Finance Act, 1968
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Relief on engineering services in relation to works outside State. |
34.—(1) In this section “engineering services” means design and planning services the work on the rendering of which is carried out in the State in connection with chemical, civil, electrical or mechanical engineering works executed outside the State. | |
(2) In the case of a body corporate carrying on a trade which consists of or includes the rendering to another person of engineering services, the following provisions shall, if the body corporate so elects, apply for the purposes of relief from income tax under Chapter IV of Part XXV of the Income Tax Act, 1967 , and for the purposes of relief from corporation profits tax under Part III of the Finance (Miscellaneous Provisions) Act, 1956 : | ||
(a) the body corporate shall be regarded as being a company where it would not otherwise be so regarded, | ||
(b) the rendering of such services shall be regarded as the manufacture of goods and any amount receivable in payment therefor shall be regarded as an amount receivable from the sale of goods, and | ||
(c) where such services are rendered to a person who is not resident in the State, the body corporate shall be regarded as having exported goods out of the State and any payment receivable by it for the services shall be regarded as an amount receivable from the sale of goods so exported. | ||
(3) Any election under subsection (2) shall be made by notice in writing delivered to the inspector and shall have effect as respects every year of claim not being a year earlier than the year of assessment commencing on the 6th day of April, 1968, and every accounting period or part of an accounting period subsequent to the 5th day of April, 1968, for which relief under Chapter IV of Part XXV of the Income Tax Act, 1967 , or Part III of the Finance (Miscellaneous Provisions) Act, 1956 , is claimed by the body corporate by which it is made. | ||
(4) The Revenue Commissioners may by notice in writing require a body corporate claiming relief from tax by virtue of subsection (2) to furnish them with such information or particulars as may be necessary for the purpose of giving effect to that subsection, and section 404 (1) of the Income Tax Act, 1967 , and section 13 (1) of the Finance (Miscellaneous Provisions) Act, 1956 , shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this subsection. | ||
(5) Subsection (2) shall have effect as on and from the 6th day of April, 1968, and, in the case of corporation profits tax, the Revenue Commissioners may, for the purposes of this section, make such apportionments as they consider appropriate where part of an accounting period is before and part on or after the 6th day of April, 1968: | ||
Provided that where, before an election was made by it under this section, a body corporate has paid a dividend and the amount of income tax which it was entitled to deduct from the dividend exceeds the amount which, under section 410 (2) of the Income Tax Act, 1967 , it would have been entitled to deduct if the election had been made before the dividend was paid, any relief from income tax which would otherwise have been allowable shall be reduced by the amount of the excess. | ||
(6) Where for any year of assessment the income of any person consists of, or includes, a dividend in relation to which the proviso to subsection (5) has had effect, the person shall be entitled to claim such repayment, if any, of income tax and sur-tax as will reduce his total liabilities to those taxes to what those liabilities would have been if income tax had been deducted from the dividend at the rate at which it would have been deductible if subsection (2) had had effect in relation to the body corporate at the time when the dividend was paid. |