Finance Act, 1990

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Basis of assessment: Case III of Schedule D.

17.—(1) As respects the year 1990-91 and subsequent years of assessment—

(a) Chapter IV of Part IV of the Income Tax Act, 1967 , is hereby amended—

(i) by the substitution of the following section for section 75:

“75.— Income or profits chargeable under Case III of Schedule D shall, for all the purposes of ascertaining liability to income tax, be deemed to issue from a single source, and the provisions of section 77 shall apply accordingly.”,

(ii) in section 76, by the deletion, in subsections (1) and (3), of “the year preceding”, and

(iii) in section 77, by the substitution of the following subsection for subsection (1):

“(1) Tax under Case III of Schedule D shall be computed on the full amount of the profits or income arising within the year of assessment.”,

and

(b) Part III of Schedule 6 to the Income Tax Act, 1967 , is hereby amended by the deletion, in subparagraph (2) of paragraph 1, of “the year preceding”,

and the said subsections (1) and (3) of the said section 76 and the said subparagraph (2), as so amended, are set out in the Table to this subsection.

TABLE

(1) Subject to the provisions of this section and section 77, tax chargeable under Case III of Schedule D in respect of income arising from securities and possessions in any place outside the State shall be computed on the full amount thereof arising in the year of assessment whether the income has been or will be received in the State or not, subject, in the case of income not received in the State—

(a) to the same deductions and allowances as if it had been so received; and

(b) to the deduction, where such deduction cannot be made under, and is not forbidden by, any other provision of this Act, of any sum which has been paid in respect of income tax in the place where the income has arisen; and

(c) to a deduction on account of any annual interest or any annuity or other annual payment payable out of the income to a person not resident in the State,

and the provisions of this Act (including those relating to the delivery of statements) shall apply accordingly.

(3) In the cases mentioned in subsection (2), the tax shall, subject to the provisions of section 77, be computed on the full amount of the actual sums received in the State from remittances payable in the State, or from property imported, or from money or value arising from property not imported, or from money or value so received on credit or on account in respect of such remittances, property, money or value brought into the State in the year of assessment without any deduction or abatement.

(2) The following provisions shall have effect for the purposes of Case III of Schedule D, notwithstanding anything to the contrary in section 76 or 77:

The tax in respect of income arising from possessions in Great Britain or Northern Ireland, other than stocks, shares, or rents or the occupation of land, shall be computed either on the full amount thereof arising in the year of assessment or on the full amount thereof on an average of such period as the case may require and as may be directed by the Appeal Commissioners, so that according to the nature of the income the tax may be computed on the same basis as that on which it would have been computed if the income had arisen in the State, and subject in either case to a deduction on account of any annual interest or any annuity or other annual payment payable out of the income to a person not resident in the State and the provisions of this Act (including those relating to the delivery of statements) shall apply accordingly; and the person chargeable and assessable shall be entitled to the same allowances, deductions, and reliefs as if the income had arisen in the State:

In this paragraph “rents” includes any payment in the nature of a royalty and any annual or periodical payment in the nature of a rent derived from any lands, tenements or hereditaments, including lands, tenements and hereditaments to which section 56 would apply or have applied if such lands, tenements and hereditaments were situate in the State.

(2) In respect of a person who, on or after the 6th day of April, 1991, ceases to possess the whole of a single source of income or profit as is referred to in section 75 (as amended by this section) of the Income Tax Act, 1967 , subsections (3) and (4) of section 77 of the Income Tax Act, 1967 , shall not apply or have effect.