Finance Act, 1990
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Amendment of section 39 (meaning of “goods”) of Finance Act, 1980 . |
41.—(1) Subject to subsections (2), (3), (4) and (5), section 39 of the Finance Act, 1980 , is hereby amended— | |
(a) by the substitution in subsection (1CC) of section 39 of the following paragraph for paragraph (a): | ||
“(a) In this subsection ‘computer services’ means one or more of the following: | ||
(i) data processing services, | ||
(ii) software development services, and | ||
(iii) technical or consultancy services which relate to either or both subparagraphs (i) and (ii), | ||
the work on the rendering of which is carried out in the State in the course of a service undertaking in respect of which— | ||
(I) an employment grant was made by the Industrial Development Authority under section 25 of the Industrial Development Act, 1986 , or | ||
(II) a grant under section 3, or financial assistance under section 4 , of the Shannon Free Airport Development Company Limited (Amendment) Act, 1970 , was made available by the Shannon Free Airport Development Company Limited, or | ||
(III) financial assistance was made available by Údarás na Gaeltachta under section 10 of the Údarás na Gaeltachta Act, 1979 .”, | ||
(b) as respects any relevant accounting period (within the meaning of section 38 of the Finance Act, 1980 ) beginning on or after the 1st day of April, 1990, by the insertion of the following subsections after subsection (1CC3): | ||
“(1CC4) The following provisions shall apply, for the purposes of relief under this Chapter, in relation to a company that carries on a trade not being a relevant trading operation, within the meaning of subsection (5) (a) of section 39A (inserted by section 17 of the Finance Act, 1981 ) of the Finance Act, 1980 , which consists of or includes the repair or maintenance of aircraft, aircraft engines or components: | ||
(a) such repair or maintenance carried out within the State shall be regarded as the manufacture within the State of goods, | ||
(b) any amount receivable in payment for such repair or maintenance so carried out shall be regarded as an amount receivable from the sale of goods, and | ||
(c) subsection (1D) shall have effect as respects the company in relation to a claim by it for relief from tax by virtue of this subsection as it has effect as respects a company in relation to a claim by it for relief from tax by virtue of subsection (1B) or (1C). | ||
(1CC5) (a) In this subsection ‘film’ means a film which is produced— | ||
(i) on a commercial basis with a view to the realisation of profit, | ||
(ii) wholly or principally for exhibition to the public in cinemas or by way of television broadcasting or for training or documentary purposes, | ||
and in respect of which not less than 75 per cent. of the work on the production of which is carried out in the State. | ||
(b) The following provisions shall apply, and shall be deemed always to have applied, for the purposes of relief under this Chapter in relation to a company carrying on a trade which consists of or includes the production of a film: | ||
(i) the production of the film by the company claiming the said relief shall be regarded as the manufacture within the State of goods, | ||
(ii) any amount receivable for the said production shall be regarded as an amount receivable from the sale of goods, and | ||
(iii) subsection (1D) shall have effect as respects the company in relation to a claim by it for relief from tax by virtue of this subsection as it has effect as respects a company in relation to a claim by it for relief from tax by virtue of subsection (1B) or (1C). | ||
(1CC6) The definition of ‘goods’ in subsection (1) shall include— | ||
(a) meat processed within the State in an establishment approved and inspected in accordance with the European Communities (Fresh Meat) Regulations, 1987 ( S.I. No. 284 of 1987 ), and | ||
(b) subject to subsections (4) and (5) (a) (iii), fish which has been subjected to a process of manufacture within the State, | ||
in the course of a trade by the company which, in the relevant accounting period, is the company claiming relief under this Chapter in relation to the trade and references in this Chapter to ‘manufactured’ and cognate words shall be construed accordingly. | ||
(1CC7) The following provisions shall apply, for the purposes of relief under this Chapter, in relation to a company that carries on a trade which consists of or includes the remanufacture and repair of computer equipment or of subassemblies where such equipment or subassemblies were originally manufactured by that company or a connected company (within the meaning of section 157 of the Corporation Tax Act, 1976 ): | ||
(a) such remanufacture or repair carried out within the State shall be regarded as the manufacture within the State of goods, | ||
(b) any amount receivable in payment for such remanufacture or repair so carried out shall be regarded as an amount receivable from the sale of goods, and | ||
(c) subsection (1D) shall have effect as respects the company in relation to a claim by it for relief from tax by virtue of this subsection as it has effect as respects a company in relation to a claim by it for relief from tax by virtue of subsection (1B) or (1C).”, | ||
and | ||
(c) as respects any relevant accounting period (within the meaning of section 38 of the Finance Act, 1980 ) beginning on or after the 1st day of April, 1990, by the addition of the following subsection after subsection (4): | ||
“(5) Without prejudice to the generality of subsection (1) and subject to subsections (1A), (1B), (1C), (1CC), (1CC1), (1CC2), (1CC3), (1CC4), (1CC5), (1CC6) and (1CC7), goods shall not, for the purposes of the definition of ‘goods’ in subsection (1), be regarded as manufactured if they are goods which result from a process— | ||
(a) which consists primarily of any one of the following: | ||
(i) dividing (including cutting), purifying, drying, mixing, sorting, packaging, branding, testing or applying any other similar process to a product, produce or material that is acquired in bulk so as to prepare that product, produce or material for sale or distribution, or any combination of such processes, or | ||
(ii) applying methods of preservation, pasteurisation or maturation or other similar treatment to any foodstuffs, or any combination of such processes, or | ||
(iii) cooking, baking or otherwise preparing food or drink for human consumption which is intended to be consumed, at or about the time it is prepared, whether or not in the building or structure in which it is prepared or whether or not in the building to which it is delivered after being prepared, or | ||
(iv) improving or altering any articles or materials without imposing on them a change in their character, or | ||
(v) repairing, refurbishing, reconditioning, restoring or other similar processing of any articles or materials, or any combination of such processes, or | ||
(b) which, subject to the proviso to subsection (1), is not carried out by the company claiming relief under this Chapter.”. | ||
(2) Where, before the 20th day of April, 1990, eligible shares (being eligible shares within the meaning of section 12 of the Finance Act, 1984 ) in a company (being a company which would, but for the provisions of this section, be a qualifying company within the meaning of section 15 of the said Act of 1984) are issued to an individual who has subscribed for those shares, the provisions of Chapter III of Part I of the said Act of 1984 shall apply as respects his subscription for those shares as they would apply if the company was such a qualifying company. | ||
(3) Where, before the 20th day of April, 1990, eligible shares (being eligible shares within the meaning of section 18 of the Finance Act, 1986 ) in a company (being a company which would, but for the provisions of this section, be a qualifying research and development company within the meaning of section 21 of the said Act of 1986) are issued to an individual who has subscribed for those shares, the provisions of Chapter III of Part I of the said Act of 1986 shall apply as respects his subscription for those shares as they would apply if the company was such a qualifying company. | ||
(4) (a) Section 84A (as amended by this Act) of the Corporation Tax Act, 1976 , shall have effect as respects any interest paid to a company in respect of relevant principal advanced before the 20th day of April, 1990, by that company to a company which carries on in the State a trade which would, but for the provisions of this section, be a specified trade, as if that trade were a specified trade. | ||
(b) In this subsection “relevant principal” and “specified trade” have the same meanings as they have respectively in section 84A (as amended by this Act) of the Corporation Tax Act, 1976 . | ||
(5) (a) Section 40 (as amended by section 53 of the Finance Act, 1986 ) of the Finance Act, 1984 , shall have effect as respects a person who carries on a trade of leasing, and who incurred expenditure, on the provision, before the 20th day of April, 1990, of machinery or plant for leasing, under an obligation entered into before the 20th day of April, 1990, by the lessor and a lessee who carries on a trade which would, but for the provisions of this section, be a specified trade, as if the trade carried on by the lessee were a specified trade. | ||
(b) In this subsection “specified trade” and “trade of leasing” have the same meanings as they have respectively in section 40 (as amended by section 53 of the Finance Act, 1986 ) of the Finance Act, 1984 . | ||
(c) In this subsection an obligation shall be treated as having been entered into before the 20th day of April, 1990, if, but only if, before that date, there was in existence a binding contract in writing under which that obligation arose. | ||
(6) Where corporation tax payable by a company would be reduced under the provisions of section 41 of the Finance Act, 1980 , if, in the definition of “relevant accounting period” in section 38 of the Finance Act, 1980 , “the 31st day of December, 2010” were substituted for “the 31st day of December, 2000”, then that corporation tax shall be so reduced as if “the 31st day of December, 2010” were substituted for “the 31st day of December, 2000” in that definition: | ||
Provided that no corporation tax payable by a company shall be reduced by virtue of this section if that corporation tax would not have been so reduced if the provisions of subsections (1A), (1B) and (1C) (inserted by the Finance Act, 1981 ), subsection (1CC) (inserted by the Finance Act, 1984 ) and subsections (1CC1), (1CC2) and (1CC3) (inserted by the Finance Act, 1987 ) of section 39 of the Finance Act, 1980 , and section 39A (inserted by the Finance Act, 1981 ) and section 39B (inserted by the Finance Act, 1987 ) of the Finance Act, 1980 , had not been enacted. |