to tax for that period, whether on his own account or on account of some other person, but does not include a person— (a) whose total income for the chargeable period consists solely of emoluments to which Chapter IV of Part V of the Income Tax Act, 1967 , applies, and for this purpose a person whose total income for the chargeable period, other than emoluments to which the said Chapter IV applies, is deducted in determining the amount of his tax-free allowances for the chargeable period by virtue of Regulation 10 (1) (b) of the Income Tax (Employments) Regulations, 1960 ( S.I. No. 28 of 1960 ), shall be deemed for that chargeable period to be a person whose total income consists solely of emoluments to which the said Chapter IV applies, (b) who, for the chargeable period, has been exempted by an inspector from the requirements of section 10 by reason of a notice given under subsection (6) of that section, or (c) who is chargeable to tax for the chargeable period by reason only of the provisions of section 433 or 434 of the Income Tax Act, 1967 , or section 151 of the Corporation Tax Act, 1976 ; “determination of the appeal” means a determination by the Appeal Commissioners under section 416 (4) of the Income Tax Act, 1967 , and includes an agreement referred to in section 416 (3) of that Act and an assessment becoming final and conclusive by virtue of section 416 (6) of that Act; “due date for the payment of an amount of preliminary tax” has the meaning assigned to it by section 18 (1); “inspector”, in relation to any matter, includes such other officer as the Revenue Commissioners shall appoint in that behalf; “inspector of returns” means the inspector nominated by the Revenue Commissioners under section 10 (11) to be the inspector of returns; “precedent partner” has the same meaning as in Chapter III of Part IV of the Income Tax Act, 1967 ; “prescribed form” means a form prescribed by the Revenue Commissioners or a form used under the authority of the Revenue Commissioners and includes a form which involves the delivery of a return by any electronic, photographic or other process approved of by the Revenue Commissioners; “preliminary tax” means the amount of tax which a chargeable person is required to pay in accordance with the provisions of section 11 ; “relevant chargeable period” means— (a) where the chargeable period is a year of assessment, the year 1988-89 and any subsequent year of assessment, or (b) where the chargeable period is an accounting period of a company, an accounting period ending on or after such a date as may be prescribed by the Minister for Finance by regulations; “specified return date for the chargeable period” means, in relation to a relevant chargeable period— (a) where the chargeable period is a year of assessment, the 31st day of December in the year, and (b) where the chargeable period is an accounting period of a company, the last day of the period of 9 months commencing on the day immediately following the end of the accounting period; “specified sections” has the same meaning as in section 48 of the Finance Act, 1986 ; “tax” has the meaning assigned to it by paragraph 1 (3) of the First Schedule to the Corporation Tax Act, 1976 . (2) Except in so far as it is otherwise expressly provided, the provisions of this Chapter shall apply notwithstanding any other provisions of the Tax Acts or the Capital Gains Tax Acts. (3) (a) Where any obligation or requirement is imposed on a person in any capacity under any of the provisions of this Chapter and a corresponding obligation or requirement is imposed upon that person in another capacity, the discharge of any one of those obligations or requirements shall not release the person from the other obligation or requirement. (b) A person shall not, in any capacity, have an obligation or requirement imposed upon him under the provisions of this Chapter by reason only that he has such obligation or requirement imposed upon him in any other capacity. (c) Where, but for any of the subsequent provisions of this Chapter, a person would have had any such obligation or requirement imposed upon him in more than one capacity, a release from such obligation or requirement under any of those provisions by reason of any fact or circumstance applying in relation to his liability to tax in any one capacity shall not release him from such obligation or requirement as is imposed upon him in a capacity other than that in which that fact or circumstance applies. (4) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder. Obligation to make a return. 10.—(1) Every chargeable person shall, as respects a relevant chargeable period, prepare and deliver to the appropriate inspector on or before the specified return date for the chargeable period, a return in the prescribed form of— (a) in the case of a chargeable person, who is chargeable to income tax for a chargeable period which is a year of assessment, all such matters and particulars as would be required to be contained in a statement delivered pursuant to a notice given to the chargeable person by the appropriate inspector under section 169 of the Income Tax Act, 1967 , if the period specified in such notice were the year of assessment immediately preceding the relevant chargeable period, and where the chargeable person is an individual who is chargeable to income tax for a relevant chargeable period, in addition to such matters and particulars as aforesaid, all such matters and particulars as would be required to be contained in a return for the period delivered to the appropriate inspector pursuant to a notice given to the chargeable person by the appropriate inspector under section 172 of the said Act, or (b) in the case of a chargeable person who is chargeable to corporation tax for a relevant chargeable period which is an accounting period, all such matters and particulars in relation to the chargeable period as would be required to be contained in a return delivered pursuant to a notice given by the appropriate inspector to the chargeable person under section 143 of the Corporation Tax Act, 1976 , and such further particulars as may be required by the prescribed form. (2) The precedent partner of any partnership shall be deemed to be a chargeable person for the purposes of this section and shall, as respects any relevant chargeable period, deliver to the appropriate inspector on or before the specified return date for that chargeable period the return which he would be required to deliver for that period under the provisions of section 70 of the Income Tax Act, 1967 , if the inspector had given notice under that section before the said specified date. (3) If, by reason of subsection (1) or (2), a person delivers a return to an inspector, he shall be deemed to have been required by a notice under section 169 of the Income Tax Act, 1967 , to deliver a statement containing the matters and particulars contained in the return or to have been required by a notice under section 70 or 172 of the said Act or under section 143 of the Corporation Tax Act, 1976 , to deliver the return, as the case may be. Any provision of the Tax Acts relating to the taking of any action on the failure of a person to deliver a statement or return pursuant to a notice given under any of the aforementioned sections shall apply to a chargeable person, in a case where such a notice has not been given, as if he had been given a notice, on the specified return date for the relevant chargeable period, under such one or more of those sections as is appropriate to the provision in question. (4) A chargeable person shall prepare and deliver to the appropriate inspector a return for a relevant chargeable period as required by this section notwithstanding that he has not received a notice from an inspector to prepare and deliver a statement or return for that period under any of the sections referred to in subsection (3). (5) A return required by this section may be prepared and delivered by the chargeable person or by another person acting under the chargeable person's authority in that regard. Where a return is prepared and delivered by such other person, the provisions of the Tax Acts shall apply as if it had been prepared and delivered by the chargeable person. A return purporting to be prepared and delivered by or on behalf of any chargeable person shall, for all the purposes of the Tax Acts, be deemed to have been prepared and delivered by that person or by his authority, as the case may be, unless the contrary is proved. (6) An inspector may exclude a person from the provisions of this section by giving him a notice in writing stating that he is excluded from those provisions and the notice shall have effect for such chargeable period or periods or until such chargeable period or until the happening of such event as shall be specified in the notice: Provided that, where, before the passing of this Act, a person has been given notice by the inspector that he need not prepare and deliver a return for or until a specified chargeable period or until the happening of any event, he shall be deemed to have been given notice to that effect under this subsection. (7) This section shall not affect the giving of a notice by an inspector under any of the specified sections and shall not remove from any person any obligation or requirement imposed on the person by such a notice. The giving of a notice under any of the specified sections to a person shall not remove from that person any obligation to prepare and deliver a return under the provisions of this section. (8) In a case to which section 197 (4) of the Income Tax Act, 1967 , applies, a return containing for both the husband and the wife the matters and particulars required by subsection (1) shall, if delivered by one spouse, satisfy the obligation of the other spouse under this section. (9) Nothing in the specified sections or in a notice given under any of those sections shall operate so as to require a chargeable person to deliver a return for a relevant chargeable period on a date earlier than the specified return date for the chargeable period. (10) A certificate signed by an inspector which certifies that he has examined the relevant records and that it appears from them that, during a stated period, a stated return was not received from a chargeable person shall be evidence until the contrary is proved that the chargeable person did not, during that period, deliver that return and a certificate certifying as provided by this subsection and purporting to be signed by an inspector may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by such inspector. (11) (a) The Revenue Commissioners may nominate an inspector to be the inspector of returns for the purposes of this Chapter. (b) The inspector of returns shall take delivery of returns under this section directed by him to be delivered to him and returns from persons in relation to whom he is the appropriate inspector in the circumstances specified in paragraph (c) of the definition of “appropriate inspector” in section 9 (1). (c) The name of an inspector nominated as aforesaid and the address to which returns being delivered to him shall be directed shall be published annually in the Iris Oifigiúil. (12) Sections 500 and 503 of the Income Tax Act, 1967 , shall apply to a failure by a chargeable person to deliver a return in accordance with subsection (1) or (2) as they apply to a failure to deliver a return referred to in the said section 500 and Schedule 15 to that Act is hereby amended by the insertion in Column 1 of “Finance Act, 1988, section 10 (1) and (2)”. Obligation to pay preliminary tax. 11.—(1) Every person who is a chargeable person as respects any relevant chargeable period shall be liable to pay to the Collector in accordance with this section and section 18 the amount of his preliminary tax appropriate to that chargeable period. (2) The amount of a chargeable person's preliminary tax appropriate to a chargeable period is the amount of tax which, in the opinion of the chargeable person, is likely to become payable by him for the chargeable period by reason of an assessment or assessments for the chargeable period made or to be made by the inspector or which would be made by the inspector if he did not elect pursuant to section 13 (4) not to make an assessment. (3) Preliminary tax shall be payable notwithstanding that the inspector has not given notice in respect of that tax under section 12 . (4) Where, on or before the due date for the payment of an amount of preliminary tax appropriate to a chargeable period, the chargeable person by whom the tax is payable has received notice of an assessment for the period, he shall not be liable to pay preliminary tax for that chargeable period. (5) Any amount of preliminary tax appropriate to a chargeable period which is paid by, and not repaid to, a chargeable person in any capacity shall, to the extent of the amount of that payment or the extent of the amount of that payment less any amount that has been repaid, be treated as a payment on foot of the tax payable by the chargeable person for the chargeable period, being tax which is specified in an assessment or assessments made or to be made for that period on the chargeable person in that capacity. Notices of preliminary tax. 12.—(1) Where— (a) a chargeable person defaults in the making of a payment of preliminary tax for a relevant chargeable period, or (b) at any time prior to the due date for the payment of an amount of preliminary tax for a relevant chargeable period, the inspector considers it appropriate to do so, the inspector may give notice in writing to the chargeable person of the amount of the preliminary tax which, in the opinion of the inspector, ought to be paid by the chargeable person for that chargeable period: Provided that a notice shall not be given under this subsection to a chargeable person for a relevant chargeable period at any time after the chargeable person has delivered a return for that chargeable period. (2) Subject to the subsequent provisions of this section, an amount of preliminary tax specified in a notice under subsection (1) shall be due and payable to the Collector by the chargeable person on the due date for the payment of an amount of preliminary tax for the relevant chargeable period to which the notice relates. (3) Subject to subsection (4), where, on or before the specified return date for a chargeable period, the chargeable person makes a payment of preliminary tax for the chargeable period under section 11 , or on or before that date the chargeable person gives notice in writing to the Collector that he considers that he will not have a liability to pay tax for the chargeable period by reason of any assessment or assessments made or to be made by the inspector, the amount of preliminary tax for the chargeable period specified in a notice given to the chargeable person under subsection (1), or the excess, if any, of that amount over the preliminary tax paid by the chargeable person for the chargeable period, shall not be payable. (4) Where the chargeable person defaults in delivering a return for a relevant chargeable period to which a notice of preliminary tax under subsection (1) relates and the amount of preliminary tax specified in the notice, as increased under the provisions of section 48 of the Finance Act, 1986 , is greater than the amount, if any, of the preliminary tax paid by the chargeable person under section 11 , as also increased under the provisions of the said section 48, subsection (3) shall, with effect from the specified return date for the chargeable period, not apply to that chargeable person for the chargeable period and the amount of preliminary tax specified in the notice, as increased under the provisions of the said section 48 but reduced by any preliminary tax paid by the chargeable person in the capacity to which the notice relates for the chargeable period, shall become due and payable in all respects as if subsection (3) had not been enacted. (5) Notwithstanding the foregoing provisions of this section, an amount of preliminary tax, or any excess of that amount over the amount, if any, of the preliminary tax paid by the chargeable person for the relevant chargeable period to which the notice relates, specified in a notice given under subsection (1) shall cease to be due and payable as on and from the date on which the inspector makes an assessment on the chargeable person for that relevant chargeable period: Provided that, where action for the recovery of an amount of preliminary tax specified in a notice given under subsection (1), being action by way of the institution of proceedings in any court or the issue of a certificate under section 485 of the Income Tax Act, 1967 , has been taken, this subsection shall not apply to that amount of preliminary tax. (6) Subject to the foregoing provisions of this section, the amount of preliminary tax specified in a notice given under subsection (1) shall be collected and paid in all respects as if it were tax charged by an assessment in respect of which no appeal was pending. Section 113 of the Finance Act, 1986 , shall apply in all respects to an amount of preliminary tax specified in a notice under subsection (1) as if it were an amount of tax specified in an assessment. Section 537 of the Income Tax Act, 1967 , shall apply to preliminary tax specified in a notice as it applies to tax specified in an assessment. (7) Where the amount of preliminary tax paid by a chargeable person for any chargeable period exceeds his tax liability for that period, the excess shall be repaid and the amount repaid shall carry interest at the rate at which it would carry interest if it were an amount of tax repaid under the provisions of section 30 (4) of the Finance Act, 1976 : Provided that— (a) interest shall not be payable under this subsection if it amounts to less than £10, and (b) income tax shall not be deductible on payment of interest under this subsection and such interest shall not be reckoned in computing income for the purposes of the Tax Acts. (8) Where for a relevant chargeable period a notice of preliminary tax has been given to a person by the inspector and the inspector is satisfied that— (a) the person being a chargeable person has discharged all his tax liability for the chargeable period, (b) the person is not a chargeable person as respects that chargeable period, or (c) it is appropriate to do so, he may reduce the amount of preliminary tax specified in the notice given to the person to such amount, including nil, as the inspector deems appropriate having regard to the circumstances of the case. (9) Where a provision of this section has the effect of providing that any preliminary tax specified in a notice under subsection (1) ceases to become payable, the provision shall not have the effect of removing from any chargeable person an obligation imposed upon him by section 11 to pay an amount of preliminary tax. (10) Section 190 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply to notices of preliminary tax under this section as it applies to assessments. Making of assessments. 13.—(1) An assessment shall not be made on a chargeable person for a relevant chargeable period at any time before the specified return date for the chargeable period unless at that time the chargeable person has delivered a return for the chargeable period and an assessment shall not be made at a time when the making of the assessment is precluded under the provisions of section 14 (2). (2) Subject to subsection (3), an assessment made on a chargeable person for a relevant chargeable period shall be made by the inspector by reference to the particulars contained in the chargeable person's return and, where appropriate, having regard to the provisions of section 20 . (3) If— (a) a chargeable person makes default in the delivery of a return for a relevant chargeable period, or (b) the inspector is not satisfied with the return which has been delivered, or has received any information as to its insufficiency, nothing in this section shall prevent the inspector from making an assessment in accordance with the provisions of section 184 of the Income Tax Act, 1967 , or section 144 (4) of the Corporation Tax Act, 1976 , as appropriate. (4) Where, as respects a relevant chargeable period, the inspector is satisfied that a chargeable person has paid all amounts of tax which, if he were to make an assessment on the chargeable person for that relevant chargeable period, would be payable by the chargeable person for the relevant chargeable period, the inspector may elect not to make an assessment on the chargeable person for that chargeable period and, where he so elects, he shall give notice of the election to the chargeable person and the amounts paid by the chargeable person shall be deemed to have been payable in all respects as if the inspector had made the assessment: Provided that, subject to section 14 (2), nothing in this subsection shall prevent an inspector from making an assessment on the chargeable person for that relevant chargeable period at any time after the giving of the notice of election under this section. (5) Where the inspector makes an assessment— (a) under any of the provisions referred to in subsection (3), in default of the delivery of a return, or (b) in circumstances where the chargeable person has calculated the amount of tax which will be payable by him on foot of an assessment and the inspector does not at the time of the making of the assessment disagree with the tax as so calculated, it shall not be necessary to set forth in the notice of assessment any particulars other than particulars as to the amount of tax to be paid by the chargeable person. (6) Notwithstanding the foregoing provisions of this section, but subject to section 14 (2), where a chargeable person has delivered a return for a relevant chargeable period, he may, by notice in writing given to the inspector, require him to make an assessment for that relevant chargeable period and the inspector shall make the assessment forthwith. Amendment of and time limit for assessments. 14.—(1) Subject to subsection (2) and to section 211 of the Income Tax Act, 1967 , an inspector may, at any time, amend an assessment made on a chargeable person for a relevant chargeable period by making such alterations therein or additions thereto as he thinks necessary, notwithstanding that tax may have been paid or repaid in respect of the assessment and notwithstanding that he may have amended the assessment on a previous occasion or on previous occasions and he shall give notice to the chargeable person of the assessment as so amended. (2) Where a chargeable person has delivered a return for a relevant chargeable period and has made in the return a full and true disclosure of all material facts necessary for the making of an assessment for the relevant chargeable period, an assessment for that period or an amendment of such an assessment shall not be made on the chargeable person after the end of the period of 6 years commencing at the end of the chargeable period in which the return is delivered and no additional tax shall be payable by the chargeable person and no tax shall be repaid to the chargeable person after the end of the period of 6 years by reason of any matter contained in the return: Provided that nothing in this subsection shall prevent the amendment of an assessment— (a) where a relevant return does not contain a full and true disclosure of the aforementioned facts, (b) to give effect to a determination upon any appeal against an assessment, (c) to take account of any fact or matter arising by reason of an event occurring after the return is delivered, (d) to correct an error in calculation, (e) to correct a mistake of fact whereby any matter in the assessment does not properly reflect the facts disclosed by the chargeable person, or (f) to give effect to the provisions of section 20 (2), and tax shall be paid or repaid, where appropriate, in accordance with any such amendment and nothing in this section shall affect the operation of section 455 (3) of the Income Tax Act, 1967 , or section 54 (4) (b) of the Finance Act, 1974 . (3) A chargeable person who is aggrieved by an assessment or the amendment of an assessment on the grounds that he considers that the inspector was precluded from making the assessment or the amendment, as the case may be, by reason of the provisions of subsection (2) may appeal against the assessment or amended assessment on those grounds and if, on the hearing of the appeal, the Appeal Commissioners determine that the inspector was so precluded, all the provisions of the Tax Acts shall apply as if the assessment or the amendment, as the case may be, had not been made and the assessment or the amendment of the assessment, as appropriate, shall be void. If the Appeal Commissioners determine that the inspector was not so precluded, the assessment or the assessment as amended shall stand good, save to the extent that any amount or matter therein is the subject of a valid appeal on any other grounds. (4) Where the chargeable person is in doubt as to the application of law to or the treatment for tax purposes of any matter to be contained in a return to be delivered by him, he may deliver the return to the best of his belief as to the application of law to or the treatment for tax purposes of that matter but he shall draw the inspector's attention to the matter in question in the return by specifying the doubt and, if he so does, he shall be treated as making a full and true disclosure with regard to that matter: Provided that this subsection shall not apply where the inspector is or, on appeal, the Appeal Commissioners are, not satisfied that the doubt was genuine and is or are of the opinion that the chargeable person was acting with a view to the evasion or avoidance of tax and in such a case the chargeable person shall be deemed not to have made a full and true disclosure with regard to the matter in question. (5) Section 186 of the Income Tax Act, 1967 , and section 144 (5) (a) of the Corporation Tax Act, 1976 , shall not apply in the case of a chargeable person for any relevant chargeable period and all matters which would have been included in an additional first assessment under those sections shall be included in an amendment of the first assessment or first assessments made in accordance with this section and, for this purpose, where any amount of income, profits or gains was omitted from the first assessment or first assessments or the tax stated in the first assessment or first assessments was less than the tax payable by the chargeable person for that chargeable period, there shall be made such adjustments or additions (including the addition of a further first assessment) to the first assessment or first assessments as are necessary to rectify the omission or to ensure that the tax so stated is equal to the tax so payable by the chargeable person. Inspector's right to make enquiries and amend assessments. 15.—(1) For the purpose of making an assessment on a chargeable person for a relevant chargeable period or for the purpose of amending such an assessment, the inspector may accept either in whole or in part any statement or other particular contained in a return delivered by the chargeable person for that chargeable period and he may assess any amount of income, profits or gains or allow any deduction, allowance or relief by reference to such statement or particular; but the making of an assessment or the amendment of an assessment by reference to any such statement or particular contained in the chargeable person's return shall not preclude the inspector from making such enquiries or taking such actions, within his powers, as he considers necessary to satisfy himself as to the accuracy or otherwise of that statement or particular and, subject to section 14 (2), shall not preclude the inspector from amending or further amending an assessment in such manner as he considers appropriate: Provided that any such enquiries and any such actions shall not be made in the case of any chargeable person for any relevant chargeable period at any time after the expiry of the period of 6 years commencing at the end of the chargeable period in which the chargeable person has delivered a return for the relevant chargeable period unless at that time the inspector has reasonable grounds for believing that the return is insufficient due to its having been completed in a fraudulent or negligent manner. (2) A chargeable person who is aggrieved by any enquiry made or action taken by an inspector for a chargeable period, after the expiry of the period referred to in the proviso to subsection (1) in respect of that chargeable period, on the grounds that he considers that the inspector is precluded from making that enquiry or taking that action by reason of the proviso to subsection (1) may, by notice in writing given to the inspector within 30 days of the inspector making that enquiry or taking that action, appeal to the Appeal Commissioners and the Appeal Commissioners shall hear the appeal in all respects as if it were an appeal against an assessment. Any action required to be taken by the chargeable person and any further action proposed to be taken by the inspector pursuant to the inspector's enquiry or action shall be suspended pending the determination of the appeal. If on the hearing of the appeal the Appeal Commissioners determine that the inspector was so precluded, the chargeable person shall not be required to take any action pursuant to the inspector's enquiry or action and the inspector shall be prohibited from pursuing his enquiry or action. If the Appeal Commissioners decide that he was not so precluded, it shall be lawful for the inspector to continue with his enquiry or action. Application of section 48 (surcharge for late submission of returns) of Finance Act, 1986. 16.— Section 48 of the Finance Act, 1986 , shall have effect, as respects any chargeable person for a relevant chargeable period, as if the definition of “return of income” in the said section 48 included the return which the chargeable person is required to deliver under the provisions of section 10 and as if references to the specified date in relation to a return of income were references to the specified return date for the chargeable period for which a return is to be delivered and it shall apply in relation to an amount of preliminary tax, whether paid under section 11 or specified in a notice under section 12 , as it applies to an amount of tax specified in an assessment. Appeals. 17.—(1) No appeal may be made against— (a) a notice of preliminary tax under section 12 , (b) the amount of any income, profits or gains or the amount of any allowance, deduction or relief specified in an assessment or an amended assessment made on a chargeable person for a relevant chargeable period where the inspector has determined that amount by accepting without the alteration of and without departing from the statement or statements or the particular or particulars with regard to income, profits or gains or allowances, deductions or reliefs specified in the return delivered by the chargeable person for that chargeable period, or (c) the amount of any income, profits or gains or the amount of any allowance, deduction or relief specified in an assessment or an amended assessment made on a chargeable person for a relevant chargeable period where that amount had been agreed between the inspector and the chargeable person, or any person authorised by the chargeable person in that behalf, prior to the making of the assessment or the amendment of the assessment, as the case may be. (2) (a) Where— (i) a chargeable person makes default in the delivery of a return, or (ii) the inspector is not satisfied with the return which has been delivered by a chargeable person, or has received any information as to its insufficiency, and the inspector makes an assessment in accordance with any of the provisions referred to in section 13 (3), no appeal shall lie against that assessment until such time as— (I) in a case to which paragraph (a) (i) applies, the chargeable person delivers the return, and (II) in a case to which either subparagraph (i) or (ii) of paragraph (a) applies, the chargeable person pays or has paid an amount of tax on foot of the assessment which is not less than the tax which would be payable on foot of the assessment if the assessment were made in all respects by reference to the statements and particulars contained in the return delivered by the chargeable person, and the time for bringing an appeal against the assessment shall be treated as commencing at the earliest date on which both the return has been delivered and the said amount of tax has been paid and references in this subsection to an assessment shall be construed as including references to any amendment of the assessment which is made before the said earliest date. (b) References in this subsection to an amount of tax shall be construed as including any amount of interest which would be due and payable under section 550 of the Income Tax Act, 1967 , on that tax at the date of payment of the tax together with any costs incurred or other amounts which may be charged or levied in pursuing the collection of the tax contained in the assessment or the assessment as amended, as the case may be. (3) Subject to the foregoing provisions of this section, where an assessment is amended under section 14 (not being an amendment made by reason of the determination of an appeal), the chargeable person may appeal against the assessment as so …