Finance Act, 1992
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Amendment of section 39 (meaning of “goods”) of Finance Act, 1980. |
47.— Section 39 (as amended by the Finance Act, 1991 ) of the Finance Act, 1980 , is hereby amended, as respects accounting periods ending on or after the 1st day of April, 1992— | |
(a) by the insertion, after the existing proviso to subsection (1), of the following proviso: | ||
“Provided also that sections 108 to 113 of the Corporation Tax Act, 1976 , shall apply for the purposes of paragraph (b) of the first proviso to this subsection as they apply for the purposes of Part XI of that Act.”, | ||
(b) by the substitution, in subsection (5) (inserted by the Finance Act, 1990 ), of “this section” for “the definition of ‘goods’ in subsection (1)”, | ||
(c) as respects any relevant accounting period (within the meaning of section 38 of the Finance Act, 1980 ) or any part of such accounting period commencing on or after the 1st day of April, 1992, by the insertion, after subsection (1CC7), of the following subsections— | ||
“(1CC8) (a) In this subsection— | ||
‘agricultural society’ means a society— | ||
(i) in relation to which both the following conditions are satisfied: | ||
(I) the number of the society's members is not less than 50, and | ||
(II) all or a majority of the society's members are persons who are mainly engaged in, and derive the principal part of their income from, husbandry, | ||
or | ||
(ii) to which a certificate under paragraph (b) (i) relates; | ||
‘fishery society’ means a society— | ||
(i) in relation to which both the following conditions are satisfied: | ||
(I) the number of the society's members is not less than 20, and | ||
(II) all or a majority of the society's members are persons who are mainly engaged in, and derive the principal part of their income from, fishing, | ||
or | ||
(ii) to which a certificate under paragraph (b) (ii) relates; | ||
‘qualifying goods’ means goods purchased by a society from its members where such goods, in relation to the said members, are or would, but for subsection (3) (as amended by section 32 of the Finance Act, 1991 ) of section 39 of the Finance Act, 1980 , be goods for the purposes of this Chapter; | ||
‘qualifying society’ means an agricultural society or a fishery society— | ||
(i) which carries on a trade which consists wholly or mainly of the sale by wholesale of qualifying goods, and | ||
(ii) all or a majority of the members of which are agricultural societies or fishery societies; | ||
‘selling by wholesale’ means selling goods of any class to a person who carries on a business of selling goods of that class or who uses goods of that class for the purposes of a trade or undertaking carried on by him; | ||
‘society’ means a society registered under the Industrial and Provident Societies Acts, 1893 to 1978. | ||
(b) (i) The Minister for Finance may, on the recommendation of the Minister for Agriculture, give a certificate entitling a society to be treated, for the purposes of this subsection, as an agricultural society notwithstanding that one or both of the conditions in paragraph (a) of the definition of ‘agricultural society’ is or are not complied with in relation to the society. | ||
(ii) The Minister for Finance may, on the recommendation of the Minister for the Marine, give a certificate entitling a society to be treated, for the purposes of this subsection, as a fishery society notwithstanding that one or both of the conditions in paragraph (a) of the definition of ‘fishery society’ is or are not complied with in relation to the society. | ||
(iii) A certificate given under— | ||
(I) paragraph (a) or (b) of subsection (2) of section 70 of the Finance Act, 1963 , | ||
(II) paragraph (a) or (b) of subsection (2) of section 220 of the Income Tax Act, 1967 , or | ||
(III) paragraph (a) or (b) of subsection (2) of section 18 of the Finance Act, 1978 , | ||
shall, unless it has been revoked, be deemed to be a certificate under this paragraph. | ||
(iv) A certificate under subparagraph (i) or (ii) of this paragraph— | ||
(I) shall have effect as from such date, whether before or after the date on which it is given, as may be stated therein, and | ||
(II) shall be published in the Iris Oifigiúil, as soon as may be, after it is given. | ||
(v) A certificate under this paragraph may be revoked by the Minister for Finance at any time and notice of any such revocation shall be published, as soon as may be, in the Iris Oifigiúil. | ||
(c) The following provisions shall apply, for the purposes of relief under this Chapter, in relation to a qualifying society: | ||
(i) qualifying goods sold by wholesale in the course of its trade by the qualifying society shall be deemed to have been manufactured by the qualifying society, notwithstanding that the society which manufactured the said goods has claimed, or is entitled to claim, relief under this Chapter in respect of the sale by it of those goods, | ||
(ii) any amount receivable from the sale of qualifying goods by the qualifying society shall be regarded as an amount receivable from the sale of goods, and | ||
(iii) subsection (1D) shall have effect as respects the society 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). | ||
(1CC9) (a) In this subsection— | ||
‘agricultural society’ and ‘society’ have, respectively, the meanings assigned to them in subsection (1CC8); | ||
‘milk product’ means butter, whey-butter, cream, cheese, condensed milk, dried or powdered milk, dried or powdered skim-milk, dried or powdered whey, chocolate crumb, casein, butter-oil, lactose, and any other product which is made wholly or mainly from milk or from a by-product of milk and which is approved for the purposes of this section by the Minister for Finance after consultation with the Minister for Agriculture; | ||
‘qualifying company’ means a company in respect of which the Minister for Agriculture, after consultation with the Minister for Finance, gives a certificate stating that he is satisfied that— | ||
(i) (I) as respects a company which has not commenced to trade, that it intends to so carry on a qualifying trade, or | ||
(II) as respects a company which has carried on a trade for a period which does not exceed a period of 3 years, that it carries on a qualifying trade and intends to so carry on the qualifying trade, | ||
as to be entitled to a certificate under paragraph (ii) immediately after the expiration of a period of 3 years commencing on the date on which it commenced to carry on the said trade, or | ||
(ii) in any other case, the company carries on a trade which, as respects the period commencing 3 years before and ending immediately before the date from which the certificate is to have effect, consisted wholly or mainly of a qualifying trade; | ||
‘qualifying trade’ means a trade carried on by a company which consists wholly or mainly of the manufacture of milk products and where the trade consists wholly or mainly of the manufacture of milk products by the company and the distribution by it of the said milk products it shall be deemed to consist wholly or mainly of the manufacture of milk products; | ||
‘relevant product’ means milk purchased by an agricultural society from its members which milk is sold by the agricultural society to a qualifying company. | ||
(b) A certificate given under this subsection shall have effect for a period commencing on such date, whether before or after the date on which it is given, as may be stated therein and ending on a day which is 2 years after that date. | ||
(c) The following provisions shall apply, for the purposes of relief under this Chapter, in relation to the sale by an agricultural society of relevant products: | ||
(i) relevant products shall be deemed to have been manufactured by the agricultural society, | ||
(ii) any amount receivable from the sale of relevant products by the agricultural society shall be regarded as an amount receivable from the sale of goods, and | ||
(iii) subsection (1D) shall have effect as respects the agricultural society 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 | ||
(d) by the addition of the following subsection after subsection (5): | ||
“(6) For the purposes of this Chapter, where in a relevant accounting period a company renders advertising services in the course of a trade carried on by it and which consists wholly or partly of the production of a newspaper, magazine or other similar product, then— | ||
(a) any amount receivable in payment for the rendering of such services shall not be regarded as an amount receivable from the sale of goods, and | ||
(b) for the purposes of section 41, the company's income from the trade for a relevant accounting period shall be regarded as not derived solely from the sale of goods and merchandise.”. |