Finance Act, 1995

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Number 8 of 1995


FINANCE ACT, 1995


ARRANGEMENT OF SECTIONS

PART I

Income Tax, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Section

1.

Amendment of provisions relating to exemption from income tax.

2.

Alteration of rates of income tax.

3.

Personal reliefs.

4.

Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982.

5.

Amendment of section 142A (allowance for rent paid by certain tenants) of Income Tax Act, 1967.

6.

Relief for fees paid to private colleges.

7.

Allowance for service charges.

8.

Tax relief for designated charities.

9.

Amendment of section 8 (restriction of relief in respect of interest paid on certain loans at a reduced rate) of Finance Act, 1982.

10.

Amendment of provisions relating to the taxation of certain benefits payable under Social Welfare Acts.

11.

Amendment of provisions relating to the taxation of certain savings and investments.

12.

Amendment of provisions relating to settlements on minors.

13.

Amendment of section 439 (dispositions for short periods) of Income Tax Act, 1967.

14.

Returns of certain information in relation to rent.

15.

Amendment of section 191 (error or mistake) of Income Tax Act, 1967.

16.

Amendment of Chapter IX (Profit Sharing Schemes) of Part I of, and Third Schedule (Profit Sharing Schemes) to, Finance Act, 1982.

17.

Amendment of Chapter III (Income Tax: Relief for Investment in Corporate Trades) of Part I of Finance Act, 1984.

18.

Amendment of section 17 (tax deductions from payments to subcontractors in the construction industry) of Finance Act, 1970.

19.

Short-lived businesses.

Chapter II

Income Tax, Corporation Tax and Capital Gains Tax

20.

Amendment of section 19 (relief for expenditure on significant buildings) of Finance Act, 1982.

21.

Farming: amendment of provisions relating to relief in respect of increase in stock values.

22.

Compulsory disposals of livestock.

23.

Capital allowances for, and deduction in respect of, vehicles.

24.

Amendment of section 265 (balancing allowances and balancing charges) of Income Tax Act, 1967, etc.

25.

Amendment of section 272 (balancing allowances and balancing charges) of Income Tax Act, 1967.

26.

Amendment of section 51 (application of certain allowances in relation to certain areas and certain expenditure) of Finance Act, 1988.

27.

Amendment of section 81 (application of certain allowances in relation to certain expenditure) of Finance Act, 1990.

28.

Amendment of section 49 (tax treatment of foreign trusts) of Finance Act, 1993.

29.

Tax relief for certain branch profits.

30.

Amendment of section 48 (surcharge for late submission of returns) of Finance Act, 1986.

31.

Amendment of section 18 (date for payment of tax) of Finance Act, 1988.

32.

Amendment of Chapter V (Urban Renewal: Relief from Income Tax and Corporation Tax) of Part I of Finance Act, 1986.

33.

Amendment of section 27 (designated areas for urban renewal relief) of Finance Act, 1987.

34.

Amendment of Chapter VII (Urban Renewal: Temple Bar and Other Areas) of Part I of Finance Act, 1991.

35.

Amendment of Chapter IV (Urban Renewal Reliefs: Introduction of New Scheme in Certain Areas) of Part I of Finance Act, 1994.

36.

Amendment of section 35 (relief for investments in films) of Finance Act, 1987.

37.

Non-distributing investment companies.

38.

Amendment of section 18 (taxation of collective investment undertakings) of Finance Act, 1989.

39.

Amendment of section 27 (distributions to non-residents) of Finance Act, 1994.

40.

Certain interest not to be chargeable.

41.

Returns of material interest in offshore funds.

42.

Amendment of Chapter VI (Petroleum Taxation) of Part I of Finance Act, 1992.

43.

Exemption of certain employment grants to certain industrial undertakings.

44.

Exemption of the Irish Horseracing Authority, Irish Thoroughbred Marketing Limited and the Tote.

45.

Tax credits in respect of distributions.

Chapter III

Income Tax and Corporation Tax: Reliefs for Renewal and Improvement of Certain Resort Areas

46.

Interpretation (Chapter III).

47.

Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.

48.

Capital allowances in relation to construction or refurbishment of certain commercial premises.

49.

Double rent allowance in respect of rent paid for certain business premises.

50.

Deduction for certain expenditure on construction of rented residential accommodation.

51.

Rented residential accommodation: deduction for expenditure on conversion.

52.

Rented residential accommodation: deduction for expenditure on refurbishment.

53.

Provisions supplementary to sections 50 to 52.

Chapter IV

Corporation Tax

54.

Rate of corporation tax.

55.

Amendment of section 162 (surcharge on undistributed income of service companies) of Corporation Tax Act, 1976.

56.

Amendment of section 45 (credit for bank levy) of Finance Act, 1992.

57.

Relief for certain payments to National Co-operative Farm Relief Services Ltd. and certain payments made to its members.

58.

Amendment of section 141 (particulars to be supplied by new companies) of Corporation Tax Act, 1976.

59.

Deduction for certain expenditure on research and development.

60.

Amendment of section 23 (double taxation relief: supplementary) of Corporation Tax Act, 1976.

61.

Amendment of section 41 (basis of relief from corporation tax) of Finance Act, 1980.

62.

Double taxation relief.

63.

Amendment of section 39C (credit for foreign tax) of Finance Act, 1980.

64.

Amendment of section 43 (overseas life assurance companies: investment income) of Corporation Tax Act, 1976.

65.

Amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980.

66.

Amendment of section 55 (late submission of returns: restriction of certain claims of relief) of Finance Act, 1992.

67.

Amendment of section 51 (relief for gifts to First Step) of Finance Act, 1993.

68.

Amendment of section 20A (foreign life assurance and deferred annuities: taxation and returns) of Capital Gains Tax Act, 1975.

69.

Amendment of section 46B (gains or losses arising by virtue of section 46A) of Corporation Tax Act, 1976.

Chapter V

Capital Gains Tax

70.

Amendment of Schedule 4 (administration) to Capital Gains Tax Act, 1975.

71.

Amendment of section 26 (disposal of business or farm on retirement) of Capital Gains Tax Act, 1975.

72.

Amendment of section 27 (disposal within the family of business or farm) of Capital Gains Tax Act, 1975.

73.

Amendment of section 39 (amendment of provisions regarding replacement of assets) of Finance Act, 1982.

74.

Amendment of section 27 (relief for individuals on certain reinvestment) of Finance Act, 1993.

75.

Amendment of section 66 (reduced rate of capital gains tax on certain disposals of shares by individuals) of Finance Act, 1994.

76.

Amendment of paragraph 11 (disposal of certain assets) of Schedule 4 to Capital Gains Tax Act, 1975.

PART II

Customs and Excise

Chapter I

Excise Duty on Tobacco Products other than Cigarettes — Introduction of Tax Stamps

77.

Interpretation (Chapter I).

78.

Amendment of section 2A (liability for duty to be paid by tax stamps) of Principal Act.

79.

Amendment of section 2B (sale of cigarettes) of Principal Act.

80.

Amendment of section 3 (repayment, remission and deferment of payment) of Principal Act.

81.

Amendment of section 8 (regulations) of Principal Act.

82.

Amendment of section 10A (offences in relation to tax stamps) of Principal Act.

83.

Amendment of section 18 (power to refuse delivery of goods) of Finance Act, 1939.

84.

Amendment of Chapter I (Excise Duty on Cigarettes— Introduction of Tax Stamps) of Part II of Finance Act, 1994.

Chapter II

Excise Duties — Powers of Officers, Detention, Seizure and Forfeiture

85.

Definitions (Chapter II).

86.

Power to stop and search vehicles.

87.

Power to enter and search premises.

88.

Detention of goods and vehicles.

89.

Seizure of goods and vehicles.

90.

Notice of seizure.

91.

Notice of claim.

92.

Condemnation.

93.

Proceedings for condemnation by court.

94.

Power to deal with seizures before condemnation.

95.

Miscellaneous amendments.

96.

Repeals and revocation.

Chapter III

Vehicle Registration Tax

97.

Amendment of section 132 (charge of excise duty) of Finance Act, 1992.

98.

Repayment of amounts in respect of vehicle registration tax in certain cases.

Chapter IV

Implementation of Council Directive No. 94/74/EC

99.

Application of section 104 (excisable products) of Finance Act, 1992, and reliefs for hydrocarbons.

100.

Amendment of section 111 (accompanying documents) of Finance Act, 1992.

101.

Amendment of section 117 (regulations) of Finance Act, 1992.

102.

Commencement (Chapter IV).

Chapter V

Appeals in relation to Excise Duty

103.

Definitions (Chapter V).

104.

Appeals to Revenue Commissioners.

105.

Appeals to Appeal Commissioners.

106.

Payment of duty pending appeal.

107.

Exclusion of criminal matters.

108.

Repeal (Chapter V).

109.

Commencement (Chapter V).

Chapter VI

Miscellaneous

110.

Tobacco products.

111.

Duty on licence for the sale of intoxicating liquor.

112.

Amendment of section 77 (spirits retailers' on-licences) of Finance Act, 1993.

113.

Amendment of section 89 (exemption from duty on certain bets) of Finance Act, 1994.

114.

Amendment of section 43 (gaming machine licence duty) of Finance Act, 1975.

115.

Amendment of section 49 (grant of licences and date of expiration of licences) of Finance (1909-10) Act, 1910.

116.

Excise duty on motor fuel substitutes.

117.

Amendment of section 20 (provisions in relation to excise duty and licences under Act of 1952) of Finance (No. 2) Act, 1992.

PART III

Value-Added Tax

118.

Intepretation (Part III).

119.

Amendment of section 1 (interpretation) of Principal Act.

120.

Amendment of section 3 (supply of goods) of Principal Act.

121.

Amendment of section 3A (intra-Community acquisition of goods) of Principal Act.

122.

Amendment of section 4 (special provisions in relation to the supply of immovable goods) of Principal Act.

123.

Amendment of section 5 (supply of services) of Principal Act.

124.

Amendment of section 8 (taxable persons) of Principal Act.

125.

Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

126.

Margin scheme goods.

127.

Special scheme for auctioneers.

128.

Amendment of section 11 (rates of tax) of Principal Act.

129.

Amendment of section 12 (deductions for tax borne or paid) of Principal Act.

130.

Special scheme for means of transport supplied by taxable dealers.

131.

Amendment of section 14 (determination of tax due by reference to cash receipts) of Principal Act.

132.

Amendment of section 17 (invoices) of Principal Act.

133.

Amendment of section 18 (inspection and removal of records) of Principal Act.

134.

Amendment of section 19 (tax due and payable) of Principal Act, etc.

135.

Amendment of section 20 (refund of tax) of Principal Act.

136.

Amendment of section 22 (estimation of tax due for a taxable period) of Principal Act.

137.

Amendment of section 25 (appeals) of Principal Act.

138.

Amendment of section 32 (regulations) of Principal Act.

139.

Amendment of First Schedule to Principal Act.

140.

Amendment of Sixth Schedule to Principal Act.

141.

Addition of Eighth Schedule to Principal Act.

PART IV

Stamp Duties

142.

Levy on banks.

143.

Amendment of section 19 (conveyance or transfer on sale— limit on stamp duty in the case of certain transactions between bodies corporate) of Finance Act, 1952.

144.

Relief from stamp duty in case of reconstructions or amalgamations of companies.

145.

Amendment of Chapter II (stamp duty on capital companies) of Part IV of Finance Act, 1973.

146.

Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982.

147.

Amendment of section 208 (location of insurance risk for stamp duty purposes) of Finance Act, 1992.

148.

Amendment of section 106 (exemption from stamp duty of certain loan capital and securities) of Finance Act, 1993.

149.

Amendment of section 107 (particulars to be delivered in cases of transfers and leases) of Finance Act, 1994.

150.

Stock borrowing.

PART V

Residential Property Tax

151.

Application (Part V).

152.

Amendment of section 96 (charge of residential property tax) of Finance Act, 1983.

153.

Amendment of section 100 (market value exemption limit) of Finance Act, 1983.

154.

Amendment of section 101 (income exemption limit) of Finance Act, 1983.

155.

Repeal (Part V).

PART VI

Capital Acquisitions Tax

156.

Interpretation (Part VI).

157.

Amendment of section 2 (interpretation) of Principal Act.

158.

Amendment of section 19 (value of agricultural property) of Principal Act.

159.

Amendment of section 52 (appeals in other cases) of Principal Act.

160.

Amendment of section 55 (exemption of certain objects) of Principal Act.

161.

Business relief.

162.

Amendment of section 134 (exclusion of value of excepted assets) of Finance Act, 1994.

163.

Amendment of section 135 (withdrawal of relief) of Finance Act, 1994.

164.

Payment of tax on certain assets by instalments.

165.

Exemption of certain inheritances taken by parents.

166.

Heritage property of companies.

PART VII

Miscellaneous

Chapter I

Provisions Relating to Residence of Individuals

167.

Amendment of Chapter IV (Interest Payments by Certain Deposit Takers) of Part I of Finance Act, 1986.

168.

Amendment of section 175 (power to obtain information as to interest paid or credited without deduction of tax) of Income Tax Act, 1967.

169.

Amendment of section 152 (application of Part III (Schedule C) and section 52 (Schedule D) of Income Tax Act, 1967) of Finance Act, 1994.

170.

Amendment of section 154 (deduction for income earned outside the State) of Finance Act, 1994.

Chapter II

General

171.

Capital Services Redemption Account.

172.

Duties of a relevant person in relation to certain revenue offences.

173.

Amendment of provisions relating to appeals.

174.

Amendment of section 115 (liability to tax, etc., of holder of fixed charge on book debts of company) of Finance Act, 1986.

175.

Power to obtain information.

176.

Relief for donations of heritage items.

177.

Tax clearance certificates in relation to public sector contracts.

178.

Care and management of taxes and duties.

179.

Short title, construction and commencement.

FIRST SCHEDULE

Amendments Consequential on Changes In Personal Reliefs

SECOND SCHEDULE

Amendments Consequential on Changes In Amounts of Tax Credits In Respect of Distributions

THIRD SCHEDULE

Income Tax and Corporation Tax: Reliefs for Renewal and Improvement of Certain Resort Areas

FOURTH SCHEDULE

Change in Rate of Corporation Tax: Consequential Provisions

FIFTH SCHEDULE

Excise Duties — Miscellaneous Amendments

SIXTH SCHEDULE

Excise Duties — Repeal of Certain Provisions

SEVENTH SCHEDULE

Rates of Excise Duty on Tobacco Products

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Number 8 of 1995


FINANCE ACT, 1995


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. [2nd June, 1995]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Income Tax Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Amendment of provisions relating to exemption from income tax.

1.—As respects the year of assessment 1995-96 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended—

(a) in section 1, by the substitution, in subsection (2) (inserted by the Finance Act, 1989 ), of “£7,400” and “£3,700”, respectively, for “£7,200” and “£3,600” (inserted by the Finance Act, 1993 ), and

(b) in section 2, by the substitution, in subsection (6) (inserted by the Finance Act, 1989 )—

(i) of “£8,600” and “£9,800”, respectively, for “£8,200” and “£9,400” (inserted by the Finance Act, 1993 ), in paragraph (a), and

(ii) of “£4,300” and “£4,900”, respectively, for “£4,100” and “£4,700” (inserted by the Finance Act, 1993 ), in paragraph (b),

and the said subsection (2) of the said section 1 and the said subsection (6) of the said section 2, as so amended, are set out in the Table to this section.

TABLE

(2) In this section “the specified amount” means, subject to subsection (3)—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £7,400, and

(b) in any other case, £3,700.

(6) In this section “the specified amount” means, subject to subsection (3) of section 1—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £8,600:

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £9,800, and

(b) in any other case, £4,300:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £4,900.

Alteration of rates of income tax.

2.Section 2 of the Finance Act, 1991 , is hereby amended, as respects the year of assessment 1995-96 and subsequent years of assessment, by the substitution of the following Table for the Table to that section:

“TABLE

PARTI

Part of taxable income

Rate of tax

Description of rate

(1)

(2)

(3)

The first £8,900

27 per cent.

the standard rate

The remainder

48 per cent.

the higher rate

PART II

Part of taxable income

Rate of tax

Description of rate

(1)

(2)

(3)

The first £17,800

27 per cent.

the standard rate

The remainder

48 per cent.

the higher rate

”.

Personal reliefs.

3.—(1) Where a deduction falls to be made from the total income of an individual for the year of assessment 1995-96 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2)

TABLE

Statutory provision

Amount to be deducted from total income for the year 1994-95

Amount to be deducted from total income for the year 1995-96 and subsequent years

(1)

(2)

(3)

£

£

Income Tax Act, 1967 :

section 138

(married person)

4,700

5,000

(widowed person bereaved in the year of assessment)

4,700

5,000

(widowed person)

2,850

3,000

(single person)

2,350

2,500

section 138A

(additional allowance for widowed persons and others in respect of children)

(widowed person)

1,850

2,000

(other person)

2,350

2,500

(2) Section 3 of the Finance Act, 1994 , shall have effect subject to the provisions of this section.

(3) The First Schedule shall have effect for the purpose of supplementing subsection (1).

Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982.

4.Section 6 of the Finance Act, 1982 , shall have effect for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1995-96, as if in subsection (2)—

(a) “1995-96” were substituted for “1982-83”, and

(b) “£140” were substituted for “£312” in each place where it occurs.

Amendment of section 142A (allowance for rent paid by certain tenants) of Income Tax Act, 1967.

5.—As respects the year of assessment 1995-96 and subsequent years of assessment, section 142A (inserted by the Finance Act, 1982 ) of the Income Tax Act, 1967 , is hereby amended—

(a) in paragraph (a) of subsection (2), by the substitution of the following subparagraph for subparagraph (ii):

“(ii) in the year of assessment, he has made a payment on account of rent in respect of residential premises which, during the period in respect of which the payment was made, was his only or main residence,”:

Provided that this paragraph shall not apply for the year of assessment 1995-96 in the case of an individual who, but for this paragraph, would be entitled to relief in accordance with the provisions of the said subsection (2),

(b) by the insertion of the following subsection after subsection (2):

“(2A) (a) Where, in relation to income tax for 1995-96 and each subsequent year of assessment, a claimant would, but for the provisions of subparagraph (i) of paragraph (a) of subsection (2), be entitled to relief in accordance with the provisions of that subsection, the income tax to be charged on that individual for that year of assessment, other than in accordance with section 5 (3) of the Finance Act, 1974 , shall be reduced by an amount which is the lesser of—

(i) the amount equal to the appropriate percentage of the aggregate of all such payments as are referred to in subparagraph (ii) of the said paragraph (a) proved to be so made, or the appropriate percentage of the specified limit, whichever is the lesser, and

(ii) the amount which reduces that income tax to nil.

(b) For the purposes of this subsection—

‘appropriate percentage’, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

‘the specified limit’ means—

(I) in the case of a claimant who is entitled to a deduction under section 138 (a), £1,000,

(II) in the case of a widowed person, £750, and

(III) in any other case, £500.”,

(c) in paragraph (a) of subsection (5)—

(i) by the substitution of “rent paid in a year of assessment shall be accompanied by—” for “a payment on account of rent shall be accompanied by—”,

(ii) by the substitution, in subparagraph (i), of the following clause for clause (B):

“(B) the name, address and, as may be appropriate, the income tax or corporation tax reference number of the person or body of persons beneficially entitled to the rent under the tenancy under which the rent was paid,”,

and

(iii) by the substitution of the following subparagraph for subparagraph (ii):

“(ii) a receipt or acknowledgement in respect of such rent given pursuant to the provisions of subsection (6).”,

and

(d) in subsection (6)—

(i) by the substitution of the following paragraph for paragraph (a):

“(a) Where, a person (hereafter in this subsection referred to as 'the tenant') who is entitled to relief under this section for a year of assessment, or who has reason to believe that he may be so entitled, requests a receipt or acknowledgement of the rent paid by him in that year, the person or body of persons beneficially entitled to the rent shall, within 7 days from the date of the request, give to the tenant a receipt or acknowledgement of the rent paid by the tenant in that year of assessment.”,

and

(ii) by the substitution in paragraph (b) of the following subparagraphs for subparagraphs (ii) and (iii):

“(ii) the name, address and, as may be appropriate, the income tax or corporation tax reference number of the person or body of persons giving the receipt or acknowledgement, and

(iii) the amount of the rent paid in the year of assessment and the period within that year in respect of which it is paid.”.

Relief for fees paid to private colleges.

6.—(1) In this section—

“academic year”, in relation to an approved course, means a year of study commencing on a date not earlier than the 1st day of August in a year of assessment;

“dependant”, in relation to an individual, means a spouse or child of the individual or a person in respect of whom the individual is or was the legal guardian;

“approved college” means a college in the State—

(a) which operates in accordance with a code of standards which, from time to time, may, with the consent of the Minister for Finance, be laid down by the Minister, and

(b) which the Minister approves of for the purposes of this section;

“approved course” means a full time undergraduate course of study in an approved college which—

(a) is of at least 2 academic years duration, and

(b) the Minister, having regard to a code of standards which, from time to time, may, with the consent of the Minister for Finance, be laid down by the Minister in relation to the quality of education to be offered on approved courses, approves of for the purposes of this section;

“the Minister” means the Minister for Education;

“qualifying fees”, in relation to an approved course and an academic year, means the amount of fees, chargeable in respect of tuition to be provided in relation to that course in that year, which, with the consent of the Minister for Finance, the Minister approves of for the purposes of this section.

(2) (a) Subject to the provisions of this section, where, for a year of assessment (being the year 1996-97 or a subsequent year of assessment), an individual makes a claim in that behalf, makes a return in the prescribed form of his or her total income and proves that he or she has, on his or her own behalf or on behalf of a dependant of his or her, made a payment in respect of qualifying fees in respect of an approved course for the academic year in relation to that course commencing in that year of assessment, the income tax to be charged on the individual for that year of assessment, other than in accordance with section 5 (3) of the Finance Act, 1974 , shall be reduced by an amount which is the lesser of—

(i) the amount equal to the appropriate percentage of the aggregate of all such payments proved to be so made, and

(ii) the amount which reduces that income tax to nil.

(b) In this subsection “appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year.

(3) For the purposes of this section a payment in respect of qualifying fees shall be regarded as not having been made in so far as any sum in respect of, or by reference to, such fees has been or is to be, received, directly or indirectly, by the individual, or, as the case may be, his or her dependant, from any source whatsoever by way of grant, scholarship or otherwise.

(4) (a) Where the Minister is satisfied that an approved college, or an approved course in that college, no longer meets the appropriate code of standards laid down, the Minister may, by notice in writing given to the approved college, withdraw, with effect from the year of assessment immediately following the year of assessment in which the notice is given, the approval of that college or course, as the case may be, for the purposes of this section.

(b) Where the Minister withdraws the approval of any college or course for the purposes of this section, notice of its withdrawal shall be published, as soon as may be, in the Iris Oifigiúil.

(5) On or before the 1st day of July in each year of assessment, the Minister shall furnish the Revenue Commissioners with full details of all colleges and courses in respect of which approval has been granted, and not withdrawn, for the purposes of this section and of the amount of the qualifying fees in respect of each such course for the academic year commencing in that year of assessment.

(6) All such provisions of the Income Tax Acts as apply in relation to claims for the deductions specified in sections 138 to 142 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply in relation to a claim for a reduction of income tax under this section.

(7) Section 198 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , is hereby amended, in subsection (1) (a), by the insertion of the following subparagraph after subparagraph (xiv) (inserted by the Finance Act, 1994 ):

“(xv) so far as it flows from relief under section 6 of the Finance Act, 1995, in the proportions in which they incurred the expenditure giving rise to the relief,”.

Allowance for service charges.

7.—(1) (a) In this section—

“appropriate percentage”, in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

“claimant” has the meaning assigned to it by subsection (2);

“financial year” means the period of twelve months ending on the 31st day of December in that year;

“group water supply scheme” means a scheme referred to in the Housing (Improvement Grants) Regulations, 1983 ( S.I. No. 330 of 1983 );

“local authority” means a council of a county, a corporation of a county or other borough and a council of an urban district;

“service” means the provision by or on behalf of a local authority of—

(i) a supply of water for domestic purposes,

(ii) domestic refuse collection or disposal, and

(iii) domestic sewage disposal facilities;

“service charge” means a charge imposed under—

(i) the Local Government (Financial Provisions) (No. 2) Act, 1983 , or

(ii) section 65A (inserted by the Local Government (Sanitary Services) Act, 1962 and amended by the said Local Government (Financial Provisions) (No. 2) Act, 1983 ) of the Public Health (Ireland) Act, 1878 ,

in respect of the provision by a local authority of any service or services and “service charges” shall be construed accordingly;

“specified limit” means £150.

(b) References to an amount paid on time mean payment of that amount by such date or dates as a local authority shall decide.

(2) In relation to income tax for 1996-97 and each subsequent year of assessment, if an individual (referred to in this section as a “claimant”) proves that in the financial year immediately prior to that year of assessment, the amount which he or she was liable to pay in respect of service charges for that financial year has been paid in full and on time, the income tax to be charged on the claimant for that year of assessment, other than in accordance with section 5 (3) of the Finance Act, 1974 , shall, subject to subsection (4), be reduced by an amount which is the lesser of—

(a) the amount equal to the appropriate percentage of the amount proved to be so paid or the appropriate percentage of the specified limit, whichever is the lesser, and

(b) the amount which reduces that income tax to nil:

Provided that—

(i) in the case of a claimant who is assessed to tax for the year of assessment in accordance with the provisions of section 194 of the Income Tax Act, 1967 , any payments made by the spouse of the claimant, in respect of which that spouse would have been entitled to relief under this section if the spouse were assessed to tax for the year of assessment in accordance with the provisions of section 193 (apart from the proviso thereto) of the said Act, shall be deemed to have been made by the claimant;

(ii) in the case of an individual who resides on a full-time basis in the premises to which the service charges relate and pays such service charges in accordance with the requirements of this section on behalf of the claimant, that claimant may disclaim the relief provided by this section in favour of the individual and such disclaimer shall be in such form as the Revenue Commissioners may require.

(3) A claimant who wishes to claim relief under the provisions of this section shall, on or after the date of the passing of this Act, furnish to the local authority to which a payment in respect of the service charges referred to in subsection (2) is made the claimant's identifying number, known as the Revenue and Social Insurance (RSI) Number.

(4) (a) Any claim for relief under this section in respect of a payment in respect of service charges shall, unless the details referred to in subsection (5) in respect of a claimant are provided on the basis set out in paragraph (c) of that subsection, be accompanied by a certificate given pursuant to subsection (5) or, in a case to which subparagraph (i) of paragraph (a) of subsection (6) applies, a receipt or acknowledgement referred to in clause (III) of the said subparagraph (i).

(b) Failure to furnish a certificate or receipt or acknowledgment mentioned in paragraph (a), or to be included in the return referred to in subsection (5) (c), shall be grounds for refusal of the claim.

(5) (a) Where, in a financial year—

(i) a claimant has furnished his or her identifying number in accordance with subsection (3), and

(ii) the total amount which he or she was liable to pay in respect of service charges for that year has been paid on time, and

(iii) arrears, if any, of service charges have been paid in accordance with guidelines in relation to the payment of arrears of service charges entitled “Finance Act, 1995— Payment of Service Charges Arrears” issued to local authorities by the Department of the Environment,

the local authority to which payment was made shall, subject to the provisions of paragraph (c), give to the claimant a certificate in respect of such payment.

(b) A certificate given pursuant to this subsection shall contain—

(i) the name, address and the identifying number, known as the Revenue and Social Insurance (RSI) Number, of the claimant;

(ii) the name and address of the local authority giving the certificate;

(iii) the amount paid and the financial year in respect of which it was paid; and

(iv) confirmation that the payment referred to in subparagraph (iii) was paid on time and represents the full amount of the service charges which the claimant was liable to pay for the financial year for which the certificate was given.

(c) (i) Each local authority shall, within one calendar month after the end of every financial year, provide the Revenue Commissioners with a return in such computerised format as the Revenue Commissioners may require for the purposes of giving effect to the relief provided for in this section and containing, in respect of every claimant who has furnished an identifying number as is mentioned in subsection (3), the details specified in subparagraphs (i), (iii) and (iv) of paragraph (b):

Provided that where, exceptionally, the return provided by a local authority is not a complete return, a supplementary return, in similar format, shall be provided to the Revenue Commissioners not later than two months after the end of the said financial year;

(ii) where a local authority makes a return in accordance with the foregoing provisions of this paragraph, the certificate mentioned in paragraph (a) need not be given to any claimant referred to in such return.

(6) (a) Where the service consisting of the provision of domestic refuse collection or disposal—

(i) is provided and charged for by a person or body of persons other than a local authority and where such person or body of persons has—

(I) notified its provision to the local authority in whose functional area such service is provided, and

(II) furnished to the said local authority such information as the local authority may, from time to time, request concerning that person or body of persons or the service provided by it, and

(III) given a receipt or acknowledgement to a claimant containing—

(A) the name, address and, as may be appropriate, the income tax or corporation tax reference number of the person or body of persons,

(B) the claimant's name and address,

(C) the amount paid, and

(D) the financial year in respect of which the payment for the service was paid,

or

(ii) if provided by a local authority or by a person or body of persons as is referred to in subparagraph (i) (I), is charged for other than by way of a specified annual charge in respect of that service,

a claimant shall, for the purposes of this section, be deemed to have made a payment of £50 in respect of that service and shall be entitled to relief in respect of such an amount subject to the provisions of this section other than—

(I) in a case where subparagraph (i) applies, the provisions of subsection (5), or

(II) in a case where subparagraph (ii) applies, the provisions of subsections (4) and (5).

(b) Where a service charge is imposed in respect of the provision of a service other than the service referred to in paragraph (a), this subsection shall apply only where the claimant also qualifies for relief under the provisions of this section in respect of such service charge.

(7) The provision of a supply of water for domestic purposes which is effected by a group water supply scheme shall be treated for the purposes of this section as if it were provided by a local authority and a payment by an individual member of such a scheme in respect of such provision shall be deemed to be a payment in respect of service charges.

(8) Any deduction made under this section shall be in substitution for, and not in addition to, any deduction to which the individual might be entitled in respect of the same payment under any other provision of the Income Tax Acts.

(9) The Income Tax Act, 1967 , is hereby amended—

(a) in subsection (1) (a) of section 198 (inserted by the FinanceAct, 1980), by the insertion of the following subparagraph after subparagraph (xv) (inserted by section 6 ):

“(xvi) so far as it flows from relief under section 7 of the Finance Act, 1995, in the proportions in which they incurred the expenditure giving rise to the relief,”;

(b) in Schedule 15, by the addition to column (1) of the following:

“Finance Act, 1995, section 7”.

(10) All such provisions of the Income Tax Acts as apply in relation to claims for the deductions specified in sections 138 to 142 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply in relation to a claim for a reduction of income tax under this section.

Tax relief for designated charities.

8.—(1) (a) In this section—

“designated charity” means any body or institution in the State which, following application by it to the Minister in such form and containing such information as the Minister may require, is designated for the purposes of this section by the Minister with the consent of the Minister for Finance;

“the Minister” means the Minister for Foreign Affairs;

“qualifying donation” shall be construed in accordance with subsection (5);

“relevant year of assessment”, in relation to a qualifying donation, means the year of assessment in which the qualifying donation is made.

(b) For the purposes of this section, a person shall be regarded as connected with the donor if such person would be so regarded in accordance with the provisions of section 16 of the Finance (Miscellaneous Provisions) Act, 1968 .

(c) References, in relation to a donation, to the grossed up amount are to the amount which after deducting income tax at the standard rate for the relevant year of assessment leaves the amount of the donation.

(2) A body or institution shall not be designated by the Minister for the purposes of this section unless it shows to the satisfaction of the Minister that—

(a) it is a body of persons or trust established for charitable purposes only,

(b) it has been granted exemption from tax for the purposes of section 333 of the Income Tax Act, 1967 , for a period of not less than three years prior to the date of the making of the application,

(c) the person concerned in the management or control of it ensures that, in respect of each financial year of the body or institution, there is prepared and furnished to the Minister—

(i) audited accounts comprising—

(I) an income and expenditure account or a profit and loss account, as appropriate, for its most recent year; and

(II) a balance sheet as at the last day of that year;

and

(ii) a report as to the activities of the body or institution, having regard to its charitable purposes, and

(d) it has as its sole object, relief and development in a country or countries where the country or countries concerned is or are for the time being on the List of Aid Recipients (Part 1: Aid to Developing Countries and Territories) produced by the Development Aid Committee of the Organisation for Economic Co-operation and Development.

(3) The Minister shall—

(a) maintain a list of the bodies and institutions designated for the purposes of this section, and

(b) from time to time, as the Minister sees fit, cause such list to be published in the Iris Oifigiúil.

(4) Where the Minister is satisfied that a body or institution ceases to comply with the provisions of subsection (2) the Minister shall, with the consent of the Minister for Finance—

(a) withdraw the designation previously granted and such withdrawal shall apply and have effect from the beginning of the year of assessment in which notice in accordance with paragraph (b) is given, and

(b) cause notice of such withdrawal to be published in the Iris Oifigiúil within one month of such withdrawal.

(5) (a) For the purposes of this section, a donation to a designated charity is a qualifying donation if—

(i) it is made by an individual (referred to in this section as “the donor”);

(ii) it is made on or after the 1st day of July, 1995;

(iii) it satisfies the requirements of subsection (6); and

(iv) the donor—

(I) has given an appropriate certificate in relation to the donation to the designated charity, and

(II) has paid the tax referred to in such appropriate certificate and is not entitled to claim a repayment of that tax or any part of it.

(b) In paragraph (a) (iv), “appropriate certificate” means a certificate which is in such form as the Revenue Commissioners may prescribe and which contains—

(i) statements to the effect that—

(I) the donation satisfies the requirements of subsection (6), and

(II) the donor has paid or will pay to the Revenue Commissioners income tax of an amount equal to income tax at the standard rate for the relevant year of assessment on the grossed up amount of the donation but not being—

(A) income tax which the donor is entitled to charge against any other person or to deduct, retain or satisfy out of any payment which the donor is liable to make to any other person, or

(B) appropriate tax within the meaning of Chapter IV of Part I of the Finance Act, 1986 ,

and

(ii) the identifying number, known as the Revenue and Social Insurance (RSI) Number, of the donor.

(6) A donation satisfies the requirements of this subsection if—

(a) it takes the form of the payment of a sum or sums of money,

(b) it is not subject to a condition as to repayment,

(c) neither the donor nor any person connected with the donor receives a benefit in consequence of making it,

(d) it is not conditional on or associated with, or part of an arrangement involving, the acquisition of property by the designated charity, otherwise than by way of gift, from the donor or a person connected with the donor,

(e) the sum, or the aggregate of the sums, paid in the relevant year of assessment to the designated charity is not less than £200,

(f) the sum, or the aggregate of the sums, paid does not, when aggregated with any other qualifying donation or qualifying donations made by the donor in the relevant year of assessment, exceed £750, and

(g) the donor is resident in the State for the relevant year of assessment.

(7) Where a donation is a qualifying donation, the Tax Acts shall have effect in relation to the designated charity as if—

(a) the grossed up amount of the donation were an annual payment which was the income of the designated charity received by it under deduction of tax at the standard rate for the relevant year of assessment, and

(b) all the provisions of the Tax Acts which apply in relation to a claim to repayment of tax applied in relation to any claim to repayment of such tax by a designated charity:

Provided that, if the total amount of the tax referred to in subsection (5) (b) (i) (II) is not paid, the amount of any repayment which would otherwise be made to a designated charity in accordance with the provisions of this section shall not exceed the amount of tax actually paid by the donor.

Amendment of section 8 (restriction of relief in respect of interest paid on certain loans at a reduced rate) of Finance Act, 1982.

9.Section 8 of the Finance Act, 1982 , is hereby amended, as respects the year 1995-96 and subsequent years of assessment, by the substitution in the definition of “the specified rate” (inserted by the Finance Act, 1989 ) in subsection (1) of—

(a) “7 per cent.” for “7.5 per cent.” (inserted by the Finance Act, 1994 ) in both places where it occurs, and

(b) “11 per cent.” for “11.5 per cent.” (inserted by the Finance Act, 1994 ),

and the said definition, as so amended, is set out in the Table to this section.

TABLE

“the specified rate”, in relation to a preferential loan, means—

(i) in a case where—

(I) the interest which is paid on the preferential loan qualifies for relief under section 76 (1) (c) or 496 of, or paragraph 1 (2) of Part III of Schedule 6 to, the Income Tax Act, 1967 , or

(II) if no interest is paid on the preferential loan, the interest which would have been paid on that loan (if interest had been payable) would have so qualified,

the rate of 7 per cent, per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, or

(ii) in a case where—

(I) the preferential loan is made to an employee by an employer,

(II) the making of loans for the purposes of purchasing a dwelling-house for occupation by the borrower as a residence, for a stated term of years at a rate of interest which does not vary for the duration of the loan, forms part of the trade of the employer, and

(III) the rate of interest at which the employer in the course of his trade at the time the preferential loan is or was made makes or made loans at arm's length to persons, other than employees, for the purposes of purchasing a dwelling-house for occupation by the borrower as a residence is less than 7 per cent, per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations,

the first-mentioned rate in subparagraph (III), or

(iii) in any other case, the rate of 11 per cent, per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations.

Amendment of provisions relating to the taxation of certain benefits payable under Social Welfare Acts.

10.—(1) Section 15 of the Finance Act, 1992 , is hereby amended, as respects the year of assessment 1995-96 and subsequent years of assessment, by the substitution of the following subsection for subsection (2):

“(2) All amounts falling to be paid on foot of the benefits to which this section applies (other than amounts so payable in respect of a qualified child within the meaning of section 2 (3) (a) of the Social Welfare (Consolidation) Act, 1993 ) shall be deemed—

(a) to be profits or gains arising or accruing from an employment and, accordingly—

(i) tax under Schedule E shall be charged on every person, to whom any such benefit is payable, in respect of all amounts falling to be paid on foot of such benefits, and

(ii) the tax so chargeable shall be computed under section 110 (1) (inserted by the Finance Act, 1991 ) of the Income Tax Act, 1967 ,

and

(b) to be emoluments to which the provisions of Chapter IV of Part V of the Income Tax Act, 1967 , are applied by section 125 of that Act:

Provided that—

(I) the first £10 of the aggregate of the amounts of unemployment benefit payable to a person in respect of one or more days of unemployment comprised in any income tax week (other than an amount so payable in respect of a qualified child within the meaning as aforesaid) shall be disregarded for all the purposes of the Income Tax Acts, and

(II) for the purposes of this proviso, ‘income tax week’ means one of the successive periods of 7 days in a year of assessment beginning on the 1st day of that year, or on any 7th day after that day, the last day of a year of assessment (or the last 2 days of a year of assessment ending in a leap year) being taken as included in the last income tax week of that year of assessment.”.

(2) Section 10 of the Finance Act, 1994 , shall apply and have effect, as respects the year of assessment 1995-96, as if—

(a) in subsection (1), the definitions of “day of unemployment” and “period of interruption of employment” were deleted, and

(b) the following subsection were substituted for subsection (2):

“(2) Notwithstanding the provisions of section 15 (as amended by the Finance Act, 1995) of the Finance Act, 1992 , and the Finance Act, 1992 (Commencement of Section 15) (Unemployment Benefit and Pay-Related Benefit) Order, 1994 (S.L No. 19 of 1994), the said section 15 shall not apply or have effect, as respects the year of assessment 1995-96, in relation to unemployment benefit paid or payable to a person employed in short-time employment.”.

Amendment of provisions relating to the taxation of certain savings and investments.

11.—(1) As respects any relevant interest (within the meaning of Chapter IV of Part I of the Finance Act, 1986 ) paid or credited on or after the 6th day of April, 1995, section 31 of the Finance Act, 1986 , is hereby amended, in subsection (1), by the substitution, in the definition of “appropriate tax” of the following paragraph for paragraph (a):

“(a) in the case of a relevant deposit or relevant deposits held in a special savings account, at the rate of 15 per cent., and”.

(2) As respects the year of assessment 1995-96 and subsequent years of assessment, section 14 of the Finance Act, 1993 , is hereby amended, by the insertion, in subsection (3), of the following proviso:

“Provided that the said Chapter shall apply as aforesaid as if, in relation to relevant interest payable in respect of a relevant deposit or relevant deposits held in a special savings account, the rate of appropriate tax were 10 per cent.”.

Amendment of provisions relating to settlements on minors.

12.—(1) Chapter II of Part XXVIII of the Income Tax Act, 1967 , is hereby amended—

(a) in section 443—

(i) by the substitution of the following subsection for subsection (1):

“(1) Where, by virtue or in consequence of a settlement and during the life of the settlor, any income is, in any year of assessment, paid to or for the benefit of a person, such income shall, if at the time of payment such person is a minor, be treated for the purposes of this Act as income of the settlor for that year and not as income of any other person:

Provided that—

(a) for the purposes of this Chapter, but subject to section 444, income which, by virtue or in consequence of a settlement to which this Chapter applies, is so dealt with that it, or assets representing it, will or may become payable or applicable to or for the benefit of a person in the future (whether on the fulfilment of a condition, or on the happening of a contingency, or as the result of the exercise of a power or discretion conferred on any person, or otherwise) shall be deemed to be paid to or for the benefit of that person, and

(b) any income dealt with as aforesaid which is not required by the settlement to be allocated, at the time when it is so dealt with, to any particular person or persons shall be deemed to be paid in equal shares to or for the benefit of each of the persons to or for the benefit of whom or any of whom the income or assets representing it will or may become payable or applicable.”,

and

(ii) by the addition of the following subsection after subsection (4):

“(5) This Chapter shall not apply to any income which, by virtue or in consequence of a settlement and during the life of the settlor, is in any year of assessment paid to or for the benefit of a minor, not being a child of the settlor, if such minor is permanently incapacitated by reason of mental or physical infirmity.”,

(b) in section 444, by the substitution of the following paragraphs for paragraphs (a) and (b):

“(a) section 443 (1) shall not apply in respect of any part of such income which is, in the said year of assessment, accumulated for the benefit of a person nor in respect of income arising in the said year of assessment from accumulations of the income hereinbefore mentioned;

(b) whenever in any year of assessment any sum whatsoever is paid under the trusts of such irrevocable instrument out of such property or the accumulations of the income thereof or out of the income of such property or the income of the said accumulations to or for the benefit of a person who at the time of payment, is a minor, such sum shall be deemed for the purposes of this Chapter to be paid as income, but subject to the limitation that this paragraph shall not apply to so much of such sum as is equal to the amount by which the aggregate of such sum and all other (if any) sums paid after the 5th day of April, 1937, under the trusts of such irrevocable instrument to or for the benefit of the said person or any other person (being a person who, at the beginning of the year of assessment in which such other sum was paid, was a minor) exceeds the aggregate amount of the income arising after the 5th day of April, 1937, from such property together with the income arising after the said date from the said accumulations.”,

(c) in section 445—

(i) by the substitution, in paragraph (a), of the following subparagraphs for subparagraphs (i) and (ii):

“(i) the payment or application to or for the settlor for the settlor's own benefit of any capital or income or accumulations of income in any circumstances whatsoever during the life of a person to or for the benefit of whom any income or accumulations of income is or are or may be payable or applicable under the trusts of the instrument;

(ii) the payment or application during the life of the settlor to or for the wife or husband of the settlor for her own or his own benefit of any capital or income or accumulations of income in any circumstances whatsoever during the life of any such person as aforesaid;”,

and

(ii) by the substitution, in paragraph (b), of the following subparagraphs for subparagraphs (i) to (iii):

“(i) a provision whereunder any capital or income or accumulations of income will or may become payable to or applicable for the benefit of the settlor, or the wife or the husband of the settlor, on the bankruptcy of a person to or for the benefit of whom any income or accumulations of income is or are or may be payable or applicable under the trusts of the instrument;

(ii) a provision whereunder any capital or income or accumulations of income will or may become payable to or applicable for the benefit of the settlor, or the wife or the husband of the settlor, in the event of any such person as aforesaid making an assignment of or charge on such capital or income or accumulations of income;

(iii) a provision for the termination of the trusts of the instrument in such circumstances or manner that such termination would not, during the life of any such person as aforesaid, benefit any person other than such person or his or her wife, husband, or issue;”,

and

(d) in section 447, by the insertion of the following definition before the definition of “settlement”:

“‘minor’ means a person who is under the age of eighteen years and who is not or has not been married;”.

(2) Subsection (1) shall apply in respect of every settlement (within the meaning of Chapter II of Part XXVIII of the Income Tax Act, 1967 ) made on or after the 8th day of February, 1995, and it shall also apply, as on and from the 6th day of April, 1995, in respect of every settlement (within the same meaning) which was made before the 8th day of February, 1995.

(3) Section 440 , and subsection (4) of section 443 (as amended by this section), of the Income Tax Act, 1967 , shall cease to apply and have effect as on and from the 6th day of April, 1995.

Amendment of section 439 (dispositions for short periods) of Income Tax Act, 1967.

13.—(1) (a) Section 439 of the Income Tax Act, 1967 , is hereby amended by the substitution of the following subsection for subsection (1A) (inserted by the Finance Act, 1979 ):

“(1A) (a) This subsection applies to a disposition or dispositions of a kind or kinds referred to in paragraphs (ii) to (iv) of subsection (1) made, directly or indirectly, by a person being an individual (in this subsection referred to as the ‘disponer’) except in so far as, by virtue or in consequence thereof, income is payable or applicable in a year of assessment, in the manner referred to in paragraph (iii) or (iv) of the said subsection (1), to or for the benefit of a person being an individual who is permanently incapacitated by reason of mental or physical infirmity.

(b) Notwithstanding the provisions of subsection (1), in relation to a disponer, any income which—

(i) is payable or applicable in a year of assessment by virtue or in consequence of a disposition or dispositions to which this subsection applies, and

(ii) is in excess of 5 per cent, of the total income of that disponer for the year of assessment,

shall be deemed for the purposes of this Act to be the income of the disponer, if living, and not to be the income of any other person.

(c) In a case where this subsection has effect, in relation to any disponer, for the purpose of determining, for income tax purposes, the amount of income which remains the income of persons other than the disponer for a year of assessment by virtue or in consequence of a disposition or dispositions to which this subsection applies, the aggregate of the income so remaining shall be apportioned amongst those other persons in proportion to their entitlements under such disposition or dispositions for that year.”.

(b) Subject to subsection (3), this subsection shall apply in respect of every disposition (within the meaning of Chapter I of Part XXVIII of the Income Tax Act, 1967 ) made on or after the 8th day of February, 1995, and it shall also apply, as on and from the 6th day of April, 1995, in respect of every disposition (within the same meaning) which was made before the 8th day of February, 1995.

(2) Subject to subsection (3), as respects the year of assessment 1996-97 and subsequent years of assessment, section 439 (as amended by subsection (1)) of the Income Tax Act, 1967 , is hereby further amended—

(a) by the substitution of the following subsection for subsection (1):

“(1) (a) Any income which, by virtue of or in consequence of any disposition made, directly or indirectly, by any person (other than a disposition made for valuable and sufficient consideration) is payable to or applicable for the benefit of any other person, but excluding any income which—

(i) arises from capital of which the disponer by the disposition has divested absolutely himself in favour of or for the benefit of the said other person, or

(ii) being payable to any university or college, being a university or college in the State, for the purpose of enabling that university or college to carry on research, is so payable for a period which is or may be three years or longer, or

(iii) being payable to any body of persons to which the provisions of section 20 of the Finance Act, 1973 , apply, is so payable for a period which is or may be three years or longer, or

(iv) being payable to a relevant individual for the individual's own use, is so payable for a period which exceeds or may exceed six years, or

(v) being applicable for the benefit of a named relevant individual, is so applicable for a period which exceeds or may exceed six years,

shall be deemed for the purposes of this Act to be the income of the person, if living, by whom the disposition was made and not to be the income of any other person.

(b) For the purposes of paragraph (a), ‘relevant individual’ means an individual—

(i) who is permanently incapacitated by reason of mental or physical infirmity, or

(ii) who is aged 65 years or over.”,

and

(b) in subsection (1 A), by the substitution of the following paragraph for paragraph (a):

“(a) This subsection applies to a disposition or dispositions of a kind or kinds referred to in subparagraphs (ii) to (v) of paragraph (a) of subsection (1) made, directly or indirectly, by a person being an individual (in this subsection referred to as the ‘disponer’) except in so far as, by virtue or in consequence thereof, income is payable or applicable in a year of assessment, in the manner referred to in subparagraph (iv) or (v) of the said subsection (1), to or for the benefit of an individual referred to in paragraph (b) (i) of subsection (1).”.

(3) (a) If, but only if—

(i) the conditions set out in paragraph (c) are satisfied, and

(ii) the Revenue Commissioners are satisfied the application of the amendments effected by subsections (1) and (2) would give rise to hardship,

then, those amendments shall not, to the extent that the Revenue Commissioners consider just, apply or have effect before the 6th day of April, 1998, in respect of a disposition, to which subparagraph (i) of paragraph (b) applies, by a person (hereinafter in this subsection referred to as “the disponer”), in so far as, by virtue or in consequence thereof, income is payable in a year of assessment to or for the benefit of an individual to whom subparagraph (ii) of paragraph (b) applies.

(b) (i) This subparagraph applies to—

(I) a disposition made before the 6th day of April, 1993, or

(II) a disposition made on or after the 6th day of April, 1993, to immediately replace a disposition made before that date which has ceased to be effective and to the extent, but only to the extent, that the amount payable to or for the benefit of an individual to whom subparagraph (ii) applies under such later disposition does not exceed the amount payable to or for the benefit of that individual under the earlier disposition.

(ii) This subparagraph applies to an individual who is not a child of the disponer and who, for the whole of the year of assessment, is resident with, and shares the normal household expenses with, the disponer.

(c) The conditions referred to in paragraph (a) are as follows:

(i) the making of the disposition referred to in paragraph (b) (i) (I) shall have been notified to the Revenue Commissioners before the 8th day of February, 1995,

(ii) a child, to whom paragraph (d) applies, of the disponer or of the individual to whom subparagraph (ii) of paragraph (b) applies or of both of them is resident with them for the whole, or substantially the whole, of the year of assessment, and

(iii) the child to whom subparagraph (ii) relates is wholly or mainly maintained by the disponer and the individual jointly at their own expense.

(d) A child to whom this paragraph applies is a child who, for a year of assessment—

(i) is under the age of 16 years, or

(ii) if over the age of 16 years at the commencement of the year of assessment, is receiving full-time instruction at any university, college, school or other educational establishment.

Returns of certain information in relation to rent.

14.—(1) Section 94 of the Income Tax Act, 1967 , is hereby amended by the insertion of the following paragraph after paragraph (d) (inserted by the Finance Act, 1992 ):

“(e) any Minister of the Government who, or any health board, local authority (within the meaning assigned to it by section 2 (2) of the Local Government Act, 1941 ) or other board or authority, or other similar body, established by or under statute which, makes any payment either in the nature of or for the purpose of rent or rent subsidy in relation to any premises to prepare and deliver to the inspector a return containing—

(i) the full address of all such premises,

(ii) the name and address of every person to whom such premises belong,

(iii) a statement of all such payments arising in respect of such premises, and

(iv) such other particulars relating to all such premises as may be specified in the notice.”.

(2) The Finance Act, 1992 , is hereby amended—

(i) in subsection (1) of section 226, by the substitution in the definition of “specified provisions”, of the following paragraph for paragraph (a):

“(a) paragraphs (d) (as amended by section 227) and (e) (inserted by the Finance Act, 1995) of section 94 and sections 173 (as so amended), 175 and 176 (as so amended) of the Income Tax Act, 1967 ,”, and

(ii) in subsection (1) of section 228, by the substitution in the definition of “specified provisions”, of the following paragraph for paragraph (a):

“(a) paragraphs (d) (as amended by section 227) and (e) (inserted by the Finance Act, 1995) of section 94 , and sections 173 and 176 (as amended respectively by section 227), of the Income Tax Act, 1967 ,”.

(3) This section shall apply and have effect as respects a relevant chargeable period (within the meaning of section 226 of the Finance Act, 1992 ) being—

(a) where the chargeable period is a year of assessment, the year 1995-96 and any subsequent year of assessment, or

(b) where the chargeable period is an accounting period of a company, an accounting period ending on or after the 6th day of April, 1996.

Amendment of section 191 (error or mistake) of Income Tax Act, 1967.

15.—As respects the year of assessment 1995-96 and subsequent years of assessment, section 191 of the Income Tax Act, 1967 , is hereby amended—

(a) in subsection (1), by the deletion of “under Schedule D or Schedule E”,

(b) in subsection (5), by the substitution of “to income tax” for “under Schedule D or Schedule E, as the case may be,”, and

(c) by the deletion of subsection (6),

and the said subsections (1) and (5) (other than the proviso thereto), as so amended, are set out in the Table to this section.

TABLE

(1) If any person who has paid tax charged under an assessment to income tax made for any year alleges that the assessment was excessive by reason of some error or mistake in the return or statement made by him for the purposes of the assessment, he may, at any time not later than six years after the end of the year of assessment within which the assessment was made, make an application in writing to the Revenue Commissioners for relief.

(5) The Appeal Commissioners shall thereupon hear and determine the appeal in accordance with the principles to be followed by the Revenue Commissioners in determining the applications under this section, and subject thereto, in like manner as in the case of an appeal to them against an assessment to income tax and the provisions of this Act relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications:

Amendment of Chapter IX (Profit Sharing Schemes) of Part I of, and Third Schedule (Profit Sharing Schemes) to, Finance Act, 1982.

16.—Chapter IX of Part I of, and the Third Schedule to, the Finance Act, 1982 , are hereby amended, as respects the year of assessment 1995-96 and subsequent years of assessment, by the substitution in subsections (1) and (2) of section 56 and subparagraph (4) of paragraph 1 of the Third Schedule of “£10,000” for “£2,000”, and the said subsections (1) and (2) and the said subparagraph (4), as so amended, are set out in the Table to this section.

TABLE

(1) If the total of the initial market values of all the shares which are appropriated to an individual in any one year of assessment (whether under a single approved scheme or under two or more such schemes) exceeds £10,000, subsections (4) to (7) shall apply to the excess shares, that is to say, any share which caused that limit to be exceeded and any share appropriated after that limit was exceeded.

(2) For the purposes of subsection (1), if a number of shares is appropriated to an individual at the same time under two or more approved schemes, the same proportion of the shares appropriated at that time under each scheme shall be regarded as being appropriated before the limit of £10,000 is exceeded.

(4) The scheme must provide that the total of the initial market values of the shares appropriated to any one participant in a year of assessment will not exceed £10,000.

Amendment of Chapter III (Income Tax: Relief for Investment in Corporate Trades) of Part I of Finance Act, 1984.

17.—(1) Chapter III of Part I of the Finance Act, 1984 , is hereby amended—

(a) in section 11 (1)—

(i) by the substitution of the following definition for the definition of “industrial development agency” (inserted by the Finance Act, 1990 ):

“‘industrial development agency’ means Forbairt, the Industrial Development Agency (Ireland), the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta, as may be appropriate;”,

(ii) by the deletion of the definition of “relevant company” (inserted by the Finance Act, 1993 ),

(iii) by the substitution of the following definition for the definition of “relevant employment” (inserted by the Finance Act, 1993 ):

“‘relevant employment’, in relation to a specified individual, means employment throughout the relevant period by the company in which the individual makes a relevant investment (being that individual's first such investment in that company) and where the individual is a full-time employee or full-time director of the company;”,

(iv) by the substitution of the following definition for the definition of “relevant investment” (inserted by the Finance Act, 1993 ):

“‘relevant investment’, in relation to a specified individual, means the amount, or the aggregate of the amounts, subscribed in a year of assessment by the individual for eligible shares in a qualifying company which carries on or intends to carry on relevant trading operations;”,

(v) by the deletion of the definition of “relevant shares” (inserted by the Finance Act, 1993 ),

(vi) by the substitution of the following definition for the definition of “relevant trading operations” (as amended by the Finance Act, 1994 ):

“‘relevant trading operations’ has the meaning assigned to it by section 16A (inserted by the Finance Act, 1995);”,

and

(vii) by the substitution of the following definition for the definition of “specified individual” (as amended by the Finance Act, 1994 ):

“‘specified individual’ has the meaning assigned to it by section 14A (inserted by the Finance Act 1995);”,

(b) in section 12—

(i) by the substitution of the following paragraphs for paragraph (iii) of the proviso (substituted by the Finance Act, 1993 ) to paragraph (c) of subsection (1):

“(iii) for the purposes of qualifying trading operations such as are referred to in subparagraph (iie) (inserted by the Finance Act, 1995) of paragraph (a) of subsection (2) of section 16, the aforementioned evidence shall include the certificate referred to in subsection (3C) (as so inserted) of section 16, and

(iv) for the purposes of relevant trading operations, the aforementioned evidence shall include the certificate referred to in section 16A (1) (inserted by the Finance Act, 1995),”,

(ii) by the substitution of the following proviso for the second proviso (inserted by the Finance Act, 1993 ) to subsection (3):

“Provided also that—

(a) a specified individual may, in relation to a relevant investment made by such individual (being that individual's first such investment), elect, by notice in writing to the inspector, to have the relief due given as a deduction from such individual's total income for any one of the five years of assessment immediately prior to the year of assessment in which the eligible shares in respect of that investment are issued which such individual nominates for the purpose and, accordingly, subject to section 13 and paragraphs (c) and (d), for the purpose of granting such relief, but for no other purpose of this Chapter, the shares shall be deemed to have been issued in the year of assessment so nominated, and

(b) where the specified individual makes a subsequent relevant investment (being that individual's second such investment)—

(i) in the same company as that individual's first such investment, and

(ii) within either the year of assessment following the end of the year of assessment in which that individual's first such investment was made or the year of assessment subsequent to that year,

then, the specified individual may, in relation to that individual's second such investment, elect, by notice in writing to the inspector, to have the relief due given as a deduction from that individual's total income for any one of the five years of assessment immediately prior to the year of assessment in which the eligible shares in respect of that individual's first such investment were issued which that individual nominates for the purpose and, accordingly, subject to section 13 and paragraphs (c) and (d), for the purpose of granting such relief, but for no other purpose of this Chapter, the shares issued in respect of the second such investment shall be deemed to have been issued in that year of assessment, and

(c) where any of the years of assessment following the year of assessment nominated under paragraph (a) or (b), as the case may be, precede the year of assessment in which the eligible shares in respect of the individual's first relevant investment are, in fact, issued, subsections (2A), (2B) and (2C) (inserted by the Finance Act, 1987 ) of section 13 shall operate to give relief in such years of assessment as may be nominated by that individual for that purpose, and

(d) to the extent that the amount of the relief which would be due in respect of the individual's first relevant investment or second relevant investment, as the case may be, has not been given in accordance with the foregoing provisions, it shall, subject to the provisions of subsections (2A), (2B) and (2C) (inserted by the Finance Act, 1987 ) of section 13, be given for the year of assessment in which the eligible shares in respect of the first such investment or the second such investment, as the case may be, are, in fact, issued or, if appropriate, a subsequent year of assessment, and

(e) this proviso shall apply in respect of not more than two, and only two, relevant investments made by a specified individual on or after the passing of the Finance Act, 1995.”,

(iii) by the substitution of “relevant trading operations” for “the trade” in subsection (4) (a) (i),

(iv) by the insertion of the following subsection after subsection (6):

“(6A) In the case of a claim allowed before a specified individual commences a relevant employment with the company in which the individual has made a relevant investment (being that individual's first such investment), the relief shall be withdrawn if the specified individual fails to commence such employment—

(a) within the year of assessment in which the investment is made, or

(b) if later, within six months of the date of—

(i) where the investment consists of the subscription of only one amount for eligible shares, that subscription, or

(ii) where the investment consists of the subscription of more than one amount for eligible shares, the last such subscription.”,

(v) by the insertion of the following subsection after subsection (10):

“(10A) Where an individual is entitled to relief under this section in respect of a subscription by him for eligible shares in a company he shall not be entitled to relief in respect of that subscription under section 12 of the Finance Act, 1986 .”,

and

(vi) by the insertion of the following proviso to subsection (11):

“Provided that for the purposes of a relevant investment this subsection shall apply and have effect as if ‘the 5th day of April, 1998’ were substituted for ‘the 5th day of April, 1996’.”,

(c) in subsections (2A) and (2B) of section 13, by the substitution of the following proviso for each of the provisos thereto:

“Provided that this subsection shall not apply or have effect—

(i) in the case of a relevant investment, for any year of assessment subsequent to the year 1997-98, and

(ii) in any other case, for any year of assessment subsequent to the year 1995-96.”,

(d) by the insertion of the following section after section 14:

“Specified individual.

14A.—(1) An individual is a specified individual if the individual qualifies for relief in respect of a relevant investment and complies with the requirements of this section.

(2) The individual, in each of the three years of assessment preceding the year of assessment immediately preceding the year of assessment in which that individual makes a relevant investment (being that individual's first such investment), shall not have been in receipt of income chargeable to tax otherwise than under—

(a) Schedule E, or

(b) Case III of Schedule D in respect of profits or gains from an office or employment held or exercised outside the State,

in excess of the lesser of—

(i) the aggregate of the amounts, if any, of that individual's income chargeable to tax under Schedule E and under Case III of Schedule D as aforesaid, or

(ii) £15,000:

Provided that this subsection shall not apply to an individual who makes a subscription for eligible shares in a qualifying company which carries on or intends to carry on such qualifying trading operations as are referred to in subparagraph (iib) (inserted by the Finance Act, 1995) of paragraph (a) of subsection (2) of section 16.

(3) The individual shall, throughout the relevant period, possess at least 15 per cent, of the issued share capital of the company in which that individual makes a relevant investment.

(4) (a) Subject to subsections (5) and (6), the individual at the specified date, in relation to that individual's first relevant investment in a company, or within the period of 12 months immediately preceding that date, either directly or indirectly, shall not possess or have possessed, or shall not be or have been entitled to acquire, more than 15 per cent, of—

(i) the issued ordinary share capital, or

(ii) the loan capital (within the meaning of section 14 (5)) and the issued share capital, or

(iii) the voting power,

of any company other than the company in which that individual makes that relevant investment or a company to which subsection (5) relates.

(b) For the purposes of paragraph (a) and subsections (5) and (6) ‘specified date’, in relation to a relevant investment in a company, means—

(i) where the investment consists of the subscription of only one amount for eligible shares, the date of that subscription, or

(ii) where that investment consists of the subscription of more than one amount for eligible shares, the date of the last such subscription.

(5) This subsection relates to a company which during a period of 5 years ending on the specified date, in relation to an individual's first relevant investment in a company—

(a) was not entitled to any assets, other than cash on hands or a sum of money on deposit within the meaning of section 230 of the Finance Act, 1992 , not exceeding £100, and

(b) did not carry on a trade, profession, business or other activity including the making of investments, and

(c) did not pay charges on income within the meaning of section 10 of the Corporation Tax Act, 1976 .

(6) (a) An individual shall not be regarded as failing to satisfy the requirements of subsection (4) merely by reason of the fact that the individual does not satisfy those requirements in relation to one, and only one, company (other than the company in which the individual makes that individual's first relevant investment or a company to which subsection (5) relates)—

(i) which exists wholly or mainly for the purpose of carrying on trading operations other than trading operations consisting of dealing in shares, securities, land, currencies, futures or traded options, and

(ii) where the total amount receivable by that company from sales made and services rendered in the course of that company's trading operations did not exceed £100,000 in each of that company's three accounting periods immediately preceding the accounting period of that company in which the specified date occurs in relation to that individual's first relevant investment.

(b) For the purposes of paragraph (a)—

(i) a company shall be regarded as a company which carries on wholly or mainly such trading operations as are referred to in paragraph (a) (i) if, but only if, in each of the three accounting periods referred to in paragraph (a) (ii) the total amount receivable from sales made or services rendered in the course of such trading operations is not less than 75 per cent, of the total amount receivable by the company from all sales made and services rendered in the course of the trade, and

(ii) ‘accounting period’ means an accounting period determined in accordance with the provisions of section 9 of the Corporation Tax Act, 1976 .

(7) An individual shall not be regarded as ceasing to comply with subsection (3) if that individual does so by reason of the company in which the individual makes a relevant investment being wound up or dissolved without winding up before the end of the relevant period but only if it is shown that the winding up or dissolution is for bona fide commercial reasons and not as part of a scheme or arrangement the main purpose or one of the main purposes of which was the avoidance of tax.”,

(e) in section 15—

(i) by the insertion after subsection (3A) of the following subsection:

“(3B) (a) A company, whose trade consists of the cultivation of horticultural produce within the meaning of subsection (2C) (inserted by the Finance Act, 1995) of section 16, shall not be a qualifying company unless and until it has shown to the satisfaction of the Revenue Commissioners that it has submitted to, and has had approved of by, the Minister for Agriculture, Food and Forestry (hereafter in this subsection referred to as ‘the Minister’) a three year development and marketing plan in respect of the company's trade, which plan is primarily designed and formulated to increase the exportation of such produce or to displace the importation of such produce.

(b) In considering whether to approve of such a plan, the Minister shall have regard only to such guidelines in relation to such approval as may, from time to time, be agreed between the Minister and the Minister for Finance and those guidelines may, without prejudice to the generality of the foregoing, set out—

(i) the extent to which the company's interest in land and buildings (other than greenhouses) may form part of its total assets, and

(ii) specific requirements which have to be met in order to comply with either of the objectives mentioned in paragraph (a), and

(iii) the extent to which the money raised through the issue of eligible shares should be used to identify new markets and to develop new or existing markets for the company's produce.”,

and

(ii) by the substitution of “a company in which a relevant investment is made by a specified individual (being that individual's first such investment in that company)” for “a relevant company” in subsection (8),

(f) in section 16—

(i) in paragraph (a) of subsection (2)—

(I) by the substitution of the following clause for clause (I) of subparagraph (ii) (substituted by the Finance Act, 1990 ):

“(I) (A) a grant towards the employment of persons was made by Forbairt or the Industrial Development Agency (Ireland) under section 12 (2) of the Industrial Development Act, 1993 , or

(B) shares in the qualifying company concerned were purchased or taken by Forbairt or the Industrial Development Agency (Ireland) in accordance with the provisions of section 31 of the Industrial Development Act, 1986 , or”,

(II) by the substitution of “relevant investment made” for “subscription for relevant shares issued” in subparagraph (iia) (inserted by the Finance Act, 1994 ), and

(III) by the insertion of the following subparagraphs after subparagraph (iia) (inserted by the Finance Act, 1994 ):

“(iib) in respect of a relevant investment made on or after the passing of the Finance Act, 1995, and notwithstanding the provisions of subparagraph (ii), the rendering of relevant trading operations within the meaning of section 39B of the Finance Act, 1980 (inserted by the Finance Act, 1987 ), which are carried on for the purposes of, or in connection with, trading operations on an exchange facility established in the Custom House Docks Area as defined in section 41 of the Finance Act, 1986 ,

(iic) in respect of a relevant investment made on or after the passing of the Finance Act, 1995, the rendering of such services as are referred to in subparagraph (ii) in respect of which an industrial development agency has provided financial support of not less than £2,000 towards the undertaking of a feasibility study by a person approved of by the agency into the potential commercial viability of the services to be rendered,

(iid) in respect of a subscription for eligible shares made on or after the passing of the Finance Act, 1995, research and development activities within the meaning of subsection (2B),

(iie) in respect of a subscription for eligible shares made on or after the passing of the Finance Act, 1995, the cultivation of horticultural produce within the meaning of subsection (2C),”,

(ii) by the substitution of the following paragraph for paragraph (III) of the second proviso (inserted by the Finance Act, 1989 ) to subsection (2):

“(III) the carrying on of financial activities (other than such financial activities as are included in the activities referred to in subparagraph (iib) (inserted by the Finance Act, 1995) of paragraph (a)),”,

and

(iii) by the insertion of the following subsections after subsection (2A):

“(2B) (a) For the purposes of subsection (2) (a) (iid), ‘research and development activities’ means systematic, investigative or experimental activities which—

(i) are carried on wholly or mainly in the State, and

(ii) involve innovation or technical risk, and

(iii) are carried on for the purpose of—

(I) acquiring new knowledge with a view to that knowledge having a specific commercial application, or

(II) creating new or improved materials, products, devices, processes or services,

and other activities that are carried on wholly or mainly in the State for a purpose directly related to the carrying on of activities of the kind referred to in subparagraph (iii):

Provided that activities that are carried on by way of—

(A) market research, market testing, market development, sales promotion or consumer surveys,

(B) quality control,

(C) prospecting, exploring or drilling for minerals, petroleum or natural gas for the purpose of determining the size or quality of any deposits,

(D) the making of cosmetic modifications or stylistic changes to products, processes or production methods,

(E) management studies or efficiency surveys, or

(F) research in social sciences, arts or humanities,

shall not be research and development activities.

(b) For the purposes of paragraph (a) systematic, investigative or experimental activities or other activities shall be regarded as carried on wholly or mainly in the State if, and only if, not less than 75 per cent. of the total amount expended in the course of such activities in the relevant period is expended in the State.

(2C) For the purposes of subsection (2), the cultivation of horticultural produce means the cultivation, in a greenhouse or greenhouses within the State, of plants used for food or for the production of food or ornament or of herbaceous plants, and includes the technical procedures, in relation to such cultivation, necessary for the production and preparation for market of flowers, decorative foliage, fruit, nursery stock, herbs and vegetable crops (including potatoes and seed potatoes), in respect of which greenhouse or greenhouses a certificate has been issued by the Minister for Agriculture, Food and Forestry certifying that—

(a) the construction, improvement or repair of the greenhouse or greenhouses concerned, or

(b) the installation or improvement of irrigation or heating facilities in the greenhouse or greenhouses concerned,

may be eligible to be grant-aided under a scheme of assistance administered by the Minister.”,

(g) by the insertion of the following section after section 16—

“Relevant trading operations.

16A.—(1) For the purposes of this Chapter ‘relevant trading operations’ means qualifying trading operations (other than such operations as are referred to in subparagraph (iiib) (inserted by the Finance Act, 1990 ) of paragraph (a) of subsection (2) of section 16 ) in respect of which a certifying agency or a certifying Minister, as the case may be, (hereafter in this section referred to as ‘the authority’) has given a certificate under subsection (2).

(2) Subject to the following provisions of this section, the authority may, in respect of qualifying trading operations carried on or to be carried on by a company, give a certificate to the company certifying that the authority is satisfied, on the basis of such information as is supplied to the authority by the company or which the authority may reasonably require the company to furnish, that the carrying on of such qualifying trading operations by the company is, or will be, a bona fide new venture which, having regard to—

(a) the potential for the creation of additional sustainable employment, and

(b) the desirability of minimising the displacement of existing employment,

may be eligible—

(i) in the case of such qualifying trading operations as are referred to in subparagraph (iic) (inserted by the Finance Act, 1995) of paragraph (a) of subsection (2) of section 16, based on guidelines agreed, with the consent of the Minister for Finance, between the certifying agency and the Minister for Arts, Culture and the Gaeltacht or the Minister for Enterprise and Employment (as may be appropriate in the circumstances), for the payment of the grants or the financial assistance referred to in subparagraph (ii) (as amended by the Finance Act, 1995) of paragraph (a) of subsection (2) of section 16 within a reasonable period after the completion of the feasibility study carried out in relation to the trading operations concerned in accordance with the provisions of the said subparagraph (iic), and

(ii) in any other case but subject to subsection (4), based on guidelines agreed—

(I) with the consent of the Minister for Finance, between the certifying agency and the Minister for Arts, Culture and the Gaeltacht or the Minister for Enterprise and Employment or the Minister for Tourism and Trade (as may be appropriate in the circumstances), or

(II) between the certifying Minister and the Minister for Finance,

to be grant aided under a scheme of assistance administered by the authority.

(3) The carrying on of such qualifying trading operations as are referred to in subsection (2) by a company shall not be regarded as not being a bona fide new venture by reason only that they were carried on as, or as part of, a trade by another person at any time before the issue of the eligible shares in respect of which relief is claimed.

(4) A certificate to which subsection (2) relates may be given by—

(a) the Industrial Development Agency (Ireland) in respect of such qualifying trading operations as are referred to in section 16 (2) (a) (iib) (inserted by the Finance Act, 1995), or

(b) the Minister for Agriculture, Food and Forestry in respect of such qualifying trading operations as are referred to in section 16 (2) (a) (iiia) (inserted by the Finance Act, 1988 ),

without regard to whether such operations are eligible to be grant-aided but, in considering whether to give such a certificate, the agency or the Minister, as the case may be, shall have regard to such guidelines in relation to the giving of such a certificate as may be agreed—

(i) with the consent of the Minister for Finance, between the agency and the Minister for Enterprise and Employment, or

(ii) between the Minister for Agriculture, Food and Forestry and the Minister for Finance.

(5) Bord Fáilte Éireann shall not give a certificate to which subsection (2) relates in a case where the value of a company's interests in land and buildings (excluding fixtures and fittings) is or is intended to be greater than one-half the value of its assets as a whole.

(6) An authority shall not give a certificate to which subsection (2) relates unless the company concerned undertakes in writing to furnish the authority when requested to do so with such details in relation to the carrying on of the qualifying trading operations as the authority may specify.”,

(h) in section 22 (1) (a) (i) by the substitution of “relevant trading operations” for “the trade”, and

(i) in section 23 (7) by the substitution of the following paragraph for paragraph (e):

“(e) in the case of relief withdrawn by virtue of—

(i) a specified individual failing or ceasing to hold a relevant employment, or

(ii) an individual ceasing to be a specified individual,

the date of the failure or the cessation, as the case may be.”.

(2) (a) Subparagraph (i) of paragraph (a) and subparagraph (i) (I) of paragraph (f) of subsection (1) shall apply and have effect, and shall be deemed to have always applied and had effect, as respects a subscription for eligible shares made on or after the 1st day of January, 1994.

(b) Subparagraph (v) of paragraph (b) of subsection (1) shall apply and have effect as respects a subscription for eligible shares made on or after the 12th day of April, 1995.

(c) Paragraphs (a) (other than subparagraph (i)), (b) (other than subparagraph (v)), (c), (d), (e), (f) (other than subparagraph (i) (I)), (g), (h) and (i) of subsection (1) shall apply and have effect as respects a subscription for eligible shares made on or after the passing of this Act.

Amendment of section 17 (tax deductions from payments to subcontractors in the construction industry) of Finance Act, 1970.

18.—(1) Section 17 (as amended by the Finance Act, 1992 ) of the Finance Act, 1970 , is hereby amended—

(a) in subsection (1), by the substitution of the following definition for the definition of “certification of authorisation”:

“‘certificate of authorisation’ means a certificate issued under subsection (7), which certificate shall be valid for such period as the Revenue Commissioners may by regulations made in accordance with subsection (5) provide;”,

(b) in subsection (5)—

(i) by the insertion of the following paragraph after paragraph (a):

“(aa) (i) the making, before the entering into of a relevant contract, by the persons who intend to enter into such a contract of a declaration, in a specified form, to the effect that, having regard to guidelines published by the Revenue Commissioners for the information of such persons as to the distinctions between contracts of employment and relevant contracts and without prejudice to the question of whether a particular contract is a contract of employment or a relevant contract, they have satisfied themselves that in their opinion the contract which they propose to enter into is not a contract of employment,

(ii) the publication of guidelines by the Revenue Commissioners for the purposes of subparagraph (i), and

(iii) the keeping by principals of every such declaration and the inspection of any or all such declarations;”,

and

(ii) by the insertion of the following paragraph after paragraph (d):

“(dd) the furnishing by sub-contractors to principals of all such information or particulars as are required by principals to enable principals to comply with any provision of regulations made under this section;”,

and

(c) in subsection (10), by the substitution of the following sub-paragraph for subparagraph (iv) of paragraph (c):

“(iv) who fails to comply with any provision of regulations made under this section requiring such person—

(I) to make any declaration, or

(II) to provide any information or particulars to principals, or

(III) to keep or produce any records, documents or declarations,”.

(2) Subsection (1) (a) shall have effect from, and be deemed always to have had effect from, the 6th day of October, 1992.

Short-lived businesses.

19.—As respects the year 1995-96 and subsequent years of assessment, the Income Tax Act, 1967 , is hereby amended by the insertion after section 58 of the following section:

“58A.—(1) This section applies to a trade or profession which has been set up and commenced in a year of assessment and which is permanently discontinued within the second year of assessment following that year of assessment and in respect of which the aggregate of the profits or gains on which any person has been charged, or would be charged to income tax, by virtue of any other provision of this Act, exceeds the aggregate of the profits or gains arising in the period beginning on the date of set up and commencement and ending on the date of permanent discontinuance of the trade or profession.

(2) Any person chargeable to income tax on the profits or gains of a trade or profession to which this section applies shall be entitled, on giving notice in writing to the inspector on or before the specified return date (within the meaning of section 9 of the Finance Act, 1988 ) for the year of assessment in which the trade or profession is permanently discontinued, to have the assessment for the year of assessment immediately preceding that year reduced by the amount by which the amount of the assessment for that immediately preceding year exceeds the full amount of the profits or gains arising in that same year.

(3) The provisions of subsection (6) of section 58 of the Income Tax Act, 1967 , shall apply to this section as if references therein to subsection (5) included references to this section.”.

Chapter II

Income Tax, Corporation Tax and Capital Gains Tax

Amendment of section 19 (relief for expenditure on significant buildings) of Finance Act, 1982.

20.Section 19 (as amended by the Finance Act, 1994 ) of the Finance Act, 1982 , is hereby amended as on and from the date of the passing of this Act—

(a) in subsection (1), by the insertion of the following definition after the definition of “qualifying expenditure”:

“‘tourist accommodation facility’ means an accommodation facility—

(a) registered in the register of guest houses maintained and kept by Bord Fáilte Éireann under Part III of the Tourist Traffic Act, 1939 , or

(b) listed in the list published or caused to be published by Bord Fáilte Éireann under section 9 of the Tourist Traffic Act, 1957 ;”,

(b) in paragraph (a) of subsection (2)—

(i) by the substitution in subparagraph (ii) of the following clause for clause (B):

“(B) the days and times during the year when access to the approved building is afforded to the public or the period or periods during the year when the approved building is in use as a tourist accommodation facility, as the case may be,”,

(ii) by the insertion of “and” after “promotion of tourism,” in subparagraph (ii), and

(iii) by the insertion of the following subparagraph after subparagraph (ii):

“(iii) where, the approved building was in use as a tourist accommodation facility in any of the chargeable periods applicable for the purposes of subparagraph (ii), that the approved building was registered in the register of guest houses maintained and kept by the Board under Part III of the Tourist Traffic Act, 1939 , or listed in the list published or caused to be published by the Board under section 9 of the Tourist Traffic Act, 1957 , in those chargeable periods,”,

and

(c) in subsection (4)—

(i) by the substitution of the following subparagraph for subparagraph (ii) of paragraph (a):

“(ii) by the Revenue Commissioners, to be a building either—

(I) to which reasonable access is afforded to the public, or

(II) which is in use as a tourist accommodation facility for at least six months in any calendar year (hereafter in this subsection referred to as the ‘required period’) including not less than four months in the period commencing on the 1st day of May and ending on the 30th day of September in any such year.”,

(ii) by the insertion in paragraph (d)—

(I) of “or the building ceases to be used as a tourist accommodation facility for the required period (as the case may be)” after “the public”, and

(II) of “or such use (as the case may be)” after “such access”,

and the said paragraph (apart from subparagraphs (i) and (ii) thereof) as so amended is set out in the Table to this section, and

(iii) by the addition of the following paragraph after paragraph (d):

“(e) Where—

(i) the Revenue Commissioners make a determination (hereafter in this paragraph referred to as the ‘first-mentioned determination’) that a building is either a building to which reasonable access is afforded to the public or a building which is in use as a tourist accommodation facility for the required period, and

(ii) such access ceases to be so afforded or such building ceases to be so used, as the case may be, in a chargeable period subsequent to the chargeable period in which the first-mentioned determination was made, and

(iii) on application to them in that chargeable period in that behalf by the person who owns or occupies the building the Revenue Commissioners revoke the first-mentioned determination and make a further determination (hereafter in this paragraph referred to as the ‘second-mentioned determination’) with effect from the date of revocation of the first-mentioned determination—

(I) in the case of a building in respect of which a determination was made that it is a building to which reasonable access is afforded to the public, that the building is a building which is in use as a tourist accommodation facility for the required period, or

(II) in the case of a building in respect of which a determination was made that it is a building which is in use as a tourist accommodation facility for the required period, that the building is a building to which reasonable access is afforded to the public,

then, paragraph (d) shall not apply on the revocation of the first-mentioned determination and, for the purposes of that paragraph, the second-mentioned determination shall be treated as having been made at the time of the making of the first-mentioned determination.”.

TABLE

(d) Where under paragraph (a) the Revenue Commissioners make a determination in relation to a building, and reasonable access to the building ceases to be afforded to the public or the building ceases to be used as a tourist accommodation facility (as the case may be), the Revenue Commissioners may, by notice in writing given to the owner or occupier of the building, revoke the determination with effect from the date on which they consider that such access or such use (as the case may be) so ceased, and

Farming: amendment of provisions relating to relief in respect of increase in stock values.

21.—(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended by the substitution in paragraph (iv) (inserted by the Finance Act, 1979 ) of the proviso to subsection (4) (a) of “1997” for “1995” (inserted by the Finance Act, 1993 ) and the said paragraph (iv), as so amended, is set out in the Table to this subsection.

TABLE

(iv) a deduction shall not be allowed under the provisions of this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 1997.

(2) Section 12 of the Finance Act, 1976 , is hereby amended by the substitution in subsection (3) of “1996-97” for “1994-95” (inserted by the Finance Act, 1993 ) and the said subsection (3), as so amended, is set out in the Table to this subsection.

TABLE

(3) Any deduction allowed by virtue of this section in computing a person's trading profits for an accounting period shall not have effect for any purpose of the Income Tax Acts for any year of assessment prior to the year 1974-75 or later than the year 1996-97.

(3) In the case of a person within the meaning of section 12 of the Finance Act, 1976 , who is a qualifying farmer, the following provisions of this subsection shall apply and have effect notwithstanding any other provision of this section—

(a) subsection (1) of section 13 of the Finance Act, 1982 , shall apply and have effect as if “100 per cent.” were substituted for “25 per cent.” (inserted by the Finance Act, 1993 );

(b) paragraph (a) shall apply and have effect in computing a person's trading profits for an accounting period in the case of a person who becomes a qualifying farmer—

(i) on or after the 6th day of April, 1993, and before the 6th day of April, 1995, for the year of assessment 1995-96 and for each of the three immediately succeeding years of assessment, or

(ii) on or after the 6th day of April, 1995, and before the 6th day of April, 1997, for the year of assessment in which the person becomes a qualifying farmer and for each of the three immediately succeeding years of assessment.

(4) For the purposes of subsection (3), “qualifying farmer” means an individual who—

(a) in the year 1993-94 or any subsequent year of assessment, first qualifies for grant aid under the Scheme of Installation Aid for Young Farmers operated by the Department of Agriculture, Food and Forestry under Council Regulation (EEC) No. 797/85 of 12 March 1985* , or that Regulation as may be revised from time to time, or

(b) (i) first becomes chargeable to income tax under Case I of Schedule D in respect of profits or gains from a trade of farming for the said year 1993-94 or any subsequent year of assessment, and

(ii) has not attained the age of 35 years at the commencement of the year of assessment referred to in subparagraph (i), and

(iii) at any time in the year of assessment so referred to—

(I) is the holder of a qualification set out in the Sixth Schedule to the Finance Act, 1994 , and, in the case of a qualification set out in subparagraph (c), (d), (e), (f) or (g) of paragraph 3, or in paragraph 4, of the said Schedule, is also the holder of a certificate issued by Teagasc— The Agricultural and Food Development Authority (referred to subsequently in this paragraph as “Teagasc”) certifying that such person has satisfactorily attended a course of training in farm management, the aggregate duration of which exceeded 80 hours, or

(II) (A) has satisfactorily attended full-time a course at a third-level institution in any discipline for a period of not less than 2 years' duration, and

(B) is the holder of a certificate issued by Teagasc certifying satisfactory attendance at a course of training in either or both agriculture and horticulture, the aggregate duration of which exceeded 180 hours,

or

(III) if born before the 1st day of January, 1968, that such person is the holder of a certificate issued by Teagasc certifying that such person has satisfactorily attended a course of training in either or both agriculture and horticulture, the aggregate duration of which exceeded 180 hours:

Provided that where Teagasc certifies that any other qualification corresponds to a qualification which is set out in the said Sixth Schedule, that other qualification shall, for the purposes of this subsection, be treated as if it were the corresponding qualification so set out.

(5) This section shall have effect only as respects a trade of farming.

Compulsory disposals of livestock.

22.—(1) In this section—

“accounting period” means—

(a) in relation to a company, an accounting period determined in accordance with the provisions of section 9 of the Corporation Tax Act, 1976 , and

(b) in relation to a person other than a body corporate, a period determined in accordance with the provisions of section 12 of the Finance Act, 1976 ;

“chargeable period” has the same meaning as it has in paragraph 1 of the First Schedule to the Corporation Tax Act, 1976 ;

“excess” means the excess of the relevant amount over the value of the stock to which this section applies at the beginning of the accounting period in which the disposal takes place;

“farming” has the same meaning as it has in Chapter II of Part I of the Finance Act, 1974 ;

“person” means a person who is resident in the State and not resident elsewhere and includes a body corporate;

“relevant amount” means the amount of any income received by a person as a result, or in consequence, of a disposal of stock to which this section applies;

“specified return date for the chargeable period” has the same meaning as it has in section 9 of the Finance Act, 1988 ;

“stock to which this section applies” means cattle forming part of the trading stock of a trade of farming where all such cattle are compulsorily disposed of on or after the 6th day of April, 1993, under any statute relating to the eradication or control of diseases in livestock:

Provided that, for the purposes of this section, all such cattle shall be regarded as compulsorily disposed of where, in the case of any disease eradication scheme relating to the eradication or control of brucellosis in livestock, all eligible cattle for the purposes of any such scheme, together with such other cattle as are required to be disposed of, are disposed of;

“trading stock” has the same meaning as it has in section 31 of the Finance Act, 1975 .

(2) Where stock to which this section applies is disposed of in an accounting period by a person carrying on a trade of farming, the person may elect to have the excess treated in accordance with the following provisions of this section and such election shall be made in such form and contain such information as the Revenue Commissioners may require.

(3) Notwithstanding any other provision of the Tax Acts, where a person elects in accordance with the provisions of subsection (2), the excess shall be disregarded as respects the accounting period in which it arises and shall instead be treated for the purposes of the said Acts as arising in equal instalments in each of the two immediately succeeding accounting periods:

Provided that, notwithstanding the foregoing provisions of this subsection, where the person further elects, the excess shall be treated as arising in such equal instalments in the accounting period in which it arises and in the immediately succeeding accounting period.

(4) Where, not later than the end of the succeeding accounting period or succeeding accounting periods, as appropriate, referred to in subsection (3), the person incurs expenditure on the replacement of cattle in an amount not less than the relevant amount, the person shall be entitled to a deduction, in respect of the amount of the excess, under section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , or section 12 of the Finance Act, 1976 , as appropriate, such provisions being applied as if, in section 13 of the Finance Act, 1982 , “100 per cent.” were substituted for “25 per cent.” (inserted by the Finance Act, 1993 ):

Provided that, where the expenditure incurred on replacement as aforesaid is less than the relevant amount, the deduction in each of the two accounting periods referred to in subsection (3) or in the proviso thereto under the said section 31A or section 12, as appropriate, shall be reduced to an amount that bears the same proportion to the excess as the expenditure incurred in each of the said two accounting periods bears to the relevant amount.

(5) An election under this section shall be made by notice in writing made on or before the specified return date for the chargeable period in which the stock to which this section applies is compulsorily disposed of:

Provided that, where the specified return date was a date prior to the date of the passing of this Act, the said election shall be made on or before the 31st day of December, 1995.

Capital allowances for, and deduction in respect of, vehicles.

23.—(1) (a) Subject to paragraph (b), sections 25 to 29 of the Finance Act, 1973 , shall have effect, in relation to expenditure incurred on the provision or hiring of a vehicle to which those sections apply, as if for “£2,500” (construed as a reference to £13,000 by virtue of section 21 of the Finance Act, 1994 ), in each place where it occurs in those sections, there were substituted “£14,000”.

(b) Paragraph (a) shall apply only to expenditure incurred on the provision or hiring of a vehicle which, on or after the 9th day of February, 1995, is not a used or secondhand vehicle and is first registered in the State under section 131 of the Finance Act, 1992 , without having been previously registered in any other State which duly provides for the registration of a mechanically propelled vehicle, and it does not include—

(i) as respects the said sections 25 to 27, expenditure incurred before the 9th day of February, 1995, or incurred within 12 months after that date under a contract entered into before that date, and

(ii) as respects subsections (2) and (3) of the said section 28 and the said section 29, expenditure incurred under a contract entered into before the 9th day of February, 1995.

(2) Section 32 of the Finance Act, 1976 , shall have effect, in relation to qualifying expenditure (within the meaning of that section) incurred after the 8th day of February, 1995, as if for “£3,500” (construed as a reference to £13,000 by virtue of section 21 of the Finance Act, 1994 ), in each place where it occurs, there were substituted “£14,000”.

Amendment of section 265 (balancing allowances and balancing charges) of Income Tax Act, 1967, etc.

24.—(1) Section 265 of the Income Tax Act, 1967 , is hereby amended in subsection (1) (c) by the substitution of “ceases altogether to be used” for “ceases to be used as an industrial building or structure” (inserted by section 22 (1) (d) (i) of the Finance Act, 1994 ).

(2) This section shall be deemed to have come into operation on the 11th day of April, 1994, and accordingly section 22 (1) (d) (i) of the Finance Act, 1994 , shall be deemed never to have had effect.

Amendment of section 272 (balancing allowances and balancing charges) of Income Tax Act, 1967.

25.—(1) Section 272 (as amended by section 24 (b) of the Finance Act, 1994 ) of the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution of “paragraphs (a), (b), (c) and (d) of subsection (1)” for “paragraphs (a), (b) and (c) of subsection (1)” in both paragraphs (a) and (b) of subsection (5), and

(b) by the addition of the following subsection after subsection (5):

“(6) Where—

(a) the sale, insurance, salvage or compensation moneys consist of a payment or payments to a person under the scheme for compensation in respect of the decommissioning of fishing vessels which is to be implemented by the Minister for the Marine pursuant to Council Regulation (EC) No. 3699/93 of 21 December 1993* , and

(b) on account of the receipt by the person of the said payment or payments, a balancing charge falls, other than by reason of the proviso to this subsection, to be made on the person for any chargeable period,

then, the amount on which the balancing charge is to be made for that chargeable period shall be an amount equal to one-third of the amount (hereafter in this subsection referred to as ‘the original amount’) on which the balancing charge would, but for this subsection, have fallen to be made:

Provided that there shall be made on the person for each of the two immediately succeeding chargeable periods a balancing charge and the amount on which that charge is made for each of those periods shall be an amount equal to one-third of the original amount.”.

(2) Paragraph (a) of subsection (1) shall be deemed to have come into operation as on and from the 6th day of April, 1994.

Amendment of section 51 (application of certain allowances in relation to certain areas and certain expenditure) of Finance Act, 1988.

26.Section 51 (as amended by section 33 (1) of the Finance Act, 1993 ) of the Finance Act, 1988 , is hereby amended by the substitution of the following paragraphs for paragraph (c) of subsection (1):

“(c) machinery or plant or an industrial building the expenditure on the provision of which is incurred before the 31st day of December, 1995, under a binding contract entered into on or before the 27th day of January, 1988;

(cc) machinery or plant or an industrial building which is provided for the purposes of a project approved by an industrial development agency on or before the 31st day of December, 1988, and in respect of the provision of which expenditure is incurred before the 31st day of December, 1995:

Provided that, as respects machinery or plant or an industrial building which is provided for the purposes of a project approved by an industrial development agency in the period from the 1st day of January, 1986, to the 31st day of December, 1988, paragraph (cc) shall apply as if the reference therein to ‘the 31st day of December, 1995’ were a reference to ‘the 31st day of December, 1996’;”.

Amendment of section 81 (application of certain allowances in relation to certain expenditure) of Finance Act, 1990.

27.Section 81 of the Finance Act, 1990 , is hereby amended by the substitution of the following subsection for subsection (1):

“(1) This section applies to—

(a) machinery or plant or an industrial building or structure which is provided for the purposes of a project which was approved for grant assistance by the Industrial Development Authority, the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta in the period from the 1st day of January, 1989, to the 31st day of December, 1990, and in respect of the provision of which expenditure is incurred before the 31st day of December, 1997:

Provided that, as respects machinery or plant or an industrial building or structure which is provided for the purposes of any such project which is specified in the list referred to in subsection (3A) (b) (iv) of section 84A of the Corporation Tax Act, 1976 , paragraph (a) shall apply as if the reference therein to ‘the 31st day of December, 1997’ were a reference to ‘the 31st day of December, 2002’,

(b) a building or structure which is to be an industrial building or structure within the meaning of section 255 (1) (d) of the Income Tax Act, 1967 , and in respect of the provision of which expenditure is incurred before the 31st day of December, 1995, where a binding contract for the provision of the building or structure was entered into before the 31st day of December, 1990, and

(c) machinery or plant which is provided for the purposes of a trade or part of a trade of hotel-keeping carried on in such a building or structure as is referred to in paragraph (b) and in respect of the provision of which expenditure is incurred before the 31st day of December, 1995:

Provided that neither paragraph (b) nor paragraph (c) shall apply if the building or structure referred to in paragraph (b) is not registered, within 6 months after the date of the completion of the said building or structure, in a register kept by Bord Fáilte Éireann under the Tourist Traffic Acts, 1939 to 1987, and where, by virtue of this section, any allowance or increased allowance has been granted any necessary additional assessments may be made to give effect to this proviso.”.

Amendment of section 49 (tax treatment of foreign trusts) of Finance Act, 1993.

28.Section 49 (as amended by section 31 of the Finance Act, 1994 ) of the Finance Act, 1993 , is hereby amended in paragraph (b) of subsection (1) by the insertion of the following proviso after clause (B) of subparagraph (i):

“Provided that all of the assets of a trust shall be regarded as situated outside the State if all of the assets, other than an asset which consists of funds held by a trustee who is a relevant person in a bank account in the State where those funds are so held by the trustee solely for the purposes of processing transactions in relation to assets situated outside the State, are so situated,”.

Tax relief for certain branch profits.

29.—(1) (a) In this section—

“investment plan” means a plan of a company resident in the State—

(i) which involves the investment by it or by a company associated with it of substantial permanent capital in the State for the purposes of the creation, before a date specified in the plan, of substantial new employment in the State in trading operations carried on, or to be carried on, in the State by the company or the company associated with it, and

(ii) which has been submitted prior to the commencement of its implementation to the Minister by the company for the purpose of enabling it to obtain relief under this section;

“the Minister” means the Minister for Finance;

“qualified company” means a company to which the Minister, following consultation with the Minister for Enterprise and Employment, has given a certificate under subsection (2), which certificate has not been revoked;

“qualified foreign trading activities” means trading activities carried on by a qualified company through a branch or agency outside the State in a territory specified in the certificate given under subsection (2) to the company by the Minister following consultation with the Minister for Enterprise and Employment.

(b) For the purposes of this section—

(i) a company is associated with another company where one of the companies is a 75 per cent, subsidiary of the other or both are 75 per cent, subsidiaries of a third company:

Provided that in determining whether one company is a 75 per cent, subsidiary of another, the other company shall be treated as not being the owner—

(I) of any share capital which it owns directly in a company if a profit on the sale of the shares would be treated as a trading receipt of its trade, or

(II) of any share capital which it owns indirectly, and which is owned directly by a company for which a profit on the sale of the shares would be a trading receipt,

(ii) sections 108 to 114 of the Corporation Tax Act, 1976 , shall apply for the purposes of this paragraph as they would apply for the purposes of Part XI of that Act if subsection (7) of section 107 of the said Act were deleted,

(iii) where a trade carried on by a qualified company consists partly of qualified foreign trading activities and partly of other trading activities, the company shall be treated as if it were carrying on distinct trades consisting of such qualified foreign trading activities and of such other trading activities,

(iv) there shall be attributed to each trade carried on, or treated under subparagraph (iii) as carried on, such profits or gains or losses as might have been expected to be made if each trade had been carried on under the same or similar conditions by a person independent of, and dealing at arm's length with, the person carrying on the other trade, and

(v) there shall be made all necessary apportionments as are just and reasonable for the purposes of computing—

(I) profits or gains or losses arising from, and

(II) the amount of any charges on income, expenses of management or other amount which can be deducted from or set off against or treated as reducing profits of more than one description as is incurred for the purposes of,

a trade carried on, or treated under subparagraph (iii) as carried on, by a qualified company.

(2) Where a plan has been duly submitted by a company resident in the State and the Minister, following consultation with the Minister for Enterprise and Employment, is satisfied that—

(a) the plan is an investment plan,

(b) the company, or a company associated with it, will, before a date specified in the plan and approved by the Minister, make the substantial permanent capital investment in the State under the investment plan for the purposes of the creation of the said employment,

(c) the creation of substantial new employment in the State under the investment plan will be achieved, and

(d) the maintenance of the employment so created in trading operations in the State will be dependent on the carrying on by the company of qualified foreign trading activities,

then, the Minister may give a certificate certifying that the company is a qualified company with effect from a date to be specified in the certificate.

(3) (a) The Minister shall draw up guidelines for determining whether, for the purposes of subsection (2), a company and companies associated with it will create substantial new employment and will make a substantial permanent capital investment in the State.

(b) Without prejudice to the generality of paragraph (a), guidelines under that paragraph may—

(i) include a requirement for specified levels of—

(I) employment in the State, and

(II) permanent capital investment in the State,

and

(ii) specify such criteria for the purposes of this subsection as the Minister considers appropriate.

(4) A certificate issued under subsection (2) may be given subject to such conditions as the Minister, following consultation with the Minister for Enterprise and Employment, considers proper and specifies therein.

(5) Where in the case of a company in relation to which a certificate under subsection (2) has been given the Minister, following consultation with the Minister for Enterprise and Employment, forms the opinion that such certificate ought to be revoked because any condition subject to which the certificate was given has not been complied with, then the Minister may, by notice in writing served by registered post on the company, revoke the certificate with effect from such date as may be specified in the notice.

(6) Notwithstanding any other provision of the Corporation Tax Acts—

(a) profits or gains or losses arising from the carrying on of qualified foreign trading activities shall be disregarded for all the purposes of those Acts, and

(b) no amount of any charges on income, expenses of management or other amount which, apart from this paragraph, can be deducted from or set off against or treated as reducing profits of more than one description, shall be so deducted, set off or treated, as is incurred for the purposes of a trade carried on, or treated under subparagraph (iii) of paragraph (b) of subsection (1) as carried on, by a qualified company which consists of qualified foreign trading activities.

(7) A gain shall not be a chargeable gain for the purposes of the Capital Gains Tax Acts if it accrues to a qualified company on the disposal of an asset, other than an asset specified in subparagraphs (a) to (d) of paragraph (1) of Article 11 of Schedule 4 to the Capital Gains Tax Act, 1975 , used wholly and exclusively for the purposes of a trade carried on, or treated by subparagraph (iii) of paragraph (b) of subsection (1) as carried on, by a qualified company which consists of qualified foreign trading activities.

(8) An inspector may by notice in writing require a qualified company to furnish him or her with such information or particulars as may be necessary for the purposes of giving relief under this section.

Amendment of section 48 (surcharge for late submission of returns) of Finance Act, 1986.

30.—(1) Section 48 of the Finance Act, 1986 , is hereby amended—

(a) by the substitution of the following subsection for subsection (2), apart from the proviso thereto:

“(2) Where, in relation to a year of assessment or accounting period, a chargeable person fails to deliver a return of income on or before the specified date in relation to the return of income, any amount of tax for that year of assessment or accounting period which, apart from this section, is or would be contained in an assessment to tax made or to be made on the chargeable person shall be increased by an amount (hereafter in this subsection referred to as the ‘surcharge’) equal to—

(a) 5 per cent, of that amount of tax, subject to a maximum increased amount of £10,000, where the return of income is delivered before the expiry of two months from the specified date, and

(b) 10 per cent, of that amount of tax, subject to a maximum increased amount of £50,000, where the return of income is not delivered before the expiry of two months from the specified date,

and, if the tax contained in the assessment is not the amount of tax as so increased, then all the provisions of the Tax Acts and the Capital Gains Tax Acts (apart from this section) including, in particular, those relating to the collection and recovery of tax and the payment of interest on unpaid tax shall apply as if the tax contained in the assessment to tax were the amount of tax as so increased:”,

and

(b) by the addition after subsection (3) of the following:

“(4) Notwithstanding the foregoing provisions, the specified date in relation to a return of income for a year of assessment to which the provisions of section 58 (2) of the Income Tax Act, 1967 , apply, shall be the date which is the specified date in relation to the return of income in respect of the year of assessment next following that year:

Provided that throughout the first-mentioned year of assessment the chargeable person or that person's spouse, not being a spouse in relation to whom section 193 of the Income Tax Act, 1967 , has effect for that year of assessment, was not carrying on a trade or profession which was set up and commenced in a previous year of assessment.”.

(2) (a) Paragraph (a) of subsection (1) shall apply and have effect as respects the year 1995-96 and any subsequent year of assessment and as respects any accounting period ending on or after the 6th day of April, 1995.

(b) Paragraph (b) of subsection (1) shall apply and have effect as respects the year 1995-96 and any subsequent year of assessment.

Amendment of section 18 (date for payment of tax) of Finance Act, 1988.

31.—As respects the year 1995-96 and subsequent years of assessment, section 18 of the Finance Act, 1988 , is hereby amended—

(a) in paragraph (a) of subsection (1), by the insertion after “income tax” of “and subject to subsection (6)”,

(b) in subsection (2) by the substitution of the following for paragraph (b):

“(b) where the assessment is made on or after that date—

(i) if the chargeable period is a year of assessment for income tax, on or before the specified due date for that year of assessment,

(ii) if the chargeable period is a year of assessment for capital gains tax, on or before the specified return date for the chargeable period or, if later, not later than one month from the date on which the assessment is made, and

(iii) if the chargeable period is an accounting period of a company, not later than one month from the date on which the assessment is made.”,

(c) in paragraph (b) of subsection (3)—

(i) by the deletion of “or” in subparagraph (i), by the substitution of “period, or” for “period:” at the end of subparagraph (ii) and by the insertion of the following subparagraph after subparagraph (ii) but before the first proviso thereto:

“(iii) in the case of an assessment to income tax for the said chargeable period being a year of assessment made on a chargeable person to whom subsection (6) applies, other than a chargeable person in relation to whom the amount of income tax payable or, taken in accordance with paragraph (I) of the first proviso to this subparagraph to be payable, for the pre-preceding chargeable period was nil, 105 per cent, of the income tax payable for the pre-preceding chargeable period:”,

(ii) in the first proviso to subparagraph (ii)—

(I) by the substitution of “subparagraphs (ii) and (iii)” for “this subparagraph”,

(II) by the substitution of the following for paragraph (I):

“(I) subject to subsection (3A), where the chargeable person was not a chargeable person for the immediately preceding chargeable period or for the pre-preceding chargeable period, the income tax payable for the immediately preceding chargeable period or the pre-preceding chargeable period, as the case may be, shall be taken to be nil, and”,

(III) in paragraph (II), by the insertion after “the immediately preceding chargeable period” of “or, in the case of a chargeable person to whom subsection (6) applies, the pre-preceding chargeable period,”,

and

(iii) in the second proviso to subparagraph (ii)—

(I) by the substitution of “subparagraphs (ii) and (iii)” for “this subparagraph”, and

(II) by the insertion in both paragraphs (a) and (b) after “the immediately preceding chargeable period” of “or, in the case of a chargeable person to whom subsection (6) applies, the pre-preceding chargeable period,” and by the insertion in both paragraphs (a) and (b) after “that immediately preceding chargeable period” of “or the pre-preceding chargeable period, as the case may be,”,

(d) by the insertion after subsection (3) of the following subsection:

“(3A) Where for a chargeable period, being a year of assessment for income tax, a chargeable person is assessed to tax in accordance with section 194 of the Income Tax Act, 1967 , and that person was not so assessed for the preceding chargeable period or for the pre-preceding chargeable period or for both of those periods either because the person's spouse was so assessed for either or both of those periods or because the person and the person's spouse were assessed to tax in accordance with section 193 or section 197 of the Income Tax Act, 1967 , for either or both of those periods, subparagraphs (ii) and (iii) of paragraph (b) of subsection (3) and paragraph (I) of the first proviso to those subparagraphs shall apply as if the person and the person's spouse had elected in accordance with section 195 or section 195B of the Income Tax Act, 1967 , as the case may be, for the person to be assessed to tax in accordance with the said section 194 for any of those periods for which the person or the person's spouse were entitled to so elect or would have been so entitled if section 195B of the Income Tax Act, 1967 , had applied.”,

and

(e) by the addition after subsection (5) of the following subsections:

“(6) (a) Preliminary tax appropriate to a relevant chargeable period where the chargeable period is a year of assessment for income tax shall be due and payable in the case of a chargeable person to whom paragraph (b) applies in equal monthly instalments throughout the calendar year, or a part thereof, in which the due date for the payment of that preliminary tax in accordance with paragraph (a) of subsection (1) falls and the Collector-General shall debit the bank account of that chargeable person with such instalments on the 9th day of each month in that year or part thereof, as the case may be.

(b) This paragraph applies to a chargeable person who authorises the Collector-General to collect preliminary tax by the debiting of the bank account of the said person in accordance with paragraph (a) and who complies with such conditions as the Collector-General may reasonably impose to ensure that an amount of preliminary tax payable by a chargeable person for a chargeable period will be paid by that chargeable person in accordance with this subsection on or before the 9th day of December in the year of assessment to which the preliminary tax relates by virtue of paragraph (a) of subsection (1).

(c) Notwithstanding paragraph (a), the Collector-General may at any time agree to alter the amount of preliminary tax to be debited to the bank account of the chargeable person in accordance with this subsection.

(d) For the purposes of this section, a chargeable person who pays an amount of preliminary tax appropriate to a relevant chargeable period in accordance with this subsection, shall be deemed to have paid that amount of preliminary tax on the due date for the payment of an amount of preliminary tax for that chargeable period.

(7) In this section—

‘pre-preceding chargeable period’, in relation to a chargeable period, means the chargeable period next before the immediately preceding chargeable period;

‘specified due date’ in relation to a year of assessment, means the 30th day of April in the year of assessment next after the year of assessment following that year of assessment.”.

Amendment of Chapter V (Urban Renewal: Relief from Income Tax and Corporation Tax) of Part I of Finance Act, 1986.

32.—(1) Chapter V (as amended by section 35 of the Finance Act, 1994 ) of Part I of the Finance Act, 1986 , is hereby amended—

(a) in section 41, by the substitution of the following subsection for subsection (2):

“(2) As respects the application of this Chapter to any expenditure incurred in relation to, or rent payable in respect of, any premises the site of which is wholly within the Custom House Docks Area, ‘the specified period’ means the period commencing on the 25th day of January, 1988, and ending on the 24th day of January, 1999.”,

(b) in section 42, in the additional proviso (inserted by section 29 (b) (ii) of the Finance Act, 1992 ) to subsection (4), by the substitution of “the 25th day of January, 1998” for “the 25th day of January, 1996”, and

(c) in section 44, in subsection (1) (b)—

(i) by the substitution, in subparagraph (i), of “125 square metres” for “90 square metres”, and

(ii) by the deletion of the proviso to that subsection.

(2) Paragraph (c) of subsection (1) shall apply and have effect as respects expenditure incurred on or after the 12th day of April, 1995.

Amendment of section 27 (designated areas for urban renewal relief) of Finance Act, 1987.

33.Section 27 of the Finance Act, 1987 , is hereby amended in subsection (1) by the substitution of “24th day of January, 1999” for “24th day of January, 1997” in paragraph (b) (inserted by section 36 (c) of the Finance Act, 1994 ).

Amendment of Chapter VII (Urban Renewal: Temple Bar and Other Areas) of Part I of Finance Act, 1991.

34.—(1) Chapter VII (as amended by section 37 of the Finance Act, 1994 ) of Part I of the Finance Act, 1991 , is hereby amended—

(a) in section 54 (3)—

(i) in paragraph (b), by the substitution of “31st day of July, 1994” and “5th day of April, 1998” for “31st day of May, 1991” and “5th day of April, 1996” respectively, and

(ii) in paragraph (c), by the substitution of “5th day of April, 1998” for “5th day of April, 1996”,

(b) in section 55—

(i) in subsection (1) (a), by the substitution of “5th day of April, 1998” for “5th day of April, 1996” in paragraph (i) of the definition of “qualifying building”,

(ii) in subsection (1) (b), by the deletion of clause (II) of subparagraph (ii), and

(iii) in subsection (2) (b), by the deletion of clause (III) of subparagraph (ii),

(c) in section 56—

(i) in subsection (1) (a), by the substitution of “5th day of April, 1998” for “5th day of April, 1996” in the definition of “qualifying period” in subparagraph (iii), and

(ii) in subsection (1) (b)—

(I) by the substitution of “125 square metres” for “90 square metres”, and

(II) by the deletion of the proviso to that subsection,

(d) in section 57 (2), by the substitution of “5th day of April, 1998” for “5th day of April, 1996” in the definition of “qualifying period” in paragraph (b), and

(e) in section 58 (2), by the substitution of “5th day of April, 1998” for “5th day of April, 1996” in both paragraph (a) and the definition of “qualifying period” in paragraph (c).

(2) Subparagraph (ii) and (iii) of paragraph (b), and paragraph (c) (ii), of subsection (1) shall apply and have effect as respects expenditure incurred on or after the 12th day of April, 1995.

Amendment of Chapter IV (Urban Renewal Reliefs: Introduction of New Scheme in Certain Areas) of Part I of Finance Act, 1994.

35.—(1) Chapter IV of Part I of the Finance Act, 1994 , is hereby amended—

(a) in section 38 (1)—

(i) by the substitution of the following definitions for the definitions of “designated area” and “designated street”:

“‘designated area’ and ‘designated street’ mean, respectively, an area or areas or a street or streets specified as a designated area or a designated street, as the case may be, by order under section 39;”,

(ii) by the insertion of the following definition after the definitions of “designated area” and “designated street”:

“‘enterprise area’ means an area or areas specified as an enterprise area by order under section 39;”,

and

(iii) by the insertion in the definition of “qualifying period” after “subject to section 39” of “and other than for the purposes of section 41B”,

(b) in section 39, by the substitution of the following paragraph for paragraph (a) of subsection (1):

“(a) the area or areas, or street or streets, described in the order shall be a designated area, a designated street or, as the case may be, an enterprise area for the purposes of this Chapter, and”,

(c) in section 40, by the insertion of the following subsection after subsection (4):

“(4A) Notwithstanding section 265 (1) of the Income Tax Act, 1967 , no balancing charge shall be made in relation to a building or structure to which this section applies by reason of any of the events specified in the said section 265 (1) which occurs—

(a) more than 13 years after the building or structure was first used, or

(b) in a case where section 26 of the Finance Act, 1991 , applies and has effect, more than 13 years after the capital expenditure on refurbishment of the building or structure was incurred.”,

(d) in section 41, by the substitution of the following proviso for the proviso to subsection (1):

“Provided that—

(I) in relation to a building or structure no part of the site of which is within any one of the county boroughs of Dublin, Cork, Limerick, Galway or Waterford, the foregoing provisions of this subsection shall be construed as if the reference to ‘or an office’ were deleted;

(II) where, in relation to a building or structure any part of the site of which is within any one of the county boroughs of Dublin, Cork, Limerick, Galway or Waterford, any part (hereafter in this proviso referred to as ‘the specified part’) of the building or structure is not a qualifying premises and—

(A) the specified part is in use as, or as part of, an office, and

(B) the capital expenditure which has been incurred in the qualifying period on the construction or refurbishment of the specified part is not more than one-tenth of the total capital expenditure which has been incurred in that period on the construction or refurbishment of the building or structure,

then the specified part shall be treated as a qualifying premises.”,

(e) by the insertion of the following section after section 41:

“Capital allowances in relation to construction or refurbishment of certain buildings or structures in enterprise areas.

41 A.—(1) In this section—

‘the Minister’, except where the context otherwise requires, means the Minister for Enterprise and Employment;

‘qualifying building’ means a building or structure the site of which is wholly within an enterprise area and which is in use for the purposes of the carrying on of qualifying trading operations by a qualifying company, but does not include any part of a building or structure in use as, or as part of, a dwelling-house;

‘qualifying company’ means a company—

(a) which has been approved for financial assistance under a scheme administered by Forfás, Forbairt or the Industrial Development Agency (Ireland), and

(b) to which the Minister has given a certificate under subsection (2) which has not been withdrawn in accordance with the provisions of subsection (5) or (6);

‘qualifying trading operations’ means—

(a) the manufacture of goods within the meaning of Chapter VI of Part I of the Finance Act, 1980 , or

(b) the rendering of services in the course of a service industry (within the meaning of the Industrial Development Act, 1986 ).

(2) Subject to subsection (4), the Minister may—

(a) on the recommendation of Forfás (in conjunction with Forbairt or the Industrial Development Agency (Ireland), as may be appropriate), in accordance with guidelines laid down by the Minister, and

(b) following consultation with the Minister for Finance,

give a certificate to a company certifying that the company is, with effect from a date to be specified in the certificate, to be treated as a qualifying company for the purposes of this section.

(3) A certificate under subsection (2) may be given either without conditions or subject to such conditions as the Minister considers proper and specifies therein.

(4) The Minister shall not certify, under subsection (2), that a company is a qualifying company for the purposes of this section unless—

(a) the company is carrying on, or intends to carry on, qualifying trading operations within an enterprise area, and

(b) the Minister is satisfied that the carrying on by the company of such trading operations will contribute to the balanced development of the enterprise area.

(5) Where, in the case of a company in relation to which a certificate under subsection (2) has been given—

(a) the company ceases to carry on or, as the case may be, fails to commence to carry on qualifying trading operations within the enterprise area, or

(b) the Minister is satisfied that the company has failed to comply with any condition subject to which the said certificate was given,

the Minister may, by notice in writing served by registered post on the company, revoke the said certificate with effect from such date as may be specified in the notice.

(6) Where, in the case of a company in relation to which a certificate under subsection (2) has been given, the Minister is of the opinion that any activity of the company has had, or may have, an adverse effect on the use or development of the enterprise area or is otherwise inimical to the balanced development of the enterprise area, then—

(a) the Minister may, by notice in writing served by registered post on the company, require the company to desist from such activity with effect from such date as may be specified in the notice, and

(b) if the Minister is not satisfied that the company has complied with the requirements of the said notice, he may, by a further notice in writing served by registered post on the company, revoke the certificate with effect from such date as may be specified in the said further notice.

(7) Subject to the modifications provided for in subsections (8) and (9), all the provisions of the Tax Acts (other than section 40) relating to the making of allowances or charges in respect of capital expenditure which is incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary therein, apply as if a qualifying building were, at all times at which it is a qualifying building, a building or structure in respect of which an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV, or Chapter I of Part XVI, of the Income Tax Act, 1967 , by reason of its use for a purpose specified in section 255 (1) (a) of that Act:

Provided that an allowance shall be given by reason of this subsection in respect of any capital expenditure which is incurred on the construction or refurbishment of a qualifying building only in so far as that expenditure is incurred in the qualifying period.

(8) For the purposes of the application by subsection (7) of section 254 of the Income Tax Act, 1967 , and section 25 of the Finance Act, 1978 , in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a qualifying building—

(a) the said section 254 shall have effect—

(i) as if, in paragraph (aa) (inserted by section 74 of the Finance Act, 1990 ) of subsection (2A), the reference to ‘before the 1st day of April, 1992’ were a reference to ‘before the 1st day of August, 1997’, and

(ii) as if subsection (2B) (inserted by the said section 74) were deleted,

and

(b) the said section 25 shall have effect—

(i) as if, in paragraph (b) of subsection (2) (inserted by section 48 of the Finance Act, 1988 )—

(I) the reference in subparagraph (ii) (inserted by section 76 of the Finance Act, 1990 ) to ‘before the 1st day of April, 1991’ were a reference to ‘before the 1st day of August, 1997’, and

(II) subparagraph (iii) (inserted by the said section 76) were deleted,

and

(ii) as if subsection (2A) (inserted by the said section 76) were deleted.

(9) Notwithstanding section 265 (1) of the Income Tax Act, 1967 , no balancing charge shall be made in relation to a qualifying building by reason of any of the events specified in the said section 265 (1) which occurs—

(a) more than 13 years after the qualifying building was first used, or

(b) in a case where section 26 of the Finance Act, 1991 , applies and has effect, more than 13 years after the capital expenditure on refurbishment of the qualifying building was incurred.

(10) For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (7), whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying building is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the building which was actually carried out during the qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is, or is to be treated as, incurred) be treated as having been incurred in that period.”,

(f) by the insertion of the following section after section 41A (inserted by paragraph (e)):

“Capital allowances in relation to construction or refurbishment of certain multi-storey car-parks.

41B.—(1) In this section—

‘multi-storey car-park’ means a building or structure consisting of two or more storeys wholly in use for the purpose of providing, for members of the public generally without preference for any particular class of person, upon payment of an appropriate charge, parking space for mechanically propelled vehicles;

‘qualifying multi-storey car-park’ means a multi-storey car-park in respect of which the relevant local authority gives a certificate in writing to the person providing the multi-storey car-park stating that it is satisfied that the said car-park has been developed in accordance with criteria laid down by the Minister for the Environment following consultation with the Minister for Finance;

‘qualifying period’ means the period commencing on the 1st day of July, 1995, and ending on the 30th day of June, 1998;

‘the relevant local authority’, in relation to the construction or refurbishment of a multi-storey car-park, means the council of a county or other borough or, where appropriate, the urban district council, in whose functional area the multi-storey car-park is situated.

(2) Subject to subsection (3) and the modifications provided for in subsections (4) to (6), all the provisions of the Tax Acts (other than section 40) relating to the making of allowances or charges in respect of capital expenditure which is incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary therein, apply as if a qualifying multi-storey car-park were, at all times at which it is a qualifying multi-storey carpark, a building or structure in respect of which an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV, or Chapter I of Part XVI, of the Income Tax Act, 1967 , by reason of its use for a purpose specified in section 255 (1) (a) of that Act:

Provided that an allowance shall be given by reason of this subsection in respect of any capital expenditure which is incurred on the construction or refurbishment of a qualifying multi-storey car-park only in so far as that expenditure is incurred in the qualifying period.

(3) In the case where capital expenditure is incurred in the qualifying period on the refurbishment of a qualifying multi-storey car-park, subsection (2) shall apply only if the total amount of the capital expenditure so incurred is not less than an amount which is equal to 20 per cent, of the market value of the qualifying multi-storey car-park immediately before the said expenditure is incurred.

(4) For the purposes of the application by subsection (2) of section 254 of the Income Tax Act, 1967 , and section 25 of the Finance Act, 1978 , in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a qualifying multi-storey car-park—

(a) the said section 254 shall, notwithstanding section 22 of the Finance Act, 1991 , have effect—

(i) as if, in paragraph (a) of subsection (2A), the reference to ‘the 1st day of April, 1991’ (as provided for in section 50 of the Finance Act, 1988 ) were a reference to ‘the first day of July, 1998’,

(ii) as if paragraph (aa) (inserted by section 74 of the Finance Act, 1990 ) of subsection (2A) were deleted, and

(iii) as if subsection (2B) (inserted by the said section 74) were deleted,

and

(b) the said section 25 shall have effect—

(i) as if paragraph (b) (as amended by section 76 of the Finance Act, 1990 ) of subsection (2) (inserted by section 48 of the Finance Act, 1988 ) were deleted, and

(ii) as if subsection (2A) (inserted by the said section 76) were deleted.

(5) Notwithstanding section 265 (1) of the Income Tax Act, 1967 , no balancing charge shall be made in relation to a qualifying multi-storey car-park by reason of any of the events specified in the said section 265 (1) which occurs—

(a) more than 13 years after the qualifying multi-storey car-park was first used, or

(b) in a case where section 26 of the Finance Act, 1991 , applies and has effect, more than 13 years after the capital expenditure on refurbishment of the multi-storey car-park was incurred.

(6) (a) Notwithstanding subsections (2) to (5), any allowance or charge which, apart from this subsection, would fall to be made by reason of subsection (2) in respect of capital expenditure which is incurred on the construction or refurbishment of a qualifying multi-storey car-park shall be reduced to one-half of the amount which, apart from this subsection, would be the amount of that allowance or charge.

(b) For the purposes of paragraph (a), the amount of an allowance or charge falling to be reduced to one-half thereof shall be computed—

(i) as if this subsection had not been enacted, and

(ii) as if effect had been given to all allowances taken into account in so computing that amount.

(c) Nothing in this subsection shall affect the operation of section 265 (5) of the Income Tax Act, 1967 .

(7) For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (2), whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying multi-storey car-park is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the qualifying multi-storey car-park which was actually carried out during the qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is, or is to be treated as, incurred) be treated as having been incurred in that period.

(8) Where, by reason of subsection (2), an allowance is given under Chapter II of Part XV, or Chapter I of Part XVI, of the Income Tax Act, 1967 , in respect of capital expenditure which is incurred on the construction or refurbishment of a qualifying multi-storey car-park, no allowance shall be given in respect of that expenditure under the said Chapter II or the said Chapter I by reason of any other provision of the Tax Acts.”,

(g) in section 42 (1)—

(i) in the definition of “qualifying lease”, by the insertion after “in the qualifying period” of “, or, in the case of a qualifying premises which is such a premises by virtue of being a building or structure of the type referred to in subparagraph (iv) of paragraph (a) of the definition of ‘qualifying premises’, in the period commencing on the 1st day of July, 1995, and ending on the 30th day of June, 1998,”, and

(ii) in the definition of “qualifying premises”—

(I) by the deletion of “the site of which is wholly within a designated area and”,

(II) by the insertion in subparagraph (i) of paragraph (a) before “which is a building or structure” of “the site of which is wholly within a designated area and”,

(III) by the insertion in subparagraph (ii) of paragraph (a) before “in respect of which an allowance falls” of “the site of which is wholly within a designated area and”,

(IV) by the insertion of the following subparagraph after subparagraph (ii) of paragraph (a):

“(iia) the site of which is wholly within an enterprise area and in respect of which an allowance falls, or will, by virtue of the said section 19, fall, to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV of, or Chapter I of Part XVI of, the Income Tax Act, 1967 , by reason of section 41A, or”,

(V) in subparagraph (iii) of paragraph (a)—

(A) by the insertion of “the site of which is wholly within a designated area” before “which is a building or structure”, and

(B) by the insertion of “or” after “the Income Tax Act, 1967 ,”,

and

(VI) by the insertion of the following subparagraph after subparagraph (iii) of paragraph (a):“(iv) in respect of which an allowance falls, or will, by virtue of the said section 19, fall, to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV of, or Chapter I of Part XVI of, the Income Tax Act, 1967 , by reason of section 41B,”,

(h) in section 43 (1), by the substitution of “125 square metres” for “90 square metres” in paragraph (c) (i) of the definition of “qualifying premises”, and

(i) in section 46 (1)—

(i) by the substitution of “125 square metres” for “90 square metres” in paragraph (d) (i) of the definition of “qualifying premises”, and

(ii) by the deletion of the proviso to that definition.

(2) (a) Subsection (1), apart from paragraphs (a) (iii), (c) and (f), subparagraph (i), and clauses (V) (B) and (VI) of subparagraph (ii), of paragraph (g) and paragraphs (h) and (i) thereof, shall be deemed to have come into operation as on and from the 1st day of August, 1994.

(b) Paragraph (c) of subsection (1) shall apply and have effect as on and from the 12th day of April, 1995.

(c) Paragraph (f), and subparagraph (i), and clauses (V) (B) and (VI) of subparagraph (ii), of paragraph (g), of subsection (1) shall apply and have effect as on and from the 1st day of July, 1995.

(d) Paragraphs (h) and (i) of subsection (1) shall apply and have effect as respects expenditure incurred on or after the 12th day of April, 1995.

Amendment of section 35 (relief for investments in films) of Finance Act, 1987.

36.—(1) Section 35 of the Finance Act, 1987 , is hereby amended—

(a) in paragraph (b) of subsection (1A) (inserted by the Finance Act, 1994 )—

(i) in subparagraph (i) by the substitution for “be subject to” of “without prejudice to the generality of subparagraph (ii), be subject to”, and

(ii) in subparagraph (ii) by the deletion of “other”;

(b) by the substitution for subsection (4B) (inserted by the Finance Act, 1994 ) of the following subsection:

“(4B) Before issuing a certificate for the purposes of subsection (4A) a company shall furnish the authorised officer with—

(a) a statement to the effect that it satisfies or will satisfy the conditions for the relief, so far as they apply in relation to the company and a film, and

(b) a copy of the certificate, issued by the Minister under subsection (1A) in respect of the film and certifying that it is a qualifying film.”;

and

(c) in paragraph (c) of subsection (5) (as inserted by the Finance Act, 1993 ) by the substitution for “directly or indirectly, any payment from” of “any payment, in money or money's worth, or other benefit directly or indirectly borne by, or attributable to,”.

(2) Subsection (1) shall apply and have effect as respects—

(a) paragraph (a) as respects any certificate given after the 12th day of April, 1995, by the Minister for Arts, Culture and the Gaeltacht under subsection (1 A) (inserted by the Finance Act, 1994 ) of section 35 of the Finance Act, 1987 ;

(b) paragraph (b) as respects any certificate issued after the 12th day of April, 1995, by a company for the purposes of subsection (4A) (inserted by the Finance Act, 1994 ) of the said section 35; and

(c) paragraph (c) as respects any sum of money paid after the 12th day of April, 1995, in respect of which relief is claimed under the said section 35.

Non-distributing investment companies.

37.—Chapter VII of Part I of the Finance Act, 1983 , is hereby amended by the insertion after section 47 of the following section:

“47A.—(1) In this section a ‘relevant company’ means a company which—

(a) is an investment company, within the meaning of Part XIII of the Companies Act, 1990 ,

(b) is a qualified company within the meaning of section 39B (inserted by the Finance Act, 1987 ) of the Finance Act, 1980 , and

(c) makes only one payment in respect of any share or security issued by it, being a payment made in the redemption, repayment or purchase of the share.

(2) Where a company proves that it is a relevant company and claims to have every payment made by it in the redemption, repayment or purchase of shares issued by it treated as not being, or including, a distribution for the purposes of section 38, then—

(a) every such payment shall be so treated, and

(b) notwithstanding any provision of the Tax Acts, the person to whom each such payment is made shall not be entitled to a tax credit in respect of it.

(3) A claim under this section shall be made in writing to the inspector, in a form prescribed by the Revenue Commissioners, and submitted together with the company's return of profits for the accounting period which is the first accounting period in which the company makes any payment to which subsection (2) relates.”.

Amendment of section 18 (taxation of collective investment undertakings) of Finance Act, 1989.

38.Section 18 of the Finance Act, 1989 , is hereby amended in subsection (1)—

(a) by the insertion after the definition of “chargeable gains” of the following definition:

“‘collective investor’ means, in relation to an authorised investment company within the meaning of Part XIII of the Companies Act, 1990 , an investor, being a life assurance company, pension fund or other investor—

(a) who invests in securities or any other property whatsoever with moneys contributed by fifty or more persons—

(i) none of whom has at any time directly or indirectly contributed more than five per cent, of such moneys, and

(ii) each of a majority of whom has contributed moneys to the investor with the intention of being entitled, otherwise than on the death of any person or by reference to a risk of any kind to any person or property, to receive from the investor—

(I) a payment which, or

(II) payments, the aggregate of which

exceeds those moneys by a part of the profits or income arising to the investor,

and

(b) who invests in the authorised investment company primarily for the benefit of those persons;”,

and

(b) in the definition of “collective investment undertaking” by the substitution for subparagraph (ii) of paragraph (c) of the following subparagraph:

“(ii) (I) which has been designated in that authorisation as an investment company which may raise capital by promoting the sale of its shares to the public and has not ceased to be so designated, or

(II) (A) which is not a qualified company,

(B) which in addition to being a collective investment undertaking is also a specified collective investment undertaking, and

(C) where all the holders of units who must be resident outside the State, for the company to be a specified collective investment undertaking, are collective investors;”.

Amendment of section 27 (distributions to non-residents) of Finance Act, 1994.

39.—As respects distributions made on or after the 6th day of April, 1992, section 27 of the Finance Act, 1994 , is hereby amended by the substitution of “6th day of April, 1992,” for “6 April, 1994,”.

Certain interest not to be chargeable.

40.—Notwithstanding any other provision of the Income Tax Acts, but without prejudice to any charge under the Corporation Tax Acts on the profits of such person, a person not ordinarily resident in the State shall not be chargeable to income tax in respect of interest paid by a company in the course of carrying on relevant trading operations within the meaning of section 39A (inserted by the Finance Act, 1981 ) or section 39B (inserted by the Finance Act, 1987 ) of the Finance Act, 1980 .

Returns of material interest in offshore funds.

41.—Part VII of the Finance Act, 1992 , is hereby amended by the insertion after section 230 of the following section:

“230A.—(1) In this section—

‘material interest’ shall be construed in accordance with section 65 (2) of the Finance Act, 1990 ;

‘offshore fund’ has the meaning assigned to it in section 65 (1) of the Finance Act, 1990 :

Provided that a relevant UCITS, within the meaning of section 19 (1) of the Finance Act, 1989 , shall not be an offshore fund.

(2) As respects a material interest in an offshore fund, section 230 shall apply, with any necessary modification, where it would not otherwise apply to the following persons—

(a) to every person carrying on in the State a trade or business in the ordinary course of the operations of which such person acts as an intermediary in, or in connection with, the acquisition of such an interest in the same manner as it applies to every intermediary within the meaning of that section, and

(b) to a person resident or ordinarily resident in the State who acquires such an interest, in the same manner as it applies to a person resident in the State opening an account, in which a deposit which he beneficially owns is held, at a location outside the State,

as if in that section—

(i) references to a deposit were references to any payment made by a person resident or ordinarily resident in the State in acquiring such an interest;

(ii) references to a foreign account were references to such an interest;

(iii) references, however expressed, to the opening of a foreign account were references to the acquisition of such an interest;

(iv) references to a relevant person were references to an offshore fund;

(v) the reference to 1992-93 were a reference to 1995-96; and

(vi) references to the 1st day of June, 1992, were references to the 1st day of June, 1995.”.

Amendment of Chapter VI (Petroleum Taxation) of Part I of Finance Act, 1992.

42.—Chapter VI of Part I of the Finance Act, 1992 , is hereby amended—

(a) in subsection (1) of section 75—

(i) in the definition of “development expenditure”—

(I) by the substitution for paragraph (c) of the following:

“(c) any other assets,”,

(II) by the substitution for “but does not include” of “which are of such a nature that, when the relevant field ceases to be worked, they are likely to be so diminished in value that their value will be little or nothing, but does not include”, and

(III) by the substitution for paragraph (vi) of the following:

“(vi) expenditure on—

(I) machinery or plant, or

(II) works, buildings or structures,

which are provided for the processing or storing of petroleum won in the course of carrying on petroleum extraction activities, other than the initial treatment and storage of such petroleum,

or”,

and

(ii) in the definition of “licence”, by the insertion after paragraph (a) of the following paragraphs:

“(aa) a lease undertaking,

(aaa) a licensing option,”,

and

(b) in subsection (1) of section 77 by the addition of the following proviso to the definition of “relevant petroleum lease”:

“Provided that a petroleum lease in respect of a relevant field shall be a relevant petroleum lease where—

(i) the field was discovered under a lease which is not a licence,

(ii) the lease under which the field was discovered expired before the petroleum lease is granted, and

(iii) the petroleum lease is granted by the Minister for Transport, Energy and Communications before the 1st day of June, 2003.”.

Exemption of certain employment grants to certain industrial undertakings.

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

(2) This section applies to a grant made on or after the 1st day of April, 1995, under section 10 (5) (a) of the Údarás na Gaeltachta Act, 1979 , or section 21 (5) (a) (as amended by the Industrial Development (Amendment) Act, 1991 ) of the Industrial Development Act, 1986 , being an employment grant—

(a) in the case of the said section 10 (5) (a) under the scheme known as “Deontais Fhostaíochta ó Údarás na Gaeltachta do Ghnóthais Mhóra/Mheánmhéide Thionsclaíocha”, or

(b) in the case of the said section 21 (5) (a) under the scheme known as “Scheme Governing the Making of Employment Grants to Medium/Large Industrial Undertakings”.

Exemption of the Irish Horseracing Authority, Irish Thoroughbred Marketing Limited and the Tote.

44.—(1) In this section—

“the authority” means the Irish Horseracing Authority;

“the company” means the company incorporated on the 1st day of December, 1994, as Irish Thoroughbred Marketing Limited;

“the Tote” means the company incorporated on the 1st day of December, 1994, as Tote Ireland Limited.

(2) Notwithstanding any provision of the Corporation Tax Acts, profits arising to the authority, the company or the Tote in any accounting period ending on or after the 1st day of December, 1994, shall be exempt from corporation tax.

(3) As regards disposals made on or after the 1st day of December, 1994, section 23 of the Capital Gains Tax Act, 1975 , shall apply to a gain accruing to the authority, the company or the Tote as it does to a body specified in that section.

Tax credits in respect of distributions.

45.—(1) The provisions of the Corporation Tax Act, 1976 , specified in paragraph 1 of the Second Schedule shall have effect in relation to distributions made on or after the 6th day of April, 1995, as if the standard rate for the year 1995-96 and subsequent years of assessment were 23 per cent.

(2) The Second Schedule shall have effect for the purpose of supplementing subsection (1).

Chapter III

Income Tax and Corporation Tax: Reliefs for Renewal and Improvement of Certain Resort Areas

Interpretation (Chapter III).

46.—(1) In this Chapter—

“lease”, “lessee”, “lessor” and “rent” have the meanings respectively assigned to them by Chapter VI of Part IV of the Income Tax Act, 1967 ;

“market value”, in relation to a building or structure, means the price which the unencumbered fee simple of the building or structure would fetch if sold in the open market in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the building or structure:

Provided that the said price shall be reduced by the part of that price which would be attributable to the acquisition of, or of rights in or over, the land on which the building or structure is constructed;

“qualifying period” means the period commencing on the 1st day of July, 1995, and ending on the 30th day of June, 1998;

“qualifying resort area” means any area described in Part I , II , III , IV , V , VI , VII , VIII , IX , X , XI or XII of the Third Schedule ;

“refurbishment”, in relation to a building or structure and other than for the purposes of section 52 , means any work of construction, reconstruction, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, carried out in the course of the repair or restoration, or maintenance in the nature of repair or restoration, of the building or structure.

(2) A person shall, for the purposes of this Chapter, be regarded as connected with another person if such person would be so regarded for the purposes of Part IV of the Finance (Miscellaneous Provisions) Act, 1968 , by virtue of section 16 (3) of that Act.

Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.

47.—(1) This section shall apply to a building or structure the site of which is wholly within a qualifying resort area and which is to be an industrial building or structure by reason of its use for the purposes specified in section 255 (1) (d) of the Income Tax Act, 1967 .

(2) Subject to subsection (5), section 254 of the Income Tax Act, 1967 , shall have effect in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies—

(a) as if, in subsection (1) of the said section 254, the reference to “one-tenth” were a reference to “one-half”, and

(b) as if both subsection (2) and subsection (2B) (inserted by section 74 of the Finance Act, 1990 ) of the said section 254 were deleted.

(3) Subject to subsection (5), section 264 of the Income Tax Act, 1967 , shall have effect in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies—

(a) as if, in subsection (1) (apart from the proviso thereto) of the said section 264, the reference to “one-fiftieth” were a reference to “one-twentieth”, and

(b) as if the proviso to the said subsection (1) were deleted.

(4) Subject to subsection (5), section 25 of the Finance Act, 1978 , shall have effect in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a building or structure to which this section applies—

(a) as if, in paragraph (b) of subsection (2) (inserted by section 48 of the Finance Act, 1988 ) of the said section 25—

(i) the reference in subparagraph (i) to “before the 1st day of April, 1989,75 per cent., or” were a reference to “before the 1st day of July, 1998, 75 per cent.,”, and

(ii) subparagraphs (ii) and (iii) (inserted by section 76 of the Finance Act, 1990 ) were deleted,

and

(b) as if subsection (2A) (inserted by the said section 76) of the said section 25 were deleted.

(5) In the case where capital expenditure is incurred in the qualifying period on the refurbishment of a building or structure to which this section applies, subsections (2), (3) and (4) shall apply only if the total amount of the capital expenditure so incurred is not less than an amount which is equal to 20 per cent, of the market value of the building or structure immediately before the said expenditure is incurred.

(6) For the purposes only of determining, in relation to a claim for an allowance under section 254 or 264 of the Income Tax Act, 1967 , or section 25 of the Finance Act, 1978 , as applied by this section, whether and to what extent capital expenditure incurred on the construction or refurbishment of an industrial building or structure is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or, as the case may be, the refurbishment of the building or structure which was actually carried out during the qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is, or is to be treated as, incurred) be treated as having been incurred in that period.

Capital allowances in relation to construction or refurbishment of certain commercial premises.

48.—(1) In this section—

“qualifying premises” means a building or structure the site of which is wholly within a qualifying resort area and which—

(a) apart from this section, is not an industrial building or structure within the meaning of section 255 of the Income Tax Act, 1967 , and

(b) is in use for the purposes of the operation of one or more qualifying tourism facilities,

but does not include any part of a building or structure in use as, or as part of, a dwelling-house, other than a tourist accommodation facility of the type referred to in the definition of “qualifying tourism facilities”;

“qualifying tourism facilities” means—

(a) tourist accommodation facilities registered by Bord Fáilte Éireann under Part III of the Tourist Traffic Act, 1939 , or listed under section 9 of the Tourist Traffic Act, 1957 , and

(b) such other classes of facilities as may be approved of for the purposes of this section by the Minister for Tourism and Trade, in consultation with the Minister for Finance.

(2) Subject to subsection (3) and the modifications provided for in subsections (4) to (6), all the provisions of the Tax Acts (other than section 40 of the Finance Act, 1994 ) relating to the making of allowances or charges in respect of capital expenditure which is incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary therein, apply—

(a) as if a qualifying premises were, at all times at which it is a qualifying premises, a building or structure in respect of which an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV, or Chapter I of Part XVI, of the Income Tax Act, 1967 , by reason of its use for a purpose specified in section 255 (1) (a) of that Act, and

(b) where any activity carried on in the qualifying premises is not a trade, as if it were a trade:

Provided that an allowance shall be given by reason of this subsection in respect of any capital expenditure which is incurred on the construction or refurbishment of a qualifying premises only in so far as that expenditure is incurred in the qualifying period.

(3) In the case where capital expenditure is incurred in the qualifying period on the refurbishment of a qualifying premises, subsection (2) shall apply only if the total amount of the capital expenditure so incurred is not less than an amount which is equal to 20 per cent, of the market value of the qualifying premises immediately before the said expenditure is incurred.

(4) For the purposes of the application by subsection (2) of section 254 and section 264 of the Income Tax Act, 1967 , and section 25 of the Finance Act, 1978 , in relation to capital expenditure which is incurred in the qualifying period on the construction or refurbishment of a qualifying premises—

(a) the said section 254 shall, notwithstanding section 22 of the Finance Act, 1991 , have effect—

(i) as if, in paragraph (a) of subsection (2A), the reference to the 1st day of April, 1991 (as provided for in section 50 of the Finance Act, 1988 ) were a reference to the 1st day of July, 1998,

(ii) as if paragraph (aa) (inserted by section 74 of the Finance Act, 1990 ) of subsection (2A) were deleted, and

(iii) as if subsection (2B) (inserted by the said section 74) were deleted,

(b) the said section 264 shall have effect—

(i) as if, in subsection (1) (apart from the proviso thereto), the reference to “one-fiftieth” were a reference to “one-twentieth”, and

(ii) as if the proviso to subsection (1) were deleted,

and

(c) the said section 25 shall have effect—

(i) as if, in paragraph (b) of subsection (2) (inserted by section 48 of the Finance Act, 1988 )—

(I) the reference in subparagraph (i) to “before the 1st day of April, 1989, 75 per cent., or” were a reference to “before the 1st day of July, 1998, 75 per cent.,”, and

(II) subparagraphs (ii) and (iii) (inserted by section 76 of the Finance Act, 1990 ) were deleted,

and

(ii) as if subsection (2A) (inserted by the said section 76) were deleted.

(5) In the case of a qualifying premises which is such a premises by virtue of being a tourist accommodation facility of a type referred to in paragraph (a) of the definition of “qualifying premises” in subsection (1)

(a) the event of the premises ceasing to be registered or listed in the manner referred to in the said paragraph of the said definition shall be treated as if it were an event specified in subsection (1) of section 265 of the Income Tax Act, 1967 , and

(b) for the purposes of the application of the said section 265 on the occurrence of any such event there shall, notwithstanding anything to the contrary in section 304 of the Income Tax Act, 1967 , be treated as arising in relation to that event sale, insurance, salvage or compensation moneys in an amount equal to the aggregate of—

(i) the residue of the expenditure (within the meaning of section 266 of the Income Tax Act, 1967 ) incurred on the construction or refurbishment of the premises immediately before that event, and

(ii) the allowances made under Chapter II of Part XV, or Chapter I of Part XVI, of the Income Tax Act, 1967 , by reason of subsection (2), in respect of the expenditure incurred on the construction or refurbishment of the premises.

(6) Notwithstanding section 265 (1) of the Income Tax Act, 1967 , no balancing charge shall be made in relation to any qualifying premises by reason of any of the events specified, or, by virtue of subsection (5), treated as specified, in the said section 265 (1) which occurs—

(a) more than 11 years after the qualifying premises were first used, or

(b) in the case where section 26 of the Finance Act, 1991 , applies and has effect, more than 11 years after the capital expenditure on refurbishment of the qualifying premises was incurred.

(7) For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (2), whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying premises is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the premises which was actually carried out during the qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is, or is to be treated as, incurred) be treated as having been incurred in that period.

(8) Where, by reason of subsection (2), an allowance is given under Chapter II of Part XV of, or Chapter I of Part XVI of, the Income Tax Act, 1967 , in respect of any capital expenditure which is incurred on the construction or refurbishment of a qualifying premises, relief shall not be given in respect of that expenditure under any provision of the Tax Acts other than the said Chapter II or the said Chapter I.

Double rent allowance in respect of rent paid for certain business premises.

49.—(1) In this section—

“qualifying lease” means a lease in respect of a qualifying premises granted in the qualifying period on bona fide commercial terms by a lessor to a lessee who is not connected with the lessor, or with any other person who is entitled to a rent in respect of the qualifying premises, whether under that lease or any other lease;

“qualifying premises” means a building or structure the site of which is wholly within a qualifying resort area and—

(a) (i) which is a building or structure in use for the purposes specified in section 255 (1) (d) of the Income Tax Act, 1967 , and in respect of which capital expenditure is incurred in the qualifying period for which an allowance falls, or will, by virtue of section 19 (as amended by section 23 of the Finance Act, 1991 ) of the Finance Act, 1970 , fall, to be made for the purposes of income tax or corporation tax, as the case may be, under section 254 or 264 of the Income Tax Act, 1967 , or section 25 of the Finance Act, 1978 , as applied by section 47 , or

(ii) in respect of which an allowance falls, or will (by virtue of the said section 19) fall, to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV of, or Chapter I of Part XVI of, the Income Tax Act, 1967 , by reason of section 48 ,

and

(b) which is let on bona fide commercial terms for such consideration as might be expected to be paid in a letting of the building or structure which was negotiated on an arm's length basis:

Provided that where capital expenditure is incurred in the qualifying period on the refurbishment of a building or structure in respect of which an allowance falls, or will, by virtue of the said section 19, fall, to be made for the purposes of income tax or corporation tax, as the case may be, under any of the provisions referred to in paragraph (a) of this definition, the building or structure shall not be regarded as a qualifying premises unless the total amount of the expenditure so incurred is not less than an amount which is equal to 20 per cent, of the market value of the building or structure immediately before the said expenditure is incurred.

(2) For the purposes of this section, so much of a period, being a period when rent is payable by a person in relation to a qualifying premises under a qualifying lease, shall be a relevant rental period as does not exceed—

(a) 10 years, or

(b) the period by which 10 years exceeds—

(i) any preceding period, or

(ii) if there is more than one preceding period, the aggregate of preceding periods,

for which rent was payable by that person or any other person in relation to that premises under a qualifying lease.

(3) Subject to subsection (4), where, in the computation of the amount of the profits or gains of a trade or profession, a person is, apart from this section, entitled to any deduction (hereafter in this subsection referred to as “the first-mentioned deduction”) on account of rent in respect of a qualifying premises occupied by such person for the purposes of that trade or profession which is payable by such person for a relevant rental period in relation to that qualifying premises under a qualifying lease, then such person shall be entitled in that computation to a further deduction equal to the amount of the first-mentioned deduction.

(4) Where a person holds an interest in a qualifying premises out of which interest a qualifying lease is created, directly or indirectly, in respect of the qualifying premises and in respect of rent payable under the qualifying lease a claim for a further deduction under this section is made, and either such person or another person who is connected with such person—

(a) takes under a qualifying lease a qualifying premises (hereafter in this subsection referred to as “the second-mentioned premises”) which is occupied by such person or such other person, as the case may be, for the purposes of a trade or profession, and

(b) is, apart from this section, entitled, in the computation of the amount of the profits or gains of that trade or profession, to a deduction on account of rent in respect of the second-mentioned premises,

then, unless such person or such other person, as the case may be, shows that the taking on lease of the second-mentioned premises was not undertaken for the sole or main benefit of obtaining a further deduction on account of rent under the provisions of this section, such person or such other person, as the case may be, shall not be entitled in the computation of the amount of the profits or gains of that trade or profession to any further deduction on account of rent in respect of the second-mentioned premises.

(5) Section 33 (as amended by section 42 (8) of the Finance Act, 1994 ) of the Finance Act, 1990 , is hereby amended—

(a) in subsection (1), by the substitution of “ section 42 of the Finance Act, 1994 , or section 49 of the Finance Act, 1995” for “or section 42 of the Finance Act, 1994 ”, and

(b) in subsection (2) (a), by the substitution of the following definition for the definition of “qualifying premises”:

“‘qualifying premises’ means a qualifying premises within the meaning of section 45 of the Finance Act, 1986 , section 42 of the Finance Act, 1994 , or section 49 of the Finance Act, 1995;”.

Deduction for certain expenditure on construction of rented residential accommodation.

50.—(1) In this section—

“qualifying lease”, in relation to a house, means, subject to section 53 (3), a lease of the house the consideration for the grant of which consists solely of—

(a) a single payment which is, or falls to be treated as, an amount by way of rent for the purposes of Chapter VI of Part IV of the Income Tax Act, 1967 , or

(b) periodic payments all of which are, or fall to be treated as, amounts by way of rent for the purposes of the said Chapter VI;

“qualifying premises” means, subject to subsections (4), (5) (a), (6) and (7) of section 53 , a house—

(a) the site of which is wholly within a qualifying resort area,

(b) which is used solely as a dwelling,

(c) the total floor area of which—

(i) is not less than 30 square metres and not more than 125 square metres in the case where the house is a separate self-contained flat or maisonette in a building of two or more storeys, or

(ii) is not less than 35 square metres and not more than 125 square metres in any other case,

(d) in respect of which, if it is not a new house (within the meaning of section 4 of the Housing (Miscellaneous Provisions) Act, 1979 ) provided for sale, there is in force a certificate of reasonable cost, the amount specified in which in respect of the cost of construction of the house to which the certificate relates is not less than the expenditure actually incurred on such construction, and

(e) which, without having been used, is first let in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (save for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;

“relevant cost”, in relation to a house, means, subject to subsection (3), an amount equal to the aggregate of—

(a) the expenditure incurred on the acquisition of, or of rights in or over, any land on which the house is constructed, and

(b) the expenditure actually incurred on the construction of the house;

“relevant period”, in relation to a qualifying premises, means the period of 10 years beginning with the date of the first letting of the premises under a qualifying lease.

(2) Where a person, having made a claim in that behalf, proves to have incurred expenditure on the construction of a qualifying premises, such person shall be entitled, in computing, for the purposes of subsection (4) of section 81 of the Income Tax Act, 1967 , the amount of a surplus or deficiency in respect of the rent from the said premises, to a deduction of so much (if any) of that expenditure as falls to be treated, under section 53 (9) or any of the provisions of this section, as having been incurred by such person in the qualifying period, and all the provisions of Chapter VI of Part IV of the said Act shall apply as if the said deduction were a deduction authorised by the provisions of subsection (5) of the said section 81.

(3) Where a qualifying premises forms part of a building or is one of a number of buildings in a single development, or forms part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary—

(a) of the expenditure incurred on the construction of the said building or buildings, and

(b) of the amount which would be the relevant cost in relation to the said building or buildings if the building or buildings, as the case may be, were a single qualifying premises,

for the purposes of determining the expenditure incurred on the construction of the qualifying premises and the relevant cost in relation to the qualifying premises.

(4) Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs:

(a) the house ceases to be a qualifying premises, or

(b) the ownership of the lessor's interest in the house passes to any other person but the house does not cease to be a qualifying premises,

then the person who, before the occurrence of the event, received or was entitled to receive a deduction under subsection (2) in respect of expenditure incurred on the construction of the qualifying premises shall be deemed to have received on the day before the day of the occurrence an amount by way of rent from the qualifying premises equal to the amount of the deduction.

(5) (a) Where the event mentioned in subsection (4) (b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor's interest in the said house passes shall be treated, for the purposes of this section, as having incurred in the qualifying period an amount of expenditure on the construction of the said house equal to the amount which, under section 53 (9) or any of the provisions of this section, the said lessor was treated as having incurred in the qualifying period on the construction of the said house:

Provided that, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed the relevant price paid by such person on the sale.

(b) For the purposes of this subsection and subsection (6), the relevant price paid by a person on the sale of a house shall be the amount which bears to the net price paid by such person on that sale the same proportion as the amount of the expenditure actually incurred on the construction of the house which falls to be treated under section 53 (9) as having been incurred in the qualifying period bears to the relevant cost in relation to that house.

(6) (a) Subject to paragraph (b), where expenditure is incurred on the construction of a house and before the house is used it is sold, the person who buys the house shall be treated, for the purposes of this section, as having incurred in the qualifying period expenditure on the construction of the house equal to the amount of such expenditure which falls to be treated under section 53 (9) as having been incurred in the qualifying period or the relevant price paid by such person on the sale, whichever is the lower:

Provided that, where the house is sold more than once before it is used, the provisions of this subsection shall have effect only in relation to the last of those sales.

(b) Where expenditure is incurred on the construction of a house by a person carrying on a trade or part of a trade which consists, as to the whole or any part thereof, of the construction of buildings with a view to their sale and the house, before it is used, is sold in the course of that trade or, as the case may be, that part of that trade, the person who buys the house shall be treated, for the purposes of this section, as having incurred in the qualifying period expenditure on the construction of the house equal to the relevant price paid by such person on the said sale (hereafter in this paragraph referred to as “the first sale”) and, in relation to any subsequent sale or sales of the house before the house is used, paragraph (a) shall have effect as if the reference to the amount of expenditure which falls to be treated as having been incurred in the qualifying period were a reference to the said relevant price paid on the first sale.

(7) The provisions of section 53 shall have effect for the purposes of supplementing this section.

Rented residential accommodation: deduction for expenditure on conversion.

51.—(1) In this section—

“conversion expenditure” means, subject to subsection (2), expenditure incurred on—

(a) the conversion into a house of a building—

(i) the site of which is wholly within a qualifying resort area, and

(ii) which, prior to the conversion, had not been in use as a dwelling,

and

(b) the conversion into two or more houses of a building—

(i) the site of which is wholly within a qualifying resort area, and

(ii) which, prior to the conversion, had not been in use as a dwelling or had been in use as a single dwelling,

and references in this section and section 53 to “conversion”, “conversion into a house” and “expenditure incurred on conversion” shall be construed accordingly;

“qualifying lease”, in relation to a house, means, subject to section 53 (3), a lease of the house the consideration for the grant of which consists solely of—

(a) a single payment which is, or falls to be treated as, an amount by way of rent for the purposes of Chapter VI of Part IV of the Income Tax Act, 1967 , or

(b) periodic payments all of which are, or fall to be treated as, amounts by way of rent for the purposes of the said Chapter VI;

“qualifying premises” means, subject to subsections (4), (5) (b), (6) and (7) of section 53 , a house—

(a) which is used solely as a dwelling,

(b) the total floor area of which—

(i) is not less than 30 square metres and not more than 125 square metres in the case where the house is a separate self-contained flat or maisonette in a building of two or more storeys, or

(ii) is not less than 35 square metres and not more than 125 square metres in any other case,

(c) in respect of which there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of conversion in relation to the house to which the certificate relates is not less than the expenditure actually incurred on such conversion, and

(d) which, without having been used subsequent to the incurring of the expenditure on the conversion, is first let in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (save for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;

“relevant period”, in relation to a qualifying premises, means the period of 10 years beginning with the date of the first letting of the premises under a qualifying lease.

(2) For the purposes of this section, expenditure incurred on conversion of a building shall be deemed to include expenditure incurred, in the course of the conversion, on either or both the following, that is to say:

(a) the carrying out of works of construction, reconstruction, repair or renewal, and

(b) the provision or improvement of water, sewerage or heating facilities,

in relation to the building or any out-office appurtenant thereto or usually enjoyed therewith, but shall not be deemed to include—

(i) any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts, or

(ii) any expenditure attributable to any part (hereafter in this section referred to as a “non-residential unit”) of the building which, upon completion of the conversion, is not a house.

(3) For the purposes of paragraph (ii) of subsection (2), where expenditure is attributable to a building in general and not directly to any particular house or non-residential unit comprised in the building upon completion of the conversion, then such an amount of that expenditure shall be deemed to be attributable to a non-residential unit as bears to the whole of that expenditure the same proportion as the total floor area of the non-residential unit bears to the total floor area of the building.

(4) Where a person, having made a claim in that behalf, proves to have incurred conversion expenditure in relation to a house which is a qualifying premises, such person shall be entitled, in computing, for the purposes of subsection (4) of section 81 of the Income Tax Act, 1967 , the amount of a surplus or deficiency in respect of the rent from the said premises, to a deduction of so much (if any) of the expenditure as falls to be treated, under section 53 (9) or any of the provisions of this section, as having been incurred by such person in the qualifying period and all the provisions of Chapter VI of Part IV of the said Act shall apply as if the said deduction were a deduction authorised by the provisions of subsection (5) of the said section 81.

(5) Where a qualifying premises forms part of a building or is one of a number of buildings in a single development, or forms part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary of the expenditure incurred on the conversion of the said building or buildings for the purposes of determining the conversion expenditure incurred in relation to the qualifying premises.

(6) Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs:

(a) the house ceases to be a qualifying premises, or

(b) the ownership of the lessor's interest in the house passes to any other person but the house does not cease to be a qualifying premises,

then the person who, before the occurrence of the event, received or was entitled to receive a deduction under subsection (4) in respect of conversion expenditure incurred in relation to the qualifying premises shall be deemed to have received on the day before the day of the occurrence an amount by way of rent from the qualifying premises equal to the amount of the deduction.

(7) Where the event mentioned in subsection (6) (b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor's interest in the said house passes shall be treated, for the purposes of this section, as having incurred in the qualifying period an amount of conversion expenditure in relation to the said house equal to the amount of the conversion expenditure which, under section 53 (9) or any of the provisions of this section, the said lessor was treated as having incurred in the qualifying period in relation to the said house:

Provided that, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed—

(a) the net price paid by such person on the sale, or

(b) in case only a part of the conversion expenditure incurred in relation to the house falls to be treated, under section 53 (9), as having been incurred in the qualifying period, the amount which bears to the said net price the same proportion as that part bears to the whole of the conversion expenditure incurred in relation to the house.

(8) Where conversion expenditure is incurred in relation to a house and before the house is used subsequent to the incurring of that expenditure it is sold, the person who buys the house shall be treated, for the purposes of this section, as having incurred in the qualifying period conversion expenditure in relation to the house equal to—

(a) the amount of such expenditure which falls to be treated under section 53 (9) as having been incurred in the qualifying period, or

(b) (i) the net price paid by such person on the sale, or

(ii) in case only a part of the conversion expenditure incurred in relation to the house falls to be treated, under section 53 (9), as having been incurred in the qualifying period, the amount which bears to the said net price the same proportion as that part bears to the whole of the conversion expenditure incurred in relation to the house,

whichever is the lower:

Provided that, where the house is sold more than once before it is used subsequent to the incurring of the conversion expenditure in relation to the house, the provisions of this subsection shall have effect only in relation to the last of those sales.

(9) This section shall not apply in the case of a conversion unless planning permission in respect of the conversion has been granted under the Local Government (Planning and Development) Acts, 1963 to 1993.

(10) The provisions of section 53 shall have effect for the purposes of supplementing this section.

Rented residential accommodation: deduction for expenditure on refurbishment.

52.—(1) In this section—

“qualifying lease”, in relation to a house, means, subject to section 53 (3), a lease of the house the consideration for the grant of which consists solely of—

(a) a single payment which is, or falls to be treated as, an amount by way of rent for the purposes of Chapter VI of Part IV of the Income Tax Act, 1967 , or

(b) periodic payments all of which are, or fall to be treated as, amounts by way of rent for the purposes of the said Chapter VI;

“qualifying premises” means, subject to subsections (4), (5) (b), (6) and (7) of section 53 , a house—

(a) which is used solely as a dwelling,

(b) the total floor area of which—

(i) is not less than 30 square metres and not more than 125 square metres in the case where the house is a separate self-contained flat or maisonette in a building of two or more storeys, or

(ii) is not less than 35 square metres and not more than 125 square metres in any other case,

(c) in respect of which there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of refurbishment in relation to the house to which the certificate relates is not less than the relevant expenditure actually incurred on such refurbishment, and

(d) which, on the date of completion of the refurbishment to which the relevant expenditure relates, is let (or, if it is not let on that date, is, without having been used after that date, first let) in its entirety under a qualifying lease and thereafter throughout the remainder of the relevant period (save for reasonable periods of temporary disuse between the ending of one qualifying lease and the commencement of another such lease) continues to be let under such a lease;

“refurbishment”, in relation to a building, means either or both of the following, that is to say:

(a) the carrying out of any works of construction, reconstruction, repair or renewal, and

(b) the provision or improvement of water, sewerage or heating facilities,

where the carrying out of such works, or the provision of such facilities, is certified by the Minister for the Environment, in any certificate of reasonable cost granted by that Minister in relation to any house contained in the building, to have been necessary for the purposes of ensuring the suitability as a dwelling of any house in the building and whether or not the number of houses in the building, or the shape or size of any such house, is altered in the course of such refurbishment;

“relevant expenditure” means expenditure incurred on the refurbishment of a specified building, other than expenditure attributable to any part (hereafter in this section referred to as a “non-residential unit”) of the building which, upon completion of the refurbishment, is not a house; and, for the purposes of this definition, where expenditure is attributable to the specified building in general (and not directly to any particular house or non-residential unit comprised in the building upon completion of the refurbishment) such an amount of that expenditure shall be deemed to be attributable to a non-residential unit as bears to the whole of that expenditure the same proportion as the total floor area of the non-residential unit bears to the total floor area of the building;

“relevant period”, in relation to a qualifying premises, means the period of 10 years beginning with the date of the completion of the refurbishment to which the relevant expenditure relates or, if the premises was not let under a qualifying lease on that date, the period of 10 years beginning with the date of the first such letting after the date of such completion;

“specified building” means a building—

(a) the site of which is wholly within a qualifying resort area,

(b) in which, prior to the refurbishment to which the relevant expenditure relates, there is one or more houses, and

(c) which, upon completion of that refurbishment, contains (whether in addition to any non-residential unit or not) one or more houses.

(2) Where a person, having made a claim in that behalf, proves to have incurred relevant expenditure in relation to a house which is a qualifying premises, such person shall be entitled, in computing, for the purposes of subsection (4) of section 81 of the Income Tax Act, 1967 , the amount of a surplus or deficiency in respect of the rent from the said premises, to a deduction of so much (if any) of the expenditure as falls to be treated, under section 53 (9) or any of the provisions of this section, as having been incurred by such person in the qualifying period and all the provisions of Chapter VI of Part IV of the said Act shall apply as if the said deduction were a deduction authorised by the provisions of subsection (5) of the said section 81.

(3) Where a qualifying premises forms part of a building or is one of a number of buildings in a single development, or forms part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary of the relevant expenditure incurred on the said building or buildings for the purposes of determining the relevant expenditure incurred in relation to the qualifying premises.

(4) Where a house is a qualifying premises and at any time during the relevant period in relation to the premises either of the following events occurs:

(a) the house ceases to be a qualifying premises, or

(b) the ownership of the lessor's interest in the house passes to any other person but the house does not cease to be a qualifying premises,

then the person who, before the occurrence of the event, received or was entitled to receive a deduction under subsection (2) in respect of relevant expenditure incurred in relation to the qualifying premises shall be deemed to have received on the day before the day of the occurrence an amount by way of rent from the qualifying premises equal to the amount of the deduction.

(5) Where the event mentioned in subsection (4) (b) occurs in the relevant period in relation to a house which is a qualifying premises, the person to whom the ownership of the lessor's interest in the said house passes shall be treated, for the purposes of this section, as having incurred in the qualifying period an amount of relevant expenditure in relation to the said house equal to the amount of the relevant expenditure which, under section 53 (9) or any of the provisions of this section, the said lessor was treated as having incurred in the qualifying period in relation to the said house:

Provided that, in the case of a person who purchases such a house, the amount so treated as having been incurred by such person shall not exceed—

(a) the net price paid by such person on the sale, or

(b) in case only a part of the relevant expenditure incurred in relation to the house falls to be treated, under section 53 (9), as having been incurred in the qualifying period, the amount which bears to the said net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house.

(6) Where relevant expenditure is incurred in relation to a house and before the house is used subsequent to the incurring of that expenditure it is sold, the person who buys the house shall be treated, for the purposes of this section, as having incurred in the qualifying period relevant expenditure in relation to the house equal to—

(a) the amount of such expenditure which falls to be treated under section 53 (9) as having been incurred in the qualifying period, or

(b) (i) the net price paid by such person on the sale, or

(ii) in case only a part of the relevant expenditure incurred in relation to the house falls to be treated, under section 53 (9), as having been incurred in the qualifying period, the amount which bears to the said net price the same proportion as that part bears to the whole of the relevant expenditure incurred in relation to the house,

whichever is the lower:

Provided that, where the house is sold more than once before it is used subsequent to the incurring of the relevant expenditure in relation to the house, the provisions of this subsection shall have effect only in relation to the last of those sales.

(7) This section shall not apply in the case of any refurbishment unless planning permission, in so far as it is required, in respect of the work carried out in the course of the refurbishment has been granted under the Local Government (Planning and Development) Acts, 1963 to 1993.

(8) Expenditure in respect of which a person is entitled to relief under this section shall not include any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any other provision of the Tax Acts.

(9) The provisions of section 53 shall have effect for the purposes of supplementing this section.

Provisions supplementary to sections 50 to 52.

53.—(1) In this section “certificate of reasonable value” has the meaning assigned to it by section 18 of the Housing (Miscellaneous Provisions) Act, 1979 .

(2) In sections 50 to 52—

“certificate of reasonable cost” means a certificate granted by the Minister for the Environment for the purposes of section 50 , 51 or 52 , as the case may be, stating that the amount specified in the certificate in relation to the cost of construction of, conversion into, or, as the case may be, refurbishment of, the house to which the certificate relates appears to that Minister at the time of the granting of the certificate and on the basis of the information available to that Minister at that time to be reasonable, and section 18 of the Housing (Miscellaneous Provisions) Act, 1979 , shall, with any necessary modifications, apply to a certificate of reasonable cost as if it were a certificate of reasonable value;

“house” includes any building or part of a building used or suitable for use as a dwelling and any out-office, yard, garden or other land appurtenant thereto or usually enjoyed therewith;

“total floor area” means the total floor area of a house measured in the manner referred to in section 4 (2) (b) of the Housing (Miscellaneous Provisions) Act, 1979 .

(3) A lease shall not be a qualifying lease for the purposes of section 50 , 51 or 52 , if the terms of the lease contain any provisions enabling the lessee or any other person, directly or indirectly, at any time to acquire any interest in the house to which the lease relates for a consideration which is less than that which might be expected to be given at that time for the acquisition of the interest if the negotiations for that acquisition were conducted in the open market at arm's length.

(4) A house shall not be a qualifying premises for the purposes of section 50 , 51 or 52 if it is occupied as a dwelling by any person who is connected with the person who is entitled, in relation to the expenditure incurred on the construction of, conversion into, or, as the case may be, refurbishment of, the house, to a deduction under section 50 (2), 51 (4) or 52 (2), as the case may be, and the terms of the qualifying lease in relation to the house are not such as might have been expected to be included in the lease if the negotiations for the lease had been at arm's length.

(5) (a) A house shall not be a qualifying premises for the purposes of section 50 unless it complies with such conditions, if any, as may be determined by the Minister for the Environment from time to time for the purposes of section 4 of the Housing (Miscellaneous Provisions) Act, 1979 , in relation to standards of construction of houses and the provision of water, sewerage and other services therein.

(b) A house shall not be a qualifying premises for the purposes of section 51 or 52 unless it complies with such conditions, if any, as may be determined by the Minister for the Environment from time to time for the purposes of section 5 of the Housing (Miscellaneous Provisions) Act, 1979 , in relation to standards for improvements of houses and the provision of water, sewerage and other services therein.

(6) A house shall not be a qualifying premises for the purposes of section 50 , 51 or 52 unless persons authorised in writing by the Minister for the Environment for the purposes of those sections are permitted to inspect it at all reasonable times upon production, if so requested by a person affected, of their authorisations.

(7) (a) A house shall not be a qualifying premises for the purposes of section 50 , 51 or 52 unless, throughout the relevant period (within the meaning of section 50 , 51 or 52, as the case may be)—

(i) it is used primarily for letting to and occupation by tourists, with or without prior arrangement, and

(ii) it is used and occupied for no other purpose during the months April to October in each year.

(b) A house shall not be a qualifying premises for the purposes of section 50 , 51 or 52 if, during the relevant period (within the meaning of section 50 , 51 or 52, as the case may be), the house is let or leased to or occupied by any person for more than two consecutive months at any one time or for more than six months in any year.

(c) A house shall not be a qualifying premises for the purposes of section 50 , 51 or 52 unless a register of lessees of the house is maintained which shall contain the following particulars, that is to say—

(i) the name, permanent address and nationality of each lessee of the house during the relevant period (within the meaning of section 50 , 51 or 52, as the case may be), and

(ii) the date of arrival and the date of departure of each such lessee.

(8) For the purposes of sections 50 , 51 and 52 references therein to the construction of, conversion into, or, as the case may be, refurbishment of, any premises shall be construed as including references to the development of the land on which the premises is situated or which is used in the provision of gardens, grounds, access or amenities in relation to the premises and, without prejudice to the generality of the foregoing, as including, in particular—

(a) demolition or dismantling of any building on the land,

(b) site clearance, earth moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works,

(c) walls, power-supply, drainage, sanitation and water supply, and

(d) the construction of any outhouses or other buildings or structures for use by the occupants of the premises or for use in the provision of amenities for the occupants.

(9) (a) For the purposes of determining, in relation to any claim under section 50 (2), 51 (4) or 52 (2), as the case may be, whether and to what extent expenditure incurred on the construction of, conversion into, or, as the case may be, refurbishment of, a qualifying premises is incurred or not incurred during the qualifying period, only such an amount of that expenditure as is properly attributable to work on the construction of, conversion into, or, as the case may be, refurbishment of, the premises which was actually carried out during the qualifying period shall be treated as having been incurred during that period.

(b) Where, by virtue of subsection (8), expenditure on the construction of, conversion into, or, as the case may be, refurbishment of, a qualifying premises includes expenditure on the development of any land, paragraph (a) shall have effect, with any necessary modifications, as if the references therein to the construction of, conversion into, or, as the case may be, refurbishment of, the qualifying premises were references to the development of such land.

(10) (a) For the purposes of sections 50 and 51 , other than for the purposes mentioned in subsection (9) (a), expenditure incurred on the construction of, or, as the case may be, conversion into, a qualifying premises shall be deemed to have been incurred on the date of the first letting of the premises under a qualifying lease.

(b) For the purposes of section 52 , other than for the purposes mentioned in subsection (9) (a), relevant expenditure incurred in relation to the refurbishment of a qualifying premises shall be deemed to have been incurred on the date of the commencement of the relevant period, in relation to the premises, determined as respects the refurbishment to which the relevant expenditure relates.

(11) For the purposes of sections 50 , 51 and 52, expenditure shall not be regarded as 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.

(12) Paragraph 5 of Schedule 1 to the Capital Gains Tax Act, 1975 , shall have effect as if a deduction under section 50 (2), 51 (4) or 52 (2), as the case may be, were a capital allowance and as if any amount by way of rent deemed to have been received by a person under section 50 (4), 51 (6) or 52 (4), as the case may be, were a balancing charge.

(13) An appeal to the Appeal Commissioners shall lie on any question arising under this section or under section 50 , 51 or 52, other than a question on which an appeal lies under section 18 of the Housing (Miscellaneous Provisions) Act, 1979 , in like manner as an appeal would lie against an assessment to income tax or corporation tax and the provisions of the Tax Acts relating to appeals shall apply and have effect accordingly.

Chapter IV

Corporation Tax

Rate of corporation tax.

54.—(1) As respects any accounting period ending on or after the 1st day of April, 1995, section 1 (as amended by the Finance Act, 1990 ) of the Corporation Tax Act, 1976 , is hereby amended by the substitution of the following subsection for subsection (1):

“(1) For the financial year 1974 and each subsequent financial year there shall be charged on profits of companies a tax, to be called corporation tax, at the rate of—

(a) 40 per cent. for—

(i) each financial year until and including the year 1994, and

(ii) that part of the financial year 1995 beginning on the 1st day of January, 1995, and ending on the 31st day of March, 1995;

and

(b) 38 per cent. for—

(i) that part of the financial year beginning on the 1st day of April, 1995, and ending on the 31st day of December, 1995, and

(ii) each subsequent financial year.”.

(2) The Fourth Schedule shall have effect for the purpose of supplementing this section.

Amendment of section 162 (surcharge on undistributed income of service companies) of Corporation Tax Act, 1976.

55.—(1) Section 162 (as amended by section 48 of the Finance Act, 1990 ) of the Corporation Tax Act, 1976 , is hereby amended in subsection (4)—

(a) by the substitution in paragraph (a) of “one-half” for “four-fifths”, and

(b) by the substitution in paragraph (b) of “one-half” for “one-fifth”.

(2) This section shall have effect as respects accounting periods ending on or after the 1st day of April, 1995:

Provided that for the purposes of this section where an accounting period begins before the 1st day of April, 1995, and ends on or after that day, it shall be divided into two parts, one beginning on the day on which the accounting period begins and ending on the 31st day of March, 1995, and the other beginning on the 1st day of April, 1995, and ending on the day on which the accounting period ends, and both of the parts shall be treated as if they were separate accounting periods.

Amendment of section 45 (credit for bank levy) of Finance Act, 1992.

56.Section 45 of the Finance Act, 1992 , is hereby amended in subsection (1) (a)—

(a) by the insertion after “section 200,” in subparagraph (II) of paragraph (iii) of the definition of “accounting profit” of “ section 142 of the Finance Act, 1995,”, and

(b) by the insertion after “section 200” in the definition of “levy payment” of “or section 142 of the Finance Act, 1995,”.

Relief for certain payments to National Cooperative Farm Relief Services Ltd. and certain payments made to its members.

57.—(1) In this section—

“the agreement” means the agreement in writing dated the 16th day of May, 1995, between the Minister for Agriculture, Food and Forestry and the National Co-operative for the provision of financial support for the development of agricultural services together with every amendment of the agreement in accordance with Article 9.1 thereof;

“the commencement date” means the 12th day of December, 1994, being the date specified in the agreement as the commencement date;

“a member co-operative”, “the Minister”, “the National Co-operative” and “society” have the meanings respectively assigned to them in section 52 (1) of the Finance Act, 1994 .

(2) Notwithstanding any provision of the Corporation Tax Acts—

(a) a payment made under Article 3.1 (a) of the agreement by the Minister on or after the commencement date to the National Co-operative, and

(b) a transmission of monies under Article 3.4 in respect of payments under Article 3.1 (a) of the agreement by the National Co-operative on or after the commencement date to a member co-operative,

shall be disregarded for all of the purposes of those Acts.

Amendment of section 141 (particulars to be supplied by new companies) of Corporation Tax Act, 1976.

58.Section 141 of the Corporation Tax Act, 1976 , is hereby amended—

(a) in the proviso to subsection (1), by the substitution for “trade or profession” of “trade, profession or business”,

(b) by the insertion, after subsection (1), of the following subsections:

“(1A) Subject to subsection (1B), every company which is incorporated in the State and is neither resident in the State nor carrying on a trade, profession or business therein shall, in every case within thirty days of—

(a) the date on which it commences to carry on a trade, profession or business, wherever carried on, and

(b) any time at which there is a material change in information previously delivered by the company under this subsection, and

(c) the giving of a notice to the company by an inspector requiring a statement under this subsection,

deliver to the Revenue Commissioners a statement in writing containing particulars of—

(i) the name of the company;

(ii) the address of its registered office in the State and the address of its principal place of business;

(iii) the nature of the trade, profession or business;

(iv) the name and address of the secretary of the company;

(v) (I) where the company is controlled by a company the shares in which are listed in the official list of a recognised stock exchange and have been the subject of dealings on the said exchange in the period of 12 months ending at the time at which the statement is delivered, the name of that company and the address of its registered office, and

(II) in any other case, the name and address of any individual or individuals who have control of the company;

(vi) the territory in which the central management and control of the company is normally carried out; and

(vii) such other information as the Revenue Commissioners consider necessary for the purposes of determining the territory in which the company is resident for the purposes of tax.

(1B) Subsection (1A) shall not apply to a company (hereafter in this subsection referred to as the ‘first-mentioned company’) if at the time at which a statement under that subsection would, apart from this subsection, fall to be delivered, there is a company, which is a 90 per cent, subsidiary of the first-mentioned company, carrying on a trade or profession in the State.”,

and

(c) by the addition, after subsection (2), of the following subsection:

“(3) For the purposes of this section—

(a) sections 108 to 114 of the Corporation Tax Act, 1976 , shall apply for the purposes of this paragraph as they would apply for the purposes of Part XI of that Act if subsection (7) of section 107 of the said Act were deleted, and

(b) control shall be construed in accordance with section 102 of the Corporation Tax Act, 1976 .”.

Deduction for certain expenditure on research and development.

59.—(1) (a) In this section—

“appropriate inspector” has the meaning assigned to it in section 9 of the Finance Act, 1988 ;

“base period” means the period of 12 months ending immediately before the commencement of the first relevant period;

“expenditure on research and development” means non-capital expenditure incurred by a company being—

(i) an amount equal to 115 per cent, of the aggregate of the amounts of—

(I) such part of the emoluments paid by the company to employees of the company engaged in the carrying out of research and development activities related to the company's trade as is laid out for the purposes of the said activities, and

(II) expenditure incurred by the company on materials or goods used solely by the company in the carrying out of research and development activities related to the company's trade:

Provided that expenditure referred to in clauses (I) and (II) incurred by a company (hereafter in this definition referred to as “the first-mentioned company”) which is a member of a group on behalf of another company which is a member of the group, the other company shall be treated for the purposes of the Corporation Tax Acts as having incurred the expenditure and the first-mentioned company shall be treated for those purposes as not having incurred the said expenditure,

and

(ii) a sum paid to another person, not being a person connected with the company, in order that such person may carry out research and development activities related to the company's trade;

“group base expenditure on research and development” means the aggregate of the amounts of expenditure on research and development incurred in the base period by qualified companies which throughout that period are members of the group;

“group expenditure on research and development”, in relation to a relevant period, means the aggregate of the amounts of expenditure on research and development—

(i) incurred, or treated as incurred, in the relevant period by qualified companies which throughout the relevant period are members of the group, and

(ii) which is certified as having been incurred by the said companies in certificates given to the companies by persons who are auditors of the companies appointed under section 160 of the Companies Act, 1963 , or under the law of any territory where any such company is duly incorporated and which corresponds to that section;

“qualified company”, in relation to a relevant period, means a company which—

(i) throughout the relevant period carries on a trade which consists wholly or mainly of the manufacture of goods in the State:

Provided that trading operations of a company shall not be treated for the purposes of this section as the manufacture of goods in the State by virtue of any section of the Tax Acts other than section 39 of the Finance Act, 1980 ,

(ii) holds a certificate, given to it by Forbairt, which certifies that, in the opinion of Forbairt, the research and development activities which are proposed to be carried on by or on behalf of the company have the potential to achieve the purposes set out in paragraph (iii) of the definition of research and development activities,

(iii) notifies the appropriate inspector, before the commencement of the research and development activities, of its intention to carry out such activities or to have such activities carried out on its behalf,

(iv) maintains a record of expenditure incurred in the carrying on by it or on its behalf of research and development activities in accordance with a system, approved by Forbairt, of recording such expenditure, and

(v) does not, at any time during the period commencing on the 10th day of May, 1995, and ending 3 years after the commencement of the first relevant period, raise any amount through the issue of eligible shares (within the meaning of section 12 of the Finance Act, 1984 );

“qualifying expenditure on research and development attributable to a qualified company”, in relation to a relevant period, means so much of the amount of qualifying group expenditure on research and development in the relevant period as bears to that amount the same proportion as the amount of expenditure on research and development incurred by the company in the relevant period bears to the group expenditure on research and development in the relevant period;

“qualifying group expenditure on research and development”, in relation to a relevant period (hereafter in this definition referred to as the “said relevant period”), means an amount determined by the formula

E — (D + £25,000)

where—

E is the amount of group expenditure on research and development in the relevant period, and

D is the greater of—

(i) the amount of group base expenditure on research and development, and

(ii) the amount of group expenditure on research and development in any relevant period preceding the said relevant period:

Provided that—

(I) the qualifying group expenditure on research and development in relation to a relevant period shall not in any case exceed £150,000, and

(II) the aggregate of the amounts of qualifying group expenditure on research and development in all relevant periods shall not exceed the aggregate of the amounts specified in certificates given by Forbairt to companies which are members of the group;

“relevant period” means—

(i) in the case of a company which is a member of a group the end of the accounting periods of the members of which coincide, the period of 12 months throughout which one or more members of the group carried on a trade and ending at the end of the first accounting period of the company which commences on or after the 1st day of June, 1995,

(ii) in the case of a company which is a member of a group the end of the accounting periods of which do not coincide, the period specified in a notice in writing made jointly by companies which are members of the group and given to the appropriate inspector within a period of 9 months after the end of the period so specified, being a period of 12 months throughout which one or more members of the group carries on a trade and ending at the end of the first accounting period of a company which is a member of the group which accounting period commences on or after the 1st day of June, 1995, and

(iii) in any other case, the period of 12 months commencing on the 1st day of June, 1995,

and each subsequent period of 12 months, commencing immediately after the end of the preceding relevant period, which falls wholly into the period of 3 years commencing at the beginning of the first relevant period;

“research and development activities” means systematic, investigative or experimental activities which—

(i) are carried on wholly or mainly in the State,

(ii) involve innovation or technical risk, and

(iii) are carried on for the purpose of—

(I) acquiring new knowledge with a view to that knowledge having a specific commercial application, or

(II) creating new or improved materials, products, devices, processes or services,

and other activities carried on wholly or mainly in the State for a purpose directly related to the carrying on of activities of the kind referred to in paragraph (iii):

Provided that activities that are carried on by way of—

(A) market research, market testing, market development, sales promotion or consumer surveys,

(B) quality control,

(C) the making of cosmetic modifications or stylistic changes to products, processes or production methods,

(D) management studies or efficiency surveys, or

(E) research in social sciences, arts or humanities,

shall not be research and development activities.

(b) For the purposes of this section—

(i) two companies shall be deemed to be members of a group if one is an associated company (within the meaning of section 102 of the Corporation Tax Act, 1976 ) of the other,

(ii) a company and all its associated companies form a group:

Provided that a company which is not a member of a group shall be treated as if it were a member of a group which consists of that company and, accordingly, references to group expenditure on research and development, group base expenditure, and qualifying group expenditure on research and development shall be construed as if they were, respectively, references to expenditure on research and development, base expenditure and qualifying expenditure on research and development, and

(iii) systematic, investigative or experimental activities, or other activities, shall be regarded as carried on wholly or mainly in the State if, and only if, not less than 75 per cent, of the total amount expended in the course of such activities is expended in the State,

(iv) expenditure on research and development shall not be regarded as having been incurred by a company which is a member of a group if any expenditure on research and development incurred in a relevant period or in the base period by a company which is a member of the group has been or is to be met directly or indirectly by the State or any person other than a company which is a member of the group.

(2) (a) On making a claim in that behalf, a qualified company shall be entitled, in computing the trading income for an accounting period of a trade carried on by it, to deduct an amount equal to treble the qualifying expenditure on research and development attributable to the qualified company as is referable to the accounting period and the company shall be entitled to such a deduction in addition to any deduction to which the qualified company may be otherwise entitled in respect of expenditure incurred on research and development:

Provided that where the amount referred to in paragraph (a) exceeds an amount which would, apart from this subsection, be the income from the sale of goods of the trade so referred to, for the said accounting period, then the excess—

(i) shall not be deductible by virtue of the foregoing provisions of this subsection, and

(ii) shall be treated as a loss incurred in that trade, which is a loss from the sale of goods, for the purposes of relief under—

(I) section 16A or section 116A of the Corporation Tax Act, 1976 , or

(II) to the extent that such relief does not exceed the income from the sale of goods in the course of that trade in the accounting period for which that relief is given, section 16 (1) of the Corporation Tax Act, 1976 .

(b) In this subsection “income from the sale of goods” and “a loss from the sale of goods” have the same meaning respectively as they have in section 116A of the Corporation Tax Act, 1976 .

(3) For the purposes of subsection (2)

(a) where a relevant period coincides with an accounting period of a qualified company, the amount of qualifying expenditure on research and development attributable to the qualified company which relates to the accounting period of the company shall be the amount of the said qualifying expenditure attributable to the qualified company, and

(b) where the relevant period does not coincide with an accounting period of the company—

(i) the qualifying expenditure on research and development attributable to the qualified company shall be apportioned to the accounting periods which fall wholly or partly into the relevant period, and

(ii) the amount so apportioned to an accounting period shall be treated as the amount of qualifying expenditure on research and development attributable to the qualified company which relates to that accounting period of the company.

(4) Where a company makes a claim under this section the company shall be treated for the purpose of Chapter III of Part I of the Finance Act, 1984 , as not being a qualifying company in respect of any amount raised, at any time during the period commencing on the 10th day of May, 1995, and ending 3 years after the commencement of the first relevant period, by the issue of eligible shares (within the meaning of section 12 of the said Act of 1984).

(5) Section 157 of the Corporation Tax Act, 1976 , shall apply for the purposes of this section.

Amendment of section 23 (double taxation relief: supplementary) of Corporation Tax Act, 1976.

60.Section 23 of the Corporation Tax Act, 1976 , is hereby amended, as respects accounting periods ending on or after the 1st day of January, 1995—

(a) in subsection (2) by the substitution for “the corporation tax attributable to any income or gain (‘the relevant income or gain’) shall be determined in accordance with subsections (3) and (4).” of the following:

“the corporation tax attributable to any income or gain (hereafter in this subsection referred to as ‘the said income’ or ‘the said gain’, as the case may be) of a company shall, subject to subsections (3) and (4), be the corporation tax attributable to so much (hereafter in this section referred to as ‘the relevant income’ or ‘the relevant gain’, as the case may be) of the income or chargeable gains of the company computed in accordance with the Tax Acts and the Capital Gains Tax Acts, as is attributable to the said income or the said gain, as the case may be:

Provided that, for the purposes of this subsection, the relevant income of a company attributable to an amount receivable from the sale of goods, within the meaning of section 39C (inserted by the Finance Act, 1994 ) of the Finance Act, 1980 , shall be the sum which would, for the purposes of that section, be taken to be the amount of the income of the company referable to the amount so receivable.”,

(b) in subsection (3) by the addition of the following proviso:

“Provided that, where the corporation tax payable by the company for the relevant accounting period on the relevant income or gain is reduced by virtue of—

(a) section 41 (as amended by the Finance Act, 1994 ) of the Finance Act, 1980 , by any fraction, the rate of corporation tax payable by the company on its income and chargeable gains for the relevant accounting period shall be treated as reduced by that fraction,

(b) section 36 (2) (as amended by the Finance Act, 1993 ) of the Corporation Tax Act, 1976 , or section 17 (2) of the Finance Act, 1993 , the rate of corporation tax payable by the company on its income and chargeable gains for the relevant accounting period shall be treated as the standard rate of income tax by reference to which the corporation tax so payable is reduced, and

(c) section 36A (6) (inserted by the Finance Act, 1993 ) of the Corporation Tax Act, 1976 , the rate of corporation tax payable by the company on its income and chargeable gains for the relevant accounting period shall be treated as 10 per cent.,

for the purposes of computing the corporation tax attributable to that relevant income or gain, as the case may be.”,

and

(c) in subsection (4) by the substitution for paragraphs (a) and (b) of the following paragraphs:

“(a) the company shall, for the purposes of this section and sections 39C and 39D of the Finance Act, 1980 , allocate every such deduction in such amounts and to such of its profits for that period as it thinks fit, and

(b) (i) the amount of the relevant income or gain shall be treated for the purposes of subsection (3),

(ii) the amount of any income of a company which is treated for the purposes of that section as referable to an amount receivable from the sale of goods, within the meaning of that section, shall be treated for the purposes of the said section 39C, and

(iii) the amount of the income of a company which is treated for the purposes of that section as attributable to relevant payments, within the meaning of that section, shall be treated for the purposes of the said section 39D,

as reduced or, as the case may be, extinguished by so much (if any) of the deduction as is allocated to it.”.

Amendment of section 41 (basis of relief from corporation tax) of Finance Act, 1980.

61.Section 41 of the Finance Act, 1980 , is hereby amended in paragraph (b) of subsection (1) (inserted by the Finance Act, 1992 ) by the insertion before “sections 25 and 26” of “section 22 and”.

Double taxation relief.

62.—Chapter VI of Part I of the Finance Act, 1980 , is hereby amended, as respect accounting periods ending on or after the 1st day of January, 1995, by the insertion after section 39C (inserted by the Finance Act, 1994 ) of the following section—

“39D.—(1) (a) In this section—

‘appropriate inspector’, ‘chargeable period’ and ‘specified return date for the chargeable period’ have the meanings assigned to them, respectively, in Chapter II of Part I of the Finance Act, 1988 ;

‘arrangements’ and ‘foreign tax’ have the meanings assigned to them, respectively, in paragraph 1 (1) of Schedule 10 to the Income Tax Act, 1967 ;

‘credit institution’ means an undertaking whose business it is to receive deposits or other repayable funds from the public and to grant credit on its own account;

‘group relevant payment’ means a relevant payment made to a relevant company by a company which is related to the relevant company;

‘qualified company’ and ‘relevant trading operations’ have, subject to paragraph (d), the meanings assigned to them, respectively, in section 39B;

‘relevant company’ means a qualified company, other than a credit institution or a 25 per cent. subsidiary of a credit institution, the relevant trading operations of which—

(i) are wholly carried on by persons—

(I) who are employees of the qualified company or a company related to it and who are not employees of any employer other than the qualified company or the company related to it, as the case may be, and

(II) in respect of whom there does not exist any understanding or arrangement the purpose of which, or one of the purposes of which, is to provide for the engagement of the services of those persons, whether as employees or otherwise, should they cease to be employed by the qualified company or the company related to it, as the case may be,

and

(ii) are not managed or directed, whether directly or indirectly, by another qualified company other than a company related to the first-mentioned qualified company;

‘relevant foreign tax’ means so much of the amount of foreign tax as—

(i) has been deducted from relevant payments,

(ii) would have been so deducted if the laws of the territory under which the tax was deducted prohibited the deduction of tax from such payments at a rate in excess of 10 per cent., and

(iii) has not been repaid;

‘relevant payment’ means a payment of interest which—

(i) arises from a source within a territory in regard to which arrangements have the force of law, and

(ii) is regarded, subject to paragraph (d), by virtue of subsection (8) (b) of section 39B as receivable by a relevant company from the sale of goods for the purposes of relief under this Chapter.

(b) For the purposes of this section a company shall be treated as related to another company at any relevant time if at that time one of the two companies is a 25 per cent. subsidiary of the other, or both are 25 per cent. subsidiaries of the same company.

(c) For the purposes of this section a company shall be deemed to be a 25 per cent. subsidiary of another company if and so long as not less than 25 per cent. of its ordinary share capital would be treated as owned directly or indirectly by that other company if the provisions of section 156 of the Corporation Tax Act, 1976 , other than subsection (1) of that section, were to apply for the purposes of this paragraph as they apply for the purposes of section 156:

Provided that—

(i) where a company (hereafter in this subparagraph referred to as ‘the said company’) would be treated, for the purposes of this section, as a 25 per cent. subsidiary of a credit institution, which is not a company, if the credit institution were a company, the said company shall be so treated for the said purposes, and

(ii) for the purposes of paragraph (b) a company (hereafter in this proviso referred to as ‘the subsidiary company’) shall not be deemed to be a 25 per cent. subsidiary of another company (hereafter in this proviso referred to as ‘the parent company’) at any time if the percentage—

(I) of any profits, which are available for distribution to equity holders, of the subsidiary company at such time to which the parent company is beneficially entitled at such time, or

(II) of any assets, which are available for distribution to equity holders on a winding up, of the subsidiary company at such time to which the parent company would be beneficially entitled at such time on a winding up of the subsidiary company,

is less than 25 per cent. of such profits or assets, as the case may be, of the subsidiary company at such time, and, for the purposes of this subparagraph of this proviso, sections 109 , 110 , 111 and 114 of the Corporation Tax Act, 1976 , shall apply, but without regard to section 107 (7) of that Act in so far as it relates to those sections, with any necessary modifications, to the determination of the percentage of those profits or assets, as the case may be, which a company is beneficially entitled to, as they apply to the determination for the purposes of Part XI of the said Act of 1976 of the percentage of any such profits or assets to which a company is so entitled.

(d) For the purpose of this section, apart from this paragraph—

(i) a payment made to a company in the course of relevant trading operations (within the meaning of section 39A) being a payment which is regarded, by virtue of subsection (7) (b) of section 39A, as receivable from the sale of goods for the purposes of relief under this Chapter shall be treated as so regarded by virtue of subsection (8) (b) of section 39B, and

(ii) if the company is a qualified company carrying on relevant trading operations (within the meaning of section 39A) it shall be treated as being a qualified company carrying on relevant trading operations within the meaning of section 39B,

so long as the relevant trading operations within the meaning of section 39A could be certified by the Minister for Finance as relevant trading operations for the purposes of section 39B if they were carried out in the Area (within the meaning of section 39B) rather than in the airport (within the meaning of section 39A).

(2) Notwithstanding paragraph 4 of Schedule 10 to the Income Tax Act, 1967 , and section 23 (as amended by the Finance Act, 1995) of the Corporation Tax Act, 1976 , where a relevant company elects to have the amount of the credit, which is to be allowed to the company in respect of foreign tax deducted from group relevant payments made to the company in a relevant accounting period, computed as if, for the purposes of the said paragraph 4 and the said section 23, the amount of the corporation tax attributable to the income attributable to those group relevant payments were deemed to be increased by an amount which—

(a) shall be allocated by the company in such amounts and to such part of that income as the company thinks fit, and

(b) shall not exceed seven-twentieths of the amount of corporation tax which—

(i) would, apart from this section, be payable by the company, and

(ii) is attributable to all relevant payments made to the company in the course of the trade in the accounting period,

the amount of that credit shall be so computed for those purposes:

Provided that, where an election is made by a company under this subsection in respect of a relevant accounting period—

(I) any credit for foreign tax deducted from group relevant payments made to the company in the accounting period shall be computed as if the amount of foreign tax deducted from those group relevant payments were the amount of relevant foreign tax comprised in that amount, and

(II) so much of that credit as would not have been allowed to the company apart from this section shall be ignored for the purposes of subparagraph (3) (c) of paragraph 8 of the said Schedule 10.

(3) (a) For the purposes of subsection (2) the amount of corporation tax which would, apart from this section, be payable by a company and which is attributable to relevant payments made to the company shall be an amount determined by the formula—

A − B

where—

A is an amount equal to 10 per cent, of the amount of the income of the company attributable to relevant payments; and

B is the credit which would, apart from this section, be allowed to the company in respect of foreign tax deducted from those payments.

(b) For the purposes of paragraph (a)—

(i) the amount of the income of a company attributable to relevant payments made to the company in the course of a trade in a relevant accounting period shall, subject to section 23 (4) (as amended by the Finance Act, 1995) of the Corporation Tax Act, 1976 , be taken to be such sum as bears to the total amount of the income of the company from the sale of goods in the course of the trade in the relevant accounting period the same proportion as the said relevant payments bear to the total amount receivable by the company from the sale of goods in the course of the trade in the accounting period, and

(ii) the total amount of income of a company from the sale of goods in the course of a trade in a relevant accounting period shall be taken to be the sum referred to in subsection (3) of section 41 which, for the purposes of subsection (2) of that section, is to be taken to be the income of the trade for the relevant accounting period referred to in the expression ‘the income from the sale of those goods’ in subsection (2) of that section.

(4) Where, as respects a relevant accounting period, corporation tax payable by a company is, by virtue of subsection (9) (inserted by the Finance (No. 2) Act, 1992 ) of section 41, reduced by a fraction, which is referred to in the said subsection (9) as the ‘revised relief,’ then, this section shall apply to the company as if the references to 10 per cent., in subsection (1) in the definition of ‘relevant foreign tax’ and in subsection (3) (a) in the definition of ‘A’, were references to a rate per cent, determined by the formula—

C × (1 − D)

where—

C is the rate per cent, of corporation tax, specified in section 1 (1) of the Corporation Tax Act, 1976 , for the financial year in which the relevant accounting period ends, and

D is the fraction so referred to.

(5) An election referred to in subsection (2) shall be made in writing to the appropriate inspector in relation to the company making the election on or before that company's specified return date for the chargeable period in respect of which it is making the election.”.

Amendment of section 39C (credit for foreign tax) of Finance Act, 1980.

63.—Section 39C (inserted by the Finance Act, 1994 ) of the Finance Act, 1980 , is hereby amended, as respects accounting periods ending on or after the 1st day of January, 1995—

(a) in subsection (1)—

(i) in paragraph (a), in the definition of “relevant foreign tax” by the insertion after paragraph (i) of that definition of the following:

“(ia) which corresponds to income tax or corporation tax,”,

(ii) in paragraph (b)—

(I) by the substitution for subparagraph (i) of the following subparagraph:

“(i) the amount of the corporation tax which would, apart from subsection (2), be payable by a company and which is attributable to an amount receivable from the sale of goods shall be an amount equal to 10 per cent, of the amount of the income of the company referable to the amount so receivable;”,

(II) in subparagraph (ii) by the insertion after “shall” of “, subject to section 23 (4) (as amended by the Finance Act, 1995) of the Corporation Tax Act, 1976 ,”, and

(III) in subparagraph (iii) by the insertion after “which” of “, for the purposes of subsection (2) of the said section,”,

(b) in subsection (2) by the substitution for “nine-tenths of so much of” of “so much of nine-tenths of”, and

(c) by the insertion of the following subsection:

“(3) Where, as respects a relevant accounting period, corporation tax payable by a company is, by virtue of subsection (9) (inserted by the Finance (No. 2) Act, 1992 ) of section 41, reduced by a fraction, which is referred to in the said subsection (9) as the ‘revised relief’, then, in computing the reduction, if any, under subsection (2) of corporation tax payable by the company for the relevant accounting period, being corporation tax attributable to an amount receivable from the sale of goods which is an amount receivable in the course of relevant trading operations, within the meaning of section 39B, this section shall apply as if—

(a) in subparagraph (i) (as inserted by the Finance Act, 1995) of subsection (1) (b) the reference to 10 per cent, were a reference to a rate per cent, determined by the formula—

C × (1 − D)

where—

C is the rate per cent, of corporation tax, specified in section 1 (1) of the Corporation Tax Act, 1976 , for the financial year in which the relevant accounting period ends, and

D is the fraction so referred to,

and

(b) the reference in subsection (2) to nine-tenths were a reference to a fraction determined by the formula—

100 − [C × (1 − D)]

_____________________

100

where C and D have the meanings assigned to them in paragraph (a).”.

Amendment of section 43 (overseas life assurance companies: investment income) of Corporation Tax Act, 1976.

64.Section 43 of the Corporation Tax Act, 1976 , is hereby amended, as respects accounting periods beginning on or after the 1st day of January, 1995, by the insertion after subsection (2) of the following subsection:

“(2A) Where an overseas life assurance company is entitled to an amount (hereafter in this subsection referred to as ‘the said amount’), being an amount which corresponds to a tax credit, by virtue of having received a distribution from a company which is not resident in the State, the distribution shall be treated, for the purposes of this section, as representing income equal to the aggregate of the amount or value of that distribution and the said amount.”.

Amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980.

65.—Section 39B is hereby amended in paragraph (c) of subsection (6) by the substitution for subparagraph (iiia) (inserted by the Finance Act, 1988 ) of the following subparagraph:

“(iiia) dealing by a company in commodity futures or commodity options on behalf of persons not ordinarily resident in the State—

(I) other than on behalf of persons who—

(A) carry on a trade in which commodities of a type which are the subject of the futures or options, as the case may be, are used in the course of the carrying on of the trade, or

(B) would be regarded for the purposes of the Corporation Tax Acts as connected with a person who carries on such a trade,

or

(II) where dealing in futures and options, some or all of which are commodity futures or commodity options, as the case may be, is the principal relevant trading operation carried on by the company;”.

Amendment of section 55 (late submission of returns: restriction of certain claims of relief) of Finance Act, 1992.

66.—(1) Subject to subsection (2), any restriction or reduction imposed by paragraph (a), (b), (c), (d) or (e) of subsection (1) of section 55 of the Finance Act, 1992 , in respect of a chargeable period in the case of a company which fails to deliver a return of income on or before the specified return date for that chargeable period shall apply and have effect subject to—

(a) in the case of the restrictions or reductions imposed by paragraph (a), (b) or (c) of the said subsection, a maximum restriction or reduction, as the case may be, of £125,000 in each case for the chargeable period, and

(b) in the case of the restrictions imposed by paragraph (d) or (e) of the said subsection, a maximum restriction of £50,000 in each case for the chargeable period.

(2) Where in relation to a chargeable period a company, having failed to deliver a return of income on or before the specified return date for that chargeable period, delivers the said return before the expiry of two months from the specified return date, paragraphs (a) to (e) of subsection (1) of section 55 of the Finance Act, 1992 , shall apply and have effect—

(a) as if the references therein to “50 per cent.” were references to “75 per cent.” in the case of paragraphs (a), (b), (d) and (e) and “25 per cent.” in the case of paragraph (c), and

(b) subject to—

(i) in the case of the restrictions or reductions imposed by paragraph (a), (b) or (c) of the said subsection, a maximum restriction or reduction, as the case may be, of £25,000 in each case for the chargeable period, and

(ii) in the case of the restrictions imposed by paragraph (d) or (e) of the said subsection, a maximum restriction of £10,000 in each case for the chargeable period.

(3) This section shall apply and have effect as respects chargeable periods ending on or after the 6th day of April, 1995.

Amendment of section 51 (relief for gifts to First Step) of Finance Act, 1993.

67.Section 51 of the Finance Act, 1993 , is hereby amended—

(a) by the substitution in paragraph (a) of subsection (2) of “1st day of June, 1997” for “1st day of June, 1995”, and

(b) in the proviso to subsection (3) by the substitution of the following subparagraph for subparagraphs (iii) and (iv) of paragraph (b):

“(iii) in respect of a gift made at any time in the year ended on the 31st day of May in the year 1994, 1995,1996 or 1997, if, at that time, the aggregate of the net amounts of all gifts to which this section applies made to First Step within that year exceeds £1,500,000.”.

Amendment of section 20A (foreign life assurance and deferred annuities: taxation and returns) of Capital Gains Tax Act, 1975.

68.—Section 20A (inserted by the Finance Act, 1993 ) of the Capital Gains Tax Act, 1975 , is hereby amended, as respects disposals of assets on or after the 20th day of May, 1993, by the addition of the following subsection:

“(4) (a) In this subsection ‘reinsurance contract’ means any contract or other agreement for reassurance, or reinsurance, in respect of—

(i) any policy of assurance on the life of any person, or

(ii) any class of such policies.

(b) Where apart from this paragraph a reinsurance contract would not be a policy of assurance on the life of any person for the purposes of this Act it shall be deemed to be such a policy for those purposes.

(c) Subsections (2) and (3) shall not apply to, and shall be deemed never to have applied to, reinsurance contracts:

Provided that where, apart from this paragraph, a reinsurance contract would not be a relevant policy within the meaning of section 20B (inserted by the Finance Act, 1994 ) for the purposes of that section, it shall be deemed not to be such a policy for those purposes.

(d) (i) Subject to paragraph (e), where, apart from paragraph (c) of this subsection, subsection (2) would apply to a reinsurance contract in respect of any policy of assurance on the life of any person, being a policy issued on or after the 1st day of January, 1995, section 20 (2) shall not have effect in respect of any disposal or deemed disposal on or after the 1st day of January, 1995, of, or any interest in, rights of the insured company under the reinsurance contract to the extent that—

(I) those rights refer to the said policy, and

(II) the insured company could receive, otherwise than on the death, disablement or disease of any person, or one of a class of persons, to whom the said policy refers, payment on a disposal of those rights the aggregate amount of which would exceed the aggregate amount of payment made by it in respect of those rights:

Provided that this subparagraph shall apply—

(A) as respects any reinsurance contract made before the 20th day of May, 1993, as if that contract were made on that day, and

(B) as respects any reinsurance contract made or modified on or after the 1st day of January, 1995, as if there were deleted from this subparagraph ‘being a policy issued on or after the 1st day of January, 1995,’.

(ii) Subparagraphs (i) and (ii) of subsection (1) (b) shall apply for the purposes of this paragraph as if for ‘the 20th day of May, 1993’ there were substituted ‘the 1st day of January, 1995’.

(e) Paragraph (d) shall not apply to any disposal of, or any interest in, rights under a reinsurance contract, being a disposal resulting directly from the death, disablement or disease of a person, or one of a class of persons, to whom the reinsurance contract refers:

Provided that in computing any gain or loss in respect of a disposal or deemed disposal of, or any interest in, rights of the insured company under a reinsurance contract—

(i) there shall be excluded from the sums allowable under paragraph 3 of Schedule 1 to the Capital Gains Tax Act, 1975 , so much of any payment made by the insured company under the reinsurance contract as is paid in respect of an entitlement to a payment on the death, disablement, or disease of a person, or one of a class of persons, and

(ii) there shall be added to the consideration taken into account under the said Schedule the market value of an entitlement for any period, commencing on or after the most recent acquisition or deemed acquisition by the insured company of the said rights, to a payment on the death, disablement or disease of a person, or one of a class of persons, to the extent that the insured company held the entitlement for that period in place of any return which would otherwise have accrued under the reinsurance contract and increased the said consideration.”.

Amendment of section 46B (gains or losses arising by virtue of section 46A) of Corporation Tax Act, 1976.

69.—Section 46B of the Corporation Tax Act, 1976 , is hereby amended in subsection (1) by the insertion of the following proviso:

“Provided that as respects chargeable gains or allowable losses accruing on disposals of rights under reinsurance contracts (within the meaning of section 20A (4) (inserted by the Finance Act, 1995) of the Capital Gains Tax Act, 1975 ) deemed by virtue of section 46A to have been made in the accounting period or part of an accounting period falling wholly within the year ending on—

(i) the 31st day of December, 1995, this section shall not apply to five-sevenths,

(ii) the 31st day of December, 1996, this section shall not apply to four-sevenths,

(iii) the 31st day of December, 1997, this section shall not apply to three-sevenths,

(iv) the 31st day of December, 1998, this section shall not apply to two-sevenths, or

(v) the 31st day of December, 1999, this section shall not apply to one-seventh,

of those chargeable gains and allowable losses.”.

Chapter V

Capital Gains Tax

Amendment of Schedule 4 (administration) to Capital Gains Tax Act, 1975.

70.—(1) Schedule 4 to the Capital Gains Tax Act, 1975 , is hereby amended by the substitution, in subparagraph (6) of paragraph 4, of “£15,000” for “£5,000” (inserted by section 63 (1) of the Finance Act, 1994 ).

(2) Subsection (1) shall apply and have effect as respects transactions effected on or after the 6th day of April, 1995.

Amendment of section 26 (disposal of business or farm on retirement) of Capital Gains Tax Act, 1975.

71.—(1) Section 26 of the Capital Gains Tax Act, 1975 , is hereby amended—

(a) in subsection (1) (a), by the substitution of “£250,000” for “£200,000” (inserted by section 42 (a) of the Finance Act, 1991 ) in each place where it occurs,

(b) by the substitution of the following subsections for subsection (3) (as amended by section 84 (a) of the Finance Act, 1990 ) and subsection (3A) (inserted by section 84 (b) of the said Act):

“(3) Where a disposal of qualifying assets includes a disposal of shares or securities of the individual's family company, the amount of the consideration to be taken into account for the purposes of subsection (1) in respect of those shares or securities shall be the proportion of the consideration for such shares or securities which is equal to—

(a) in a case where the individual's family company is not a holding company, the proportion which the part of the value of the company's chargeable assets at the time of the disposal which is attributable to the value of the company's chargeable business assets bears to the whole of that value, and

(b) in a case where the individual's family company is a holding company, the proportion which the part of the value of the chargeable assets of the trading group (excluding shares or securities of one member of the group held by another member of the group) at the time of the disposal which is attributable to the value of the chargeable business assets of the trading group bears to the whole of that value:

Provided that nothing in this section shall affect liability on any gains calculated by reference to the balance of the consideration for the disposal of the shares or securities.

(3A) For the purposes of subsection (3) every asset shall be a chargeable asset except one on the disposal of which by the company or a member of the trading group, as the case may be, at the time of the disposal of the shares or securities, no gain accruing to the company or member of the trading group, as the case may be, would be a chargeable gain.”,

and

(c) in subsection (6) (a)—

(i) by the deletion of “a company shall be deemed to be a ‘100 per cent. subsidiary’ of another company if and so long as not less than 100 per cent. of its ordinary share capital is owned directly or indirectly by that other company” (inserted by section 84 (c) (i) of the Finance Act, 1990 ),

(ii) by the substitution of the following definition for the definition of “chargeable business asset” (as amended by section 84 (c) (ii) of the Finance Act, 1990 ):

“‘chargeable business asset’ means an asset (including goodwill but not including shares or securities or other assets held as investments) which is, or is an interest in, an asset used for the purposes of farming, or a trade, profession, office or employment, carried on by—

(i) the individual, or

(ii) the individual's family company, or

(iii) a company which is a member of a trading group of which the holding company is the individual's family company,

other than an asset on the disposal of which no gain accruing would be a chargeable gain;”,

(iii) by the substitution of “75 per cent. subsidiaries” for “100 per cent. subsidiaries” in the definition of “holding company” (inserted by section 84 (c) (iii) of the Finance Act, 1990 ),

(iv) by the substitution of the following definitions for the definitions of “trading company” and “trading group” (inserted by section 84 (c) (v) of the Finance Act, 1990 ):

“‘trading company’ means a company whose business consists wholly or mainly of the carrying on of one or more trades or professions;

‘trading group’ means a group of companies consisting of the holding company and its 75 per cent. subsidiaries, the business of whose members taken together consists wholly or mainly of the carrying on of one or more trades or professions;”,

and

(v) by the insertion of the following definition after the definition of “trading group” (inserted by subparagraph (iv)):

“‘75 per cent. subsidiary’ has the meaning assigned to it in section 156 of the Corporation Tax Act, 1976 .”.

(2) Subsection (1) shall apply and have effect as respects disposals made on or after the 6th day of April, 1995.

Amendment of section 27 (disposal within the family of business or farm) of Capital Gains Tax Act, 1975.

72.—(1) Section 27 (as amended by section 85 of the Finance Act, 1990 ) of the Capital Gains Tax Act, 1975 , is hereby amended, in paragraph (a) of subsection (4), by the substitution of “six years” for “ten years”.

(2) Subsection (1) shall apply and have effect as respects disposals made on or after the 6th day of April, 1995.

Amendment of section 39 (amendment of provisions regarding replacement of assets) of Finance Act, 1982.

73.—(1) Section 39 of the Finance Act, 1982 , is hereby amended by the addition of the following subsections after subsection (3):

“(4) Subsection (1) shall not apply to a relevant disposal where the relevant local authority gives a certificate in writing to the person making the disposal stating that the land being disposed of is subject to a use which, on the basis of guidelines issued by the Minister for the Environment, is inconsistent with the protection and improvement of the amenities of the general area within which that land is situated or is otherwise damaging to the local environment.

(5) Subsection (2) shall not apply to a relevant disposal made to an authority possessing compulsory purchase powers where—

(a) at the time of the disposal, the original assets (within the meaning of section 5 of the Act of 1978) consist of land occupied and used only for the purposes of farming, and

(b) the disposal is made—

(i) for the purposes of enabling the authority to construct, widen or extend a road, or part of a road, or

(ii) for a purpose connected with, or ancillary to, the construction, widening or extension of a road, or part of a road, by the authority.

(6) (a) In subsection (4) ‘the relevant local authority’, in relation to a relevant disposal, means the council of a county or the corporation of a county or other borough or, where appropriate, the urban district council, in whose functional area the land being disposed of is situated.

(b) In subsection (5) ‘farming’ has the same meaning as it has in Chapter II of Part I of the Finance Act, 1974 , by virtue of section 13 of that Act.”.

(2) Subsection (1) shall apply and have effect as respects disposals made on or after the 6th day of April, 1995.

Amendment of section 27 (relief for individuals on certain reinvestment) of Finance Act, 1993.

74.—(1) Section 27 (as amended by section 65 of the Finance Act, 1994 ) of the Finance Act, 1993 , is hereby amended—

(a) in subsection (1)—

(i) by the insertion of the following definition before the definitions of “eligible shares”, “ordinary shares” and “unquoted company”:

“‘director’ has the meaning assigned to it in Chapter III of Part V of the Income Tax Act, 1967 ;”,

(ii) by the deletion of the definitions of “full-time working officer or employee” and “personal company”,

(iii) by the insertion of the following definitions before the definition of “holding company”:

“‘full-time director’, ‘full-time employee’, ‘part-time director’ and ‘part-time employee’ have, respectively, the meanings assigned to them in section 8 of the Finance Act, 1978 ;”,

and

(iv) by the insertion of the following definitions before the definition of “trading company”:

“‘trade’ includes a profession and ‘trading company’, ‘trading group’, ‘qualifying trade’ (within the meaning of subsection (7)) and ‘qualifying trading operations’ (within the said meaning) shall be construed accordingly;”,

(b) in subsection (4), by the insertion of “and” at the end of paragraph (i), the deletion of paragraphs (ii) and (iii) and the substitution of the following paragraph for paragraph (iv):

“(iv) the re-investor has been a full-time employee, part-time employee, full-time director or part-time director of the company or, if that company is a member of a trading group, of one or more companies which are members of the trading group.”,

and

(c) in subsection (5)—

(i) by the insertion of the following paragraph after paragraph (b):

“(bb) within the specified period, the company uses the money raised through the issue of the eligible shares for the purposes of enabling it, or enlarging its capacity, to undertake qualifying trading operations (within the meaning of subsection (7)),”,

and

(ii) by the substitution, in paragraph (d), of “a full-time employee or a full-time director of the company” for “a full-time working officer or employee of the company”.

(2) Subsection (1) shall apply and have effect as respects disposals made on or after the 6th day of April, 1995.

Amendment of section 66 (reduced rate of capital gains tax on certain disposals of shares by individuals) of Finance Act, 1994.

75.Section 66 of the Finance Act, 1994 , is hereby amended—

(a) in paragraph (a) of subsection (7), by the substitution of “subsections (8) and (8A)” for “subsection (8)”, and

(b) by the insertion of the following subsection after subsection (8):

“(8A) In a case where paragraph (b) of subsection (7) applies and has effect, or would apply and have effect but for the fact that the new holding acquired by the individual does not constitute qualifying shares, and the following conditions are satisfied, that is to say:

(a) the date of the acquisition of the new holding by the individual was on or before the 5th day of April, 1994,

(b) the original shares had been held by the individual throughout the period of 5 years immediately preceding the date of the acquisition of the new holding,

(c) a disposal of the new holding, or a part of that holding, is made by the individual in the year of assessment 1995-96, and

(d) at the time of the disposal of the new holding, or, as the case may be, the part of that holding, the company in which the new holding subsists would not, other than by virtue of this subsection, be treated as a qualifying company in relation to that disposal,

then—

(i) if the disposal by the individual of the new holding or, as the case may be, the part of that holding is not a disposal of qualifying shares, that disposal shall, notwithstanding any other provision of this section, be treated as a disposal of qualifying shares in respect of which the individual's period of ownership is not less than 5 years,

(ii) subsection (2) shall apply—

(I) as if the reference in paragraph (a) of subsection (2) to ‘at the date of acquisition of those shares’ were a reference to ‘at the date of acquisition of the original shares’,

(II) where the company in which the new holding subsists is not the company in which the original shares subsisted, as if the reference in paragraph (a) of subsection (2) to ‘it is’ were a reference to ‘the company in which the original shares subsisted is’,

(III) as if the reference in paragraph (b) of subsection (2) to ‘throughout the specified period’ were a reference to ‘throughout the period of 5 years immediately preceding the date of the acquisition of the new holding’, and

(IV) where the company in which the new holding subsists is not the company in which the original shares subsisted, as if the reference in paragraph (b) of subsection (2) to ‘it is’ were a reference to ‘the company in which the original shares subsisted is’,

and

(iii) subsections (3) and (4) shall apply as if the references therein to ‘throughout the specified period’ were references to ‘throughout the period of 5 years immediately preceding the date of the acquisition of the new holding’.”.

Amendment of paragraph 11 (disposal of certain assets) of Schedule 4 to Capital Gains Tax Act, 1975.

76.—As respects any payment in money or money's worth, after the passing of this Act, in respect of the disposal of an asset, paragraph 11 (inserted by the Finance Act, 1982 ) of Schedule 4 to the Capital Gains Tax Act, 1975 , is hereby amended—

(a) in subparagraph (1)—

(i) by the deletion from clause (d) of “and”, and

(ii) by the insertion after clause (d) of the following clause:

“(dd) shares, other than shares quoted on a stock exchange, to which paragraph 2 of Schedule 2 applies, whether by virtue of that paragraph or any other provision of Schedule 2, so that, as respects a person disposing of those shares, they are treated as the same shares as shares specified in clause (d), acquired as the shares so specified were acquired; and”;

(b) in subparagraph (6) by the deletion from clause (a) of “ordinarily”;

(c) in subparagraph (7) by the substitution for clauses (a), (b) and (c) of the following clauses:

“(a) Where—

(i) after the passing of the Finance Act, 1995, a person acquires an asset to which this paragraph applies and paragraph 18 does not apply,

(ii) the consideration for acquiring the asset is of such a kind that the deduction mentioned in subparagraph (2) cannot be made thereout, and

(iii) the person disposing of the asset does not, at or before the time at which the acquisition is made, produce to the person acquiring the asset a certificate under subparagraph (6) in relation to the disposal,

the person acquiring the asset shall, within seven days of the time at which the acquisition is made,

(I) notify the Revenue Commissioners of the acquisition in a notice in writing containing particulars of—

(A) the asset acquired,

(B) the consideration for acquiring the asset,

(C) the market value of that consideration, estimated to the best of that person's knowledge and belief, and

(D) the name and address of the person making the disposal,

and

(II) pay to the Collector-General an amount of capital gains tax, equal to 15 per cent. of the market value of the consideration so estimated.

(b) Capital gains tax which, by virtue of subclause (II) of clause (a), is payable by a person acquiring an asset shall—

(i) be payable by that person in addition to any capital gains tax which, by virtue of any other provision of the Capital Gains Tax Acts, is payable by that person,

(ii) be due within seven days of the time at which that person acquires the asset, and

(iii) be payable by that person without the making of an assessment:

Provided that tax which has become due as aforesaid may be assessed on the person acquiring the asset (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.

(c) Where any person acquiring an asset, has, in pursuance of subclause (II) of clause (a), paid any amount of tax by reference to the market value of the consideration for acquiring the asset, that person shall be entitled to recover a sum of that amount from the person disposing of the asset as a simple contract debt in any court of competent jurisdiction:

Provided that, where a copy of a certificate under subparagraph (6) is issued to the person acquiring the asset, being a copy of a certificate in relation to the disposal by which the person acquired the asset, that person—

(i) shall not be entitled thereafter to so recover the said sum, and

(ii) shall be repaid the said amount of tax.”;

(d) by the insertion after subparagraph (10) of the following subparagraph:

“(10A) Where there is a disposal of assets by virtue of a capital sum being derived from those assets, the person paying the capital sum shall, notwithstanding that no asset is acquired by that person, be treated for the purposes of this paragraph as acquiring the assets disposed of for a consideration equal to the capital sum, whether that sum is paid in money or money's worth, and the provisions of this paragraph shall, subject to any necessary modifications, apply accordingly.”.

PART II

Customs and Excise

Chapter I

Excise Duty on Tobacco Products other than Cigarettes — Introduction of Tax Stamps

Interpretation (Chapter I).

77.—In this Chapter—

“the Act of 1994” means the Finance Act, 1994 ;

“the Principal Act” means the Finance (Excise Duty on Tobacco Products) Act, 1977 .

Amendment of section 2A (liability for duty to be paid by tax stamps) of Principal Act.

78.—Section 2A (inserted by the Act of 1994) of the Principal Act is hereby amended—

(a) in subsection (1), by the insertion of “and such other types of tobacco products as may be specified by order made under subsection (5) of this section,” after “in respect of cigarettes”,

(b) in subsection (4), by the substitution of “tobacco products, other than cigarettes or other tobacco products to which an order under subsection (5) of the section relates” for “other tobacco products”, and

(c) by the addition of the following subsection after subsection (4):

“(5) The Minister for Finance may, by order, extend the provisions of this Act which relate to tax stamps and cigarettes to other tobacco products to which this Act relates.”.

Amendment of section 2B (sale of cigarettes) of Principal Act.

79.—Section 2B (inserted by the Act of 1994) of the Principal Act is hereby amended—

(a) by the substitution of “relevant tobacco products” for “cigarettes” in each place where it occurs,

(b) in subsection (1), by the deletion of “and” in paragraph (b) and the insertion of the following paragraph after paragraph (c):

“(d) tobacco products which are not relevant tobacco products,”,

and

(c) by the addition of the following subsection after subsection (2):

“(3) In this section ‘relevant tobacco products’ means cigarettes and any other tobacco products in respect of which an order under section 2A (5) of this Act relates.”.

Amendment of section 3 (repayment, remission and deferment of payment) of Principal Act.

80.—Section 3 of the Principal Act is hereby amended in subsection (3) (inserted by the Act of 1994) by the substitution in paragraph (a) of “cigarettes and other tobacco products in respect of which an order under section 2A (5) of this Act relates (other than cigarettes and such other tobacco products to which the proviso to subsection (1) applies)” for “cigarettes (other than cigarettes referred to in the proviso to subsection (1) of section 2A)”.

Amendment of section 8 (regulations) of Principal Act.

81.—Section 8 of the Principal Act is hereby amended in subsection (2) by the substitution of the following paragraph for paragraph (i) (inserted by the Act of 1994):

“(i) prescribe the form of tax stamps to be used to collect the excise duty imposed by section 2 of this Act on cigarettes or on other tobacco products in respect of which an order under section 2A(5) of this Act relates,”.

Amendment of section 10A (offences in relation to tax stamps) of Principal Act.

82.—Section 10A (inserted by the Act of 1994) of the Principal Act is hereby amended—

(a) in subsection (1)—

(i) by the insertion of “, and in subsection (4),” after “subsection (1)”, and

(ii) by the substitution of “relevant tobacco products” for “cigarettes” in each place where it occurs,

and

(b) by the addition of the following subsection after subsection (4):

“(5) In this section ‘relevant tobacco products’ means cigarettes and any other tobacco products in respect of which an order under section 2A(5) of this Act relates.”.

Amendment of section 18 (power to refuse delivery of goods) of Finance Act, 1939.

83.Section 18 of the Finance Act, 1939 , is hereby amended by the substitution of the following paragraph for paragraph (aa) (inserted by the Act of 1994) of subsection (1):

“(aa) to refuse to allow, during the said period, the issue of tax stamps—

(i) to manufacturers or importers of cigarettes or tobacco products to which an order under section 2A (5) of the Finance (Excise Duty on Tobacco Products) Act, 1977 , relates, or

(ii) to any other person,

where the quantity applied for appears to the Revenue Commissioners to exceed the quantity which is reasonable having regard to the circumstances, and”.

Amendment of Chapter I (Excise Duty on Cigarettes— Introduction of Tax Stamps) of Part II of Finance Act, 1994.

84.—Chapter I of Part II of the Act of 1994 is hereby amended by the substitution of the following section for section 77:

“Interpretation (Chapter 1).

77.—This Chapter, as amended by the Finance Act, 1995, shall come into operation on such day or days as may be appointed by order or orders made by the Minister for Finance, either generally or with reference to any particular purpose or provision, and different days may be so appointed for different purposes and different provisions of this Chapter.”.

Chapter II

Excise Duties — Powers of Officers, Detention, Seizure and Forfeiture

Definitions (Chapter II).

85.—In this Chapter—

“the Act of 1992” means the Finance Act, 1992 ;

“authorised officer” means an officer of the Commissioners authorised by them to exercise the powers conferred by this Chapter on officers of the Commissioners;

“the Commissioners” means the Revenue Commissioners;

“excisable products” has the meaning assigned to it by section 104 of the Act of 1992;

“officer” means an authorised officer;

“vehicle” means a mechanically propelled vehicle or any other conveyance.

Power to stop and search vehicles.

86.—(1) An officer in uniform may stop any vehicle—

(a) in or on which excisable products or any other products chargeable with a duty of excise are being transported or in which or on which it is reasonably believed by the officer that such products are being transported, or

(b) for the purpose of examining and taking samples of any fuel in or on, or in anything attached to, the vehicle for use or capable of being used for combustion in its engine.

(2) An officer in uniform or a member of the Garda Síochána may stop any vehicle for any purpose related to vehicle registration tax or the registration of vehicles in the register maintained under Chapter IV of Part II of the Act of 1992.

(3) Any person in charge of a moving vehicle shall, at the request of an officer in uniform or a member of the Garda Síochána, stop the vehicle and shall keep it stationary for such period as is reasonably necessary in order to enable the officer to discharge his duties.

(4) Any person in charge of a vehicle shall, at the request of an officer and on production of the authorisation of the officer if so requested by any person affected—

(a) allow the officer or any officer accompanying that officer to take samples of any fuel on or in the vehicle or in anything attached to the vehicle,

(b) allow the vehicle to be examined by the officer or accompanying officer,

(c) allow the officer or accompanying officer to carry out such searches of the vehicle as appear to the officer or accompanying officer to be necessary to establish—

(i) whether any excisable products being transported in or on, or in any manner attached to, the vehicle correspond in every material respect with the description of any such products in a document referred to in paragraph (f), or

(ii) whether anything being transported is liable to forfeiture under the law relating to excise,

(d) furnish, within such time and in such form and manner as may be specified by the officer or accompanying officer, all such information in relation to the vehicle as may reasonably be required by the officer or accompanying officer and is in the possession or procurement of the person,

(e) within such time and in such manner as may be specified by the officer or accompanying officer, produce and permit his or her inspection of and taking of copies of, or of extracts from, all such books and documents relating to the vehicle and any products referred to in subsection (1) (a) being transported as aforesaid as are reasonably required by the officer or accompanying officer and are in the possession or procurement of the person, and

(f) produce to the officer or accompanying officer any accompanying document, duty document (within the meaning, in each case, of Chapter II of Part II of the Act of 1992), or other document referred to in section 111 of that Act, accompanying any excisable products being transported in or on, or in any manner attached to, the vehicle.

(5) A person who resists, obstructs or impedes an officer or a member of the Garda Síochána in the exercise of any power conferred on the officer or member or fails or refuses to comply with a request under subsection (3) or (4) shall, without prejudice to any other penalty to which he or she may be liable, be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to excise, of £1,000.

Power to enter and search premises.

87.—(1) An officer may, at all reasonable times, on production of the authorisation of the officer if so requested by any person affected, enter a premises or other place (other than a dwelling)—

(a) in which the production, processing, holding, storage or keeping or importation, purchase, packaging or putting up for sale or sale or disposal of any product referred to in section 86 (1) (a) is being or is reasonably believed by the officer to be carried on or in which any books, accounts or other documents or records or information relating or reasonably believed by the officer to relate to such activities are kept, or

(b) in which the manufacture, distribution, storage, repair, modification, importation, dealing, delivery or disposal of vehicles is being or is reasonably believed by the officer to be carried on or in which books, accounts or other documents or records relating or reasonably believed by the officer to relate to such activities are kept,

and may there—

(i) make such search and investigation as the officer shall think proper and take account of, and without payment, take samples of, any product referred to in section 86 (1) (a) or any materials, ingredients or other substances used or to be used in the manufacture of such a product,

(ii) require any person to produce all books, accounts or other documents or records in the possession, procurement or custody of the person relating to the activities referred to in paragraphs (a) and (b) and, in the case of information in relation to those activities in a non-legible form (including such information in a computer), to produce it in a legible form or to reproduce it in a permanent legible form, and

(iii) search for, inspect, and take copies of, or of extracts from, any books, accounts or other documents or records (including, in the case of any information in a non-legible form (including such information in a computer), a copy of, or of an extract from, such information in a permanent legible form) relating or believed by the officer to relate to the activities referred to in paragraph (a) or (b),

and the officer may remove and retain the said books, accounts or other documents or records for such period as may be reasonable for their further examination, and the person shall provide to such officer all facilities and assistance necessary for the exercise by the officer of any power conferred on the officer by this subsection.

(2) Where an officer enters any premises or other place under subsection (1) and a vehicle or any product referred to in section 86 (1) (a) or any materials, ingredients or other substances used or to be used in the manufacture of such a product is found by the officer therein, or any books, accounts or other documents or records or information specified in that subsection are produced or found therein, he may question any person found therein in relation to such vehicle or product or such materials, ingredients or substances or in relation to such books, accounts or other documents or records or information and any such person shall give to such officer all information required of him by such officer which is in his possession or procurement.

(3) Without prejudice to any power conferred by subsections (1) and (2), if a judge of the District Court is satisfied on the sworn information of an officer that there are reasonable grounds for suspecting that any thing that is liable to forfeiture under the law relating to excise is being kept or concealed on or at any premises or place, he may issue a search warrant.

(4) A search warrant issued under this section shall be expressed and operate to authorise a named officer accompanied by such other officers and such other persons as the officer considers necessary, at any time or times within one month of the date of issue of the warrant, to enter (if need be by force) the premises or other place named or specified in the warrant, to search such premises or other place, to examine any thing found there, to inspect any book, account, record or other document found there and, if there are reasonable grounds for suspecting that any thing found there is liable to forfeiture under the law relating to excise, or that a document found there may be required as evidence in proceedings under the law relating to excise, to detain or seize the thing as liable to forfeiture or, in the case of a document, to detain it for so long as it is reasonably required for the purpose aforesaid.

(5) An officer or other person on or in any premises or place pursuant to this section may require any person found there to give to the officer or other person his or her name and address.

(6) Any person who—

(a) fails without lawful and sufficient excuse to comply with any requirement under subsection (1) or (5) or who fails or refuses to give any information required of him under subsection (2),

(b) gives any such information which is false or misleading,

(c) resists, obstructs or impedes an officer or other person in the exercise of any power conferred on them by this section, or

(d) when required under subsection (5) to give his name and address, gives a name or address that is false or misleading,

shall be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to excise, of £1,000.

Detention of goods and vehicles.

88.—(1) Where an officer—

(a) discovers any material discrepancy between excisable products being transported and those described in the documents referred to in section 86 (4) (f) and the officer is not satisfied with any reasons tendered for such discrepancy and suspects that the products may, therefore, be liable to forfeiture or where the officer suspects that the excisable products may be liable to forfeiture for any other reason, or

(b) reasonably suspects that any excisable products are liable to forfeiture, or

(c) reasonably suspects that a vehicle has not been registered in the register maintained under Chapter IV of Part II of the Act of 1992 or has been converted (within the meaning of the said Chapter IV) and a declaration in relation to the conversion has not been made under section 131 of that Act or any vehicle registration tax in respect of a vehicle has not been paid, or

(d) reasonably suspects that any other goods are liable to forfeiture under the law relating to excise,

all of the excisable products concerned, the vehicle concerned or the other goods concerned, as the case may be, may be detained by the said officer until such examination, enquiries or investigations as may be deemed necessary by the officer, or by another officer, have been made for the purpose of determining to the satisfaction of either such officer whether or not the products or other goods are liable to forfeiture, the vehicle has been registered, the declaration aforesaid has been made or the vehicle registration tax has been paid, as may be appropriate.

(2) Where a member of the Garda Síochána reasonably suspects that a vehicle has not been registered in the register maintained under Chapter IV of Part II of the Act of 1992 or has been converted (within the meaning of the said Chapter IV) and a declaration in relation to the conversion has not been made under section 131 of that Act or any vehicle registration tax in respect of a vehicle has not been paid, the vehicle concerned may be detained by the member until such examination, inquiries or investigations as may be deemed necessary by the member have been made for the purpose of determining to the satisfaction of the member whether or not the vehicle has been registered, the declaration aforesaid has been made or the vehicle registration tax has been paid, as may be appropriate.

(3) Subject to subsection (5), whenever any excisable products or other goods are detained by an officer under subsection (1), all of the products or other goods as well as all things being made use of in the conveyance of the products may also be detained by the officer until the examination, enquiries or investigations referred to in subsection (1) have been made.

(4) For the purpose of subsection (3), where excisable products or other goods are found in or on, or in any manner attached to, a vehicle, the vehicle shall be deemed to have been made use of in the conveyance of the products or other goods.

(5) When a determination referred to in subsection (1) or (2) has been made in respect of any excisable products or other goods or a vehicle or upon the expiry of a period of one month from the date on which the products or other goods or the vehicle were or was detained under the said subsection, whichever is the earlier, the products or other goods or the vehicle (together with any thing detained with the products or other goods under subsection (3)) shall be seized as liable to forfeiture under the Customs Acts or under section 89 or released.

(6) Any person who resists, obstructs or impedes an officer or a member of the Garda Síochána in the exercise of any power conferred on the officer or member by this section shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to excise, of £1,000.

Seizure of goods and vehicles.

89.—(1) Any goods or vehicles that are liable to forfeiture under the law relating to excise may be seized by an officer.

(2) Where any goods or vehicles are liable to forfeiture under the law relating to excise, any thing containing, or that contained, such goods or vehicle and any thing made use of in the conveyance of the goods or vehicle shall be liable to forfeiture.

Notice of seizure.

90.—(1) Subject to subsection (2), an officer shall, give notice of the seizure of any thing as liable to forfeiture and of the grounds therefor to any person who to their knowledge was at the time of the seizure the owner or one of the owners thereof.

(2) Notice under subsection (1) need not be given under this section to a person if the seizure was made in the presence of the person, the person whose offence or suspected offence occasioned the seizure or in the case of any thing seized in any ship or aircraft, in the presence of the master or commander thereof.

(3) Notice under subsection (1) shall be given in writing, the notice shall include a statement of the provisions of section 91 and be deemed to have been duly given to the person concerned—

(a) if it is delivered to the person personally, or

(b) if it is addressed to the person and left or forwarded by post to the person at the usual or last known place of abode or business of the person or, in the case of a body corporate, at its registered or principal office, or

(c) if the person has no known address within the State, by publication of notice of the seizure concerned in Iris Oifigiúil.

Notice of claim.

91.—(1) A person who claims that any thing seized as liable to forfeiture is not so liable (referred to subsequently in this Chapter as “the claimant”) shall, within one month of the date of the notice of seizure or, where no such notice has been given to the claimant, within one month of the date of the seizure, give notice in writing of his claim to the Commissioners.

(2) A notice under subsection (1) shall specify the name and address of the claimant and, in the case of a claimant who is outside the State, the name and address of a solicitor in the State who is authorised to accept service of any document required to be served on the claimant and to act on behalf of the claimant.

Condemnation.

92.—(1) If, on the expiration of the period referred to in section 91 (1), no notice has been given under that section, the thing in question shall be deemed to have been duly condemned as forfeited.

(2) Subject to subsection (3), where a notice in respect of any thing is duly given under section 91 , the Commissioners shall take proceedings for the condemnation of the thing by the court, and, in case the court finds that the thing was at the time of seizure liable to forfeiture, the court shall condemn it as forfeited and, in any other case, shall order its release to its owner.

(3) Where any thing is, under the provisions of this section, condemned or deemed to have been condemned as forfeited, the forfeiture shall have effect as from the date when the liability to forfeiture arose.

Proceedings for condemnation by court.

93.—(1) Proceedings under section 92 shall be civil proceedings and may be instituted either in the High Court or (if, in the opinion of the Commissioners, the value of the thing the subject of the proceedings does not exceed £5,000) the District Court.

(2) In any proceedings under section 92 the claimant or his solicitor shall state on oath that the thing seized was, or was to the best of his knowledge and belief, the property of the claimant at the time of the seizure.

Power to deal with seizures before condemnation.

94.—(1) Where any thing has been seized by an officer as liable to forfeiture, the Commissioners may at any time, if they see fit and notwithstanding that the thing has not yet been condemned, or is not yet deemed to have been condemned, as forfeited—

(a) if a notice relating to the thing has been duly given under section 91 , deliver it up to the claimant upon his paying to the Commissioners such sum as they think proper, being a sum not exceeding that which in their opinion represents the value of the thing, including any duty or tax chargeable thereon which has not been paid, or

(b) if the thing seized is in the opinion of the Commissioners of a perishable nature, sell or destroy it.

(2) If, where any thing is delivered up, sold or destroyed under this section, it is held by the court in proceedings under this section that the thing was not liable to forfeiture at the time of its seizure, the Commissioners shall, subject to any deduction allowed under subsection (3), on demand by the claimant tender to him or her—

(a) an amount equal to any sum paid by the claimant under subsection (1),

(b) if they have sold the thing, an amount equal to the proceeds of sale, or

(c) if they have destroyed the thing, an amount equal to the market value of the thing at the time of its seizure.

(3) Where the amount to be tendered under subsection (2) includes any sum on account of any duty or tax chargeable on the thing which has not been paid before its seizure, the Commissioners may deduct from the amount so much thereof as represents the duty or tax.

(4) If the claimant accepts any amount tendered to him under subsection (2), he shall not be entitled to maintain proceedings in any court on account of the seizure, detention, sale or destruction of the thing concerned.

(5) Notwithstanding any other provision of this Chapter relating to goods seized as liable to forfeiture, an officer who seizes as liable to forfeiture any spirits or any stills, vessels, utensils, wort or other material for manufacturing, distilling or preparing spirits may at his discretion forthwith spill, break up or destroy any of those goods.

Miscellaneous amendments.

95.—Each enactment specified in column (2) of the Fifth Schedule is hereby amended to the extent specified in column (3) of that Schedule.

Repeals and revocation.

96.—(1) Each enactment specified in column (2) of the Sixth Schedule is hereby repealed to the extent specified in column (3) of that Schedule.

(2) Article 26 of the Excise Transfer Order, 1909 (S.R. & O., No. 197 of 1909), is hereby revoked.

Chapter III

Vehicle Registration Tax

Amendment of section 132 (charge of excise duty) of Finance Act, 1992.

97.Section 132 of the Finance Act, 1992 , is hereby amended—

(a) by the substitution of “£250” for “£100” in paragraphs (a) and (b) of subsection (3) (inserted by section 8 (b) of the Finance (No. 2) Act, 1992 ), and

(b) by the substitution for subsection (5) (as so inserted) of the following:

“(5) Where a registered vehicle which is converted and on which, in a former state, vehicle registration tax or motor vehicle excise duty imposed by the Order of 1979 has been paid, then the amount of vehicle registration tax payable on the vehicle under subsection (3) shall be reduced by—

(a) in the case of a vehicle in respect of which vehicle registration tax has been so paid, such amount as bears to the amount of the tax paid the same proportion as the open market selling price of the vehicle immediately prior to its conversion bears to the open market selling price of the vehicle at the time of its registration, and

(b) in the case of a vehicle in respect of which motor vehicle excise duty under the Order of 1979 has been so paid, such amount as bears to the amount of the duty paid the same proportion as the open market selling price of the vehicle immediately prior to its conversion bears to the open market selling price of the vehicle, as determined by the Commissioners, at the time of the charging of the duty.”.

Repayment of amounts in respect of vehicle registration tax in certain cases.

98.—Chapter IV of Part II of the Finance Act, 1992 , is hereby amended by—

(a) the insertion of the following section after section 135A:

“135B.—(1) The Commissioners may repay to a person an amount of £1,000 in respect of vehicle registration tax paid in respect of a new category A vehicle if—

(a) the vehicle is first registered during the period from the 1st day of July, 1995 to the 31st day of December, 1996,

(b) the person becomes registered as the owner of the vehicle at the time when the vehicle is first registered, and

(c) a category A vehicle owned by the person (‘the scrapped vehicle’) is shown, to the satisfaction of the Revenue Commissioners, to have been scrapped during the period aforesaid and within one month of the date of the first registration of the other vehicle,

(d) the scrapped vehicle was first registered or recorded, not less than 10 years before the date on which it is scrapped, under section 131 or section 6 of the Roads Act, 1920 , or a system for maintaining a record of vehicles and their ownership established by or on behalf of the government of another state, and

(e) during the whole of the period of 2 years ending on the date aforesaid—

(i) a licence under section 1 of the Act of 1952 taken out by the person was in force in respect of the scrapped vehicle, and

(ii) an approved policy of insurance referred to in paragraph (a) of section 56 (1) of the Road Traffic Act, 1961 , and issued to the person, was in force in respect of the scrapped vehicle, or the person was an exempted person within the meaning of section 60 (inserted by section 54 of the Road Traffic Act, 1968 ) of that Act.

(2) Notwithstanding paragraph (e) of subsection (1), the Commissioners may make a repayment under that subsection in a case where, during a period or periods not exceeding, or not exceeding in aggregate, 6 months and occurring in, but not including the last day of, the period, as respects the scrapped vehicle concerned, referred to in the said paragraph (e)—

(a) a licence referred to in that paragraph was not in force, or

(b) both such a licence and an approved policy of insurance referred to in that paragraph were not in force,

in respect of the scrapped vehicle if, in respect of the period or each period during which such a licence was not in force, a declaration of non-use of the vehicle made before a member of the Garda Síochána and stamped with the appropriate Garda Síochána station stamp was accepted by the licensing authority concerned in respect of the vehicle.

(3) A vehicle in respect of which a repayment under subsection (1) has been made shall not be disposed of during the period of 6 months from the date of its first registration and, if such a vehicle is so disposed of, the person to whom such a repayment was made shall pay to the Commissioners on the day of the disposal an amount in respect of vehicle registration tax equal to the amount of the repayment.

(4) An amount due by a person to the Commissioners under subsection (3) may be recovered by them from the person as a simple contract debt in any court of competent jurisdiction.

(5) In this section—

‘new’ means not used or secondhand;

‘scrapped’, in relation to a vehicle, means subjected to the destruction of the chassis and the engine of the vehicle.”,

and

(b) in section 141, the substitution of the following paragraph for paragraph (s) (inserted by the Finance (No. 2) Act, 1992 ) of subsection (2):

“(s) make provision (including the prescription of conditions, restrictions and limitations) in relation to subsections (7), (11) and (15) of section 134 and section 135B.”.

Chapter IV

Implementation of Council Directive No. 94/74/EC

Application of section 104 (excisable products) of Finance Act, 1992, and reliefs for hydrocarbons.

99.—(1) Subject to subsection (2) and notwithstanding paragraph (3) of Regulation 23 of the Regulations of 1992, only those products specified in paragraph (1) of Article 2a of the Directive shall be deemed to be excisable products referred to in paragraph (f), (g) or (h) of section 104 of the Finance Act, 1992 .

(2) Where products referred to in paragraph (1) of Article 2 of the Directive, other than those referred to in paragraph (1) of Article 2a of the Directive, are intended for use, offered for sale or used as heating or motor fuel (within the meaning of Part IV of the Regulations of 1992), the Commissioners may, subject to compliance with such conditions as they may think fit to impose, deem such products to be excisable products referred to in paragraph (f), (g) or (h) of section 104 of the Finance Act, 1992 .

(3) The Commissioners may, subject to compliance with such conditions as they may think fit to impose—

(a) remit the duties of excise imposed by paragraphs 11 (1) and 12 (1) of the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 ( S.I. No. 307 of 1975 ), on hydrocarbon oil and the duty of excise imposed by section 41 (1) of the Finance Act, 1976 , on gaseous hydrocarbons in liquid form shown to their satisfaction—

(i) to be present, at the time of importation into the State, in the standard tank of a motor vehicle (within the meaning of section 21 (15) of the Finance Act, 1935 ), or

(ii) to be intended for use, or to have been used for injection into a blast furnace for the purposes of chemical reduction as an addition to the coke used as the principal fuel,

and

(b) repay the duties aforesaid payable on hydrocarbon oil or gaseous hydrocarbons in liquid form shown to their satisfaction to comply with paragraph (a) (ii).

(4) In this section—

“the Commissioners” means the Revenue Commissioners;

“the Directive” means Council Directive No. 92/81/EEC of 19 October, 19921 , as amended by Council Directive No. 94/74/EC of 22 December, 19942 ;

“the Regulations of 1992” means the European Communities (Customs and Excise) Regulations, 1992 ( S.I. No. 394 of 1992 );

“standard tank”, in relation to a motor vehicle, has the meaning assigned to it by Article 8a of the Directive and includes special containers (within the meaning of that Article).

Amendment of section 111 (accompanying documents) of Finance Act, 1992.

100.Section 111 of the Finance Act, 1992 , is hereby amended—

(a) in subsection (1), by the insertion of the following paragraphs after paragraph (i):

“(ia) from the State through another Member State to a place of destination in the State, and

(ib) to the State from another Member State in a case where exemption from excise duty applies under section 113 (1),”,

(b) by the insertion of the following subsection after subsection (2):

“(2A) (1) Where an authorised warehousekeeper dispatches excisable products to another Member State under a duty-suspension arrangement for delivery under any exemption provided for in paragraph 1 of Article 23 of the Directive, he or she shall ensure that, in addition to the accompanying document, a certificate (‘the exemption certificate’) is dispatched with and accompanies the said excisable products in the course of their delivery.”,

and

(c) in subsection (4), by the insertion of the following paragraph after paragraph (a):

“(aa) in relation to the exemption certificate, specifying the form of the certificate and providing for any necessary control requirements relating to its authentication, and”.

Amendment of section 117 (regulations) of Finance Act, 1992.

101.—Subsection (2) of section 117 of the Finance Act, 1992 , is hereby amended—

(a) in paragraph (i), by the insertion of the following subparagraphs after subparagraph (i):

“(ia) receiving or intending to receive from a consignor in the State excisable products which are released for consumption in the State and transported or intended to be transported through another Member State, or

(ib) dispatching or intending to dispatch to a consignee in the State excisable products which are released for consumption in the State and transported or intended to be transported through another Member State, or”,

(b) by the insertion of the following paragraph after paragraph (m):

“(mm) specifying, in relation to an exemption certificate, any essential features of the certificate and any necessary control requirements relating to the authentication of the certificate.”.

Commencement (Chapter IV).

102.—This Chapter shall come into operation on the 1st day of July, 1995.

Chapter V

Appeals in relation to Excise Duty

Definitions (Chapter V).

103.—In this Chapter—

“Appeal Commissioners” has the meaning assigned to it by section 156 of the Income Tax Act, 1967 ;

“appellant” means a person who appeals to the Appeal Commissioners under section 104 or 105 , as appropriate;

“the Commissioners” means the Revenue Commissioners.

Appeals to Revenue Commissioners.

104.—(1) Any person who has paid or who, in the opinion of the Commissioners, is liable to pay a duty of excise and is called upon by them to pay an amount of such duty may appeal in accordance with this section against the decision concerned in respect of the liability or the amount of the duty.

(2) Any person who has claimed or received a repayment of a duty of excise may appeal to the Commissioners against the decision concerned in respect of the amount of such repayment or the refusal of such repayment.

(3) An appeal under subsection (1) or (2) shall be in writing and shall set forth in detail the grounds of appeal.

(4) An appeal shall be lodged by the person concerned with the Commissioners within the period of 30 days from the date of—

(a) the payment of a duty of excise,

(b) the notification by the Commissioners on being called upon by them to pay an amount of a duty of excise,

(c) the repayment of a duty of excise, or

(d) the notification by the Commissioners of a refusal of a repayment by them of a duty of excise,

or within such longer period as the Commissioners may, in exceptional cases, allow.

(5) An appeal shall, subject to subsection (11), be determined by the Commissioners within a period of 30 days from its lodgment with the Commissioners.

(6) The Commissioners may appoint one or more of their officers for the purposes of carrying out their functions under this section:

Provided that no such officer shall determine an appeal under this section in respect of a decision he or she has made.

(7) The Commissioners shall, in writing, notify an appellant concerned of their determination of an appeal and the reasons for their determination.

(8) Where the Commissioners determine on appeal that the amount due is less than the amount paid, they shall repay the amount overpaid to the appellant concerned.

(9) Where the Commissioners determine on appeal that the amount due is greater than the amount paid, the appellant concerned shall pay the amount underpaid.

(10) For the purpose of determination of an appeal any goods or vehicles to which the appeal relates shall be produced to the Commissioners for inspection, if so required.

(11) Where an appeal has been lodged but not determined in accordance with subsection (5) there shall be deemed to have been a determination by the Commissioners on the last day of the period of 30 days from the date the appeal was lodged that the appeal was not upheld but such deeming shall cease to have effect if a determination is subsequently made by the Commissioners before a determination is made by the Appeal Commissioners under section 105 in respect of the matter concerned.

(12) The provisions of the Customs Acts or of any instruments made thereunder, in so far as they apply to appeals concerning duties of excise, shall not apply in relation to any amount of excise duty capable of being the subject of an appeal under the provisions of this section.

Appeals to Appeal Commissioners.

105.—(1) A person who is aggrieved by a determination of the Commissioners under section 104 may, in accordance with the provisions of this section, appeal to the Appeal Commissioners against such determination and the appeal shall be heard and determined by the Appeal Commissioners whose determination shall be final and conclusive unless a case is required to be stated in relation to it for the opinion of the High Court on a point of law.

(2) A person who intends to appeal under this section against a determination of the Commissioners shall, within 30 days of the notification of such determination (or the expiry of the time limit for such determination, whichever is the earlier) give notice in writing to them of such intention.

(3) Subject to the provisions of this section, the provisions of Part XXVI (as amended), other than sections 429 and 430 and (in so far as it relates to those sections) section 431 , of the Income Tax Act, 1967 , shall, with any necessary modifications, apply as they apply for the purpose of income tax.

(4) (a) Subject to paragraph (c), where a notice or other document which is required or authorised to be served by this section falls to be served on a body corporate, such notice shall be served on the secretary or other officer of the body corporate.

(b) Any notice or other document which is required or authorised by this section to be served by the Commissioners or by an appellant may be served by post and in the case of a notice or other document addressed to the Commissioners, shall be sent to the Revenue Commissioners, Dublin Castle, Dublin 2.

(c) Any notice or other document which is required or authorised to be served by the Commissioners on an appellant under this section may be sent to the solicitor, accountant or other agent of the appellant and a notice so served shall be deemed to have been served on the appellant unless the appellant proves to the satisfaction of the Appeal Commissioners, that he or she had, before the notice or other document was served, withdrawn the authority of such solicitor, accountant or other agent to act on his or her behalf.

(5) Prima facie evidence of any notice given under this section by the Commissioners or by an officer of the Commissioners may be given in any proceedings by production by an officer of the Commissioners of a document purporting to be a copy of the notice and it shall not be necessary to prove the official position of the person by whom the notice purports to be given or, if it is signed, the signature, or that the person signing and giving it was authorised so to do.

Payment of duty pending appeal.

106.—Where an appeal has been made under section 104 or 105 in respect of an amount of duty which a person is called upon by the Commissioners to pay, such appeal, shall not be determined by the Commissioners or the Appeal Commissioners, as the case may be, unless the said amount of duty has been paid.

Exclusion of criminal matters.

107.—Where liability for a duty of excise is the subject of criminal proceedings or a decision is pending on whether to initiate criminal proceedings in respect of such liability, then such liability or the amount of such liability or repayment connected with or sought in respect of such liability may not be appealed under the provisions of section 104 or 105 until the determination of such criminal proceedings or a decision is duly taken not to initiate criminal proceedings.

Repeal (Chapter V).

108.Section 138 of the Finance Act, 1992 , is hereby repealed.

Commencement (Chapter V).

109.—This Chapter shall come into operation on such day or days as may be appointed by order or orders made by the Minister for Finance, either generally or with reference to any particular purpose or provision, and different days may be so appointed for different purposes and different provisions of this Chapter.

Chapter VI

Miscellaneous

Tobacco products.

110.—(1) In this section and in the Seventh Schedule

“the Act of 1977” means the Finance (Excise Duty on Tobacco Products) Act, 1977 ;

“cigarettes”, “cigars” and “fine-cut tobacco for the rolling of cigarettes” have the same meanings as they have in the Act of 1977, as amended by the Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979 ( S.I. No. 296 of 1979 ), and by Regulations 26 and 29 of the Regulations of 1992;

“the Regulations of 1992” means the European Communities (Customs and Excise) Regulations, 1992 ( S.I. No. 394 of 1992 ).

(2) The duty of excise on tobacco products imposed by section 2 of the Act of 1977, shall, in lieu of the several rates specified in the Third Schedule to the Finance Act, 1994 , be charged, levied and paid, as on and from the 9th day of February, 1995, at the several rates specified in the Seventh Schedule.

Duty on licence for the sale of intoxicating liquor.

111.—There shall be charged, levied and paid a duty of excise at the rate of £200 upon the grant, under section 65 of the Irish Horseracing Industry Act, 1994 , of a licence for the sale of intoxicating liquor or a renewal of a licence granted under that section.

Amendment of section 77 (spirits retailers' on-licences) of Finance Act, 1993.

112.Section 77 of the Finance Act, 1993 , is hereby amended in subsection (1) by the substitution of the following paragraphs for paragraph (e):

“(e) a licence under section 18 of the Intoxicating Liquor Act, 1962 , in respect of any greyhound race track;

(f) a licence under section 65 of the Irish Horseracing Industry Act, 1994 , in respect of any racecourse.”.

Amendment of section 89 (exemption from duty on certain bets) of Finance Act, 1994.

113.Section 89 of the Finance Act, 1994 , is hereby amended by the substitution of the following subsection for subsection (1):

“(1) (a) The duty on bets to which section 24 of the Finance Act, 1926 , relates shall not be charged or levied on bets entered into on or after the commencement of this subsection where such bets—

(i) are entered into during and at a race-meeting held at an authorised racecourse, within the meaning of the Irish Horseracing Industry Act, 1994 , and

(ii) are in respect of one or more than one event taking place at a place other than at such meeting.

(b) The provisions of paragraph (a) shall not apply to bets entered into by any means of telecommunications.”.

Amendment of section 43 (gaming machine licence duty) of Finance Act, 1975.

114.Section 43 of the Finance Act, 1975 , is hereby amended—

(a) in subsection (1) by the insertion of the following definition after the definition of “premises”:

“‘public place’ means any place, including a premises, to which the public have access as of right or by permission or membership and whether subject to or free of charge and includes open air venues and any offices, courts, yards and gardens which are occupied together with and are within the curtilage, or in the immediate vicinity, of the public place where gaming machines are located;”;

(b) in subsection (3) (inserted by section 71 of the Finance Act, 1993 ) by the substitution of “public place” for “premises” and of “conspicuous position” for “conspicuous place”;

(c) in subsection (5) (inserted by section 71 of the Finance Act, 1993 ) by the substitution of “Any person” for “The holder of a gaming licence” and by the substitution of “without displaying a gaming machine licence” for “without a gaming machine licence”; and

(d) in subsection (10) by the substitution in paragraph (a) of “a public place” for “premises”.

Amendment of section 49 (grant of licences and date of expiration of licences) of Finance (1909-10) Act, 1910.

115.Section 49 of the Finance (1909-10) Act, 1910 , is hereby amended in subsection (1A) (inserted by section 156 of the Finance Act, 1992 )—

(a) by the substitution of the following paragraph for paragraph (a):

“(a) Where in the case of a licence to which the proviso to subsection (1) of this section relates—

(i) an application in accordance with section 242 of the Finance Act, 1992 , for a tax clearance certificate has been made—

(I) not less than two months prior to the commencement date of such a licence, where such a commencement date is in the year ending on the 31st day of December, 1995, or

(II) not less than four months prior to the commencement date of such a licence in each subsequent year,

and a tax clearance certificate has not yet been issued or refused, or

(ii) a tax clearance certificate has been refused and an appeal against such refusal has been made and accepted in accordance with subsection (6) of the said section 242,

and in either case, the licence could, but for the provisions relating to a tax clearance certificate, have been issued, then—

(A) in a case where a licence has been granted in respect of the previous licensing period, such licence may continue in force beyond its latest expiry date pending—

(I) the issue or refusal of a tax clearance certificate, or

(II) in the case of an appeal, the final determination of that appeal, and

(B) in a case where a licence has not been granted in respect of the previous licensing period, a licence may be issued temporarily and remain in force pending—

(I) the issue or refusal of a tax clearance certificate,

or

(II) in the case of an appeal, the final determination of that appeal:

Provided that the amount of the duty that would be payable on the granting of the licence is duly deposited with the proper officer of Customs and Excise.”,

(b) by the substitution of the following paragraph for paragraph (b):

“(b) every licence issued temporarily or continued in force in accordance with paragraph (a) of this subsection shall, while it remains in force, be deemed to be a licence within the meaning of this section.”,

and

(c) by the substitution of the following paragraphs for paragraph (c):

“(c) Where—

(i) a determination is made to issue a tax clearance certificate, in respect of an application referred to in subparagraph (i) of paragraph (a), or

(ii) the final determination of an appeal referred to in subparagraph (ii) of paragraph (a) is to the effect that the application for a tax clearance certificate in relation to a licence is an acceptable application,

and where the tax clearance certificate has been issued, the licence continued in force or issued temporarily under this subsection shall expire upon the grant of a licence under this section and the duty deposited shall be set against the appropriate duty payable on the grant of the licence.

(d) Where—

(i) a determination is made to refuse a tax clearance certificate, in respect of an application referred to in subparagraph (i) of paragraph (a), or

(ii) the final determination of an appeal under subparagraph (ii) of paragraph (a) is to the effect that the refusal of an application for a tax clearance certificate in relation to a licence is a valid refusal,

the licence continued in force or issued temporarily under this subsection shall expire not later than seven days after such refusal or after the determination of such appeal, and the amount of any duty deposited in excess of the proportion of that duty attributable to the period when the licence was temporarily in force shall be repaid.”.

Excise duty on motor fuel substitutes.

116.—(1) In this section—

“additive” has the meaning assigned to it by Regulation 21 of the Regulations of 1992;

“biofuel” includes products manufactured or produced from oil seeds, cereals or other plant material as fuel for engines or motors;

“the Commissioners” means the Revenue Commissioners;

“the Directive” means Council Directive No. 92/81/EEC of 19 October, 19921 as amended by Council Directive No. 94/74/EC of 22 December, 19942 ;

“the duty” means the duty of excise imposed by subsection (2);

“hydrocarbon oil” has the meaning assigned to it by section 21 (15) of the Finance Act, 1935 ;

“the Minister” means the Minister for Finance;

“motor” means any device that converts hydrocarbon oil, gaseous hydrocarbons in liquid form or a substitute motor fuel into mechanical energy to produce motion, and includes a motor vehicle and a stationary engine;

“motor vehicle” has the meaning assigned to it by section 21 (15) of the Finance Act, 1935 ;

“officer” means an officer of the Commissioners;

“the Order of 1975” means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 ( S.I. No. 307 of 1975 );

“the Regulations of 1992” means the European Communities (Customs and Excise) Regulations, 1992 ( S.I. No. 394 of 1992 );

“standard tank”, in relation to a motor vehicle, has the meaning assigned to it by Article 8a of the Directive and includes special containers within the meaning of the said Article;

“substitute motor fuel” means any product, including biofuel, in liquid form, manufactured, produced, intended for use or used as fuel for a motor but does not include an additive, hydrocarbon oil or gaseous hydrocarbons in liquid form.

(2) In addition to any other duty which may be chargeable, there shall be charged, levied and paid on substitute motor fuel manufactured or produced in the State or imported into the State a duty of excise at the rate of £235.49 per 1,000 litres.

(3) The Commissioners may, subject to compliance with such conditions as they may think fit to impose, remit the duty on substitute motor fuel which is shown to their satisfaction to be present, at the time of importation into the State, in the standard tank of a motor vehicle.

(4) (a) Whenever the Minister, after consultation with the Minister for Transport, Energy and Communications, is satisfied that any biofuel chargeable or charged with the duty or the duty of excise imposed by Regulation 23 (1) of the Regulations of 1992 is essential to a project undertaken in the State which is designed to manufacture or produce biofuel or to test the technical viability of biofuel for use as motor fuel and is required by a person for use in the project, and the Minister, after such consultation, so thinks proper, the Commissioners may, subject to compliance by the person with such (if any) conditions as the Commissioners may think fit to impose, remit or repay the duty or the said duty of excise chargeable or charged on the fuel.

(b) A person seeking the relief provided for in paragraph (a) shall—

(i) make an application in writing in that behalf to the Minister on or before the 31st day of December, 1998,

(ii) furnish to the Minister such information as he may reasonably require, and

(iii) show to the satisfaction of the Minister that there is available to the person equipment that is adequate for the manufacture or production of biofuel or for the carrying on of such production or manufacture or the carrying out of the test referred to in paragraph (a) and (if appropriate) that he or she is capable of disseminating the results of the test.

(c) (i) The remission or repayment of duty provided for in paragraph (a) may be limited as to time and quantity.

(ii) Where it is so limited, the time or quantity, concerned or both may be extended or increased by the Minister, after consultation with the Minister for Transport, Energy and Communications, so as to apply for such period or periods or in respect of such quantity or quantities as the Minister for Finance thinks proper.

(d) (i) The Minister may, in any particular case, terminate the reliefs provided for by paragraph (a) or paragraph (c) (ii) if it appears to him that any condition subject to which the relief provided for in paragraph (a) was granted has not been or is not being complied with.

(ii) The Commissioners may transmit to the Minister such information as appears to them to be necessary or such information as may be required of them by the Minister for the purpose of subparagraph (i).

(5) In the provisions of—

(a) paragraph 12 (5) of the Order of 1975,

(b) paragraph 12 (11) of the Order of 1975, and

(c) paragraphs (a) (i) and (b) of Regulation 24 (1) of the Regulations of 1992,

references to hydrocarbon oil chargeable with the duty of excise imposed by paragraph 12 (1) of the Order of 1975 shall be construed as including references to substitute motor fuel on which duty is charged and references to the duty of excise imposed by the said paragraph 12 (1) shall be construed as including references to the duty.

(6) Whenever, in relation to circumstances other than those specified in subsections (3) and (4) and in the provisions referred to in paragraphs (a), (b) and (c) of subsection (5), the Minister for Finance so thinks proper, the Commissioners may, subject to compliance with such conditions as they may think fit to impose, remit or repay the duty.

(7) A rebate of the amount of the duty less an amount calculated at the rate of £37.30 per 1,000 litres shall be allowed on substitute motor fuel on which the duty has been paid and which is shown, to the satisfaction of the Commissioners, to be intended for use for a purpose other than combustion in the engine of a motor vehicle.

(8) (a) A person shall not use for combustion in the engine of a motor vehicle or keep in a tank or other container connected to the engine of a motor vehicle any substitute motor fuel on which the duty has not been paid or on which a rebate of the duty under subsection (7) has been allowed.

(b) An officer of the Commissioners or member of the Garda Síochána may examine and take samples of any substitute motor fuel kept in any tank or other container connected to the engine of a motor vehicle constructed or adapted to use substitute motor fuel for combustion in the engine thereof and may require the owner of the vehicle, the person who for the time being stands registered as the owner of the vehicle in the register established under section 131 of the Finance Act, 1992 , or the Roads Act, 1920 , and the person in charge of the vehicle to furnish them with evidence of payment of the duty on any substitute motor fuel in any such tank or other container and such other information as he or she may reasonably require for the purposes of his or her functions under this section; and those persons shall give to the officer or member all such evidence and other information as is in their possession or procurement.

(c) For the purposes of exercising the powers conferred by paragraph (b), an officer of the Commissioners or a member of the Garda Síochána may, if he or she has reasonable grounds to suspect that a motor vehicle in respect of which an offence under this subsection is being committed is kept at any premises, enter and inspect the premises, other than a dwelling, at any time between the hours of 8 a.m. and 6 p.m. on any day and bring onto the premises any motor vehicle being used by him or her in the course of his or her duties.

(d) In any proceedings against a person for contravening the provisions of paragraph (a), it shall be presumed, until the contrary is proved, that the duty has not been paid on the substitute motor fuel concerned or that the rebate of duty under subsection (7) has been allowed on that fuel as the case may be.

(9) The Commissioners may, if they so think fit, allow any substitute motor fuel which is liable to the duty to be warehoused without payment of the duty, and may, if and in so far as they so think proper, remit the duty on any deficiency arising in goods so warehoused if they are satisfied that no part of such deficiency was caused by illegal or improper means.

(10) (a) A person shall not manufacture, produce, import (other than in the standard tank of a motor vehicle), sell or deal in any substitute motor fuel unless authorised to do so under paragraph (b).

(b) The Commissioners may, on application to them in writing in that behalf and on furnishing them with such information as they may reasonably require, grant to the person concerned an authorisation in writing for the purposes of paragraph (a).

(c) An authorisation under paragraph (b) shall be subject to such conditions, if any, as the Commissioners may specify in the authorisation and any such conditions shall be complied with by the person concerned.

(d) An authorisation under this subsection may make different provisions for persons, premises or substitute motor fuel of different classes or descriptions, for different circumstances and for different cases.

(e) The Commissioners may withdraw any authorisation granted under this subsection if it appears to them that any condition specified in the authorisation has not been or is not being complied with.

(11) The Commissioners may make regulations for giving effect to the provisions of this section and, in particular, but without prejudice to the generality of the foregoing, regulations—

(a) in relation to the manufacture, production, importation, sale, delivery, storage, warehousing and use of substitute motor fuel;

(b) requiring a person who manufactures, produces, imports, stores, sells or uses substitute motor fuel to keep in such manner as may be prescribed by them, and to preserve for a specified period, any books, documents, accounts or other records (including records in a machine readable form) relating to the manufacture, production, importation, purchase, receipt, use, sale or disposal by the person of such substitute motor fuel and to allow any officer of the Commissioners to inspect and take copies of, or of extracts from, such books, documents, accounts and other records (including, in the case of records in a machine readable form, copies in a readable form);

(c) in relation to the obtaining by the Commissioners of such information as they may reasonably require for the purposes of their functions under this section—

(i) from manufacturers and producers of and dealers in substitute motor fuel, in relation to the manufacture, production, importation, storage, supply and use thereof, and

(ii) from owners of or persons for the time being in charge of motor vehicles constructed or adapted for the use of substitute motor fuel for combustion in the engine thereof in relation to such use;

and

(d) providing for the securing, paying, collecting, remitting and repaying the duty.

(12) Any person who contravenes or fails to comply with the provisions of paragraph (a) or (b) of subsection (8) or paragraph (a) or (c) of subsection (10) or any regulation under subsection (11) or who resists, obstructs or impedes an officer of the Commissioners or a member of the Garda Síochána in the exercise of any power conferred by or under this section shall, without prejudice to any other penalty to which he or she may be liable, be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000 and the substitute motor fuel in respect of which the offence was committed shall be liable to forfeiture and, in the case of a contravention of the provisions of subsection (8) (a), if it is a second or subsequent offence by the person under this subsection, the motor vehicle concerned shall be liable to forfeiture.

(13) (a) Subject to paragraph (b), the provisions of the Customs Acts and of any instrument relating to duties of customs made under statute shall, with any necessary modifications, apply in relation to the duty on substitute motor fuel imported into the State as they apply in relation to duties of customs.

(b) Where, in relation to the duty, there is a provision in this section corresponding to a provision of the Customs Acts or of any instrument relating to duties of customs made under statute, the latter provision shall not apply in relation to the duty.

(14) (a) Subject to paragraph (b), the provisions of the Statutes which relate to the duties of excise and the management thereof and of any instrument relating to the duties of excise made under statute shall, with any necessary modifications, apply in relation to the duty on substitute motor fuel manufactured or produced in the State as they apply to duties of excise.

(b) Where, in relation to the duty, there is a provision in this section corresponding to a provision of the Statutes which relate to the duties of excise or any instrument relating to the duties of excise made under statute, the latter provision shall not apply in relation to the duty.

(15) This section shall come into operation on the 1st day of January, 1996.

Amendment of section 20 (provisions in relation to excise duty and licences under Act of 1952) of Finance (No. 2) Act, 1992.

117.Section 20 of the Finance (No. 2) Act, 1992 , is hereby amended—

(a) in paragraph (a) of subsection (1), by the addition of the following proviso to that paragraph:

“Provided that where—

(i) a vehicle is entered in the register within the last seven working days of any calendar month and an application is made in the immediately succeeding calendar month for the grant of a licence under section 1 of the Act of 1952 in respect of the vehicle, and

(ii) the applicant for the licence satisfies the licensing authority concerned that the vehicle was not used in a public place at any time during the calendar month in which it was entered in the register,

then, the duty of excise imposed by the Act of 1952, together with any charge to which subsection (2) (a) relates, shall not be payable in respect of any period of the calendar month in which the vehicle was entered in the register.”,

(b) in paragraph (b) of subsection (1) by the substitution of “1992, or” for “1992.” in subparagraph (ii) and by the insertion of the following subparagraph after subparagraph (ii)—

“(iii) a vehicle for the period during which the vehicle has not been used in a public place, commencing on the registration of the vehicle and expiring on the day on which the vehicle is first so used, if but only if—

(I) the registered owner, within seven working days of the date of registration of the vehicle—

(A) pays a fee of £20 to the licensing authority for the area where the registered owner intends to ordinarily keep the vehicle, and

(B) declares in writing to that licensing authority that, for specified reasons, the vehicle has not been used by or on behalf of the registered owner or with the registered owner's consent in a public place and will not be so used in a public place without first making an application to that licensing authority for a licence under section 1 of the Act of 1952,

and

(II) any person, to whom the vehicle is disposed before it is first used in a public place, within seven working days of the acquisition of the vehicle—

(A) pays a fee of £20 to the licensing authority for the area where that person intends to ordinarily keep the vehicle, and

(B) declares in writing to the licensing authority that, for specified reasons, the vehicle has not been used by or on behalf of that person or with that person's consent in a public place and will not be so used in a public place without first making an application to that licensing authority for a licence under section 1 of the Act of 1952.”,

and

(c) in paragraph (a) of subsection (2) by the substitution of “concerned, or” for “concerned,” in subparagraph (ii) and by the insertion of the following subparagraph after subparagraph (ii)—

“(iii) a vehicle in respect of which a declaration has been made under subsection (1) (b) (iii) is used in a public place without—

(I) a licence under section 1 of the Act of 1952, and

(II) payment of the duty of excise applicable to the vehicle,”.

PART III

Value-Added Tax

Intepretation ( Part III ).

118.—In this Part—

“the Principal Act” means the Value-Added Tax Act, 1972 ;

“the Act of 1978” means the Value-Added Tax (Amendment) Act, 1978 ;

“the Act of 1992” means the Finance Act, 1992 .

Amendment of section 1 (interpretation) of Principal Act.

119.—Section 1 of the Principal Act is hereby amended in subsection (1)—

(a) by the insertion after the definition of “agricultural service” (inserted by the Act of 1978) of the following definition:

“‘antiques’ has the meaning assigned to it by section 10A;”,

(b) by the insertion after the definition of “Collector-General”of the following definition:

“‘collectors' items’ has the meaning assigned to it by section 10A;”,

(c) by the insertion after the definition of “local authority” of the following definition:

“‘margin scheme’ has the meaning assigned to it by section 10A;”,

(d) by the substitution of the following definition for the definition of “second-hand”:

“‘second-hand goods’ has the meaning assigned to it by section 10A;”,

(e) by the insertion after the definition of “tax” of the following definition:

“‘taxable dealer’, in relation to supplies of movable goods other than means of transport, has the meaning assigned to it by section 10A and, in relation to supplies of means of transport, has the meaning assigned to it by section 12B;”,

and

(f) by the addition after the definition of “vessel” (inserted by the Act of 1992) of the following definition:

“‘works of art’ has the meaning assigned to it by section 10A.”.

Amendment of section 3 (supply of goods) of Principal Act.

120.—Section 3 of the Principal Act is hereby amended in subsection (1)—

(a) by the insertion in paragraph (a) after “by agreement” of “other than the transfer of ownership of the goods to a person supplying financial services of the kind specified in subparagraph (i) (e) of the First Schedule, where those services are supplied as part of an agreement of the kind referred to in paragraph (b) in respect of those goods”, and

(b) by the insertion of the following paragraph after paragraph (a):

“(aa) a supply by an auctioneer within the meaning of section 10B or by a taxable dealer,”.

Amendment of section 3A (intra-Community acquisition of goods) of Principal Act.

121.—Section 3A (inserted by the Act of 1992) of the Principal Act is hereby amended by the insertion of the following subsection after subsection (1):

“(1A) An intra-Community acquisition of goods shall be deemed not to occur where the supply of those goods is subject to value-added tax referred to in Council Directive No. 77/388/EEC of 17 May 19771 in the Member State of dispatch under the provisions implementing Article 26a or 28o (inserted by Council Directive No. 94/5/EC of 14 February 19942 ) of that Directive in that Member State.”.

Amendment of section 4 (special provisions in relation to the supply of immovable goods) of Principal Act.

122.—Section 4 of the Principal Act is hereby amended—

(a) by the substitution of the following subsection for subsection (5):

“(5) Where a person disposes of an interest in immovable goods to another person and in connection with that disposal a taxable person enters into an agreement with that other person or person connected with that other person to carry out a development in relation to those immovable goods, then—

(a) the person who disposes of the interest in the said immovable goods shall, in relation to that disposal, be deemed to be a taxable person,

(b) the disposal of the interest in the said immovable goods shall be deemed to be a supply of those goods made in the course or furtherance of business, and

(c) the disposal of the interest in the said immovable goods shall, notwithstanding subsection (1), be deemed to be a disposal of an interest in immovable goods to which this section applies.”,

and

(b) by the insertion in paragraph (b) of subsection (6) after “supply” of “other than a supply of immovable goods to which the provisions of subsection (5) apply”.

Amendment of section 5 (supply of services) of Principal Act.

123.—Section 5 (inserted by the Act of 1978) of the Principal Act is hereby amended in subsection (5) by the insertion after “the service” of “has established his business or”.

Amendment of section 8 (taxable persons) of Principal Act.

124.—Section 8 of the Principal Act is hereby amended—

(a) in paragraph (a) of subsection (2A) (inserted by the Act of 1978) by the insertion of the following proviso to that paragraph:

“Provided that, where supplies of the kind referred to in, subject to subsection (3E), paragraph (xxiii) of the First Schedule or in paragraph (viic) of the Sixth Schedule are provided by the State or by a local authority, an order under this subsection shall be deemed to have been made in respect of such supplies by the State or by the local authority.”,

and

(b) by the insertion of the following subsection after subsection (3D) (inserted by the European Communities (Value-Added Tax) Regulations, 1992 ( S.I. No. 413 of 1992 )):

“(3E) (a) Notwithstanding the provisions of section 6 (1) and of subsection (1), and subject to the provisions of subsection (3), where—

(i) a person supplies services which are exempt in accordance with section 6 and paragraph (xxiii) of the First Schedule, or

(ii) the State or a local authority supplies services of the kind referred to in paragraph (xxiii) of the First Schedule,

then an authorised officer of the Revenue Commissioners shall—

(I) where such officer is satisfied that such supply of such services has created or is likely to create a distortion of competition such as to place at a disadvantage a commercial enterprise which is a taxable person supplying similar-type services, or

(II) where such officer is satisfied that such supply of such services is managed or administered by or on behalf of another person who has a direct or indirect beneficial interest, either directly or through an intermediary, in the supply of such services,

make a determination in relation to some or all of such supplies as specified in that determination deeming—

(A) such person, the State or such local authority to be supplying such supplies as specified in that determination in the course or furtherance of business,

(B) such person, the State or such local authority to be a taxable person in relation to the provision of such supplies as specified in that determination, and

(C) such supplies as specified in that determination to be taxable supplies to which the rate specified in section 11 (1) (d) refers.

(b) Where a determination is made under paragraph (a), the Revenue Commissioners shall, as soon as may be after the making thereof, issue a notice in writing of that determination to the party concerned, and such determination shall have effect from such date as may be specified in the notice of that determination:

Provided that such determination shall have effect no sooner than the start of the next taxable period following that in which the notice issued.

(c) Where an authorised officer is satisfied that the conditions that gave rise to the making of a determination under paragraph (a) no longer apply, that officer shall cancel that determination by notice in writing to the party concerned and that cancellation shall have effect from the start of the next taxable period following that in which the notice issued.

(d) In this subsection ‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing for the purposes of this subsection.”.

Amendment of section 10 (amount on which tax is chargeable) of Principal Act.

125.—Section 10 of the Principal Act is hereby amended—

(a) by the deletion of the proviso to subsection (2), and

(b) by the insertion of the following subsection after subsection (4B) (inserted by the Act of 1992):

“(4C) In the case of a supply of goods of the type referred to in section 3 (1) (b), where, as part of an agreement of the kind referred to in that provision, the supplier of the goods is also supplying financial services of the kind specified in subparagraph (i) (e) of the First Schedule in respect of those goods, the amount on which tax is chargeable in respect of the supply of the goods in question shall be either—

(a) the open market price of the goods, or

(b) the amount of the total consideration as specified in subsection (1) which the person supplying the goods becomes entitled to receive in respect of or in relation to such supply,

whichever is the greater.”.

Margin scheme goods.

126.—The Principal Act is hereby amended by the insertion of the following section after section 10:

“10A.—(1) In this section—

‘antiques’ means any of the goods specified in paragraph (xvia) of the Sixth Schedule or in paragraph (iii) of the Eighth Schedule;

‘collectors' items’ means any of the goods specified in paragraph (ii) of the Eighth Schedule;

‘margin scheme’ means the special arrangements for the taxation of supplies of margin scheme goods;

‘margin scheme goods’ means any works of art, collectors' items, antiques or second-hand goods supplied within the Community to a taxable dealer—

(a) by a person, other than a person referred to in paragraph (c), who was not entitled to deduct, under section 12, any tax in respect of that person's purchase, intra-Community acquisition or importation of those goods:

Provided that person is not a taxable person who acquired those goods from—

(i) a taxable dealer who applied the margin scheme to the supply of those goods to that taxable person, or

(ii) an auctioneer within the meaning of section 10B who applied the auction scheme within the meaning of section 10B to the supply of those goods to that taxable person,

or

(b) by a person in another Member State who was not entitled to deduct, under the provisions implementing Article 17 of Council Directive No. 77/388/EEC of 17 May 1977, in that Member State, any value-added tax referred to in that Directive in respect of that person's purchase, intra-Community acquisition or importation of those goods, or

(c) by another taxable dealer who has applied the margin scheme to the supply of those goods or applied the provisions implementing Article 26a (inserted by Council Directive No. 94/5/EC of 14 February 1994) of Council Directive No. 77/388/EEC of 17 May 1977, in another Member State to the supply of those goods;

‘precious metals’ means silver (including silver plated with gold or platinum), gold (including gold plated with platinum), and platinum, and all items which contain any of these metals when the consideration for the supply does not exceed the open market price, as defined in section 10, of the metal concerned;

‘precious stones’ means diamonds, rubies, sapphires and emeralds, whether cut or uncut, when they are not mounted, set or strung;

‘profit margin’ means the profit margin in respect of a supply by a taxable dealer of margin scheme goods and shall be deemed to be inclusive of tax and shall be an amount which is equal to the difference between the taxable dealer's selling price for those goods and the taxable dealer's purchase price for those goods:

Provided that, in respect of that supply, where the purchase price is greater than the selling price, the profit margin shall be deemed to be nil;

‘purchase price’, in relation to an acquisition of margin scheme goods, means the total consideration including all taxes, commissions, costs and charges whatsoever, payable by a taxable dealer to the person from whom that taxable dealer acquired those goods;

‘second-hand goods’ means any tangible movable goods which are suitable for further use either as they are or after repair, other than means of transport, works of art, collectors' items, antiques, precious metals and precious stones;

‘selling price’ means the total consideration which a taxable dealer becomes entitled to receive in respect of or in relation to a supply of margin scheme goods including all taxes, commissions, costs and charges whatsoever and value-added tax, if any, payable in respect of the supply;

‘taxable dealer’ means a taxable person who in the course or furtherance of business, whether acting on that person's own behalf, or on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, purchases or acquires margin scheme goods or the goods referred to in paragraphs (b) and (c) of subsection (4), with a view to resale, or imports the goods referred to in paragraph (a) of subsection (4), with a view to resale, and a person in another Member State shall be deemed to be a taxable dealer where, in similar circumstances, that person would be a taxable dealer in the State under this section;

‘works of art’ means any of the goods specified in paragraph (xvi), or subparagraph (a) of paragraph (xxii), of the Sixth Schedule or in paragraph (i) of the Eighth Schedule.

(2) Subject to and in accordance with the provisions of this section, a taxable dealer may apply the margin scheme to a supply of margin scheme goods.

(3) Where the margin scheme is applied to a supply of goods, then notwithstanding section 10, the amount on which tax is chargeable by virtue of section 2 (1) (a) on that supply shall be the profit margin less the amount of tax included in the profit margin.

(4) Subject to such conditions (if any) as may be specified in regulations, a taxable dealer may, notwithstanding subsection (2), opt to apply the margin scheme to all that dealer's supplies of any of the following as if they were margin scheme goods—

(a) a work of art, collector's item or antique which the taxable dealer imported, or

(b) a work of art which has been supplied to the taxable dealer by its creator or the creator's successors in title, or

(c) a work of art which has been supplied to the taxable dealer by a taxable person other than a taxable dealer, where the supply to that dealer is of the type referred to in section 11 (1AA) (b) (ii):

Provided that where a taxable dealer so opts in accordance with this subsection, such option shall be for a period of not less than two years from the date when such option was exercised.

(5) Where a taxable dealer exercises the option in accordance with subsection (4), in respect of the goods specified at paragraph (a) thereto, then notwithstanding the definition of purchase price in subsection (1), the purchase price for the purposes of determining the profit margin in relation to a supply of those goods shall be an amount equal to the value of those goods for the purposes of importation determined in accordance with section 15 increased by the amount of any tax payable in respect of the importation of those goods.

(6) Subject to subsection (7) and notwithstanding section 12, a taxable dealer who exercises the option in respect of the supply of the goods specified in subsection (4) shall not be entitled to deduct any tax in respect of the purchase or importation of those goods.

(7) Where a taxable dealer exercises the option in accordance with subsection (4), that dealer may, notwithstanding the proviso to subsection (4), in respect of any individual supply of the goods specified in subsection (4), opt not to apply the margin scheme to that supply, and in such case the right to deduction of the tax charged on the purchase, intra-Community acquisition or importation of those goods shall, notwithstanding section 12, arise only in the taxable period in which the dealer supplies those goods.

(8) (a) Notwithstanding subsection (3), and subject to and in accordance with regulations (if any)—

(i) where a taxable dealer acquires low value margin scheme goods in job lots or otherwise, the amount of tax due and payable in respect of that dealer's supplies of low value margin scheme goods shall, in respect of a taxable period, be the amount of tax included in that dealer's aggregate margin, or margins, for that period and the amount of tax in each aggregate margin shall be determined by the formula:

A ×

B

_______

B + 100

where—

A is the aggregate margin for the taxable period in question, and

B is the percentage rate of tax chargeable in relation to the supply of those goods, and

(ii) where the taxable dealer referred to in paragraph (i) in any taxable period makes supplies which are subject to different rates of tax, that taxable dealer shall calculate separate aggregate margins for that taxable period in respect of the supplies at each of the relevant rates.

(b) Subject to, and in accordance with regulations (if any), where a taxable dealer supplies a low value margin scheme good for an amount in excess of £500 then—

(i) notwithstanding the definition of low value margin scheme goods in paragraph (c), the supply of that good shall be deemed not to be a supply of a low value margin scheme good,

(ii) in determining the aggregate margin for the taxable period in which the supply occurs, the taxable dealer shall deduct the purchase price of that good from the sum of the taxable dealer's purchase prices of low value margin scheme goods for that period, and

(iii) the purchase price of that good shall be used in determining the profit margin in relation to the supply of that good.

(c) In this subsection—

‘aggregate margin’, in respect of a taxable period, means an amount which is equal to the difference between the taxable dealer's total turnover in that period from supplies of low value margin scheme goods, to which the same rate of tax applies, less the sum of that taxable dealer's purchase prices of low value margin scheme goods to which that rate of tax applies to the supply thereof, in that taxable period:

Provided that where the sum of that dealer's said purchase prices is in excess of the said total turnover, the appropriate aggregate margin shall be deemed to be nil and subject to, and in accordance with, regulations (if any), the amount of the excess shall be carried forward and added to the sum of that dealer's purchase prices for low value margin scheme goods for the purposes of calculating that dealer's appropriate aggregate margin for the immediately following taxable period;

‘low value margin scheme goods’ means margin scheme goods where the purchase price payable by the dealer for each individual item is less than £500.

(9) Notwithstanding section 17, a taxable dealer shall not, in relation to any supply to which the margin scheme has been applied, indicate separately the amount of tax chargeable in respect of the supply on any invoice or other document in lieu thereof issued in accordance with that section.

(10) Where the margin scheme is applied to a supply of goods dispatched or transported from the State to a person registered for value-added tax in another Member State, then notwithstanding paragraph (i)(b) of the Second Schedule, the provisions of section 11 (1) (b) shall not apply, unless such goods are of a kind specified elsewhere in the Second Schedule.

(11) Notwithstanding section 3 (6) (d), where the margin scheme is applied to a supply of goods dispatched or transported, the place of supply of those goods shall be deemed to be the place where the dispatch or transportation begins.

(12) Where a taxable dealer applies the margin scheme to a supply of goods on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, the goods shall be deemed to have been supplied by that other person to the taxable dealer when the said taxable dealer supplies those goods.

(13) Notwithstanding paragraph (xxiv) of the First Schedule, where a taxable person acquires goods to which the margin scheme has been applied and that person subsequently supplies those goods, the provisions of that paragraph shall not apply to that supply.”.

Special scheme for auctioneers.

127.—The Principal Act is hereby amended by the insertion of the following section after section 10A (inserted by this Part):

“10B.—(1) In this section—

‘auctioneer’ means a taxable person who, in the course or furtherance of business, acting on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, offers tangible movable goods for sale by public auction with a view to handing them over to the highest bidder;

‘auctioneer's margin’ means an amount which is equal to the difference between the total amount, including any taxes, commissions, costs and charges whatsoever, payable by the purchaser to the auctioneer in respect of the auction of auction scheme goods and the amount payable by the auctioneer to the principal in respect of the supply of those goods and shall be deemed to be inclusive of tax;

‘auction scheme’ means the special arrangements for the taxation of supplies of auction scheme goods;

‘auction scheme goods’ means any works of art, collectors' items, antiques or second-hand goods sold by an auctioneer at a public auction while acting on behalf of a principal who is—

(a) a person, other than a person referred to in paragraph (c), who was not entitled to deduct, under section 12, any tax in respect of that person's purchase, intra-Community acquisition or importation of those goods:

Provided that person is not a taxable person who acquired those goods from—

(i) an auctioneer who applied the auction scheme to the supply of those goods to that taxable person, or

(ii) a taxable dealer who applied the margin scheme to the supply of those goods to that taxable person,

or

(b) a person in another Member State who was not entitled to deduct, under the provisions implementing Article 17 of Council Directive No. 77/388/EEC of 17 May 1977, in that Member State, any value-added tax referred to in that Directive in respect of that person's purchase, intra-Community acquisition or importation of those goods, or

(c) a taxable dealer who applied the margin scheme to the supply of those goods or applied the provisions implementing Article 26a (inserted by Council Directive No. 94/5/EC of 14 February 1994) of Council Directive No. 77/388/EEC of 17 May 1977, in another Member State to the supply of those goods;

‘principal’ means the person on whose behalf an auctioneer auctions goods;

‘purchaser’ means the person to whom an auctioneer supplies auction scheme goods.

(2) Subject to and in accordance with the provisions of this section, an auctioneer shall apply the auction scheme to any supply of auction scheme goods.

(3) Notwithstanding section 10, the amount on which tax is chargeable, by virtue of section 2 (1) (a), on a supply by an auctioneer of auction scheme goods shall be the auctioneer's margin less the amount of tax included in that auctioneer's margin.

(4) Where auction scheme goods are auctioned, the auctioneer shall issue, subject to such conditions (if any) as may be specified in regulations, to both the principal and the purchaser, invoices or documents in lieu thereof setting out the relevant details in respect of the supply of the auction scheme goods.

(5) Notwithstanding section 17, an auctioneer shall not, in relation to any supply to which the auction scheme has been applied, indicate separately the amount of tax chargeable in respect of the supply on any invoice or other document in lieu thereof issued in accordance with that section.

(6) Where auction scheme goods are auctioned by an auctioneer on behalf of a principal who is a taxable person, the invoice or document in lieu thereof issued to the principal in accordance with subsection (4) shall be deemed to be an invoice for the purposes of section 17, and the said principal shall be deemed to have issued same.

(7) Where the auction scheme is applied to a supply of goods dispatched or transported from the State to a person registered for value-added tax in another Member State then, notwithstanding paragraph (i) (b) of the Second Schedule, the provisions of section 11 (1) (b) shall not apply, unless such goods are of a kind specified elsewhere in the Second Schedule.

(8) Notwithstanding section 3 (6) (d), where the auction scheme is applied to a supply of goods dispatched or transported, the place of supply of those goods shall be deemed to be the place where the dispatch or transportation begins.

(9) Where an auctioneer supplies tangible movable goods by public auction, the principal shall be deemed to have made a supply of the auction scheme goods in question to the auctioneer when the said auctioneer sells those goods at a public auction.

(10) Notwithstanding paragraph (xxiv) of the First Schedule, where a taxable person acquires goods to which the auction scheme has been applied and that person subsequently supplies those goods, the provisions of that paragraph shall not apply to that supply.”.

Amendment of section 11 (rates of tax) of Principal Act.

128.—Section 11 of the Principal Act is hereby amended—

(a) by the insertion of the following subsection after subsection (1A):

“(1AA) Notwithstanding subsection (1), tax shall be charged at the rate specified in section 11 (1) (d) of the amount on which tax is chargeable in relation to—

(a) the importation into the State of goods specified in the Eighth Schedule,

(b) the supply of a work of art of the kind specified in paragraph (i) of the Eighth Schedule, effected—

(i) by its creator or the creator's successors in title, or

(ii) on an occasional basis by a taxable person other than a taxable dealer where—

(I) that work of art has been imported by the taxable person, or

(II) that work of art has been supplied to the taxable person by its creator or the creator's successors in title, or

(III) the tax chargeable in relation to the purchase, intra-Community acquisition or importation of that work of art by the taxable person was wholly deductible under section 12,

and

(c) the intra-Community acquisition in the State by a taxable person of a work of art of the kind specified in paragraph (i) of the Eighth Schedule where the supply of that work of art to that taxable person which resulted in that intra-Community acquisition is a supply of the type that would be charged at the rate specified in section 11 (1) (d) in accordance with paragraph (b), if that supply had occurred within the State.”,

and

(b) by the deletion of subsection (5).

Amendment of section 12 (deductions for tax borne or paid) of Principal Act.

129.—Section 12 of the Principal Act is hereby amended—

(a) in paragraph (a) of subsection (1) by the substitution of the following subparagraph for subparagraph (vi):

“(vi) subject to and in accordance with regulations (if any), residual tax referred to in section 12B,”,

and

(b) by the insertion of the following subsection after subsection (3):

“(3A) Notwithstanding anything in this section, where—

(a) the provisions of subsection (3) or (8) of section 10A or subsection (3) of section 10B have been applied to a supply of goods to a taxable person, or

(b) a taxable dealer deducts residual tax, in accordance with subsection (1) (a) (vi), in respect of a supply of a means of transport to a taxable person,

that taxable person shall not deduct, in accordance with subsection (1), any tax in relation to the supply to that person.”.

Special scheme for means of transport supplied by taxable dealers.

130.—The Principal Act is hereby amended by the insertion of the following section after section 12A:

“12B.—(1) Where a taxable dealer supplies a means of transport, the residual tax which is deductible in accordance with section 12 (1) (a) (vi) shall be deemed to be tax and shall be the amount referred to in subsection (4).

(2) The entitlement to deduct residual tax referred to in subsection (1) shall arise only where a taxable dealer purchases or acquires—

(a) a means of transport from a person, other than a person referred to in subsection (10), who was not entitled to deduct, under section 12, any tax in respect of that person's purchase, intra-Community acquisition or importation of that means of transport, or

(b) a means of transport other than a new means of transport from a person in another Member State who was not entitled to deduct, under the provisions implementing Article 17 of Council Directive No. 77/388/EEC of 17 May 1977 in that Member State, any value-added tax referred to in that Directive in respect of that person's purchase, intra-Community acquisition or importation of that means of transport, or

(c) a means of transport from a taxable person who has exercised the entitlement under section 12 (1) (a) (vi) to deduct the residual tax in respect of that person's supply of that means of transport to the said dealer, or

(d) a means of transport other than a new means of transport from a taxable dealer in another Member State who has applied the provisions implementing Article 26a or 28o (inserted by Council Directive No.94/5/EC of 14 February 1994) of Council Directive No. 77/388/EEC of 17 May 1977 to the supply of that means of transport, in that other Member State.

(3) In this section—

‘taxable dealer’ means a taxable person who in the course or furtherance of business, whether acting on that person's own behalf, or on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, purchases or acquires means of transport as stock-in-trade with a view to resale, and a person in another Member State shall be deemed to be a taxable dealer where, in similar circumstances, that person would be a taxable dealer in the State under this section;

‘means of transport’ means motorised land vehicles with an engine cylinder capacity exceeding 48 cubic centimetres or a power exceeding 7.2 kilowatts, vessels exceeding 7.5 metres in length and aircraft with a take-off weight exceeding 1,550 kilogrammes, which are intended for the transport of persons or goods, other than vessels and aircraft of the kind referred to in paragraph (v) of the Second Schedule.

(4) The residual tax which may be deducted by a taxable dealer in accordance with section 12 (1) (a) (vi) shall be the residual tax deemed to be included in the purchase price payable by such dealer when acquiring a means of transport and shall be determined by the formula—

A ×

B

________

B + 100

where—

A is the purchase price of the means of transport, and

B is the percentage rate of tax specified—

(a) in section 11 (1) (a) where the means of transport is deemed to be supplied within the State to the taxable dealer, or

(b) in provisions implementing Article 12 (1) of Council Directive No. 77/388/EEC of 17 May 1977 in another Member State where the means of transport is deemed to be supplied within that Member State to the taxable dealer:

Provided that, subject to subsection (8), where the amount so calculated is in excess of the tax chargeable on the supply by the taxable dealer of the means of transport, the residual tax shall be an amount equal to the amount of tax chargeable on that supply.

(5) Notwithstanding section 17, where a taxable dealer deducts residual tax referred to in subsection (1) in respect of a supply of a means of transport, that dealer shall not indicate separately the amount of tax chargeable in respect of that supply on any invoice or other document issued in lieu thereof in accordance with that section.

(6) Notwithstanding section 3 (6) (d), in the case of a supply of a means of transport which is dispatched or transported and where—

(a) a taxable dealer deducts residual tax referred to in subsection (1) in respect of the supply of that means of transport, or

(b) a taxable dealer in another Member State has applied the provisions implementing Article 26a or 28o of Council Directive No. 77/388/EEC of 17 May 1977 in that other Member State, to the supply of that means of transport,

the place of supply shall be deemed to be the place where the dispatch or transportation begins.

(7) Where a taxable dealer deducts residual tax referred to in subsection (1) in respect of a supply of a means of transport, then, subject to subsection (8), the provisions of section 11 (1) (b) shall not apply in respect of that supply.

(8) Notwithstanding subsection (7), where a taxable dealer deducts residual tax referred to in subsection (1) in respect of the supply of a new means of transport dispatched or transported by the supplier to a person in another Member State, the provisions of section 11 (1) (b) shall apply, and in determining the amount of the residual tax in accordance with subsection (4) the proviso to that subsection shall not apply.

(9) Where a taxable dealer supplies a means of transport on behalf of another person pursuant to a contract under which commission is payable on purchase or sale, the means of transport shall be deemed to have been supplied by that other person to the taxable dealer when the said taxable dealer supplies that means of transport.

(10) Notwithstanding paragraph (xxiv) of the First Schedule, the provisions of that paragraph shall not apply to—

(a) a supply by a taxable person of a means of transport, other than a motor vehicle as defined in section 12 (3) (b), which that person acquired from a taxable dealer who deducted residual tax in respect of the supply of that means of transport to that person, and

(b) a supply by a taxable person other than a taxable dealer of a motor vehicle, as defined in section 12 (3) (b), which that person acquired as stock-in-trade or for the purposes of a business which consists in whole or part of the hiring of motor vehicles or for use, in a driving school business, for giving driving instruction, from a taxable dealer who deducted residual tax in respect of the supply of that motor vehicle to that person.”.

Amendment of section 14 (determination of tax due by reference to cash receipts) of Principal Act.

131.—Section 14 (inserted by the Act of 1978) of the Principal Act is hereby amended by the insertion of the following subsection after subsection (1A) (inserted by the Act of 1992):

“(1B) (a) The Minister may, by order—

(i) increase the amount specified in subsection (1) (b), or

(ii) where an amount stands specified by virtue of an order under this paragraph, including an order relating to this subparagraph, further increase the amount so specified.

(b) An order under paragraph (a) shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the order is passed by Dáil Éireann within the next twenty-one sitting days on which Dáil Éireann has sat after the order is laid before it, the order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”.

Amendment of section 17 (invoices) of Principal Act.

132.—Section 17 of the Principal Act is hereby amended by the substitution of the following proviso for the proviso to subsection (1B) (inserted by the Act of 1992):

“Provided that this provision shall not apply—

(a) to taxable persons whose taxable turnover in respect of supplies of goods to other taxable persons has not exceeded £2,000,000 in the previous period of 12 months, and

(b) in any event, in respect of all such supplies made in the taxable periods commencing on or after the 1st day of May, 1995.”.

Amendment of section 18 (inspection and removal of records) of Principal Act.

133.—Section 18 of the Principal Act is hereby amended in subsection (1A) (inserted by the Act of 1992), in paragraph (a) by the insertion after “thereon” of “and the value and description of any gifts or promotional items given by him to any person in connection with such supplies or any other payments made by him to any person in connection with such supplies”.

Amendment of section 19 (tax due and payable) of Principal Act, etc.

134.—(1) Section 19 of the Principal Act is hereby amended in the definition of “accounting period” in subparagraph (i) of paragraph (aa) (inserted by the Finance Act, 1989 ) of subsection (3) by the substitution of the following definition for the definition of “accounting period”:

“‘accounting period’ means a period, as determined by the Collector-General from time to time in any particular case, consisting of a number of consecutive taxable periods not exceeding six or such other period not exceeding a continuous period of twelve months as may be specified by the Collector-General:

Provided that—

(I) where an accounting period begins before the end of a taxable period, the period of time from the beginning of the accounting period to the end of the taxable period during which the accounting period begins shall, for the purposes of this paragraph, be treated as if such period of time were a taxable period, and

(II) where an accounting period ends after the beginning of a taxable period* the period of time from the beginning of the taxable period during which the accounting period ends to the end of the accounting period shall, for the purposes of this paragraph, be treated as if such period of time were a taxable period,

and any references in this paragraph to a taxable period shall be construed accordingly;”.

(2) Subsection (1) shall take effect as on and from such day or days as the Minister for Finance may by order or orders appoint, either generally or with reference to any particular category of taxable person to whom section 19 (3) (aa) of the Value-Added Tax Act, 1972 , applies.

Amendment of section 20 (refund of tax) of Principal Act.

135.—Section 20 of the Principal Act is hereby amended by the insertion of the following subsection after subsection (5) (inserted by the Act of 1992):

“(6) Where the Revenue Commissioners refund any amount due under subsection (1) or subsection (5), they may if they so determine refund any such amount directly into an account, specified by the person to whom the amount is due, in a financial institution.”.

Amendment of section 22 (estimation of tax due for a taxable period) of Principal Act.

136.—Section 22 of the Principal Act is hereby amended in subsection (1) by the insertion of the following proviso to that subsection:

“Provided that where the Revenue Commissioners are satisfied that the amount so estimated is excessive, they may amend the amount so estimated by reducing it and serve notice on the person concerned of the revised amount estimated and such notice shall supersede any previous notice issued under this subsection.”.

Amendment of section 25 (appeals) of Principal Act.

137.—Section 25 of the Principal Act is hereby amended—

(a) in subsection (1) by the insertion after paragraph (ab) (inserted by the Act of 1992) of the following paragraph:

“(ac) a determination under section 8(3E),”,

and

(b) by the insertion of the following subsection after subsection (1):

“(1A) Where a person is aggrieved by a decision of the Revenue Commissioners that such person is not a taxable person then such person may, on giving notice in writing to the Revenue Commissioners within twenty-one days after the notification of that decision to such person, appeal to the Appeal Commissioners.”,

and

(c) in subsection (2) by the insertion after paragraph (d) of the following paragraph:

“(dd) the refusal of an application for an appeal hearing;”.

Amendment of section 32 (regulations) of Principal Act.

138.—Section 32 of the Principal Act is hereby amended in subsection (1) by the insertion of the following paragraphs after paragraph (d):

“(da) the conditions for a taxable dealer to opt to apply the margin scheme to certain supplies in accordance with section 10A(4);

(db) the determination of the aggregate margin in accordance with section 10A(8);

(dc) the form of the invoice or other document that shall be issued in accordance with section 10B(4);

(dd) the manner in which residual tax referred to in section 12(l)(a)(vi) may be deducted;

(de) the particulars to be furnished in relation to antiques as specified in paragraph (xvia) of the Sixth Schedule or paragraph (iii) of the Eighth Schedule;”.

Amendment of First Schedule to Principal Act.

139.—The First Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended—

(a) in paragraph (i) by the substitution of the following subparagraph for subparagraph (e):

“(e) the granting and the negotiation of credit and the management of credit by the person granting it,”,

and

(b) in paragraph (xxiii) by the insertion after “organisations” of “with the exception of facilities to which paragraph (viib) or (viic) of the Sixth Schedule refers”.

Amendment of Sixth Schedule to Principal Act.

140.—The Sixth Schedule (inserted by the Act of 1992) to the Principal Act is hereby amended—

(a) by the insertion of the following paragraphs after paragraph (viia) (inserted by the Act of 1992)—

“(viib) the provision by a member-owned golf club of facilities for taking part in golf to any person, other than an individual whose membership subscription to that club at the time the facilities are used by that individual entitles that individual to use such facilities without further charge on at least 200 days (including the day on which such facilities are used by that individual) in a continuous period of twelve months, where the total consideration received by that club for the provision of such facilities has exceeded or is likely to exceed £20,000 in any continuous period of twelve months and, for the purposes of this paragraph, the provision of facilities for taking part in golf shall not include the provision of facilities for taking part in pitch and putt;

(viic) the provision by a non-profit making organisation, other than an organisation referred to in paragraph (viib), of facilities for taking part in golf to any person where the total consideration received by that organisation for the provision of such facilities has exceeded or is likely to exceed £20,000 in any continuous period of twelve months and, for the purposes of this paragraph, the provision of facilities for taking part in golf shall not include the provision of facilities for taking part in pitch and putt;”,

(b) by the substitution of the following paragraph for paragraph(xvi)—

“(xvi) a work of art being—

(a) a painting, drawing or pastel, or any combination thereof, executed entirely by hand, excluding hand-decorated manufactured articles and plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes,

(b) an original lithograph, engraving, or print, or any combination thereof, produced directly from lithographic stones, plates or other engraved surfaces, which are executed entirely by hand, or

(c) an original sculpture or statuary, excluding mass-produced reproductions and works or craftsmanship of a commercial character,

but excluding the supply of such work of art by a taxable dealer in accordance with the provisions of subsection (3) or (8) of section 10A or by an auctioneer within the meaning of section 10B and in accordance with the provisions of subsection (3) of section 10B;”,

(c) by the insertion of the following paragraph after paragraph (xvi)—

“(xvia) antiques being, subject to and in accordance with regulations, articles of furniture, silver, glass or porcelain, whether hand-decorated or not, specified in the said regulations, which are shown to the satisfaction of the Revenue Commissioners to be more than 100 years old, other than goods specified in paragraph (xvi), but excluding the supply of such antiques by a taxable dealer in accordance with the provisions of subsection (3) or (8) of section 10A or by an auctioneer within the meaning of section 10B and in accordance with the provisions of subsection (3) of section 10B;”,

(d) in subparagraph (b) of paragraph (xviii) by the substitution of “used” for “second-hand”,

(e) by the insertion of the following paragraph after paragraph (xx)—

“(xxa) greyhound feeding stuff, which is packaged, advertised or held out for sale solely as greyhound feeding stuff, and which is supplied in units of not less than 10 kilograms;”,

(f) in paragraph (xxxii) by the insertion after “pour” of “but excluding the supply of such goods by a taxable dealer in accordance with the provisions of subsection (3) or (8) of section 10A or by an auctioneer within the meaning of section 10B and in accordance with the provisions of subsection (3) of section 10B”, and

(g) in paragraph (xxxiii) by the insertion after “(Irish Standard 20: Part I: 1987)” of “but excluding the supply of such goods by a taxable dealer in accordance with the provisions of subsection (3) or (8) of section 10A or by an auctioneer within the meaning of section 10B and in accordance with the provisions of subsection (3) of section 10B”.

Addition of Eighth Schedule to Principal Act.

141.—The Principal Act is hereby amended by the addition of the following Schedule:

“EIGHTH SCHEDULE

WORKS OF ART, COLLECTORS' ITEMS AND ANTIQUES CHARGEABLE AT THE RATE SPECIFIED IN SECTION 11 (1) (d) IN THE CIRCUMSTANCES SPECIFIED IN SECTION 11 (1AA)

(i) Works of art:

Every work of art being—

(a) a picture (other than a painting, drawing or pastel specified in paragraph (xvi) of the Sixth Schedule), collage or similar decorative plaque, executed entirely by hand by an artist, other than—

(I) plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes,

(II) hand-decorated manufactured articles, and

(III) theatrical scenery, studio back cloths or the like of painted canvas,

(b) a sculpture cast the production of which is limited to eight copies and supervised by the artist or by the artist's successors in title provided that, in the case of a statuary cast produced before the 1st day of January, 1989, the limit of eight copies may be exceeded where so determined by the Revenue Commissioners,

(c) a tapestry or wall textile made by hand from original designs provided by an artist, provided that there are not more than eight copies of each,

(d) individual pieces of ceramics executed entirely by an artist and signed by the artist,

(e) enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery, goldsmiths' wares and silversmiths' wares, or

(f) a photograph taken by an artist, printed by the artist or under the artist's supervision, signed and numbered and limited to 30 copies, all sizes and mounts included, other than photographs specified in paragraph (xxii) (a) of the Sixth Schedule;

(ii) Collectors' items:

Every collectors' item being one or more—

(a) postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, franked, or if unfranked not being of legal tender and not being intended for use as legal tender, or

(b) collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic or numismatic interest;

(iii) Antiques:

Every antique being, subject to and in accordance with regulations, one or more goods which are shown to the satisfaction of the Revenue Commissioners to be more than 100 years old, other than goods specified in paragraph (xvi), (xvia) or (xxii) (a), of the Sixth Schedule or in paragraph (i) or (ii) of this Schedule.”.

PART IV

Stamp Duties

Levy on banks.

142.—(1) In this section—

“assessable amount” means the amount shown as the assessable amount in the statement delivered to the Revenue Commissioners pursuant to section 89 of the Finance Act, 1991 ;

“bank” means a person who, on the 1st day of September, 1990, was the holder of a licence granted under section 9 of the Central Bank Act, 1971 , or the successors or assigns of such person.

(2) A bank shall deliver to the Revenue Commissioners, not later than the 12th day of September in each of the years 1995 and 1996, a statement in writing showing the assessable amount for that bank.

(3) (a) There shall be charged on the statement delivered not later than the 12th day of September, 1995, pursuant to subsection (2) a stamp duty of an amount equal to two-thirds of the sum of the following:

(i) 0.26 per cent. of that part of the assessable amount shown therein that does not exceed £135,000,000, and

(ii) 03865 per cent. of that part of the assessable amount shown therein that exceeds £135,000,000:

Provided that in the case where the assessable amount shown in the statement does not exceed £135,000,000 stamp duty of an amount equal to two-thirds of 0.26 per cent. of the assessable amount shown therein shall be charged.

(b) There shall be charged on the statement delivered not later than the 12th day of September, 1996, pursuant to subsection (2) a stamp duty of an amount equal to one-third of the sum of the following:

(i) 0.26 per cent. of that part of the assessable amount shown therein that does not exceed £135,000,000, and

(ii) 0.3865 per cent. of that part of the assessable amount shown therein that exceeds £135,000,000:

Provided that in the case where the assessable amount shown in the statement does not exceed £135,000,000 stamp duty of an amount equal to one-third of 0.26 per cent. of the assessable amount shown therein shall be charged.

(4) The duty charged by subsection (3) upon a statement delivered by a bank pursuant to subsection (2) shall be paid by the bank upon delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by a bank such particulars as they may deem necessary in relation to any statement required by this section to be delivered by the bank.

(6) In the case of failure by a bank to deliver any statement required by subsection (2) within the time provided for in that subsection or of failure to pay the duty chargeable on any such statement on the delivery thereof, the bank shall, from the date of the passing of this Act until the day on which the duty is paid, be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 15 per cent. per annum and also from the 12th day of September in each of the years 1995 and 1996, as the case may be, by way of further penalty, a sum equal to 1 per cent. of the duty for each day the duty remains unpaid and each penalty shall be recoverable in the same manner as if the penalty were part of the duty.

(7) The delivery of any statement required by subsection (2) may be enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853 , in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(8) Except as provided for in section 45 of the Finance Act, 1992 , the stamp duty charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty (being tax or duty under the care and management of the Revenue Commissioners) payable by the bank.

(9) Where a company, which was a bank on the 1st day of September, 1990, and which was or is a member of a group within the meaning of section 45 of the Finance Act, 1992 , ceases to be a bank, any stamp duty payable by such company by virtue of subsection (4) and which remains unpaid shall be payable by any other bank which is a member of the group, in the same manner as if it was part of the liability of such bank:

Provided that where there is more than one bank in the group, each such bank shall be liable to pay a portion of such unpaid duty which shall be an amount which bears to the unpaid duty the same proportion as the liability of each bank in the group bears to the total liability of the group, but excluding, in the case of each such liability, such unpaid duty.

Amendment of section 19 (conveyance or transfer on sale— limit on stamp duty in the case of certain transactions between bodies corporate) of Finance Act, 1952.

143.—(1) Section 19 of the Finance Act, 1952 , is hereby amended—

(a) by the substitution of the following subsection for subsection (1) (inserted by the Finance Act, 1982 ):

“(1) Stamp duty shall not be chargeable under or by reference to the headings ‘CONVEYANCE or TRANSFER on sale of any stocks or marketable securities’ (inserted by the Finance Act, 1992 ) or ‘CONVEYANCE or TRANSFER on sale of a policy of insurance or a policy of life insurance where the risk to which the policy relates is located in the State’ (inserted by the Finance Act, 1992 ) or ‘CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance’ (as amended by the Finance Act, 1992 ) in the First Schedule to the Stamp Act, 1891, on any instrument to which this section applies:

Provided that that instrument has, in accordance with the provisions of section 12 of the Stamp Act, 1891, been stamped with a particular stamp denoting that it is not chargeable with any duty or that it is duly stamped.”,

(b) by the deletion of subsection (4), and

(c) by the substitution of the following subsection for subsection (6):

“(6) If—

(a) where any claim for exemption from duty under this section has been allowed, it is subsequently found that any declaration or other evidence furnished in support of the claim was untrue in any material particular, or

(b) the transferor and transferee cease to be associated within the meaning of subsection (2) of this section within a period of two years from the date of the conveyance or transfer,

then the exemption shall be deemed not to have been allowed, and an amount equal to the duty remitted shall forthwith be a debt due from the transferor and transferee jointly and severally to the Minister for Finance for the benefit of the Central Fund and be payable to the Revenue Commissioners and the said amount shall be recoverable in any court of competent jurisdiction and subsection (2) (inserted by the Finance Act, 1979 ) of section 69 of the Finance Act, 1973 , shall apply as if the duty was the stamp duty referred to in that subsection and the date of the conveyance was a date one month after the date of the transaction referred to in that subsection, and with any other necessary modifications.”.

(2) This section shall have effect with respect to instruments executed on or after the 8th day of February, 1995.

Relief from stamp duty in case of reconstructions or amalgamations of companies.

144.—(1) Section 31 of the Finance Act, 1965 , is hereby amended—

(a) by the insertion after subsection (1) of the following subsection:

“(1A) This section shall not apply unless the scheme of reconstruction or amalgamation is effected for bona fide commercial reasons and does not form part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to stamp duty, income tax, corporation tax, capital gains tax or capital acquisitions tax.”,

(b) by the insertion after subsection (7) of the following subsection:

“(7A) For the removal of doubt it is hereby declared that references in this section to ‘transferee company’ are references only to a company with limited liability.”.

(2) Notwithstanding anything to the contrary in section 31 of the Finance Act, 1965 , that section shall apply where—

(a) the transferee company or particular existing company referred to in that section is a company which is incorporated in another Member State of the European Union and which corresponds, under the laws of that Member State, to a transferee company or particular existing company within the meaning of that section, and

(b) subject to any necessary modifications for the purpose of so corresponding, all the other provisions of that section are met.

(3) Section 70 of the Finance Act, 1989 , and section 117 of the Finance Act, 1990 , are hereby repealed.

Amendment of Chapter II (stamp duty on capital companies) of Part IV of Finance Act, 1973.

145.—Chapter II of Part IV of the Finance Act, 1973 , is hereby amended by the insertion of the following section after section 67B (inserted by section 110 of the Finance Act, 1991 ):

“Further restriction of application (Chapter II).

67C.—(1) This Chapter shall not apply to any investment limited partnership within the meaning of section 3 of the Investment Limited Partnerships Act, 1994 .

(2) This section shall have effect on or after the 12th day of April, 1995.”.

Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982.

146.Section 92 of the Finance Act, 1982 , is hereby amended in subsection (1)—

(a) by the substitution of “policies of insurance to the extent that the risks to which those policies relate are located in the State (being risks deemed to be located in the State by virtue of section 208 of the Finance Act, 1992 )” for “business carried on by the insurer in the State on or after the 1st day of August, 1982” in the definition of “assessable amount”, and

(b) by the insertion of the following paragraph after paragraph (c) of the definition of “excluded amount”:

“(d) a premium received in respect of health insurance business (being health insurance business within the meaning of section 2 of the Health Insurance Act, 1994 );”.

Amendment of section 208 (location of insurance risk for stamp duty purposes) of Finance Act, 1992.

147.Section 208 of the Finance Act, 1992 , is hereby amended by the substitution of the following paragraph for paragraph (d):

“(d) in any other case, if the policyholder has his or her habitual residence in the State, or where the policyholder is a legal person other than an individual, if the policyholder's establishment (being an establishment within the meaning set out in Article 4 (1) of the European Communities (Non-Life Insurance) (Amendment) (No. 2) Regulations, 1991 ( S.I. No. 142 of 1991 )) to which the policy relates is situated in the State.”.

Amendment of section 106 (exemption from stamp duty of certain loan capital and securities) of Finance Act, 1993.

148.Section 106 of the Finance Act, 1993 (as amended by section 106 of the Finance Act, 1994 ), is hereby amended in subsection (2)—

(a) by the deletion of “the transfer of loan capital of a company or other body corporate”,

(b) by the substitution in paragraph (a) of “the transfer of loan capital of a company or other body corporate which” for “loan capital which”,

(c) by the deletion of subparagraph (i) of paragraph (a),

(d) by the substitution of the following subparagraph for subparagraph (ii) of paragraph (a):

“(ii) does not carry a right of conversion into stocks or marketable securities (other than loan capital) of a company having a register in the State or into loan capital having such a right,”,

and

(e) by the insertion of “the issue or transfer of” before “securities issued by a qualifying company” in paragraph (b).

Amendment of section 107 (particulars to be delivered in cases of transfers and leases) of Finance Act, 1994.

149.Section 107 of the Finance Act, 1994 , is hereby amended—

(a) in subsections (1) and (3), by the substitution of “transferee or lessee” for “transferor or lessor”, and

(b) in subsection (6)—

(i) by the deletion of “‘transferor’, ‘lessor’,”, and

(ii) by the insertion of “, and references to a ‘transferee’ or a ‘lessee’ include the personal representatives of any transferee or lessee” after “ Finance (1909-10) Act, 1910 ”.

Stock borrowing.

150.—(1) In this section—

“equivalent stock” means stock of an identical type, nominal value, description and amount as was so obtained from the lender or where, since the date of the stock borrowing, such stock has been paid or has been converted, subdivided, consolidated, redeemed, made the subject of a takeover, call on partly paid stock, capitalisation issue, rights issue, distribution or other similar event, then “equivalent stock” means—

(a) in the case of conversion, subdivision or consolidation, the stock into which the borrowed stock has been converted, subdivided or consolidated,

(b) in the case of redemption, a sum of money equivalent to the proceeds of the redemption,

(c) in the case of takeover, a sum of money or stock, being the consideration or alternative consideration which the lender has directed the stock borrower to accept,

(d) in the case of a call on partly paid stock, the paid-up stock:

Provided that the lender shall have paid to the stock borrower the sum due,

(e) in the case of a capitalisation issue, the borrowed stock together with the stock allotted by way of a bonus thereon,

(f) in the case of a rights issue, the borrowed stock together with the stock allotted thereon, which the lender has directed the borrower to take up:

Provided that the lender shall have paid to the stock borrower all and any sum due in respect thereof,

(g) in the event that a distribution is made in respect of the borrowed stock in the form of stock or a certificate which may at a future date be exchanged for stock or where an option is exercised to take a distribution in the form of stock or a certificate which may at a future date be exchanged for stock, the borrowed stock together with stock or a certificate equivalent to those allotted, and

(h) in the case of any event similar to any of the foregoing, the borrowed stock together with or replaced by a sum of money or stock equivalent to that received in respect of such borrowed stock resulting from such events;

“stock” means stock quoted on a recognised stock exchange;

“stock borrower” means a broker or dealer who is a member of the Irish unit of the International Stock Exchange of the United Kingdom and Republic of Ireland Limited, or who is a member of the limited company incorporated or to be incorporated in the State to operate as the Irish Stock Exchange, and is recognised by the committee of that unit or the Irish Stock Exchange as carrying on the business of a broker or dealer;

“stock borrowing” means a transaction in which a stock borrower—

(a) for the sole purpose of completing a contract for the sale of stock entered into by the said stock borrower in the course of that borrower's business as a broker or dealer obtains from a person (in this section referred to as “the lender”) stock of the kind required for that purpose, and

(b) gives an undertaking to provide to the lender, not later than three months after the date on which the said stock borrower obtained the stock referred to in paragraph (a), equivalent stock;

“stock return”, in relation to a stock borrowing, means a transaction or transactions in which, in respect of such stock borrowing, the undertaking referred to in paragraph (b) of the definition of “stock borrowing” is carried out within the period referred to in that paragraph.

(2) Stamp duty shall not be chargeable on a stock borrowing or on a stock return.

(3) If and to the extent that the stock borrower does not return or cause to be returned to the lender before the expiration of the period of three months from the date of the stock borrowing equivalent stock the stock borrower shall pay to the Revenue Commissioners within 14 days after the expiration of that period the amount of ad valorem duty which would have been chargeable on the stock so obtained if this section had not been enacted and if any stock borrower fails to duly pay any sum which that borrower is liable to pay under the provisions of this subsection, that sum, together with interest thereon at the rate of 1.25 per cent. per month or part of a month from the first day after the expiration of the said period of three months to the date of payment of that sum and, by way of further penalty, a sum equal to 1 per cent. of the duty for each day the duty remains unpaid, shall be recoverable from the stock borrower as a debt due to the Minister for Finance for the benefit of the Central Fund.

(4) Every stock borrower shall maintain separate records of each stock borrowing and any stock return made in respect of that stock borrowing and such records shall include, in respect of each stock borrowing, the following:

(a) evidence that the stock borrower was obliged to supply stock to complete a trade;

(b) the name and address of the lender;

(c) the type, nominal value, description and amount of stock borrowed from the lender;

(d) the date on which the stock was transferred from the lender to the stock borrower;

(e) the date on which equivalent stock should be returned to the lender;

(f) the type, nominal value, description and amount of the stock returned to the lender and the date of the stock return;

(g) where the provisions of paragraph (a), (b), (c), (d), (e), (f), (g) or (h) of the definition of “equivalent stock” in subsection (1) apply, full details thereof.

PART V

Residential Property Tax

Application ( Part V ).

151.—This Part shall apply and have effect where tax is chargeable on a valuation date (as defined by section 95 (1) of the Finance Act, 1983 ) in relation to any year commencing with the year 1995.

Amendment of section 96 (charge of residential property tax) of Finance Act, 1983.

152.Section 96 of the Finance Act, 1983 (as amended by section 116 of the Finance Act, 1994 ) is hereby amended by the substitution of “the rate of tax shall be one and one-half per cent. of that net market value” for “the tax chargeable on that net market value shall be computed in accordance with the Seventh Schedule to the Finance Act, 1994 ”.

Amendment of section 100 (market value exemption limit) of Finance Act, 1983.

153.Section 100 of the Finance Act, 1983 , is hereby amended in subsection (1)—

(a) by the substitution in the definition of “general exemption limit” of “£94,000” for “£75,000” (inserted by the Finance Act, 1994 ) and of “1995” for “1994” (as so inserted), and

(b) by the substitution in the definition of “the new house price index number” of “1991” for “1980” (inserted by the Finance Act, 1992 ).

Amendment of section 101 (income exemption limit) of Finance Act, 1983.

154.—(1) Section 101 of the Finance Act, 1983 , is hereby amended—

(a) by the insertion after “qualifying child” in paragraph (b) of the proviso to subsection (1) (inserted by the Finance Act, 1994 ) of “within the meaning of section 102 (4)”, and

(b) by the substitution in subsection (2) of “£29,500” for “£25,000” (inserted by the Finance Act, 1994 ) and of “1995” for “1994” (as so inserted).

(2) Notwithstanding the provisions of section 151 , subsection (1) (a) shall be deemed to have come into operation as respects any valuation date (as defined by section 95 (1) of the Finance Act, 1983 ) in relation to any year commencing with the year 1994.

Repeal ( Part V ).

155.—The Seventh Schedule to the Finance Act, 1994 , is hereby repealed.

PART VI

Capital Acquisitions Tax

Interpretation ( Part VI ).

156.—In this Part “the Principal Act” means the Capital Acquisitions Tax Act, 1976 .

Amendment of section 2 (interpretation) of Principal Act.

157.—Subsection (1) of section 2 of the Principal Act is hereby amended by the insertion of the following definition after the definition of “valuation date”:

“‘year of assessment’ has the meaning assigned to it by section 1 of the Income Tax Act, 1967 .”.

Amendment of section 19 (value of agricultural property) of Principal Act.

158.—(1) Section 19 of the Principal Act is hereby amended—

(a) in the definition of “agricultural value” in subsection (1) (inserted by the Finance Act, 1994 )—

(i) by the substitution of “50 per cent.” for “75 per cent.” in paragraph (a),

(ii) by the substitution of “50 per cent.” for “70 per cent.”, “30 per cent.” for “50 per cent.” and “£90,000” for “£150,000” in paragraph (b), and

(iii) by the substitution of “50 per cent.” for “70 per cent.”, “15 per cent.” for “35 per cent.” and “£45,000” for “£105,000” in paragraph (c),

and the said definition, as so amended, is set out in the Table to this section,

(b) in the definition of “farmer” in subsection (1), by the deletion of “and ordinarily resident”,

(c) by the substitution, in subsection (4) (inserted by the Finance Act, 1994 ), of “30 per cent.” for “50 per cent.”, “£90,000” for “£150,000” in both places where it occurs, “15 per cent.” for “35 per cent.” and “£45,000” for “£105,000” in both places where it occurs, and the said subsection, as so amended, is set out in the Table to this section, and

(d) by the insertion after paragraph (b) of subsection (5) of the following paragraph:

“(c) The agricultural value in relation to a gift or inheritance referred to in subsection (2) shall cease to be applicable to agricultural property, other than crops, trees or underwood, if the donee or successor is not resident in the State for any of the three years of assessment immediately following the year of assessment in which the valuation date falls.”.

(2) Paragraphs (a) and (c) of subsection (1) shall have effect in relation to gifts or inheritances taken on or after the 8th day of February, 1995, paragraph (b) shall have effect in relation to a gift or inheritance where the valuation date in relation to that gift or inheritance is on or after the 6th day of April, 1994, and paragraph (d) shall have effect in relation to gifts and inheritances taken on or after the date of the passing of this Act.

TABLE

“agricultural value” means—

(a) in the case of farm machinery, livestock and bloodstock, 50 per cent. of the market value of such property,

(b) in the case of a gift of agricultural property, other than farm machinery, livestock and bloodstock, 50 per cent. of the market value of the agricultural property comprised in the gift reduced by 30 per cent. of that market value or by a sum of £90,000, whichever is the lesser, and

(c) in the case of an inheritance of agricultural property, other than farm machinery, livestock and bloodstock, 50 per cent. of the market value of the agricultural property comprised in the inheritance reduced by 15 per cent. of that market value or by a sum of £45,000, whichever is the lesser;

(4) In relation to the deduction, in respect of agricultural property, of—

(a) in the case of a gift, 30 per cent. of its market value, or £90,000, whichever is the lesser, and

(b) in the case of an inheritance, 15 per cent. of its market value, or £45,000, whichever is the lesser,

the amount deductible shall not exceed £90,000 in the case of a gift and £45,000 in the case of an inheritance, in respect of the aggregate of—

(i) all taxable gifts taken on or after the 28th day of February, 1969, and

(ii) all taxable inheritances taken on or after the 1st day of April, 1975, which consist in whole or in part of agricultural property, taken by the same person, as donee or successor, from the same disponer.

Amendment of section 52 (appeals in other cases) of Principal Act.

159.—Paragraph (a) of subsection (5) of section 52 of the Principal Act is hereby amended by the insertion of the following subparagraph after subparagraph (x):

“(xi) the refusal of an application for an appeal hearing,”.

Amendment of section 55 (exemption of certain objects) of Principal Act.

160.—(1) Section 55 of the Principal Act is hereby amended—

(a) by the substitution of the following subsection for subsection (3):

“(3) If an object exempted from tax by virtue of subsection (2) is sold within 6 years after the valuation date, and before the death of the donee or successor, the exemption referred to in subsection (2) shall cease to apply to such object:

Provided that, if the sale of such object is a sale by private treaty to the National Gallery of Ireland, the National Museum of Science and Art or any other similar national institution, any university in the State or any constituent college thereof, a local authority or the Friends of the National Collections of Ireland, the exemption referred to in subsection (2) shall continue to apply.”,

and

(b) by the substitution of the following subsection for subsection (4):

“(4) The exemption referred to in subsection (2) shall cease to apply to an object, if at any time after the valuation date and—

(a) before the sale of the object,

(b) before the death of the donee or successor, and

(c) before such object again forms part of the property comprised in a gift or an inheritance in respect of which gift or inheritance an absolute interest is taken by a person other than the spouse of that donee or successor,

there has been a breach of any condition specified in paragraph (b) or (c) of subsection (1).”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 12th day of April, 1995.

Business relief.

161.—(1) The Finance Act, 1994 , is hereby amended by the substitution of the following section for section 126:

“126.—Where the whole or part of the taxable value of any taxable gift or taxable inheritance is attributable to the value of any relevant business property, the whole or that part of the taxable value shall, subject to the other provisions of this Chapter, be treated as being reduced by 50 per cent.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 8th day of February, 1995.

Amendment of section 134 (exclusion of value of excepted assets) of Finance Act, 1994.

162.—(1) Section 134 of the Finance Act, 1994 , is hereby amended—

(a) by the addition of the following proviso to subsection (1):

“Provided that so much of the last-mentioned value as is attributable to agricultural property in the beneficial ownership of a company shall not fall to be left out of account unless it would fall to be left out of account by virtue of paragraph (b) or (c) of this subsection.”,

and

(b) by the substitution of the following proviso for the proviso to subsection (2):

“Provided that—

(a) the use of an asset for the purposes of a business to which section 127 (4) relates, and

(b) where the business concerned is not carried on by a company, the use of an asset for the purposes of farming (within the meaning of section 13 of the Finance Act, 1974 ),

shall not be treated as use for the purposes of the business concerned.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 12th day of April, 1995.

Amendment of section 135 (withdrawal of relief) of Finance Act, 1994.

163.—(1) Section 135 of the Finance Act, 1994 , is hereby amended—

(a) by the substitution, in subsection (1), of “commencing on the valuation date.” for “after the valuation date or the period between the date of the gift or inheritance and the date of a subsequent gift or inheritance consisting of the same property or of property representing that property, whichever is the lesser period.”, and

(b) by the substitution of the following proviso for the proviso to subsection (2):

“Provided that—

(i) any land, building, machinery or plant which are comprised in the gift or inheritance and which qualify as relevant business property by virtue of section 127 (1) (e) shall, together with any similar property which has replaced such property, continue to be relevant business property for the purposes of this section for so long as they are used for the purposes of the business concerned, and

(ii) this section shall not have effect where the donee or successor dies before the event which would otherwise cause the reduction to cease to be applicable.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the 12th day of April, 1995.

Payment of tax on certain assets by instalments.

164.—(1) In this section—

“agricultural property” has the meaning assigned to it by section 19 of the Principal Act (as amended by the Finance Act, 1994 );

“relevant business property” has the same meaning as it has in section 127 of the Finance Act, 1994 , other than shares in or securities of a company (being shares or securities quoted on a recognised stock exchange) and without regard to sections 128 and 134 (3) of that Act.

(2) Where the whole or part of the tax which is due and payable in respect of a taxable gift or taxable inheritance is attributable to either or both agricultural property and relevant business property—

(a) section 43 of the Principal Act shall apply to that whole or part of the tax notwithstanding subsection (4) of that section, and

(b) notwithstanding subsection (2) of section 41 of the Principal Act the rate at which interest is payable upon that whole or part of the tax shall be 0.75 per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month instead of at the rate specified in that section and that section shall have effect as regards that whole or part of the tax as if the rate so payable were substituted for the rate specified in that section:

Provided that the rate at which interest is payable upon any overdue instalment of that whole or part of the tax, or upon such part of the tax as would represent any such overdue instalment if that whole or part of the tax were being paid by instalments, shall continue to be at the rate specified in section 41 of the Principal Act.

(3) For the purposes of this section the value of a business or of an interest in a business shall be taken to be its net value ascertained in accordance with section 132 of the Finance Act, 1994 .

(4) This section shall have effect in relation to gifts and inheritances taken on or after the 8th day of February, 1995, but shall not have effect in relation to an inheritance taken by a relevant trust by virtue of section 110 (1) of the Finance Act, 1993 , or to an inheritance taken by a discretionary trust by virtue of section 106 (1) of the Finance Act, 1984 , or section 103 (1) of the Finance Act, 1986 .

(5) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

Exemption of certain inheritances taken by parents.

165.—Notwithstanding the provisions of the Principal Act, an inheritance taken on or after the 12th day of April, 1995, by a person from a disponer shall, where—

(a) that person is a parent of that disponer, and

(b) the date of the inheritance is the date of death of that disponer,

be exempt from tax and shall not be taken into account in computing tax if and only if that disponer took a non-exempt gift or inheritance from either or both of that disponer's parents within the period of 5 years immediately prior to the date of death of that disponer.

Heritage property of companies.

166.—(1) In this section—

“relevant heritage property” means any one or more of the following—

(a) objects to which section 55 of the Principal Act applies;

(b) a house or garden referred to in section 39 of the Finance Act, 1978 ;

“private company” has the meaning assigned to it by section 16 of the Principal Act;

“subsidiary” has the meaning assigned to it by section 155 of the Companies Act, 1963 .

(2) Where a gift or inheritance consists in whole or in part—

(a) at the date of the gift or at the date of the inheritance, and

(b) at the valuation date,

of one or more shares in a private company which (after the taking of the gift or inheritance) is, on the date of the gift or on the date of the inheritance, a company controlled by the donee or successor within the meaning of section 16 of the Principal Act, then each such share shall, to the extent that its market value for tax purposes is, at the valuation date, attributable to relevant heritage property, be exempt from tax and the value thereof shall to that extent not be taken into account in computing tax on any gift or inheritance taken by that person unless the exemption ceases to apply under the provisions of subsection (5) or (6):

Provided that that relevant heritage property was in the beneficial ownership of the company on the 12th day of April, 1995, or in the beneficial ownership on that date of another company which was on that date a subsidiary of the first-mentioned company.

(3) The provisions of section 19 (6) of the Principal Act shall apply, for the purposes of subsection (2), as they apply in relation to agricultural property.

(4) Where in relation to a gift or inheritance—

(a) a part of a share in a private company is exempt from tax by virtue of subsection (2), and

(b) such share is relevant business property within the meaning of Chapter I of Part VI of the Finance Act, 1994 ,

then the relevant heritage property to which the market value of such share is partly attributable shall be left out of account in determining for the purposes of that Chapter what part of the taxable value of that gift or inheritance is attributable to such share, but the amount of the reduction (if any) which would but for subsection (2) fall to be made under that Chapter in respect of such share shall not otherwise be restricted notwithstanding subsection (2).

(5) If a share in a private company which is exempted in whole or in part from tax by virtue of subsection (2) is sold within 6 years after the valuation date, and before the death of the donee or successor, the exemption referred to in subsection (2) shall, subject to subsection (7), cease to apply to such share.

(6) Where the whole or part of the market value of a share in a private company which is comprised in a gift or inheritance is on the valuation date attributable to an item of relevant heritage property and—

(a) that item of relevant heritage property is sold within 6 years after the valuation date, and before the death of the donee or successor, or

(b) at any time after the valuation date and—

(i) before the sale of such share or such item of relevant heritage property,

(ii) before the death of the donee or successor, and

(iii) before such share or such item of relevant heritage property forms part of the property comprised in a subsequent gift or inheritance in respect of which gift or inheritance an absolute interest is taken by a person other than the spouse of that donee or successor,

there has been a breach of any condition specified in subsection (1) (b) or (c) of section 55 of the Principal Act or in section 39 (1) (c) of the Finance Act, 1978 ,

then the exemption referred to in subsection (2) shall, subject to subsection (7), cease to apply to such share to the extent that that market value is attributable to such item of relevant heritage property.

(7) Notwithstanding subsections (5) and (6), the exemption referred to in subsection (2) shall continue to apply if the sale of the share referred to in subsection (5), or the sale of the item of relevant heritage property referred to in subsection (6), is a sale by private treaty to the National Gallery of Ireland, the National Museum of Science and Art or any other similar national institution, any university in the State or any constituent college thereof, a local authority or the Friends of the National Collections of Ireland.

(8) This section shall have effect in relation to gifts and inheritances taken on or after the 12th day of April, 1995.

PART VII

Miscellaneous

Chapter I

Provisions Relating to Residence of Individuals

Amendment of Chapter IV (Interest Payments by Certain Deposit Takers) of Part I of Finance Act, 1986.

167.—As respects the year 1995-96 and subsequent years of assessment, Chapter IV of Part I of the Finance Act, 1986 , is hereby amended by the substitution of “resident” for “ordinarily resident” in paragraph (f) (i) of the definition of “relevant deposit” in subsection (1) of section 31 and in paragraphs (c), (d) and (e) of subsection (1) of section 37.

Amendment of section 175 (power to obtain information as to interest paid or credited without deduction of tax) of Income Tax Act, 1967.

168.—As respects the year 1995-96 and subsequent years of assessment, section 175 óf the Income Tax Act, 1967 , is hereby amended in subsection (4) and in the proviso thereto by the substitution of “resident” for “ordinarily resident” in each place where it occurs.

Amendment of section 152 (application of Part III (Schedule C) and section 52 (Schedule D) of Income Tax Act, 1967) of Finance Act, 1994.

169.—(1) Section 152 of the Finance Act, 1994 , is hereby amended by the substitution of the following proviso for the proviso to subsection (1):

“Provided that this section shall not apply in respect of—

(a) the income of an individual derived from one or more of the following, that is to say, a trade or profession, no part of which is carried on in the State or an office or employment all the duties of which are performed outside the State, and

(b) other income of an individual which in any year of assessment does not exceed £3,000.”.

(2) This section shall be deemed to apply and have effect as on and from the 23rd day of May, 1994.

Amendment of section 154 (deduction for income earned outside the State) of Finance Act, 1994.

170.—(1) Section 154 of the Finance Act, 1994 , is hereby amended in subsection (2) by the substitution of the following for the definition of “the specified amount”:

“‘the specified amount’ means an amount determined by the formula—

D × E

_____

365

where—

D is the number of qualifying days in the year of assessment concerned, and

E is all the income, profits or gains from an office, employment or pension whether chargeable under Schedule D or Schedule E (including income from offices or employments, the duties of which are performed in the State) of an individual in that year.”.

(2) This section shall be deemed to apply and have effect as on and from the 23rd day of May, 1994.

Chapter II

General