Finance Act, 1994
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Amendment of section 35 (relief for investment in films) of Finance Act, 1987. |
20.—(1) Section 35 of the Finance Act, 1987 , is hereby amended— | |
(a) in subsection (1)— | ||
(i) by the insertion of the following definition after the definition of “allowable investor company”: | ||
“‘authorised officer’ means an officer of the Revenue Commissioners authorised by them in writing for the purposes of this section;”, | ||
(ii) by the insertion of the following definition after the definition of “film”: | ||
“‘the Minister’ means the Minister for Arts, Culture and the Gaeltacht;”, | ||
(iii) by the substitution of the following definition for the definition of “qualifying film”: | ||
“‘qualifying film’ means a film in respect of which the Minister has given a certificate under subsection (1A) (inserted by the Finance Act, 1994);”, | ||
and | ||
(iv) by the substitution, in the definition of “relevant investment”, of the following paragraph for paragraph (a): | ||
“(a) paid in the qualifying period to a qualifying company in respect of shares in the company by an allowable investor company on its own behalf or by a qualifying individual on that individual's own behalf, and”, | ||
(b) by the insertion of the following subsection after subsection (1): | ||
“(1A) (a) The Minister may, in accordance with guidelines laid down by the Minister with the consent of the Minister for Finance, give a certificate to a qualifying company stating, in relation to a film to be produced by the company, that the film may be treated as a qualifying film either— | ||
(i) for the purposes of this section (other than subsection (7A) (inserted by the Finance Act, 1994)), or | ||
(ii) for the purposes of this section. | ||
(b) A certificate given by the Minister under paragraph (a) shall— | ||
(i) be subject to the following conditions, that is to say— | ||
(A) not less than— | ||
(I) 75 per cent., or | ||
(II) such lower percentage, not being less than 10 per cent., which, in accordance with guidelines laid down under paragraph (a), the Minister specifies in the certificate, | ||
of the work on the production of the film is carried out in the State, and | ||
(B) not more than 60 per cent. of the cost of the production of the film is met by relevant investments: | ||
Provided that where the percentage of the work on the production of the film carried out in the State (referred to subsequently in this proviso as the specified percentage) is less than 60 per cent., paragraph (b) shall be construed as if the reference to 60 per cent. were a reference to the specified percentage, | ||
and | ||
(ii) be subject to such other conditions as the Minister may consider proper and specifies therein. | ||
(c) Where a company fails to comply with any of the conditions to which a certificate issued to it under paragraph (a) is subject by virtue of paragraph (b), that failure shall constitute the failure of an event to happen by reason of which relief falls to be withdrawn under subsection (4).”, | ||
(c) by the insertion of the following subsections after subsection (4): | ||
“(4A) A claim for relief in respect of a relevant investment in a company shall not be allowed unless it is accompanied by a certificate issued by the company in such form as the Revenue Commissioners may direct and certifying that the conditions for the relief, so far as applying to the company and the qualifying film, are or will be satisfied in relation to that investment. | ||
(4B) Before issuing a certificate for the purposes of subsection (4A) a company shall furnish the authorised officer with a statement to the effect that it satisfies or will satisfy the conditions for the relief, so far as they apply in relation to the company and the qualifying film. | ||
(4C) A certificate to which subsection (4A) relates shall not be issued without the authority of the authorised officer. | ||
(4D) Any statement under subsection (4B) shall— | ||
(a) contain such information as the Revenue Commissioners may reasonably require, | ||
(b) be in such form as the Revenue Commissioners may direct, and | ||
(c) contain a declaration that it is correct to the best of the company's knowledge and belief. | ||
(4E) Where a company has issued a certificate for the purposes of subsection (4A), or furnished a statement under subsection (4B), and either— | ||
(a) the certificate or statement was made fraudulently or negligently, or | ||
(b) the certificate was issued in contravention of subsection (4C), | ||
then the company shall be liable to a penalty not exceeding £500 or, in the case of fraud, not exceeding £1,000, and such penalty may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any fine or penalty under any Act relating to the excise. | ||
(4F) For the purpose of regulations made under section 127 of the Income Tax Act, 1967 , no regard shall be had to the relief unless a claim for it has been duly made and admitted.”, | ||
and | ||
(d) by the insertion of the following subsection after subsection (7): | ||
“(7A) (a) In this subsection ‘a film or films to which this subsection applies’ means a qualifying film or films the cost of production of each of which does not exceed £1,050,000 and in respect of each of which the Minister has given a certificate under subsection (1A) (a) (ii). | ||
(b) Where, in the period beginning on the 9th day of July, 1994, and ending on the 8th day of July, 1995, an allowable investor company makes, by way of a subscription for new ordinary shares (within the meaning of subsection (7)), a relevant investment in a qualifying company which exists solely for the purposes of the production and distribution of a film or films to which this subsection applies and that relevant investment is not one to which paragraph (b) of subsection (3) refers, then, if those shares are disposed of by the allowable investor company on a day which is not earlier than 12 months after the date of their acquisition by that company, the provisions of paragraph (b) of subsection (7) shall apply to the consideration upon such disposal of those shares as if the reference therein to three years were a reference to one year.”. | ||
(2) (a) Subparagraph (iv) of paragraph (a) of subsection (1) shall apply and have effect as respects relevant investments made on or after the 14th day of January, 1994: | ||
Provided that the said subparagraph (iv) shall not apply or have effect in relation to a sum of money paid to a company on or before the 1st day of August, 1994, in respect of the production of a particular film where, on or before the 14th day of January, 1994, the Revenue Commissioners having received an application in that behalf from the company and on the basis of the information furnished to them by the company in support of that application, had expressed an opinion that, in relation to the production of that film, the company would be regarded as a qualifying company for the purposes of section 35 of the Finance Act, 1987 , and, but for the enactment of the said subparagraph (iv), the sum of money would fall to be treated as a relevant investment (within the meaning of that section). | ||
(b) Paragraphs (a) (other than subparagraph (iv)), (b) and (c) of subsection (1) shall apply and have effect as respects relevant investments made on or after the passing of this Act. |