Finance Act, 1987

Chapter III

Payments in respect of Professional Services by Certain Persons

Interpretation (Chapter III).

13.—(1) In this Chapter—

“accountable person” has the meaning assigned to it by section 14 ;

“appropriate tax”, in relation to a relevant payment, means—

(a) where such payment does not include value-added tax, a sum representing income tax on the amount of that payment at the standard rate in force at the time of payment, and

(b) where such payment includes value-added tax, a sum representing income tax at the standard rate in force at the time of payment on the amount of that payment exclusive of the value-added tax;

“basis period for a year of assessment”, in relation to a specified person, means—

(a) where a relevant payment is to be included in a computation of profits or gains of the said person for the purposes of Case I or II of Schedule D, the period on the profits or gains of which income tax for that year falls to be finally computed for the purposes of the said Case I or II:

Provided that—

(i) where two basis periods overlap, the period common to both shall be deemed, for the purposes of this Chapter, to fall in the second basis period only,

(ii) where there is an interval between the end of the basis period for one year of assessment and the basis period for the next year of assessment, then, the interval shall be deemed to be part of the second basis period,

(iii) the reference in subparagraph (i) to the overlapping of two periods shall be construed as including a reference to the coincidence of two periods or to the inclusion of one period in another, and the reference to the period common to both shall be construed accordingly, and

(b) in any other case, the year of assessment;

“income tax month” means a month beginning on the 6th day of any of the months of April to March in any year;

“professional services” includes—

(a) services of a medical, dental, pharmaceutical, optical, aural or veterinary nature,

(b) services of an architectural, engineering, quantity surveying or surveying nature, and related services,

(c) services of accountancy, auditing or finance and services of financial, economic, marketing, advertising or other consultancies,

(d) services of a solicitor or barrister and other legal services,

(e) geological services, and

(f) training services provided on behalf of An Chomhairle Oiliúna;

“relevant payment” means a payment made on or after the 6th dayof June, 1987, in respect of professional services whether or not such services are provided to the accountable person making the payment, but excludes—

(a) emoluments within the scope of Chapter IV of Part V of the Income Tax Act, 1967 , to which that Chapter applies, and

(b) payments under a construction contract within the meaning of section 17 of the Finance Act, 1970 , from which tax has been deducted in accordance with the provisions of subsection (2) of that section, or would have been so deducted but for the provisions of subsection (8) of that section;

“specified person” means, in relation to a relevant payment, the person to whom that payment is made;

“tax” means income tax or corporation tax, as the context may require.

(2) For the purposes of this Chapter—

(a) any reference in this Chapter to the amount of a relevant payment shall be construed as a reference to the amount which would be the amount of that payment if no appropriate tax were to be deducted therefrom, and

(b) in relation to a specified person, appropriate tax referable to an accounting period or to a basis period for a year of assessment means the appropriate tax deducted from a relevant payment which is taken into account in computing the specified person's profits or gains for the said period and where there is more than one such relevant payment in the said period the aggregate of the appropriate tax deducted from such payments.