Finance Act, 1932
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Assessment of rent from business premises. |
6.—(1) The following rule shall be added to the rules applicable to Case III of Schedule D of the Income Tax Act, 1918, that is to say:— | |
“5. Notwithstanding anything in Schedule A or the rules applicable thereto or section 187 of the Income Tax Act, 1918, in any case where the annual rent payable for any premises occupied for the purposes of any trade, profession, or vocation is in excess of the annual value ascertained as prescribed by the said section 187, it shall be lawful for the Revenue Commissioners to cause an assessment to be made upon the person receiving or entitled to such rent in respect of so much of the excess of such rent over the said annual value as will, together with the amount of the assessment under Schedule A, make up the full amount of the income arising from the letting of such premises. | ||
Premises shall not be deemed to be occupied for the purposes of any trade, profession, or vocation within the meaning of this rule where the premises are mainly occupied for residential purposes and no part thereof is occupied for the purposes of trade but a part thereof is occupied for the purposes of a profession or vocation. | ||
Any assessment made under this rule shall be computed in accordance with rule 2 of the rules applicable to this Case. | ||
Rent for the purpose of this rule shall be taken to be the full amount payable by the occupier, and in arriving at the amount chargeable under this rule a deduction shall be made for any portion of such rent wholly and irrecoverably lost, for any portion of such rent voluntarily foregone by agreement with the occupier, and for any sums which the person receiving or entitled to the rent is obliged, by agreement with the occupier, to pay or satisfy out of the rent in respect of any rates or assessments which by law are charged upon the occupier, and for the cost of maintenance, repairs, insurance, and management, ultimately paid or borne by the person receiving or entitled to such rent. | ||
Where an assessment under Schedule D is made under this rule no allowance shall be granted under Rules 7 and 8 of No. V of Schedule A or section 203. | ||
Where a rent in excess of the annual value ascertained as prescribed by the said section 187 is payable by the person assessed then, in arriving at the amount of the assessment under this rule, no deduction shall be made in respect of such rent, but the person assessed shall on making payment thereof be entitled, in addition to the deduction of income tax which he is entitled to make under the rules of Schedule A, to deduct and retain thereout a sum representing the amount of the tax on the excess of the rent over such annual value at the rate or rates of tax in force during the period through which such payment was accruing due. | ||
Every person occupying any premises for the purpose of any trade, profession, or vocation shall, when so required by a notice from an inspector of taxes and within the time limited by such notice, prepare and deliver to such inspector a return stating— | ||
(a) the names and places of residence of all persons to whom rent is payable by him in respect of such premises or any part thereof, and | ||
(b) the amounts of all rents so payable by him, and | ||
(c) particulars of all agreements in relation to the maintenance, repair, or insurance of such premises or any part thereof or the payment of any rates or taxes payable in respect of or charged on such premises or any part thereof. | ||
The provisions of the Income Tax Acts relating to the failure to deliver lists, declarations, and statements in accordance with a general or particular notice shall apply to the said returns required by this rule.” | ||
(2) Sub-section (1) of section 10 of the Finance Act, 1929 (No. 32 of 1929), shall not apply to any income assessed under Rule 5 added by this section to the rules applicable to Case III of Schedule D of the Income Tax Act, 1918. |