Income Tax Act, 1967.

Earned income.

2.—(1) Subject to subsection (2), in this Act “earned income” means, in relation to any individual—

(a) any income arising in respect of any remuneration from any office or employment of profit held by the individual, or in respect of any pension, superannuation, or other allowance, deferred pay, or compensation for loss of office, given in respect of the past services of the individual or of the husband or parent of the individual in any office or employment of profit, or given to the individual in respect of the past services of any deceased person, whether the individual or husband or parent of the individual shall have contributed to such pension, superannuation allowance, or deferred pay, or not; and

(b) any income from any property which is attached to or forms part of the emoluments of any office or employment of profit held by the individual; and

(c) any income which is charged under Schedule B or Schedule D, and is immediately derived by the individual from the carrying on or exercise by him of his trade or profession, either as an individual, or, in the case of a partnership, as a partner personally acting therein.

In cases where the profits of a wife are deemed to be profits of the husband, any reference in this subsection to the individual includes either the husband or the wife.

(2) Without prejudice to the generality of subsection (1), in this Act, save so far as otherwise expressly provided, “earned income” includes—

(a) any income arising in respect of Civil List pensions granted under the Civil List Act, 1837, as amended by any subsequent enactment;

(b) any payments of benefits which, by virtue of section 224 (4), are deemed to be emoluments to which Chapter IV of Part V applies;

(c) in considering whether any, and if so what, relief is to be granted to an individual under section 134 or under section 138 (3), any income from patent rights (as defined in section 284) arising to an individual where the patent was granted for an invention actually devised by him, whether alone or jointly with any other person;

(d) in the case of a clergyman or minister of any religious denomination who has made such an election as respects the annual value of the house occupied by him as is provided for by section 548, any sum which falls to be treated as earned income of his by virtue of that election;

(e) any annuity made payable to an individual by the terms of an annuity contract or trust scheme for the time being approved by the Revenue Commissioners for the purposes of Chapter III of Part XII, to the extent to which such annuity is payable in return for any amount on which relief is given under section 236; and

(f) any payment which is chargeable to tax under Schedule E by virtue of section 114;

Provided that in the case of income from any such patent rights as are mentioned in paragraph (c), where any part of the rights in question or of any rights out of which they were granted has at any time belonged to any other person, so much only of the said income shall be deemed to be earned income as is not properly attributable to the rights which have belonged to that other person.