Finance Act, 1973

Finance Act, 1973 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 1973 Finance Act, 1973 Finance Act, 1973 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 19 of 1973 FINANCE ACT, 1973 ARRANGEMENT OF SECTIONS

PART I

Income Tax, Sur-Tax and Corporation Profits Tax

Chapter I

Income Tax Section 1.

Amendment of section 129 of Income Tax Act, 1967.

2.

Amendment of section 138 of Income Tax Act, 1967.

3.

Amendment of section 141 of Income Tax Act, 1967.

4.

Amendment of section 142 of Income Tax Act, 1967.

5.

Amendment of section 154 of Income Tax Act, 1967.

6.

Amendment of section 211 of Income Tax Act, 1967.

7.

Amendment of section 229 of Income Tax Act, 1967.

8.

Restriction of section 246 of Income Tax Act, 1967.

9.

Amendment of section 251 of Income Tax Act, 1967.

10.

Amendment of section 254 of Income Tax Act, 1967.

11.

Amendment of section 272 of Income Tax Act, 1967.

12.

Amendment of section 336 of Income Tax Act, 1967.

13.

Amendment of section 357 of Income Tax Act, 1967.

14.

Amendment of section 387 of Income Tax Act, 1967.

15.

Amendment of section 439 of Income Tax Act, 1967.

16.

Amendment of section 22 of Finance Act, 1971.

17.

Amendment of section 26 of Finance Act, 1971.

18.

Amendment of section 21 of Finance Act, 1972.

19.

Payments in respect of thalidomide children.

20.

Bodies for the promotion of Universal Declaration of Human Rights and the implementation of European Convention for the Protection of Human Rights and Fundamental Freedoms.

21.

Payments to universities.

22.

Recovery of income tax.

23.

Policies of life insurance.

24.

Business entertainment expenses.

25.

Capital allowances for cars costing over £2,500.

26.

Limit on renewals allowance for cars.

27.

Limit on deductions, etc., for hiring cars.

28.

Cars: provisions as to hire-purchase, etc..

29.

Cars: provisions where hirer becomes owner.

30.

Supplementary provisions relating to sections 25 to 29.

31.

Income tax on certain dividends.

32.

Confirmation of agreement on double taxation.

Chapter II

Income Tax, Sur-tax and Corporation Profits Tax 33.

Extension of charge to tax to profits and income derived from activities carried on and employments exercised on the Continental Shelf.

34.

Exemption from tax of income from patent royalties.

35.

Interest on unpaid taxes and duties.

Chapter III

Corporation Profits Tax 36.

Continuance of certain exemptions from corporation profits tax.

37.

Corporation profits tax on certain dividends.

38.

Confirmation of protocol on double taxation.

Chapter IV

Anti-avoidance and penalty provisions 39.

Change in ownership of company: disallowance of trading losses and restriction of capital allowances.

40.

Restriction of balancing allowances on sale of industrial buildings and structures.

41.

Amendment of section 117 of Income Tax Act, 1967.

42.

Cesser of section 121 of Income Tax Act, 1967.

43.

Amendment of section 128 of Income Tax Act, 1967.

44.

Amendment of section 335 of Income Tax Act, 1967.

45.

Amendment of Section 413 of Income Tax Act, 1967.

46.

Amendment of Section 503 of Income Tax Act, 1967.

PART II

Customs and Excise 47.

Beer.

48.

Spirits.

49.

Tobacco.

50.

Tobacco (excise duty on certain stocks).

51.

Cigarettes for export.

52.

Confirmation of Orders.

PART III

Death Duties 53.

Alteration of rates of estate duty.

54.

Provisions consequential on alteration of rates of estate duty.

55.

Amendment of rates of legacy duty and succession duty.

56.

Abatement of estate duty.

57.

Amendment of section 61 of Finance (1909-10) Act, 1910.

58.

Amendment of section 24 of Finance Act, 1965.

59.

Relief for certain moneys payable under policies of assurance.

60.

Exemption from duty of certain unit trusts.

61.

Amendment of section 33 of Finance Act, 1935.

PART IV

Stamp Duties

Chapter I

Miscellaneous 62.

Commencement (Chapter I).

63.

Amendment of section 88 of Stamp Act, 1891.

64.

Amendment of First Schedule to Stamp Act, 1891.

65.

Amendment of section 50 of Finance Act, 1969.

66.

Revocation of Order.

Chapter II

Stamp Duty on Capital Companies 67.

Interpretation (Chapter II).

68.

Charge of stamp duty.

69.

Statement to be charged with stamp duty.

70.

Amount on which stamp duty chargeable.

71.

Abolition of certain stamp duty and relief in respect of certain payments of stamp duty.

72.

Reconstructions or amalgamations of capital companies.

73.

Exemption for certain companies.

74.

Appeals in certain cases.

75.

Recovery of stamp duty and furnishing of information.

PART V

Value-Added Tax 76.

Commencement (Part V).

78.

Amendment of section 3 of Principal Act.

79.

Amendment of section 5 of Principal Act.

80.

Amendment of section 11 of Principal Act.

81.

Amendment of section 12 of Principal Act.

82.

Amendment of section 19 of Principal Act.

83.

Amendment of section 26 of Principal Act.

84.

Amendment of section 27 of Principal Act.

85.

Amendment of section 32 of Principal Act.

86.

Amendment of section 35 of Principal Act.

87.

Amendment of First Schedule to Principal Act.

88.

Amendment of Second Schedule to Principal Act.

89.

Amendment of Third Schedule to Principal Act.

90.

Miscellaneous amendments of Principal Act.

PART VI

Miscellaneous 91.

Capital Services Redemption Account.

92.

Securities of certain European bodies.

93.

Amendment of Finance (Excise Duties) (Vehicles) Act, 1952.

94.

Charge on first licensing of mechanically propelled vehicles.

95.

Increase of driving licence duty.

96.

Repeals.

97.

Care and management of taxes and duties.

98.

Short title, construction and commencement.

FIRST SCHEDULE Policies of Life Insurance SECOND SCHEDULE Agreement between the Government of Ireland and the Government of the United Kingdom with respect to certain exemptions from tax THIRD SCHEDULE Extension of Charge to Tax to Profits and Income Derived from Activities Carried on and Employments Exercised on the Continental Shelf — Supplementary Provisions FOURTH SCHEDULE Protocol between the Government of Ireland and the Government of the United Kingdom amending the Agreement for the Reciprocal Relief of Double Taxation in respect of Irish Corporation Profits Tax and United Kingdom Profits Tax, signed on 18 May 1949 FIFTH SCHEDULE

Part I

Disallowance of Trading Losses and Restriction of Capital Allowances

Part II

Provisions for Determining the amount of Capital held in a Company through other Companies SIXTH SCHEDULE Spirits (Rates of Ordinary Customs Duty) SEVENTH SCHEDULE Duties on Tobacco

Part I

Customs

Part II

Customs

Part III

Customs

Part IV

Excise EIGHTH SCHEDULE Scale of Rates of Estate Duty NINTH SCHEDULE Stamp Duties on Instruments

Part I

Bond, Covenant or Instrument of any kind whatsoever

Part II

Conveyance or Transfer on sale of any property other than stocks or marketable securities

Part III

Part IV

Mortgage, Bond, Debenture, Covenant (except a marketable security) and Warrant of Attorney to confess and enter up judgment TENTH SCHEDULE Amendment of Enactments ELEVENTH SCHEDULE Enactments Repealed Acts Referred to Income Tax Act, 1967 1967, No. 6 Finance Act, 1969 1969, No. 21 Finance Act, 1972 1972, No. 19 Finance Act, 1971 1971, No. 23 Continental Shelf Act, 1968 1968, No. 14 Finance Act, 1968 1968, No. 33 Finance Act, 1936 1936, No. 45 Other Minerals Development Act, 1960 1960, No. 7 Patents Act, 1964 1964, No. 12 Stamp Act, 1891 1891, c. 39 Value-Added Tax Act, 1972 1972, No. 22 Finance Act, 1929 1929, No. 32 Finance Act, 1920 1920, c. 18 Finance Act, 1949 1949, No. 13 Finance Act, 1964 1964, No. 15 Finance (Miscellaneous Provisions) Act, 1968 1968, No. 7 Friendly Societies Act, 1896 1896, c. 25 Finance Act, 1933 1933, No. 15 Finance Act, 1919 1919, c. 32 Finance Act, 1926 1926, No. 35 Finance Act, 1932 1932. No. 20 Finance Act, 1940 1940, No. 14 Finance Act, 1934 1934, No. 31 Tobacco Act, 1842 1842, c. 93.

Manufactured Tobacco Act, 1863 1863, c. 7 Finance Act, 1961 1961, No. 23 Finance Act, 1931 1931, No. 31 Finance (1909-10) Act, 1910 1910, c. 8 Finance Act, 1965 1965, No. 22 Unit Trusts Act, 1972 1972, No. 17 Finance Act, 1951 1951, No, 15 Finance Act, 1956 1956, No. 22 Finance Act, 1970 1970, No. 14 Finance Act, 1935 1935, No. 28 Central Bank Act, 1971 1971, No. 24 Limited Partnerships Act, 1907 1907, c. 24 Finance Act, 1899 1899, c. 9 Finance (Excise Duties) (Vehicles) Act, 1952 1952, No. 24 Road Traffic Act, 1961 1961, No. 24 Roads Act, 1920 1920, c. 72 Finance Act, 1962 1962, No. 15 Number 19 of 1973 FINANCE ACT, 1973 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. [4th August, 1973] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Income Tax, Sur-Tax and Corporation Profits Tax

Chapter I

Income Tax Amendment of section 129 of Income Tax Act, 1967.

1.—(1)

Section 129

of the Income Tax Act, 1967 , is hereby amended by the addition of the following: “Provided that if the amount of the interest as so calculated is less than £5, the amount of interest payable shall be £5.”.

Amendment of section 138 of Income Tax Act, 1967.

2.—

Section 138

Amendment of section 141 of Income Tax Act, 1967.

3.—

Section 141

of the Income Tax Act, 1967 , is hereby amended—

Provided that— (i) any deduction under subsection (1) (b) (ii) shall be in substitution for, and not in addition to, any deduction to which the claimant might be entitled in respect of the child under section 142; and (ii) a claimant shall not be entitled to more than one deduction under subsection (1) in respect of the same child.”.

Provided that a claimant who in consequence of the provisions of this subsection has the amount of income tax payable by him increased shall be entitled to have that amount reduced to a sum equal to the aggregate of the following amounts, that is to say, the amount of tax which would have been payable if his total income had amounted to, but not exceeded, £2,500 and the amount by which his total income exceeds £2,500.”.

(4)

Section 523

Amendment of section 142 of Income Tax Act, 1967.

4.—

Section 142

Amendment of section 154 of Income Tax Act, 1967.

5.—For the purposes of section 154 of the Income Tax Act, 1967 , no account shall be taken of any tax paid in respect of income for a year of assessment beginning after the year 1972-73 or of any relief to which a person would have been entitled for such a year of assessment in the circumstances mentioned in that section.

Amendment of section 211 of Income Tax Act, 1967.

6.—

Section 211

of the Income Tax Act, 1967 , is hereby amended by the deletion of subsection (4).

Amendment of section 229 of Income Tax Act, 1967.

7.—

Section 229

Restriction of section 246 of Income Tax Act, 1967.

8.—(1)

Section 246

of the Income Tax Act, 1967 , shall not apply to any expenditure incurred on or after the 24th day of July, 1973, and before the 1st day of April, 1975, on the purchase of a new ship.

Amendment of section 251 of Income Tax Act, 1967.

9.—(1)

Section 251

of the Income Tax Act, 1967 , is hereby amended by the substitution in subsection (4) (d) (inserted by the Finance Act, 1972 ) of “the 1st day of April, 1975” for “the 1st day of April, 1973”.

Amendment of section 254 of Income Tax Act, 1967.

10.—

Section 254

Amendment of section 272 of Income Tax Act, 1967.

11.—(1)

Section 272

of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (5) of the following subsections: “(5) Where the aggregate amount of initial allowances and wear and tear allowances made to any person in respect of any machinery or plant exceeds the actual amount of the expenditure incurred by him on the provision of the said machinery or plant, the amount of such excess (in this subsection referred to as the excess amount) shall, on the occurrence of an event falling within any of the paragraphs (a), (b) or (c) of subsection (1), be deemed to be a payment of an equal amount received by the person on account of sale, insurance, salvage or compensation moneys and shall be added to any other such moneys received in respect of the said machinery or plant and a balancing charge shall be made, and the amount on which it is made shall be an amount equal to— (a) where there are no sale, insurance, salvage or compensation moneys, the said excess amount, or (b) where there are sale, insurance, salvage or compensation moneys, the aggregate of such moneys and the said excess amount. (5A) Where, as respects any machinery or plant, an event falling within any of the paragraphs (a), (b) or (c) of subsection (1) is followed by another event falling within any of those paragraphs, any balancing allowance or balancing charge made to or on a person by virtue of the happening of the later event shall take account of any balancing allowance or balancing charge previously made to or on that person in respect of the expenditure incurred by him on the provision of that machinery or plant.”.

Amendment of section 336 of Income Tax Act, 1967.

12.—

Section 336

of the Income Tax Act, 1967 , is hereby amended by the substitution of “£450” for “£350” (inserted by the Finance Act, 1971 ).

Amendment of section 357 of Income Tax Act, 1967.

13.—

Section 357

Amendment of section 387 of Income Tax Act, 1967.

14.—

Section 387

of the Income Tax Act, 1967 , is hereby amended by the addition thereto of the following subsection— “(4) (a) Where, under section 456, a body corporate is entitled to deduct income tax from any dividend, not being a dividend to which subsection (2) or (3) applies, tax shall not in any case be deducted at a rate exceeding the rate of income tax as reduced by any relief from that tax given under or by virtue of this Chapter, and the provisions of section 457 shall apply accordingly, with any necessary modifications. (b) The rate of income tax at which any repayment of income tax for any year of assessment falls to be made shall be subject to such adjustments as may be proper in cases in which relief is given under or by virtue of this Chapter. (c) Where, by virtue of paragraph (a), income tax is deducted from a dividend at a reduced rate, the amount to be included in respect of the dividend in any return for the purpose of sur-tax shall be an amount which bears the same proportion to the amount of the dividend as the rate of income tax deducted therefrom bears to the rate which would have been authorised to be deducted if this subsection had not been enacted.”.

Amendment of section 439 of Income Tax Act, 1967.

15.—

Section 439

Amendment of section 22 of Finance Act, 1971.

16.—

Section 22

Amendment of section 26 of Finance Act, 1971.

17.—

Section 26

Amendment of section 21 of Finance Act, 1972.

18.—

Section 21

of the Finance Act, 1972 , is hereby amended— (a) by the addition to subsection (2) of the following proviso: “Provided that, in the case of any repayment under a statutory scheme established under a public statute, the administrator of the scheme shall be entitled to deduct the tax chargeable in respect of that repayment from the amount thereof”, and (b) by the substitution in subsection (4) of “if the administrator is entitled under the rules of the relevant scheme or otherwise” for “if the rules of the relevant scheme permit its administrator”.

Payments in respect of thalidomide children.

19.—(1) Income to which this section applies shall be disregarded for all the purposes of the Income Tax Acts.

Bodies for the promotion of Universal Declaration of Human Rights and the implementation of European Convention for the Protection of Human Rights and Fundamental Freedoms.

20.—Where any body of persons having consultative status with the United Nations Organisation or the Council of Europe— (a) has as its sole or main object the promotion of observance of the provisions of the Universal Declaration of Human Rights or the implementation of the European Convention for the Protection of Human Rights and Fundamental Freedoms or both, and (b) is precluded by its rules or constitution from the direct or indirect payment or transfer, otherwise than for valuable and sufficient consideration, to any of its members of any of its income or property by way of dividend, gift, division, bonus or otherwise howsoever by way of profit, there shall, on a claim in that behalf being made to the Revenue Commissioners, be allowed, in the case of the body, such exemption from income tax as falls to be allowed under section 333 of the Income Tax Act, 1967 , in the case of a body of persons established for charitable purposes only the whole income of which is applied to charitable purposes only.

Payments to universities.

21.—(1) Where a person carrying on a trade or profession— (a) pays, on or after the 6th day of April, 1973, any sum to an Irish university for the purpose of enabling the university to undertake research in, or engage in the teaching of, approved subjects, and (b) the sum so paid is not income to which section 439 of the Income Tax Act, 1967 , applies, the sum so paid shall, if not otherwise so deductible, be deducted as an expense in computing the profits or gains of the person's trade or profession.

Recovery of income tax.

22.—

Section 131

of the Income Tax Act, 1967 , shall apply to the recovery of— (a) any amount of tax estimated under section 7 of the Finance Act, 1968 , and (b) any amount of tax estimated under section 8 of the said Finance Act, 1968 , or any balance of tax so estimated but remaining unpaid, as if the amount so estimated or the balance of tax so estimated but remaining unpaid were an amount of tax which any person paying emoluments was liable under Chapter IV of Part V of the Income Tax Act, 1967 , and any regulations thereunder, to pay to the Revenue Commissioners.

Policies of life insurance.

23.—(1) This section applies to any policy of life insurance made on the life of a person under the age of fifty-six years which is an endowment policy within the meaning of subsection (2) and which is or was issued in respect of an insurance made on or after the 16th day of May, 1973:

Provided that a policy of life insurance issued in respect of an insurance made before the 16th day of May, 1973, shall be treated for the purposes of this section as issued in respect of one made after that date if it is varied on or after that date so as to increase the benefits secured or to extend the term of the insurance.

Business entertainment expenses.

24.—(1)

Section 61

(a) of the Income Tax Act, 1967 , shall as respects expenses incurred in providing business entertainment have effect as if “wholly, exclusively and necessarily” were substituted for “wholly and exclusively”.

Capital allowances for cars costing over £2,500.

25.—(1) In relation to a vehicle to which this section applies, section 241 of the Income Tax Act, 1967 , shall have effect as if, for the purposes of subsection (7) of that section, the actual cost of the vehicle were taken to be £2,500 where the expenditure incurred on the provision of the vehicle exceeded that amount and, where a deduction which, apart from this subsection, would be allowed under the said section 241 falls to be reduced by virtue of this subsection, any reference in the Income Tax Acts to a deduction allowed under the said section 241 shall be construed as a reference to that deduction as reduced under this subsection.

Provided that where this subsection has had effect on any occasion in relation to the vehicle, and no sale or gift of the vehicle has since occurred other than one to which either of the said sections 277 and 299 applies, then, in relation to all persons concerned, the like consequences under this subsection shall ensue as respects a sale, gift or succession falling within paragraphs (a) to (c) which occurs on any subsequent occasion as if the person who in relation to that sale, gift or succession is the prior owner had incurred expenditure on the provision of the vehicle of an amount equal to the expenditure so incurred by the person who was the prior owner on the first-mentioned occasion.

Limit on renewals allowance for cars.

26.—In determining what amount (if any) is allowable— (a) to be deducted in computing profits or gains chargeable to tax under Schedule D, or (b) to be deducted from emoluments chargeable to tax under Schedule E, or (c) to be taken into account for the purposes of a management expenses claim under section 214 of the Income Tax Act, 1967 , in respect of capital expenditure, being expenditure exceeding £2,500, incurred on the provision of a vehicle to which this section applies, the excess over £2,500 shall be disregarded for all purposes; but if on the replacement of the vehicle any amount becomes allowable as aforesaid in respect of capital expenditure on any other vehicle, any deduction falling to be made, in determining the last-mentioned amount, for the value or proceeds of sale of the replaced vehicle or otherwise in respect thereof shall be reduced in the proportion which £2,500 bears to the cost of the replaced vehicle.

Limit on deductions, etc., for hiring cars.

27.—Where apart from this section the amount of any expenditure on the hiring (otherwise than by way of hire-purchase) of a vehicle to which this section applies would be allowed to be deducted or taken into account as mentioned in section 26, and the retail price of the vehicle at the time it was made exceeded £2,500, the said amount shall be reduced in the proportion which £2,500 bears to the said price.

Cars: provisions as to hire-purchase, etc.

28.—(1) In the case of a vehicle to which this section applies, being a vehicle of which the retail price at the time of the contract in question exceeds £2,500, the following provisions shall have effect.

Cars: provisions where hirer becomes owner.

29.—Where a person, having hired (otherwise than by way of hire-purchase) a vehicle to which section 27 applies subsequently becomes the owner thereof and the retail price of the vehicle at the time it was made exceeded £2,500, then for the purposes of the Income Tax Acts (and in particular sections 25 and 27)— (a) so much of the aggregate of the payments for the hire of the vehicle and of any payment for the acquisition thereof as does not exceed the retail price of the vehicle at the time it was made shall be treated as capital expenditure incurred on the provision of the vehicle, and as having been incurred when the hiring began, and (b) the payments to be treated as expenditure on the hiring of the vehicle shall be rateably reduced so as to amount in the aggregate to the balance.

Supplementary provisions relating to sections 25 to 29.

30.—(1) Subject to the next following subsection, the vehicles to which sections 25 to 29 apply are mechanically propelled road vehicles constructed or adapted for the carriage of passengers, other than vehicles of a type not commonly used as a private vehicle and unsuitable to be so used.

Provided that if during the period of five years beginning with the time when the vehicle was provided he puts it, to any substantial extent, to a use which does not serve that purpose and that purpose only, this subsection shall be deemed not to have had effect in relation to the vehicle.

Income tax on certain dividends.

31.—Subject to the provisions of sections 76 and 77 of the Income Tax Act, 1967 , as modified by Part III of Schedule 6 to that Act, where income tax is chargeable under Case III of Schedule D in respect of income which is a dividend, within the meaning of Article 1 of the Agreement set forth in the Second Schedule, being a dividend paid on or after the 6th day of April, 1973, and not later than the 5th day of April, 1975, the income so chargeable to income tax shall include the amount of the tax credit for the payment of which provision is made in the said Article 1.

Confirmation of agreement on double taxation.

32.—The agreement, set forth in the Second Schedule, made on the 2nd day of May, 1973, between the Government and the United Kingdom Government amending the agreement made on the 14th day of April, 1926, and set forth in Part I of Schedule 6 to the Income Tax Act, 1967 , as amended by the agreement made on the 25th day of April, 1928, and set forth in that Part, is hereby confirmed and, subject to confirmation by the United Kingdom Parliament, shall have effect accordingly.

Chapter II

Income Tax, Sur-tax and Corporation Profits Tax Extension of charge to tax to profits and income derived from activities carried on and employments exercised on the Continental Shelf.

33.—(1) In this section and in the Third Schedule— (a) “exploration or exploitation activities” means activities carried on in connection with the exploration or exploitation of so much of the sea bed and subsoil and their natural resources as is situated in the State or in a designated area; (b) “exploration or exploitation rights” means rights to assets to be produced by exploration or exploitation activities or to interests in or to the benefit of such assets; (c) “designated area” means an area designated by order under section 2 of the Continental Shelf Act, 1968 ; (d) “tax” means income tax, sur-tax or corporation profits tax, as appropriate, and “for tax purposes” means for purposes of any of the said taxes.

Exemption from tax of income from patent royalties.

34.—(1) In this section— “a qualifying patent” means a patent in relation to which the research, planning, processing, experimenting, testing, devising, designing, developing or similar activity leading to the invention which is the subject of the patent was carried out in the State; “income from a qualifying patent” means any royalty or other sum paid in respect of the user of the invention to which the qualifying patent relates and includes any sum paid for the grant of a licence to exercise rights under such patent; “resident of the State” means any person who is resident in the State for the purposes of income tax and who is not resident elsewhere; a company shall be regarded as a resident of the State if it is managed and controlled in the State.

Interest on unpaid taxes and duties.

35.—Interest payable under— (a) section 15 of the Stamp Act, 1891, and subsections (2) and (3) of section 69 of this Act, (b) section 129 of the Income Tax Act, 1967 , or (c) section 21 of the Value-Added Tax Act, 1972 , shall be payable without any deduction of income tax and shall not be allowed in computing any income, profits or losses for any of the purposes of the Income Tax Acts or of the enactments relating to corporation profits tax.

Chapter III

Corporation Profits Tax Continuance of certain exemptions from corporation profits tax.

36.—The exemptions from corporation profits tax specified in section 33

Corporation profits tax on certain dividends.

37.—Where profits chargeable to corporation profits tax under section 52 of the Finance Act, 1920 , include a dividend, within the meaning of Article 1 of the Agreement set forth in the Second Schedule to this Act, being a dividend paid on or after the 6th day of April, 1973, and not later than the 5th day of April, 1975, the profits so chargeable shall include the amount of any tax credit appropriate to the dividend for the payment of which provision is made in the said Article I.

Confirmation of protocol on double taxation.

38.—The protocol, set forth in the Fourth Schedule to this Act, signed on the 2nd day of May, 1973, between the Government and the United Kingdom Government amending the agreement set forth in

Part I

of the Fifth Schedule to the Finance Act, 1949 , is hereby confirmed, and, subject to confirmation by the United Kingdom Parliament, shall have effect accordingly.

Chapter IV

Anti-avoidance and penalty provisions Change in ownership of company: disallowance of trading losses and restriction of capital allowances.

39.—(1) Where a relevant change in the ownership of a company takes place— (a) no relief shall be given under section 309 of the Income Tax Act, 1967 , in respect of a loss sustained in a trade carried on by the company in any year of assessment ending before the change in ownership, by deducting such loss from or setting it off against the amount of the profits or gains on which the company is assessed to income tax under Schedule D in respect of that trade for any year of assessment beginning after the said change in ownership; (b) the amount of the capital allowances falling to be made in charging the profits or gains of a trade carried on by the company in any year of assessment ending before the change in ownership shall not, for the purposes of section 241

and (ii) the amount of the relief which would have been given if the loss sustained by the company in that year of assessment had been only the amount of the post-change loss and the income of the company for the said year of assessment had been only the amount of the post-change taxed income together with the amount of the post-change income. (d) Any pre-change loss, for which relief is not given or is not given fully under any provision of the Income Tax Acts as modified by this subsection, shall not be taken into account for the purposes of section 309 of the Income Tax Act, 1967 .

Restriction of balancing allowances on sale of industrial buildings and structures.

40.—(1) This section shall have effect where— (a) the relevant interest in a building or structure is sold subject to an inferior interest; and (b) by virtue of the sale a balancing allowance under section 265 of the Income Tax Act, 1967 , would, apart from this section, fall to be made to or for the benefit of the person (in this section referred to as the relevant person) who was entitled to the relevant interest immediately before the sale; and (c) either— (i) the relevant person, the person to whom the relevant interest is sold and the grantee of the inferior interest, or any two of them, are connected with each other within the meaning of subsection (6), or (ii) it appears with respect to the sale or the grant of the inferior interest, or with respect to transactions including the sale or grant, that the sole or main benefit which, but for this section, might have been expected to accrue to the parties or any of them was the obtaining of an allowance or deduction under Chapter I of Part XVI of the Income Tax Act, 1967 .

Amendment of section 117 of Income Tax Act, 1967.

41.—

Section 117

of the Income Tax Act, 1967 , is hereby amended by the addition of the following subsections: “(7) Where expense is incurred by a person connected with a body corporate, being expense which if incurred by the body corporate would be expense of the kind mentioned in paragraph (a) of subsection (1), the body corporate shall be deemed, for the purposes of this section, to have incurred the expense and the provisions of subsection (1) shall apply accordingly in relation to any person, being a director or employee of the body corporate, in respect of whom the expense was incurred.

Cesser of section 121 of Income Tax Act, 1967.

42.—

Section 121

of the Income Tax Act, 1967 , shall not apply or have effect in relation to the year 1973-74 or any subsequent year of assessment.

Amendment of section 128 of Income Tax Act, 1967.

43.—

Section 128

of the Income Tax Act, 1967 , is hereby amended— (a) by the insertion in subsection (1) after “documents” of “or to remit tax to the Collector”, and (b) by the insertion after that subsection of the following subsection: “(1A) Where the person mentioned in subsection (1) is a body of persons, the secretary shall be liable to a separate penalty of £20.”.

Amendment of section 335 of Income Tax Act, 1967.

44.—

Section 335

of the Income Tax Act, 1967 , is hereby amended by the addition thereto of the following subsections: “(2) A registered friendly society shall not be entitled to exemption from tax under this section in relation to any year of assessment, being the year 1973-74 or any subsequent year, if the Revenue Commissioners determine, for the purposes of entitlement to exemption for that year, that the society does not satisfy the following conditions: (a) that it was established solely for any or all of the purposes set out in section 8

Amendment of section 413 of Income Tax Act, 1967.

45.— section 413

Amendment of section 503 of Income Tax Act, 1967.

46.— section 503

PART II

Customs and Excise Beer.

47.—(1) In lieu of the duty of excise imposed by section 27

(5)

Section 24

of the Finance Act, 1933 , shall not apply or have effect in relation to the duty of customs imposed by this section.

Spirits.

48.—(1) The Finance Act, 1920 , shall, as on and from the 17th day of May, 1973, be amended by the substitution in Part I of the First Schedule thereto of the matter set out in Part I of the Sixth Schedule to this Act for the matter inserted in the said Part of the said First Schedule by section 28 of the Finance Act, 1971 , and section 3

Section 28

Tobacco.

49.—(1) Subject to subsections (2), (3) and (4) of this section, the duty of customs on tobacco imposed by section 20 of the Finance Act, 1932 , shall, as on and from the 17th day of May, 1973, be charged, levied and paid at the several rates specified in

Part I

of the Seventh Schedule to this Act in lieu of the several rates specified in Parts I, II and III of the Second Schedule to the Finance Act, 1969 .

Part I

of the Seventh Schedule to this Act were included in the first column of the Second Schedule to that Act after the expression “manufactured tobacco” and the appropriate preferential rates mentioned in that Part were mentioned in the second column of the said Second Schedule opposite the mention of those goods in the first column thereof in lieu of the rate mentioned in the said second column opposite the mention of manufactured tobacco in the said first column.

Part II

of the Seventh Schedule to this Act in lieu of the several rates specified in Part I thereof. (c) In this subsection the expression “the United Kingdom” means Great Britain, Northern Ireland, the Isle of Man and the Channel Islands.

Part III

of the Seventh Schedule to this Act in lieu of the several rates specified in Part I thereof. (c) The provisions of section 8 of the Finance Act, 1919 , shall apply to the duties imposed by this subsection— (i) with the substitution of “the area of application of the Acts of the Oireachtas” for “Great Britain and Ireland” and as though the expression “manufactured tobacco” in the first column of the Second Schedule to that Act did not include manufactured tobacco to which this subsection applies, (ii) as though manufactured tobacco to which this subsection applies, together with the descriptions of such manufactured tobacco in

Part III

of the Seventh Schedule to this Act, were mentioned separately in the said first column and the appropriate preferential rates specified in that Part were mentioned in the second column of the said Second Schedule opposite the mention of those goods in the first column thereof, and (iii) subject to the last paragraph (beginning with “Goods shall not be deemed”) of subsection (1) of the said section 8 being disregarded. (d) In this subsection the expression “the United Kingdom” means Great Britain, Northern Ireland, the Isle of Man and the Channel Islands. (e) The expression “hard pressed tobacco” mentioned in

Part III

of the Seventh Schedule to this Act and the next paragraph of this subsection has the same meaning as it has in section 17 of the Finance Act, 1940 . (f) The expression “other pipe tobacco” mentioned in

Part III

of the Seventh Schedule to this Act means manufactured tobacco of kinds normally intended to be used in pipes, not being hard pressed tobacco.

Part IV

of the Seventh Schedule to this Act in lieu of the several rates specified in Part IV of the Second Schedule to the Finance Act, 1969 .

Tobacco (excise duty on certain stocks).

50.—(1) Subject to the provisions of subsections (2) and (3) of this section, there shall be charged, levied and paid on all stocks of tobacco of every description which at five o'clock on the afternoon of the 16th day of May, 1973, are in the ownership or possession of a licensed manufacturer of tobacco and in any place in the State other than a bonded warehouse, a duty of excise, payable by the manufacturer, at the following rate, that is to say: (a) so far as the stocks consist of unmanufactured tobacco, £0.627 for every pound weight of the stocks, and (b) so far as the stocks consist of tobacco (including snuff) other than unmanufactured tobacco, £0.627 for every pound weight of unmanufactured tobacco from which, in the opinion of the Revenue Commissioners, the stocks were derived.

Provided that no tobacco shall be deemed for the purposes of this subsection to have been fully prepared for sale by retail if, according to the ordinary course of business of the person in whose ownership or possession it was or to whom it was in transit, it had still to be subjected to some further process (other than packing) before being sold by him.

Cigarettes for export.

51.—(1) Sections 1, 3, 4, 5 and 8 of the Tobacco Act, 1842, shall not apply in relation to— (a) cigarettes manufactured, for the purpose of being exported, wholly or partly from articles or goods permitted by the Revenue Commissioners under section 38 of the Finance Act, 1932 , to be imported without payment of any duty of customs, or (b) the manufacture, or anything used in the manufacture, of such cigarettes.

Confirmation of Orders.

52.—The Orders mentioned in the Table to this section are hereby confirmed.

TABLE Imposition of Duties (No. 199) (Excise Duties) (Firearm Certificates) Order, 1972 Imposition of Duties (No. 200) (Customs and Excise Duties and Form of Tariff) Order, 1972 Imposition of Duties (No. 201) (Customs Duties and Form of Customs Tariff) Order, 1973 Imposition of Duties (No. 202) (Customs and Excise Duties and Form of Tariff) (Amendment) Order, 1973 Imposition of Duties (No. 203) (Customs Duties and Form of Customs Tariff) Order, 1973 Imposition of Duties (No. 204) (Customs Duties and Form of Customs Tariff) Order, 1973 Imposition of Duties (No. 205) (Beer, Spirits, Tobacco, Hydrocarbon Oils and Wine) Order, 1973.

PART III

Death Duties Alteration of rates of estate duty.

53.—In the case of persons dying on or after the 16th day of May, 1973, the scale of rates set out in the Eighth Schedule to this Act shall be, and shall have effect as, the scale of rates of estate duty in lieu of the scale set out in the Second Schedule to the Finance Act, 1972 , and appropriate repayments shall be made accordingly.

Provisions consequential on alteration of rates of estate duty.

54.—(1)

Section 26

(2)

Section 29

of the Finance Act, 1931 , is hereby amended by the substitution of “ten thousand pounds” for “seven thousand five hundred pounds” (inserted by the Finance Act, 1972 ).

Amendment of rates of legacy duty and succession duty.

55.—(1) Any legacy or succession duty which under the existing law is payable at the rate of five per cent. shall be payable at the rate of ten per cent. and any legacy or succession duty which under the existing law is payable at the rate of ten per cent. shall be payable at the rate of twenty per cent. on the amount or value of the legacy or succession.

Abatement of estate duty.

56.—(1)

Section 45

of the Finance Act, 1969 , is hereby amended by the substitution of “£4,000” for “£2,000” (inserted by the Finance Act, 1972 ) and “£2,000” for “£1,000” (inserted by the said Finance Act, 1972 ) in each place where they respectively occur in subsections (2), (3), (4) and (5).

Amendment of section 61 of Finance (1909-10) Act, 1910.

57.—(1)

Section 61

Amendment of section 24 of Finance Act, 1965.

58.—(1)

Section 24

of the Finance Act, 1965 , is hereby amended— (a) by the substitution in subsection (1) of the following paragraph for paragraph (d): “(d) The aggregate value of all death benefits payable on a death shall be reduced for estate duty purposes by £7,500 or the said aggregate value, whichever is the lesser.”, (b) by the deletion in subsection (1) (f) of the definition of “dependent child” (c) by the deletion in subsection 2 (a) of “, to or for the benefit of the widow or dependent children of the deceased”, and (d) by the deletion in subsection 2 (b) of “, ‘dependent children’”.

Relief for certain moneys payable under policies of assurance.

59.—(1) Where the property passing or deemed to pass on the death of the deceased includes policy moneys, the principal value of such policy moneys for estate duty purposes shall be reduced by £7,500 or the said principal value, whichever is the lesser.

Exemption from duty of certain unit trusts.

60.—(1) In this section— “securities” means securities (including debenture stock, mortgage bonds and mortgage stock and certificates of charge under the Agricultural Credit Acts, 1927 to 1972) issued, whether before or after the passing of this Act, with a condition that they be exempt from taxation when in the beneficial ownership of persons neither domiciled nor ordinarily resident in the State; “unit trust scheme” means a unit trust scheme registered in the register established by the Unit Trusts Act, 1972 , whose deed expressing the trusts of the scheme, restricts the property subject to those trusts to securities.

Amendment of section 33 of Finance Act, 1935.

61.—(1)

Section 33

of the Finance Act, 1935 , is hereby amended by the substitution for subsection (6) of the following subsection: “(6) In this section— ‘banker’ means a person who carries on banking business in the State and includes a friendly society, an industrial and provident society, a building society, the Post Office Savings Bank, a trustee savings bank, the Industrial Credit Company, Limited, the Agricultural Credit Corporation Limited, and any person with whom money is lodged or deposited; ‘pay’ includes transfer in the books of a banker and any dealings whatsoever with any moneys which were lodged or deposited in the name of a person who died after the time of the lodgment or deposit and any other person or persons; ‘current account’ means an account which is customarily operated on by means of a cheque or banker's order; ‘banking business’ has the same meaning as in section 2 of the Central Bank Act, 1971 ; references to moneys lodged or deposited include references to shares of a building society, friendly society or industrial and provident society.”

PART IV

Stamp Duties

Chapter I

Miscellaneous Commencement (Chapter 1).

62.—This Chapter shall come into operation on the 1st day of August, 1973, or the date of the passing of this Act, whichever is the later, and shall not have effect in relation to any instrument executed before such coming into operation.

Amendment of section 88 of Stamp Act, 1891 63.—Section 88 of the Stamp Act, 1891, is hereby amended by the substitution of the following subsection for subsection (2): “(2) As respects an instrument executed on or after the 1st day of June, 1973, or deemed by virtue of this subsection to be a new and separate instrument executed on or after the 1st day of June, 1973, where such total amount is unlimited, the security shall— (a) if unstamped, or if stamped with ad valorem duty to cover an amount not exceeding £10,000, be available only for £10,000, and (b) if stamped with ad valorem duty to cover an amount exceeding £10,000, be available for such amount only; but where any advance or loan is made in excess of £10,000 or such greater amount as may be covered by that duty, the security shall, for the purpose of stamp duty, be deemed to be a new and separate instrument, executed on the day on which the advance or loan is made”.

Amendment of First Schedule to Stamp Act, 1891.

64.—(1) The Heading set out in

Part I

of the Ninth Schedule to this Act is hereby substituted for the Heading “BOND, COVENANT, or INSTRUMENT of any kind whatsoever” in the First Schedule (as amended by the Finance Act, 1970 ), to the Stamp Act, 1891.

Amendment of section 50 of Finance Act, 1969.

65.—

Section 50

Revocation of Order.

66.—The Imposition of Duties (No. 206) (Stamp Duty on Certain Instruments) Order, 1973, is hereby revoked.

Chapter II

Stamp Duty on Capital Companies Interpretation (Chapter II).

67.—In this Chapter, save where the context otherwise requires— “capital company” means— (a) a company incorporated with limited liability, or a limited partnership formed under the law of the State or a company or partnership which is incorporated or formed in any other Member State and which, under the law of that State, corresponds to any such company or partnership, or (b) any other company, firm, association or legal person the shares in whose capital or assets can be dealt in on a stock exchange, or (c) any other company, firm, association or legal person operating for profit whose members have the right to dispose of their shares to third parties without prior authorisation and are responsible for the debts of the company, firm, association or legal person only to the extent of their shares; “Member State” means a Member State of the European Economic Community; “operative date” means the 1st day of August, 1973, or the date of the passing of this Act, whichever is the later; “registrar” means the registrar of companies within the meaning of the Companies Act, 1963 ; “stamp duty” means the stamp duty imposed by section 68 of this Act; “statement” means the statement required to be delivered under section 69

Charge of stamp duty.

68.—(1) This section applies to the following transactions taking place on or after the operative date— (a) the formation of a capital company; (b) the conversion into a capital company of a company, firm, association or legal person which is not a capital company; (c) an increase in the capital of a capital company by the contribution of assets of any kind other than an increase in capital through capitalisation of profits or of reserves, whether temporary or permanent reserves, but including the conversion of loan stock of a capital company into share capital; (d) an increase in the assets of a capital company by the contribution of assets of any kind in consideration, not of shares in the capital or assets of the company, but of rights of the same kind as those of members of the company such as voting rights, a share in the profits or a share in the surplus upon liquidation; (e) the transfer from a third country to the State of the effective centre of management of a capital company whose registered office is in a third country; (f) the transfer from a third country to the State of the registered office of a capital company whose effective centre of management is in a third country; (g) the transfer from a Member State to the State of the effective centre of management of a capital company which is not considered to be a capital company in the other Member State; (h) the transfer from a Member State to the State of the registered office of a capital company whose effective centre of management is in a third country and which is not considered to be a capital company in the Member State from which the registered office is being transferred.

Statement to be charged with stamp duty.

69.—(1) Where any transaction takes place, a statement of the assets, liabilities and expenses referred to in section 70 of this Act shall be delivered to the registrar— (a) in the case of the formation of a capital company which is to be incorporated under the Companies Act, 1963 , or formed under the Limited Partnerships Act, 1907 , before the incorporation or registration thereof, and (b) in any other case, within 30 days after the date of the transaction, and the statement shall be charged with stamp duty at the rate of £1 for every £100 or part of £100 of the amount determined in accordance with the said section 70;

Provided that in the case referred to in paragraph (a) of this subsection, the statement shall be charged with stamp duty of not less than £1:

Provided also that, in the case referred to in paragraph (a) of this subsection, if there is difficulty in ascertaining the exact amount in respect of which stamp duty is chargeable, the statement shall be charged in the first instance with stamp duty at the rate aforesaid in respect of such amount as the Revenue Commissioners consider appropriate and, if afterwards— (i) it is established that too little duty has been paid, the additional duty shall be payable and be treated as duty in arrear, and (ii) it is established that too much duty has been paid, the excess shall be repaid by the Revenue Commissioners with interest at the rate of 9 per cent. per annum.

Amount on which stamp duty chargeable.

70.—Stamp duty shall be charged— (a) in the case of a transaction specified in paragraph (a), (c) or (d) of section 68

Provided that, in any case, the amount in respect of which stamp duty is charged shall not be less than the actual value or the nominal value (whichever is the greater) of the shares (if any) in the company concerned allotted to the members of the capital company in connection with the transaction or belonging to the members of the capital company immediately after the transaction:

Provided also that, in arriving at the amount of the actual value in respect of which the duty is charged, there shall be excluded the amount of any assets aforesaid contributed in connection with the transaction by a member with unlimited liability or the share of such a member in the assets of the company.

Abolition of certain stamp duty and relief in respect of certain payments of stamp duty.

71.—(1) (a) In the case of any transaction specified in section 68

Reconstructions or amalgamations of capital companies.

72.—(1) If, in the case of a transaction, a capital company or a capital company which is in the process of being formed (in this section referred to as the transferee company) acquires either— (a) the undertaking or part of the undertaking of another capital company (in this section referred to as the transferor company), or (b) share capital of another capital company to an extent that, after that transaction, but not necessarily as a result of that transaction, the transferee company owns at least 75 per cent. of the issued share capital of that other company (in this section referred to as the transferor company), then, subject to the provisions of this section, stamp duty on the statement delivered in accordance with section 69 (1) shall be charged at the rate of zero per cent. (in this section referred to as the reduced rate):

Provided that, where the percentage referred to in paragraph (b) of this subsection is reached by means of two or more transactions, the reduced rate shall apply only to the transaction whereby this percentage is achieved and to any transaction subsequent to the achievement and retention of that percentage.

Provided, however, that the reduced rate shall continue to apply if the transfer, as a result of which the shares in question were not held for a period of five years, was either— (a) a transfer forming part of a transaction which would of itself qualify for the reduced rate pursuant to subsection (1) of this section, or (b) a transfer in the course of the liquidation of the transferee company.

Exemption for certain companies.

73.—Stamp duty shall not be charged in the case of a transaction that is effected by— (a) a capital company which is formed for the purpose of and carries on exclusively the business of supplying a public service such as public transport or port facilities, or supplying water, gas or electricity, and not less than fifty per cent. of the issued capital of which is owned by the State or a local authority, or (b) a capital company whose objects are exclusively cultural, charitable or educational:

Provided that the statement which is required to be delivered in pursuance of section 69

Appeals in certain cases.

74.—A person who is dissatisfied with a decision of the Revenue Commissioners under this Chapter on the amount of the actual value of any assets referred to in section 70 of this Act may— (a) in the case of stocks, shares or other securities which are not dealt in on a stock exchange, appeal to the Appeal Commissioners (within the meaning of section 33 of the Finance Act, 1972 ) against the decision and the said section 33 shall, with any necessary modifications, apply to an appeal under this paragraph as if the appeal were an appeal under that section, (b) in the case of land, appeal against the decision in the manner prescribed by section 33 of the Finance (1909-10) Act, 1910 ; and so much of Part I of that Act as relates to appeals shall, with any necessary modifications, apply to an appeal under this paragraph as if the appeal were an appeal under that section.

Recovery of stamp duty and furnishing of information.

75.—(1) Stamp duty and the interest thereon shall be recoverable from the capital company concerned and, in any case where the capital company is not a body corporate, shall be recoverable from the members of the capital company jointly and severally.

PART V

Value-Added Tax Commencement (Part V).

76.—This Part (other than section 90, in so far as it amends the definition of “manufacturer” in section 1 (1) of the Principal Act) shall come into operation on the 3rd day of September, 1973. “Principal Act”.

77.—In this Part “the Principal Act” means the Value-Added Tax Act, 1972 .

Amendment of section 3 of Principal Act.

78.—Section 3 of the Principal Act is hereby amended by the insertion of the following subsection after subsection (1): “(1A) Where— (a) goods of a kind specified in paragraph (xii) of the Second Schedule are supplied in a form suitable for human consumption without further preparation, (b) the supply is made— (i) by means of a vending machine, or (ii) in the course of operating a hotel, restaurant, cafe, refreshment house, canteen, establishment licensed for the sale of intoxicating liquor, catering business or similar business, or (iii) in the course of operating any other business in connection with the carrying on of which facilities are provided for the consumption of the goods supplied, and (c) apart from this subsection, the supply would constitute a delivery of the goods, the supply shall, for all the purposes of this Act, be deemed to be a rendering of services and not a delivery of goods.”.

Amendment of section 5 of Principal Act.

79.—Section 5 of the Principal Act is hereby amended— (a) by the substitution for subsection (2) of the following subsection : “(2) (a) Services, whether or not rendered for a consideration or for a separate consideration, which, apart from this subsection, would not be regarded as rendered by a person in the course of business, shall, subject to and to the extent provided by regulations, be regarded as rendered by him in the course of business if they are connected with any business activity in which he engages. (b) For the purposes of this subsection and section 32, services shall be regarded as connected with a business activity in which a person engages if he provides facilities for, or contributes in whole or part towards the cost of, rendering them.”, and (b) by the insertion in subsection (5) after paragraph (b) of the following paragraph : “(c) This subsection shall not apply to a supply of goods of a kind specified in paragraph (xii) of the Second Schedule.”.

Amendment of section 11 of Principal Act.

80.—Section 11 of the Principal Act is hereby amended— (a) by the substitution of the following paragraphs for paragraphs (a) and (b) of subsection (1) : “(a) 6.75 per cent. of the appropriate amount of any consideration, other than consideration to which paragraph (b) applies, which relates to the delivery of goods of a kind specified in Part I of the Third Schedule or the rendering of services of a kind specified in Part II of that Schedule, (b) 11.11 per cent. of the appropriate amount of any consideration which relates to the promotion of dances and the delivery (if any) of goods of a kind specified in paragraphs (vi) to (viii) and (xii) to (xv) of the Second Schedule or in Part I of the Third Schedule and the rendering (if any) of services which, but for this paragraph, would be chargeable at the rate specified in paragraph (a) delivered or rendered in connection with dances, where payment of the consideration for such delivery or rendering is included in the consideration in respect of admission to the dance or is a condition of admission,”, (b) by the substitution in subsection (1) (c) of “36.75” for “30.26”, (c) by the substitution in subsection (1) (e) of “19.50” for “16.37”, (d) by the insertion of the following subsections after subsection (1): “(1A) (a) The rate at which tax shall be chargeable shall, in relation to tax chargeable under section 2 (1) (a), be the rate for the time being in force at the time at which the tax becomes due in accordance with subsection (1) or (2), as may be appropriate, of section 19. (b) Goods or services which are specifically excluded from any paragraph of a Schedule shall, unless the contrary intention is expressed, be regarded as excluded from every other paragraph of that Schedule, and shall not be regarded as specified in that Schedule. (1B) (a) On receipt of an application in writing from an accountable person, the Revenue Commissioners shall, in accordance with regulations and after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, make a determination concerning— (i) whether an activity of any particular kind carried on by the person is an exempted activity, or (ii) the rate at which tax is chargeable in relation to the delivery by the person of goods of any kind, the delivery of goods in any particular circumstances or the rendering by the person of services of any kind. (b) The Revenue Commissioners may, whenever they consider it expedient to do so, in accordance with regulations and after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, make a determination concerning—

(i) whether an activity of any particular kind is an exempted activity, or (ii) the rate at which tax is chargeable in relation to the delivery of goods of any kind, the delivery of goods in any particular circumstances or the rendering of services of any kind. (c) A determination under this subsection shall have effect for all the purposes of this Act, in relation to an accountable person who makes an application therefor, as on and from the date upon which particulars of the determination are communicated to him in accordance with paragraph (e) (i) and, in relation to any other person, as on and from the date of publication of the determination in the Iris Oifigiúil. (d) The Revenue Commissioners shall not make a determination under this section concerning any matter which has been determined on appeal under this Act or which is for the time being governed by an order under section 6 (2) or 11 (8), and shall not be required to make such a determination in relation to any of the matters referred to in an application under paragraph (a) if— (i) a previous determination has been published in regard to the matter, or (ii) in their opinion the subject matter of the application is sufficiently free from doubt as not to warrant the making and publication of a determination. (e) (i) A determination under paragraph (a) shall, as soon as may be after the making thereof, be communicated to the person who made the application therefor by the service on him by the Revenue Commissioners of a notice containing particulars of the determination. (ii) A determination under paragraph (a) may and a determination under paragraph (b) shall be published in the Iris Oifigiúil and, in that event, it shall also be published in at least one daily newspaper published in the State. (f) A person, aggrieved by a determination under paragraph (a) made pursuant to an application by him, may, on giving notice in writing to the Revenue Commissioners within the period of twenty-one days beginning on the date of service on him of notice of the determination in accordance with paragraph (e) (i), appeal to the Appeal Commissioners. (g) Any accountable person who, in the course of business, delivers goods or renders services of a kind or in circumstances specified in a determination under paragraph (a) or (b) may, on giving notice in writing to the Revenue Commissioners within the period of twenty-one days beginning on the date of the publication of the determination in the Iris Oifigiúil, appeal to the Appeal Commissioners.”,

(e) by the insertion of the following subsection after subsection (4): “(4A) Where— (a) goods of a kind specified in paragraph (xii) of the Second Schedule are used by a person in the course of the rendering by him of taxable services, and (b) the goods are supplied by the person to whom the services are rendered or by any other person other than the person by whom the services are rendered, the person who renders the taxable services shall be deemed to have supplied the goods so used in the course of business and shall be liable, in addition to any other liability imposed on him under this Act, to pay tax on the value of the goods so used at the rate specified in section 11 (1) (a).”, and (f) by the substitution of the following paragraph for paragraph (a) of subsection (8): “(a) The Minister may by order vary the Second or Third Schedules by adding to or deleting therefrom descriptions of goods or services of any kind or by varying any description of goods or services for the time being specified therein, and may, in like manner, vary the Fourth Schedule by deleting therefrom descriptions of goods of any kind or by varying any description of goods for the time being specified therein, but no order shall be made under this section for the purpose of increasing any of the rates of tax or extending the classes of activities or goods in respect of which tax is for the time being chargeable.”.

Amendment of section 12 of Principal Act.

81.—Section 12 of the Principal Act is hereby amended— (a) by the insertion of the following subsection after subsection (1)—