Finance Act, 1966

Amendment of Part III of Finance (Miscellaneous Provisions) Act, 1956 .

29.—(1) In the case of a body corporate carrying on a trade which consists of or includes the rendering to another person of services by way of subjecting commodities or materials belonging to that person to any process of manufacture, the following provisions shall, if the body corporate so elects, apply for the purposes of relief from income tax and corporation profits tax under Part III of the Finance (Miscellaneous Provisions) Act, 1956 :

(a) the body corporate shall be regarded as being a company where it would not otherwise be so regarded;

(b) the rendering in the State of such services shall be regarded as the manufacture of goods and any amount receivable in payment therefor shall be regarded as an amount receivable from the sale of goods, and

(c) where—

(i) such services are rendered to a person who is not resident in the State in relation to commodities or materials which have been imported into the State, and

(ii) after the services have been rendered, the commodities or materials, or the products or articles into which they have been converted, are exported out of the State while continuing to belong to that person,

the body corporate shall be regarded as having exported goods out of the State and any payment receivable by it for the services shall be regarded as an amount receivable from the sale of goods so exported.

(2) Any election under subsection (1) of this section shall be made by notice in writing delivered to the inspector of taxes and shall have effect as respects every year of claim and every accounting period for which relief under Part III of the Finance (Miscellaneous Provisions) Act, 1956 , is, or has been, claimed by the body corporate by which it is made.

(3) The Revenue Commissioners may by notice in writing require a body corporate claiming relief from tax by virtue of subsection (1) of this section to furnish them with such information or particulars as may be necessary for the purpose of giving effect to that subsection, and section 12 (1) and section 13 (1) of the Finance (Miscellaneous Provisions) Act, 1956 , shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this subsection.

(4) Subsection (1) of this section shall have effect as from the passing of the Finance (Miscellaneous Provisions) Act, 1956 , and relief from tax in relation to the period between such passing and the passing of this Act may be given accordingly by repayment or otherwise as the Revenue Commissioners think proper:

Provided that where, before an election was made by it under this section, a body corporate has paid a dividend and the amount of income tax which it was entitled to deduct from the dividend exceeds the amount which, under section 15 (2) of the Finance (Miscellaneous Provisions) Act, 1956 , it would have been entitled to deduct if the election had been made before the dividend was paid, any relief from income tax which would otherwise have been allowable shall be reduced by the amount of the excess.

(5) Where for any year of assessment the income of any person consists of, or includes, a dividend in relation to which the proviso to subsection (4) of this section has had effect, the person shall be entitled to claim such repayment, if any, of income tax and sur-tax as will reduce his total liabilities to those taxes to what those liabilities would have been if income tax had been deducted from the dividend at the rate at which it would have been deductible if subsection (1) of this section had had effect in relation to the body corporate at the time when the dividend was paid.