Finance Act, 1969

Exemption of certain earnings of writers, composers and artists.

2.—(1) In this section “a work” means an original and creative work, whether written, composed or executed, as the case may be, before or after the passing of this Act, which falls into one of the following categories—

(a) a book or other writing;

(b) a play;

(c) a musical composition;

(d) a painting or other like picture;

(e) a sculpture.

(2) (a) This section applies to an individual—

(i) who is resident in the State and is not resident elsewhere, and

(ii) (I) who is determined by the Revenue Commissioners, after consideration of any evidence in relation to the matter which the individual submits to them and after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, to have written, composed or executed, as the case may be, either solely or jointly with another individual, a work or works generally recognised as having cultural or artistic merit, or

(II) who has written, composed or executed, as the case may be, either solely or jointly with another individual, a particular work which the Revenue Commissioners, after consideration of the work and of any evidence in relation to the matter which the individual submits to them and after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, determine to be a work having cultural or artistic merit.

(b) The Revenue Commissioners shall not make a determination under this subsection unless—

(i) the individual concerned duly makes a claim to the Revenue Commissioners for the determination, being, where the determination is sought under paragraph (a) (ii) (II), a claim made after the publication, production or sale, as the case may be, of the work in relation to which it is sought, and

(ii) the individual complies with any request to him under subsection (4).

(3) (a) An individual to whom this section applies and who duly makes a claim to the Revenue Commissioners in that behalf shall, subject to paragraph (b), be entitled to have the profits or gains arising to him from the publication, production or sale, as the case may be, of a work or works in relation to which the Revenue Commissioners have made a determination under clause (I) or (II) of subsection (2) (a) (ii), or of a work of his in the same category as that work, and which would, apart from this section, fall to be included in an assessment made on him under Case II of Schedule D, disregarded for all purposes of the Income Tax Acts.

(b) The exemption authorised by this section shall not apply for any year of assessment prior to the year of assessment in which the individual concerned makes a claim under clause (I) or (II) of subsection (2) (a) (ii) in respect of which the Revenue Commissioners make such a determination as is referred to in the said clause (I) or (II), as the case may be.

(c) The relief provided by this section may be given by repayment or otherwise.

(4) (a) Where an individual makes a claim to which subsection (2) (a) (ii) (I) relates, the Revenue Commissioners may serve on him a notice or notices in writing requesting him to furnish to them within such period as may be specified in the notice or notices such information, books, documents or other evidence as may appear to them to be necessary for the purposes of a determination under the said subsection (2) (a) (ii) (I).

(b) Where an individual makes a claim to which subsection (2) (a) (ii) (II) relates, he shall—

(i) in the case of a book or other writing or a play or musical composition, if the Revenue Commissioners so request, furnish to them three copies, and

(ii) in the case of a painting or other like picture or a sculpture, if the Revenue Commissioners so request, provide, or arrange for the provision of, such facilities as the Revenue Commissioners may consider necessary for the purposes of a determination under the said subsection (2) (a), (ii) (II) (including any requisite permissions or consents of the person who owns or has in his possession the painting, picture or sculpture).

(5) The Revenue Commissioners may serve on an individual who makes a claim under subsection (3) a notice or notices in writing requiring him to make available within such time as may be specified in the notice all such books, accounts and documents in his possession or power as may be requested, being books, accounts and documents relating to the publication, production or sale, as the case may be, of the work in respect of the profits or gains of which exemption is claimed.

(6) For the purpose of arriving at the amount of the profits or gains to be disregarded under this section for all purposes of the Income Tax Acts, the Revenue Commissioners may make such apportionment of receipts and expenses as may be necessary.

(7) Notwithstanding any exemption provided by this section, the provisions of the Income Tax Acts as regards the making by the individual of a return of his total income shall apply as if the exemption had not been authorised.