Finance Act, 1937 , shall apply in relation to the allowance as they apply in relation to deductions allowable in respect of wear and tear of machinery and plant.
\n
(2)Any charge falling to be made under any of the provisions of this Part of this Act on a person for any year of assessment in charging the profits or gains of his trade shall be made by means of an assessment in addition to any other assessment falling to be made thereon for that year.
\n
(3)The preceding provisions of this section shall apply in relation to professions, employments, vocations and offices as they apply in relation to trades.
\n
Manner of granting, and effect of, allowances made by way of discharge or repayment of tax.
\n
59.—(1) Where, under any of the provisions of this Part of this Act, an allowance falls to be made to a person for any year of assessment which is to be given by way of discharge or repayment of tax, and is to be available, or available primarily, against a specified class of income, the amount of the allowance shall be deducted from or set off against income of his of that class for that year of assessment, and, if the amount to be allowed is greater than the amount of his income of that class for that year of assessment, the balance shall be deducted from or set off against his income of that class for the next year of assessment, and so on for subsequent years of assessment, and tax shall be discharged or repaid accordingly:
\n
Provided that where the allowance is available primarily against income of the specified class and the amount of the allowance is greater than the amount of the person's income of that class for the first-mentioned year of assessment, he may, by notice in writing given to the inspector of taxes not later than one year after the end of the year of assessment, elect that the excess shall be deducted from or set off against his other income for that year of assessment, and it shall be deducted from or set off against that income and tax discharged or repaid accordingly and only the excess, if any, of the amount of the allowance over all his income for that year of assessment shall be deducted from or set off against his income of the specified class for succeeding years.
\n
(2)Subsection (2) of section 5 of the Income Tax Act, 1918, shall apply in relation to the allowances mentioned in subsection (1) of this section as it applies in relation to the allowances and adjustments mentioned in that subsection.
\n
(3)Any claim for such an allowance as is mentioned in subsection (1) of this section shall be made to and determined by the inspector of taxes, but any person aggrieved by any decision of the inspector of taxes on any such claim may, on giving notice in writing to the said inspector within twenty-one days after the notification to him of the decision, appeal to the Special Commissioners.
\n
(4)The Special Commissioners shall hear and determine an appeal to them under subsection (3) of this section as if it were an appeal against an assessment to income tax, and the provisions of the Income Tax Acts relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law, shall, with the necessary modifications, apply accordingly.
\n
(5)If any person, for the purpose of obtaining for himself or any other person any relief from or repayment of tax in respect of such an allowance as is mentioned in subsecton (1) of this section, knowingly makes any false statement or false representation, he shall be liable to a penalty of five hundred pounds.
\n
Meaning of “basis period” .
\n
60.—(l) In this Part of this Act, “basis period” has the meaning assigned to it by the following provisions of this section.
\n
(2)In the case of a person to or on whom an allowance or charge falls to be made in charging the profits or gains of his trade, his basis period for any year of assessment is the period on the profits or gains of which income tax for that year falls to be finally computed under Case I of Schedule D in respect of the trade in question or, where, by virtue of any Act, the profits or gains of any other period are to be taken to be the profits or gains of the said period, that other period:
\n
Provided that, in the case of any trade— (a) where two basis periods overlap, the period common to both shall be deemed for the purpose of this subsection to fall in the first basis period only, (b) where there is an interval between the end of the basis period for one year of assessment and the basis period for the next year of assessment, then, unless the secondmentioned year of assessment is the year of the permanent discontinuance of the trade, the interval shall be deemed to be part of the second basis period, and (c) where there is an interval between the end of the basis period for the year of assessment preceding that in which the trade is permanently discontinued and the basis period for the year in which it is permanently discontinued, the interval shall be deemed to form part of the first basis period.
\n
(3)Any reference in the proviso to subsection (2) of this section to the overlapping of two periods shall be construed as including a reference to the coincidence of two periods or to the inclusion of one period in another, and references to the period common to both of two periods shall be construed accordingly.
\n
(4)Where an allowance or charge falls to be made under
\n
Chapter II
\n
of this Part of this Act to or on a person carrying on or holding a profession, employment, vocation or office, the provisions of the preceding subsections of this section shall apply as if the references to a trade included references to a profession, employment, vocation or office and as if the reference to Case I of Schedule D included references to Case II of Schedule D and to Schedule E.
\n
(5)In the case of any other person to or on whom an allowance or charge falls to be made under this Part of this Act, his basis period for any year of assessment is the year of assessment itself.
\n
Apportionment of consideration and exchanges and surrenders of leasehold interests.
\n
61.—(1) Any reference in this Part of this Act to the sale of any property includes a reference to the sale of that property together with any other property and, where property is sold together with other property, so much of the net proceeds of the sale of the whole property as, on a just apportionment is properly attributable to the first-mentioned property shall, for the purposes of this Part of this Act, be deemed to be the net proceeds of the sale of the first-mentioned property, and references to expenditure incurred on the provision or the purchase of property shall be construed accordingly.
\n
For the purposes of this subsection, all the property which is sold in pursuance of one bargain shall be deemed to be sold together, notwithstanding that separate prices are or purport to be agreed for separate items of that property or that there are or purport to be separate sales of separate items of that property.
\n
(2)The provisions of subsection (1) of this section shall, with the necessary adaptations, apply in relation to other sale, insurance, salvage or compensation moneys as they apply in relation to the net proceeds of sales.
\n
(3)This Part of this Act shall have effect as if any reference therein (including any reference in the preceding provisions of this section) to the sale of any property included a reference to the exchange of any property and, in the case of a leasehold interest, also included a reference to the surrender thereof for valuable consideration and any provisions of this Part of this Act referring to sales shall have effect accordingly with the necessary adaptations and, in particular, with the adaptations that references to the net proceeds of sale and to the price shall be taken to include references to the consideration for the exchange or surrender and references to capital sums included in the price shall be taken to include references to so much of the consideration as would have been a capital sum if it had taken the form of a money payment.
\n
(4)As respects any year of assessment beginning on or after the commencement of this Part of this Act, the preceding provisions of this section shall, with the necessary adaptations, have effect in relation to— (a) Rules 6 and 7 of the Rules applicable to Cases I and II of Schedule D, and (b)
\n
Part V
\n
of Finance Act, 1956 , as if the said Rules 6 and 7 and the said Part V were provisions of this Part of this Act.
\n
Special provisions as to certain sales.
\n
62.—(1) The provisions of this section shall have effect in relation to sales of any property where either— (a) the buyer is a body of persons over whom the seller has control, or the seller is a body of persons over whom the buyer has control, or both the seller and the buyer are bodies of persons and some other person has control over both of them, or (b) it appears with respect to the sale or with respect to transactions of which the sale is one, that the sole or main benefit which, apart from the provisions of this section, might have been expected to accrue to the parties or any of them was the obtaining of an allowance or deduction under Rule 6 or Rule 7 of the Rules applicable to Cases I and II of Schedule D,
\n
Part V
\n
of Finance Act, 1956 , or any of the provisions of this Part of this Act.
\n
References in this subsection to a body of persons include references to a partnership.
\n
(2)Where the property is sold at a price other than that which it would have fetched if sold in the open market, then, subject to the provisions of subsections (3) and (4) of this section, the like consequences shall ensue for the purposes of the enactments mentioned in subsection (1) of this section, in their application to the income tax of all persons concerned, as would have ensued if the property had been sold for the price which it would have fetched if sold in the open market.
\n
(3)Where the sale is a sale of machinery or plant— (a) no initial allowance shall be made to the buyer, and (b) subject to the provisions of subsection (4) of this section, if the price which the property would have fetched if sold in the open market is greater than the amount which, for the purpose of determining whether any, and if so, what, balancing charge should be made on the seller in respect of the property under
\n
Chapter II
\n
of this Part of this Act, would be taken to be the amount of the capital expenditure incurred by the seller on the provision of the property, subsection (2) of this section shall have effect as if for each of the references to the price which the property would have fetched if sold in the open market there were substituted a reference to the said amount:
\n
Provided that this subsection shall not apply in relation to a sale of machinery or plant which was never used if the business or part of the business of the seller was the manufacture or supply of machinery or plant of that class and the sale was effected in the ordinary course of the seller's business.
\n
(4)(a) Subject to subsection (5) of this section, where the sale is one to which paragraph (a) of subsection (1) of this section applies and paragraph (b) of that subsection does not apply, and the parties to the sale by notice in writing to the inspector of taxes so elect, the following provisions shall have effect: (i) subsection (2) of this section shall have effect as if, for each of the references to the price which the property would have fetched if sold in the open market, there were substituted a reference to that price or to the sum hereinafter mentioned, whichever is the lower, (ii) paragraph (b) of subsection (3) of this section shall not apply, and (iii) notwithstanding anything in the preceding provisions of this section, such balancing charge, if any, shall be made on the buyer on any event occurring after the date of the sale as would have fallen to be made on the seller if the seller had continued to own the property and had done all such things and been allowed all such allowances or deductions in connection therewith as were done by or allowed to the buyer. (b) The sum referred to in subparagraph (i) of paragraph (a) of this subsection is— (i) in the case of an industrial building or structure, the residue of the expenditure on the construction of that building or structure immediately before the sale, computed in accordance with the provisions of section 27 of this Act, (ii) in the case of machinery or plant, the amount of the expenditure on the provision thereof still unallowed immediately before the sale, computed in accordance with the provisions of section 36 of this Act, (iii) in the case of patent rights, the amount of the capital expenditure on the acquisition thereof remaining unallowed, computed in accordance with the provisions of section 48 of this Act.
\n
(5)An election under paragraph (a) of subsection (4) of this section may not be made if— (a) any of the parties to the sale is not resident in the State at the time of sale, and (b) the circumstances are not at that time such that an allowance or charge under this Part of this Act falls or might fall to be made to or on that party in consequence of the sale, but, except as aforesaid, this section shall have effect in relation to a sale notwithstanding that it is not fully applicable by reason of the non-residence of a party to the sale or otherwise.
\n
(6)In this section “control”, in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership.
\n
Effect, in certain cases, of successions to trades, etc.
\n
63.—(1) Where, on or after the 15th day of April, 1959, a person succeeds to any trade, profession or vocation which until that time was carried on by another person and, by virtue of any of the provisions of Rule 11 of the Rules applicable to Cases I and II of Schedule D, the trade, profession or vocation is to be treated as discontinued, any property which, immediately before the succession takes place, was in use for the purposes of the discontinued trade, profession or vocation and, without being sold, is immediately after the succession takes place, in use for the purposes of the new trade, profession or vocation, shall, for the purposes of this Part of this Act, and of Rules 6 and 7 of the Rules applicable to Cases I and II of Schedule D, be treated as if it had been sold to the successor when the succession takes place, and as if the net proceeds of that sale had been the price which that property would have fetched if sold in the open market.
\n
(2)Where, after the setting up and before the permanent discontinuance of a trade, profession or vocation which at any time is carried on in partnership anything is done for the purposes thereof, any allowance or charge which, if the trade, profession or vocation had at all times been carried on by one and the same person, would have fallen to be made to or on him under any of the provisions of this Part of this Act, shall be made to or on the person or persons from time to time carrying on that trade, profession or vocation, and the amount of any such allowance or charge shall be computed as if that person or those persons had at all times been carrying on the trade, profession or vocation and as if everything done to or by his or their predecessors in the carrying on thereof had been done to or by him or them.
\n
(3)In relation to machinery or plant this section shall have effect subject to the provisions of
\n
Chapter II
\n
of this Part of this Act.
\n
Procedure on apportionments etc.
\n
64.—(1) Where, under or by virtue of any provisions of this Part of this Act, any sum falls to be apportioned and, at the time of the apportionment, it appears that it is material as respects the liability to income tax (for whatever year of assessment) of two or more persons, any question which arises as to the manner in which the sum is to be apportioned shall be determined, for the purposes of the income tax of all those persons, by the Special Commissioners, in like manner as if it were an appeal against an assessment to income tax under Schedule D, and the provisions of the Income Tax Acts relating to such an appeal shall apply accordingly with any necessary modifications:
\n
Provided that all the said persons shall be entitled to appear and be heard by the Special Commissioners or to make representations to them in writing.
\n
(2)This section applies in relation to any determination for the purposes of this Part of this Act of the price which property would have fetched if sold in the open market as it applies in relation to apportionments.
\n
Property used for purposes of “exempted trading operations”.
\n
65.—(1) Where an event occurs which gives rise, or would, but for this section, give rise to a balancing allowance or balancing charge in respect of any property to or on a company in relation to which a certificate under subsection (2) of section 3 of Finance (Miscellaneous Provisions) Act, 1958 , has been given, then, whether the certificate is still in force or not, the following provisions of this section shall apply.
\n
(2)If the property has been used by the company exclusively for the purposes of its exempted trading operations within the meaning of Part II of the said Act, no balancing allowance or balancing charge shall be made.
\n
(3)If the property has been used partly for the purposes of the company's exempted trading operations and partly for the purposes of its other trading operations, regard shall be had to all the relevant circumstances of the case and there shall be made to or on the company an allowance of such an amount, or, as the case may be, a charge on such an amount, as may be just and reasonable.
\n
Interpretation of certain references to expenditure, etc.
\n
66.—(1) References in this Part of this Act to capital expenditure and capital sums— (a) in relation to the person incurring the expenditure or paying the sums, do not include any expenditure or sum which is allowed to be deducted in computing, for the purposes of income tax, the profits or gains of a trade, profession, office, employment or vocation carried on or held by him, and (b) in relation to the person receiving the amounts expended or the sums in question, do not include references to any amounts or sums which fall to be taken into account as receipts in computing the profits or gains of any trade, profession, office, employment or vocation carried on or held by him, and do not include, in relation to any such person as aforesaid, any expenditure or sum in the case of which a deduction of tax falls or may fall to be made, otherwise than by virtue of the provisions of
\n
Chapter III
\n
of this Part of this Act relating to charges on capital sums received for patent rights, under Rule 19 or Rule 21 of the General Rules.
\n
(2)Any reference in this Part of this Act to the date on which expenditure is incurred shall be construed as a reference to the date when the sums in question become payable.
\n
(3)Expenditure shall not be regarded for any of the purposes of this Part of this Act as having been incurred by any person in so far as it has been or is to be met directly or indirectly by the State, by any board established by statute or by any public or local authority:
\n
Provided that in considering whether any and, if so, what, balancing charge is to be made on a person under
\n
Chapter II
\n
of this Part of this Act in respect of any machinery or plant provided before the 15th day of April, 1959, this subsection shall not apply.
\n
Other provisions as to interpretation.
\n
67.—(1) In this Part of this Act, except where the context otherwise requires— “income” includes any amount on which a charge to tax is authorised to be made under any of the provisions of this Part of this Act; “lease” includes an agreement for a lease where the term to be covered by the lease has begun, and any tenancy, but does not include a mortgage, and “lessee”, “lessor” and “leasehold interest” shall be construed accordingly; “sale, insurance, salvage or compensation moneys” mean, in relation to an event which gives rise or might give rise to a balancing allowance or a balancing charge to or on any person— (a) where the event is a sale of any property, the net proceeds to that person of the sale, (b) where the event is the demolition or destruction of any property, the net amount received by him for the remains of the property, together with any insurance moneys received by him in respect of the demolition or destruction and any other compensation of any description received by him in respect thereof, in so far as that compensation consists of capital sums, (c) as respects machinery or plant, where the event is the permanent loss thereof otherwise than in consequence of its demolition or destruction, any insurance moneys received by him in respect of the loss and any other compensation of any description received by him in respect thereof, in so far as that compensation consists of capital sums, and (d) where the event is that a building or structure ceases altogether to be used, any compensation of any description received by him in respect of that event, in so far as that compensation consists of capital sums,
\n
(2)Any reference in this Part of this Act to any building, structure, machinery or plant shall be construed as including a reference to a part of any building, structure, machinery or plant.
\n
(3)The provisions of this Part of this Act shall apply in relation to a share in machinery or plant as they apply in relation to a part of machinery or plant, and for the purposes of those provisions a share in machinery or plant shall be deemed to be used for the purposes of a trade so long as, and only so long as, the machinery or plant is used for the purposes thereof.
\n
(4)Any reference in this Part of this Act to the time of any sale shall be construed as a reference to the time of completion or the time when possession is given, whichever is the earlier.
\n
(5)Any reference in this Part of this Act to the setting up or permanent discontinuance of a trade includes, except where the contrary is expressly provided, a reference to the occurring of any event which, under any of the provisions of the Income Tax Acts, is to be treated as equivalent to the setting up or permanent discontinuance of a trade.
\n
(6)Any reference in this Part of this Act to an allowance made or deduction allowed includes a reference to an allowance or deduction which would be made or allowed but for an insufficiency of profits or gains, or other income, against which to make it.
\n
Consequential amendments.
\n
68.—(1) Finance Act, 1958 , is hereby amended as follows: (i) in subsection (8) of section 40 “or” shall be deleted at the end of paragraph (b) and there shall be added after paragraph (c): “or (d) income treated as earned income by virtue of section 53 of the Finance Act, 1959,”; (ii) in subsection (3) of section 41 , “or” before “
\n
Part V
\n
of Finance Act, 1957 ” shall be deleted and “or Part V of the Finance Act, 1959,” shall be inserted before “and references to income”; (iii) in clause (b) of subparagraph (3) of paragraph 5 of the Third Schedule, “or” before “
\n
Part V
\n
of Finance Act, 1957 ” shall be deleted and “or Part V of the Finance Act, 1959,” shall be inserted before “for any year of assessment”.
\n
(2)Subsection (2) of section 8 of Finance (Miscellaneous Provisions) Act, 1958 , is hereby amended by the addition at the end of the subsection of “or any annual allowances under Chapter or Chapter III, or Chapter IV of Part V of the Finance Act, 1959”.
\n
Allowances and charges in relation to corporation profits tax.
\n
69.—(1) Where any of the following allowances: (a) an allowance under Rule 6 of the Rules applicable to Cases I and II of Schedule D, (b) an allowance under subsection (3), or paragraph (b) of subsection (4), of section 5 or section 6 of Finance Act, 1946 , (c) an allowance under
\n
Part V
\n
of Finance Act, 1956 , in respect of expenditure incurred after the commencement of this Part of this Act, (d) an allowance under
\n
Part IV
\n
of Finance (Miscellaneous Provisions) Act, 1956 , in respect of expenditure incurred after the commencement of this Part of this Act, (e) an annual allowance or a balancing allowance under
\n
Chapter I
\n
, II or III of this Part of this Act, or (f) an initial allowance, annual allowance or other allowance under
\n
Chapter IV
\n
of this Part of this Act, is made to any company for the purposes of income tax for any year of assessment and the allowance is related to any business carried on by that company, the appropriate amount shall be deducted in computing the profits of the business for the purposes of corporation profits tax for any accounting period (being an accounting period ending on or after the commencement of this Part of this Act) any part of which falls within that year of assessment.
\n
(2)For the purposes of subsection (1) of this section, an allowance shall be treated as related to a business if, and only if, either— (a) it is made in charging the profits or gains of a trade which is, or is comprised in, that business, (b) it is made in charging the profits or gains of a trade and is so made in respect of, or of expenditure on, property used for the purposes of a part of the trade which is, or is comprised in, that business, or (c) it is an allowance made by way of discharge or repayment of tax under or by virtue of any of the provisions of this Part of this Act and is in respect of, or of expenditure on, property the rent of which is included in the profits of the business for the purposes of corporation profits tax for any period or would have been so included if there had been any such rent.
\n
(3)Where any of the following charges: (a) a balancing charge under
\n
Chapter I
\n
, II or III of this Part of this Act, or (b) a charge under section 50 of this Act, is made on any company for the purposes of income tax for any year of assessment, and the charge is related to a business, the appropriate amount shall be treated as a trading receipt in computing the profits of the business for the purposes of corporation profits tax for any accounting period any part of which falls within that year of assessment.
\n
(4)For the purposes of subsection (3) of this section, a charge shall be treated as related to a business if, and only if, either— (a) it is made in charging the profits or gains of a trade which is, or is comprised in, that business, (b) it is made in charging the profits or gains of a trade and is a balancing charge in respect of, or of expenditure on, property used for the purposes of a part of the trade which is, or is comprised in, that business, (c) it is a balancing charge in respect of, or of expenditure on, property the rent of which is included in the profits of the business for the purposes of corporation profits tax for any accounting period or would have been so included if there had been any such rent, or (d) it is a charge under section 50 of this Act and the patent rights in question have at any time been used for the purposes of the business.
\n
(5)In subsections (1) and (3) of this section “the appropriate amount” shall be construed as follows: (a) in a case in which the business commenced or discontinued during the year of assessment in question, the said expression— (i) if no more than one accounting period of the business falls, whether wholly or partly within the year of assessment, means the whole amount of the allowance or, as the case may be, the whole amount on which the charge is made, and (ii) if more than one accounting period of the business falls, whether wholly or partly, within the year of assessment, means, in relation to each such accounting period, the portion of the allowance, or, as the case may be, the portion of the amount on which the charge is made, which bears to the whole thereof the same proportion as the length of the said accounting period, so far as included in the said year of assessment, bears to the total length of all such accounting periods, so far as so included; (b) in any other case, the said expression— (i) where the year of assessment in question and the accounting period in question coincide, means the whole amount of the allowance, or, as the case may be, the whole amount on which the charge is made, and (ii) where part only of the year of assessment falls within that accounting period, means such portion of the allowance or, as the case may be, such portion of the amount on which the charge is made as is apportioned to that part of the year of assessment which falls within that accounting period.
\n
(6)Where the profits of a business are not chargeable or not wholly chargeable to income tax, the like deductions and additions shall be made under subsections (1) and (3) of this section in computing the profits of the business for the purposes of corporation profits tax (being deductions and additions in respect of matters in respect of which no deductions or additions otherwise fall to be made under those subsections respectively) as would have fallen to be made for income tax purposes if the profits of the business had been so chargeable or wholly so chargeable.
\n
(7)Where, under this section, an amount falls to be apportioned to a part of a year of assessment or accounting period, the apportionment shall be made by reference to the number of months or fractions of months contained in that part, and in the remainder, of that year or period.
\n
(8)In this section— (a) “business” means any trade or business or any undertaking of a similar character the profits whereof are profits to which Part V of the Finance Act, 1920 , applies, and (b) any reference to an allowance made for any year of assessment does not include a reference to any amount carried forward from any previous year of assessment.
\n
(9)In relation to any accounting period ending on or after the commencement of this Part of this Act— (a) paragraph (e) of the proviso to subsection (2) of section 53 of the Finance Act, 1920 , shall cease to have effect in so far as it is inconsistent with the provisions of this section, and (b) section 27 of Finance Act, 1956 , and section 20 of Finance (Miscellaneous Provisions) Act, 1956 , shall cease to have effect as respects expenditure incurred after such commencement.
\n
PART VI.
\n
Amendment of Finance (Miscellaneous Provisions) Act, 1956, and Training of Local Staff before Commencement of Trading Income Tax, Sur-tax and Corporation profits Tax.
\n
Interpretation (
\n
Part VI
\n
).
\n
70.—In this Part of this Act “the Act” means Finance (Miscellaneous Provisions) Act, 1956 .
\n
Amendment of Part III of the Act (repairs to ships, greeting cards).
\n
71.—(1) In the case of a company carrying on the trade of building or repairing ships, the following provisions shall apply for the purposes of relief from income tax and corporation profits tax under Part III of the Act: (a) repairs carried out within the State to a ship shall be regarded as the manufacture within the State of goods and, to the extent to which any such repairs have been carried out within the State to a ship which is wholly owned by persons who are not ordinarily resident in the State, the ship shall be regarded as goods which are manufactured within the State and exported by the person who manufactures them and any amount receivable in payment for repairs carried out within the State to a ship shall be regarded as an amount receivable from the sale of goods; (b) where, as respects any year of assessment or any accounting period, the company, by notice in writing given to the inspector of taxes within twelve months after the end of that year or period, so elects, the Act shall apply in the case of that year or period— (i) as if all ships built by the company within the State had been exported by the company, (ii) as if all ships to which repairs were carried out by the company within the State were, to the extent of such repairs, goods exported by the company, and (iii) as if amounts receivable by the company in payment for the building within the State or of the repair within the State of ships were amounts receivable from the sale of goods exported by the company out of the State.
\n
(2)In paragraphs (a) and (b) of subsection (1) of this section, any reference to repair or building, as well as including a reference to repair or building effected on or after the 6th day of April, 1959, also includes a reference to repair or building effected before that day.
\n
(3)Each of the references to books contained in paragraph (d) of subsection (2); of section 56 of Finance Act, 1958 , shall be construed as including a reference to greeting cards.
\n
(4)This section shall have effect— (a) in relation to income tax, for any year of assessment beginning on or after the 6th day of April, 1959, and (b) in relation to corporation profits tax, for any accounting period or part of an accounting period subsequent to the 5th day of April, 1959, and, in the case of corporation profits tax, the Revenue Commissioners may, for the purposes of this section in relation to any-such part of an accounting period, make such apportionments as may be appropriate.
\n
Amendment of Part III of the Act (adjustment of certain amounts).
\n
72.—(1) This section shall take effect for the purposes of relief from income tax or corporation profits tax under Part III of the Act, and in this section “the company” means a company claiming relief pursuant to that Part.
\n
(2)Where it appears to the Revenue Commissioners that, in the case of goods of a particular class, the relationship between the amount receivable from the sale in any period of goods exported and the amount receivable from the sale in that period of goods not exported is affected by the payment by the company of any duty in respect of the goods or the materials used in their manufacture, the Revenue Commissioners may direct that subsection (3) or subsection (4) of this section, whichever appears to them to be appropriate, shall apply in arriving at an amount receivable from the sale in that period of such goods, and where any such direction has been given, any relief to the company by reference to the sale of goods in that period shall be computed in accordance with it.
\n
(3)(a) An amount receivable from the sale of goods exported out of the State shall be deemed to be increased by the amount of any drawback, rebate or repayment of duty, being duty payable in the State, received by the company in respect of such goods and to be reduced by the amount of any duty paid in any territory outside the State by the company in respect of the import of such goods into that territory. (b) An amount receivable from the sale of goods not exported shall be deemed to be increased by the amount of any rebate or repayment of duty, being duty payable in the State, received by the company in respect of such goods.
\n
(4)(a) An amount receivable from the sale of goods exported out of the State shall be deemed to be reduced by the amount of any duty paid in any territory outside the State by the company in respect of the import of such goods into that territory. (b) An amount receivable from the sale of goods not exported shall be deemed to be reduced by the amount of any duty, being duty payable in the State, paid by the company in respect of such goods.
\n
(5)The Revenue Commissioners may by notice in writing require the company to furnish them with such information or particulars as may be necessary for the purpose of giving effect to this section, and subsection (1) of section 12 and subsection (1) of section 13 of the Act shall have effect as if the matters of which proof is required by those subsections included the information or particulars specified in a notice under this subsection.
\n
(6)This section shall have effect as from the passing of the Act, and relief from tax in relation to the period between such passing and the passing of this Act may be given accordingly either by repayment or otherwise as the Revenue Commissioners think proper.
\n
Amendment of Part IV of the Act.
\n
73.—(1) Section 17 of the Act is hereby amended— (i) by the addition at the end of subsection (1) of the word “or” and the following paragraph: “(c) for the purposes of a dock undertaking.” (ii) by the insertion after subsection (3) of the following subsection: “(3A) In this section ‘dock ’ includes any harbour, wharf, pier or jetty or other works in or at which vessels can ship or unship merchandise or passengers, not being a pier or jetty primarily used for recreation, andi ‘dock undertaking’ shall be construed accordingly.”
\n
(2)Section 19 of the Act shall have effect as if paragraph (b) and the proviso to that paragraph were deleted and the following paragraphs inserted in lieu thereof: “(b) any expenditure on the provision of machinery or plant or on any asset which is treated for any year of assessment as machinery or plant, or (c) any expenditure in respect of which an allowance is or may be made, for the same or for any previous or subsequent year of assessment, under subsection (3) of section 5 or under section 6 of Finance Act, 1946 (No. 15 of 1946).”
\n
(3)Where capital expenditure is incurred on preparing, cutting, tunnelling or levelling land for the purposes of preparing the land as a site for the installation of machinery or plant, the machinery or plant shall, as regards that expenditure, be treated, for the purposes of Part IV of the Act, as a building or structure.
\n
(4)In relation to industrial building allowances for years of assessment beginning on or after the 6th day of April, 1959, other than amounts carried forward from any year of assessment ended before that date, this section shall have effect as from the commencement of the Act.
\n
Training of local staff before commencement of trading.
\n
74.—(1) Where, before the day (being the 6th day of April, 1959, or a later day) of the setting up or commencement of a trade consisting of the production for sale of manufactured goods, a person who is about to carry on the trade incurs or has incurred expenditure on the recruitment and training, with a view to their employment in the trade, of persons all or a majority of whom are Irish citizens— (a) for the year of assessment in which that day occurs and each of the next two years of assessment, there shall be made to him an allowance equal to one-third of that expenditure, and such allowance shall be made as a deduction in charging the profits or gains of the trade, (b) in the case of a company, that expenditure shall be treated for the purposes of corporation profits tax as if one-thirty-sixth thereof had been incurred in each of the thirty-six consecutive months the first of which is that beginning with that day, (c) paragraph (3) of Rule 6 of the Rules applicable to Cases I and II of Schedule D and section 4 of Finance Act, 1937 , shall apply in relation to an allowance under paragraph (a) of this subsection as they apply in relation to a deduction allowable in respect of wear and tear of machinery or plant.
\n
(2)For the purposes of this section— (a) expenditure shall not include any expenditure incurred by a person in respect of which no deduction would have been allowable to him, in computing the profits or gains of the trade under the Rules applicable to Cases I and II of Schedule D, if it had been incurred on or after the day of the setting up or commencement of the trade, (b) expenditure shall not be regarded as having been incurred, by a person in so far as it has been or is to be met directly or indirectly by the State, by any board established by statute or by any public or local authority.
\n
(3)For the purposes of this section, the date on which any expenditure is incurred shall be taken to be the date on which the sum in question becomes payable.
\n
(4)Any claim by a person for an allowance under this section shall be included in the annual statement required to be delivered under the Income Tax Acts of the profits or gains of his trade and shall be accompanied by a certificate signed by the claimant, which shall be deemed to form part of the claim, stating that the expenditure was incurred on the recruitment and training, with a view to their employment in the trade, of persons all or a majority of whom are Irish citizens and giving such particulars as show that the allowance falls to be made.
\n
PART VII.
\n
Stamp Duties.
\n
Stamp duty on policies of insurance.
\n
75.—(1) In the First Schedule to the Stamp Act, 1891, before the head of charge “Policy of Life Insurance” there shall be inserted the following— £ s. d. “Policy of Insurance other than Life Insurance 0 0 6”, and the head of charge “Policy of Sea Insurance” and the head of charge beginning “Policy of Insurance against Accident” shall be omitted.
\n
(2)The following shall be exempt from all stamp duties: (a) cover notes, slips and other instruments usually made in anticipation of the issue of a formal policy, not being instruments relating to life insurance; (b) instruments embodying alterations of the terms or conditions of any policy of insurance other than life insurance; and an instrument exempted by virtue of paragraph (a) of this subsection shall not be taken for the purposes of the Stamp Act, 1891, to be a policy of insurance.
\n
(3)An instrument shall not be charged with duty exceeding sixpence by reason only that it contains or relates to two or more distinct matters each falling within the head of charge inserted by subsection (1) of this section.
\n
(4)In consequence of subsection (1) of this section, the Stamp Act, 1891, shall be amended as follows: (a) sections 92 to 97 shall cease to have effect; (b) section 100 shall have effect as if the exceptions therein as to sea insurance were omitted; (c) section 116 shall apply in relation to all policies of insurance other than life insurance, and the second part of the Second Schedule shall have effect accordingly; and the said section 100 shall not apply in relation to an insurance or a policy effecting an insurance if the insurance is such that a policy effecting it is exempt from all stamp duties.
\n
(5)Paragraphs (2) to (5) of section 23 of the Marine Insurance Act, 1906 , and subsection (2) of section 25 thereof shall cease to have effect.
\n
(6)Notwithstanding the repeal of section 93 of the Stamp Act, 1891, a contract for such insurance as is mentioned in section 506 of the Merchant Shipping Act, 1894 , shall continue to be admissible in evidence although not embodied in a marine policy as required by section 22 of the Marine Insurance Act, 1906 .
\n
(7)This section shall come into operation on the 1st day of August, 1959, and shall not have effect with respect to any instrument executed before that day.
\n
Amendment of section 19 (1) (b) of Finance Act, 1952.
\n
76.—(1) Paragraph (b) of subsection (1) of section 19 of Finance Act, 1952 , is hereby amended by the substitution of the following subparagraphs for subparagraphs (i) to (v): “(i) the transferor was entitled to the entire beneficial interest in the relevant property, (ii) the entire beneficial interest in the relevant property became vested in the transferee, (iii) at the time of the execution of the instrument the transferor and transferee were associated with each other to the extent that either was the beneficial owner of not less than ninety per cent, of the issued share capital of the other or that not less than ninety per cent, of the issued share capital of each of them was in the beneficial ownership of a third body corporate, and (iv) the conveyance or transfer was not made in pursuance of or in connection with an arrangement whereunder either the consideration was to be provided directly or indirectly by a person other than a body corporate which at the time of the execution of the instrument was associated with either the transferor or the transferee to the extent described in subparagraph (iii) of this paragraph, or the beneficial interest in the relevant property was previously conveyed or transferred directly or indirectly by such a person as aforesaid.”
\n
(2)The reference to paragraph (6) of subsection (1) of section 19 of Finance Act, 1952 , in paragraph (a) of that subsection and the reference thereto in paragraph (a) of subsection (4) of that section shall each be construed as a reference to the said paragraph (6) as amended by subsection (1) of this section.
\n
PART VIII.
\n
Miscellaneous and General.
\n
Capital Services Redemption Account.
\n
77.—(1) In this section— “the principal section” means section 22 of the Finance Act, 1950; “the 1958 amending section” means section 61 of Finance Act, 1958 ; “the ninth additional annuity” means the sum charged on the Central Fund under subsection (4) of this section; “the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.
\n
(2)Subsection (4) of the 1958 amending section shall, in relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of March, 1960, have effect with the substitution of “£645,872 ” for “£717,012”.
\n
(3)Subsection (6) of the 1958 amending section shall have effect with the substitution of “£409,742” for “£528,332”.
\n
(4)A sum of £780,192 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of March, 1960.
\n
(5)The ninth additional annuity shall be paid into the Account in such manner and at such times in the relevant financial year as the Minister may determine.
\n
(6)Any amount of the ninth additional annuity, not exceeding £504,682 in any financial year, may be applied towards defraying the interest on the public debt.
\n
(7)The balance of the ninth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.
\n
Amendment of section 31 (3) of Finance Act, 1940.
\n
78.—Subsection (3) of section 31 of Finance Act, 1940 , is hereby amended by the substitution in paragraph (d) of “three per cent, per annum ” for “two and seven-eighths per cent, per annum”.
\n
Amendment of section 2 of Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956.
\n
79.—
\n
Section 2
\n
of Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 , is hereby amended by the substitution therein of “within the period of ten years” for “within the period of five years”.
\n
Repeals, 80.—(1) The enactments specified in the Fourth Schedule to this Act are hereby repealed to the extent specified in the third column of that Schedule.
\n
(2)Subsection (1) of this section— (a) in the case of the enactments specified in Part I of the Fourth Schedule to this Act, shall come into operation on the 1st day of August, 1959, (b) in the case of the enactments specified in Part II of that Schedule, shall come into operation on the 1st day of August, 1959, and shall not have effect with respect to instruments executed before that day, and (c) in the case of the enactments specified in Part III of that Schedule, shall come into operation on the 1st day of April, 1960.
\n
Care and management of taxes and duties.
\n
81.—All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.
\n
Short title, construction and commencement.
\n
82.— (1) This Act may be cited as the Finance Act, 1959.
\n
(2)Parts I and IV of this Act and the First Schedule thereto shall be construed together with the Income Tax Acts.
\n
(3)
\n
Part II
\n
of this Act, so far as it relates to duties of customs, shall be construed together with the Customs Acts and, so far as it relates to duties of excise, shall be construed together with the Statutes which relate to the duties of excise and the management of those duties.
\n
(4)Parts V and VI of this Act shall, so far as they relate to income tax (including sur-tax), be construed together with the Income Tax Acts and shall, so far as they relate to corporation profits tax, be construed together with Part V of the Finance Act, 1920 , and the enactments amending or extending that Part.
\n
(5)
\n
Part VII
\n
of this Act shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.
\n
(6)Parts I and IV of this Act and the First and Second Schedules thereto shall be deemed to come into foree and shall take effect as on and from the 6th day of April, 1959.
\n
(7)
\n
Part V
\n
of this Act shall come into operation on the 6th day of April, 1960.
\n
(8)Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment, including this Act.
\n
FIRST SCHEDULE.
\n
Purchase and Sale of Securities: Appropriate Amount in respect of the Interest.
\n
Sections 7 to 9 .
\n
1.For the purposes of section 7 of this Act, the appropriate amount in respect of the interest is the appropriate proportion of the net interest receivable by the first buyer.
\n
2.For the purposes of sections 8 and 9 of this Act, the appropriate amount in respect of the interest is the gross amount corresponding with the appropriate proportion of the net interest receivable by the first buyer.
\n
3.(1) For the purposes of paragraphs 1 and 2 of this Schedule, the appropriate proportion is the proportion which— (a) the period beginning with the first relevant date and ending with the day before the day on which the first buyer bought the securities, bears to— (b) the period beginning with the first relevant date and ending with the day before the second relevant date.
\n
(2)In subparagraph (1) of this paragraph— “the first relevant date” means— (a) in case the securities have not been quoted in the official list of the Dublin Stock Exchange at a price excluding the value of the interest payment last payable before the interest receivable by the first buyer or, the securities having been so quoted, the date of the quotation was not the earliest date on which they cpuld have been so quoted if an appropriate dealing in the securities had taken place—the said earliest date, and (b) in any other case—the date on which the securities have been first so quoted; “the second relevant date” means— (a) in case the securities have not been quoted in the official list of the Dublin Stock Exchange at a price excluding the value of the interest receivable by the first buyer or, the securities having been so quoted, the date of the quotation was not the earliest date on which they could have been so quoted if an appropriate dealing in the securities had taken place—the said earliest date, and (b) in any other case—the date on which the securities have been first so quoted.
\n
(3)Where the interest receivable by the first buyer was the first interest payment payable in respect of the securities, sub-paragraph (1) of this paragraph shall have effect with the substitution, for the references to the first relevant date, of the begin ning of the period for which the interest was payable:
\n
Provided that, where the capital amount of the securities was not fully paid at the beginning of the said period and one or more instalments of capital were paid during that period— (a) the interest shall be treated as divided into parts, calculated by reference to the amount of the interest attributable to the capital paid at or before the beginning of the said period and the amount thereof attributable to each such instalment, and (b) treating each of the said parts as interest payable for the said period or, where the part was calculated by reference to any such instalment, as interest payable for the part of the said period beginning with the payment of the instalment, there shall be calculated, in accordance with the foregoing provisions of this paragraph, the amount constituting the appropriate proportion of each part, and (c) the appropriate proportion of the interest for the purposes of paragraphs 1 and 2 of this Schedule shall be the proportion thereof constituted by the sum of the said amounts.
\n
(4)In relation to securities which are not the subject of quotations in the official list of the Dublin Stock Exchange, sub-paragraph (1) of this paragraph shall have effect with the substitution for the periods therein mentioned of such periods as in the opinion of the Special Commissioners correspond therewith in the case of the securities in question.
\n
4.Where the securities are of a description such that the bargain price is increased, where interest is receivable by the buyer, by reference to gross interest accruing before the bargain date, the foregoing paragraphs shall not apply, but, for the purposes of each of the said sections, the appropriate amount in respect of the interest shall be the amount of the increase in the bargain price.
\n
SECOND SCHEDULE.
\n
AGREEMENT BETWEEN THE GOVERNMENT OF IRELAND AND THE GOVERNMENT OF THE UNITED KINGDOM WITH RESPECT TO CERTAIN EXEMPTIONS FROM TAX.
\n
Section 10
\n
.
\n
The Government of Ireland and the Government of the United Kingdom, Considering the Agreement of the 14th April, 1926, between the Government of the Irish Free State and the British Government, in pursuance of which exemptions from tax are conferred on persons resident in one only of the countries from tax under the law of the other, Considering that doubts have arisen as to the effect on the said exemptions of the provisions of subsection (2) of Section four of the United Kingdom Finance (No. 2) Act, 1955 (hereinafter called “the Act of 1955”) and subsection (2) of Section fifty-one of the Irish Finance Act, 1958 (hereinafter called “the Act of 1958”) (which relate to purchases of shares by persons exempted from tax), Desiring to remove these doubts for the year 1959-60 and subsequent years, Have agreed as follows:—
\n
Article 1
\n
(1)The said exemptions fall within, and are subject to, the said provisions of the Act of 1955 and the Act of 1958.
\n
(2)Subject as aforesaid the said Agreement of 1926 as amended by Agreements made on the 25th April, 1928, and the 21st July, 1947, continues in force.
\n
(3)Paragraph (1) of this Article does not relate to cases where the dividend in respect of which exemption is elaimed is one on a holding of shares or stock acquired by the person claiming exemption, or regarded as having been acquired by him, before the eighth day of April, nineteen hundred and fifty-nine except in so far as that dividend is one falling within subsection (2) of the said Section four or subsection (2) of the said Section fifty-one by reason (directly or indirectly) that in respect of another dividend, received by a body corporate other than the person claiming exemption from a holding of shares or stock acquired, or regarded as acquired, by the body corporate on or after the said eighth day of April, a deduction is to be made in determining the income of that body corporate arising after a given date; but this paragraph is without prejudice to any question as to the application of the said provisions of the Act of 1955 and the Act of 1958 in circumstances to which paragraph (1) of this Article does not relate.
\n
Article 2
\n
This Agreement shall become effective on the exchange of notes confirming that the necessary steps have been taken to give it the force of law in Ireland and the United Kingdom, and thereafter shall remain effective only so long as it has the force of law in both countries.
\n
Dated this fourth day of April, 1959.
\n
For the Government of Ireland.
\n
For the Government of the United Kingdom.
\n
SÉAMAS Ó RIAIN.
\n
D. HEATHCOAT AMORY, THIRD SCHEDULE.
\n
Duties on Tobacco.
\n
Section 11
\n
.
\n
Part I.
\n
Customs. £ s. d.
\n
Unmanufactured:— If Stripped or Stemmed:— Containing 10 lbs. or more of moisture in every 100 lbs. weight thereof the lb.
\n
2 6 2 Containing less than 10 lbs. of moisture in every 100 lbs. weight thereof the lb.
\n
2 11 3 If Unstripped or Unstemmed:— Containing 10 lbs. or more of moisture in every 100 lbs. weight thereof the lb.
\n
2 6 1½ Containing less than 10 lbs. of moisture in every 100 lbs. weight thereof the lb.
\n
2 11 2½
\n
Part II
\n
Excise £ s. d.
\n
Unmanufactured :— Contaning 10 lbs. or more of moisture in every 100 lbs. weight thereof the lb.
\n
2 5 0½ Contaning less than 10 lbs. of moisture in every 100 lbs. weight the lb.
\n
2 10 0½
\n
Part III.
\n
Preferential Rates of Customs Duties on Unmanufactured Tobacco. £ s. d.
\n
Unmanufactured:— If Stripped or Stemmed:— Containing 10 lbs. or more of moisture in every 100 lbs. weight thereof the lb.
\n
2 4 7½ Containing less than 10 lbs. of moisture in every 100 lbs. weight thereof the lb.
\n
2 9 7 If Unstripped or Unstemmed:— Containing 10 lbs. or more of moisture in every 100 lbs. weight thereof the lb.
\n
2 4 7 Containing less than 10 lbs. of moisture in every 100 lbs, weight thereof the lb.
\n
2 9 6½ FOURTH SCHEDULE.
\n
Enactments repealed.
\n
Section 80
\n
.
\n
Part I.
\n
Number and Year Short Title Extent of Repeal No. 11 of 1928.
\n
Finance Act, 1928 .
\n
Section 26
\n
.
\n
No. 20 of 1932.
\n
Finance Act, 1932 .
\n
Paragraph (b) of subsection (3) of section 25 .
\n
No. 15 of 1933.
\n
Finance Act, 1933 .
\n
Section 19.
\n
No. 31 of 1934.
\n
Finance Act, 1934 .
\n
Section 20
\n
.
\n
No. 28 of 1935.
\n
Finance Act, 1935 .
\n
Section 25
\n
.
\n
No. 31 of 1936.
\n
Finance Act, 1936 .
\n
Section 12.
\n
No. 25 of 1938.
\n
Finance Act, 1938 .
\n
Paragraphs (a), (b) and (c) of subsection (1) and subsection (2) of section 22.
\n
No. 18 of 1939.
\n
Finance Act, 1939 .
\n
Section 17.
\n
No. 18 of 1950.
\n
Finance Act, 1950 .
\n
Section 7.
\n
No. 21 of 1953.
\n
Finance Act, 1953 .
\n
Section 5.
\n
No. 22 of 1956.
\n
Finance Act, 1956 .
\n
Section 18
\n
.
\n
Part II.
\n
Session and Chapter Short Title Extent of Repeal 54 & 55 Vic., c. 39.
\n
The Stamp Act, 1891.
\n
Sections 92 to 97; in subsection (1) of section 98, the words from “against accident; and” to “a policy of insurance” and from “or as compensation” to the end; subsection (2) of section 98; in section 99, the words “sea insurance or”; in section 100, the words “other than a sea insurance” and the words “other than a policy of sea insurance”; in the First Schedule, the head of charge “Policy of Sea Insurance” and the head of charge beginning “Policy of Insurance against Accident”.
\n
58 & 59 Vic., c. 16.
\n
The Finance Act, 1895 .
\n
Section 13.
\n
59 & 60 Vic., c. 28.
\n
The Finance Act, 1896 .
\n
Section 13.
\n
62 & 63 Vic., c. 9.
\n
The Finance Act, 1899 .
\n
Section 11.
\n
1 Edw. 7, c. 7.
\n
The Finance Act, 1901 .
\n
Section 11.
\n
3 Edw. 7, c. 46.
\n
The Revenue Act, 1903 .
\n
Section 8.
\n
6 Edw. 7, c. 41.
\n
The Marine Insurance Act, 1906 .
\n
In section 21, the words “although it be unstamped”; paragraphs (2) to (5) of section 23; subsection (2) of section 25.
\n
7 Edw. 7, c. 13.
\n
The Finance Act, 1907 .
\n
Section 8.
\n
2 & 3 Geo. 5, c. 8.
\n
The Finance Act, 1912 .
\n
Section 8.
\n
10 & 11 Geo. 5, c. 18.
\n
The Finance Act, 1920 .
\n
Subsection (1) of section 40; in subsection (2) of section 40 the words “ninety-eight”; section 41.
\n
Part III.
\n
Number and Year Short Title Extent of Repeal No. 15 of 1946.
\n
Finance Act, 1946 .
\n
Subsection (13) of section 6 .
\n
No. 20 of 1957.
\n
Finance Act, 1957 .
\n
Subsection (4) of section 2 .
\n
Privacy Statement Accessibility European Legislation Identifier (PDF) Open Data License Ráiteas Príobháideachais Inrochtaineacht Aitheantóir Eorpach Reachtaíochta (ELI) Ceadúnas Sonraí Oscailte Liosta Fianán © Government of Ireland. Oireachtas Copyright Material is reproduced with the permission of the Houses of the Oireachtas © Rialtas na hÉireann. Atáirgtear ábhar faoi Chóipcheart le cead ó Thithe an Oireachtais