PART I.

Income Tax.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1932, at the rate of five shillings in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1932, shall be charged in respect of the income of any individual the total of which from all sources exceeds one thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1931.

(3) The several statutory and other provisions which were in force during the year beginning on the 6th day of April, 1931, in relation to income tax and sur-tax and also the provisions of this Act in relation to the sur-tax for that year shall, subject to the other provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1932.

2. —(1) Notwithstanding anything to the contrary contained in section 1 of the Finance Act, 1931 (No. 31 of 1931), sur-tax for the year beginning on the 6th day of April, 1931, shall be charged in respect of the income of any individual the total of which from all sources exceeds one thousand five hundred pounds and shall be so charged at the following rates in lieu of the rates referred to in the said section 1 , that is to say:—

(2) Section 3 of the Finance Act, 1928 (No. 11 of 1928), shall, in relation to the surtax for the year beginning on the 6th day of April, 1931, have effect subject to the provisions of this section.

3. —(1) The following provision shall be substituted for section 16 of the Finance Act, 1920, and Part II of that Act shall be construed and have effect accordingly, that is to say:—

“An individual who makes, in the manner prescribed by the Income Tax Acts, a claim in that behalf and makes a return in the prescribed form of his total income shall, for the purposes of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his earned income of a sum equal to—

(a) one-sixth of so much of that income as does not exceed four hundred and fifty pounds; and

(b) one-tenth of so much of that income as exceeds four hundred and fifty pounds;

but not exceeding, in the case of any individual, the sum of two hundred pounds.”

(2) Sub-section (1) of section 18 of the Finance Act, 1920, shall be construed and have effect as if the words “one hundred and twenty-five pounds” were substituted therein for the words “one hundred and thirty-five pounds.”

(3) Sub-section (1) of section 21 of the Finance Act, 1920, shall be construed and have effect as if the words “each such child to a deduction of fifty pounds” were substituted therein for the words “one child to a deduction of thirty-six pounds and in respect of each subsequent child to a deduction of twenty-seven pounds.”

(4) The following provision shall be substituted for section 23 of the Finance Act, 1920, that is to say:—

“An individual who makes, in the manner prescribed by the Income Tax Acts, a claim in that behalf and makes a return in the prescribed form of his total income shall be entitled to be charged at half the standard rate of tax on the first one hundred pounds of his taxable income.”

All references in the Finance Act, 1920, or any subsequent Act to the said section 23 or to any sum mentioned in that section shall be construed and have effect subject and with due regard to the substitution effected by this sub-section.

4. —(1) Where a person has ceased to hold an office or employment and a pension, annuity, or other annual payment is paid to him or to his widow or his child or any of his relatives or dependents by the person or the heirs, executors, administrators, or successors of the person under whom he held such office or by whom he was so employed, then such pension, annuity, or other annual payment shall, notwithstanding that it is paid voluntarily or is capable of being discontinued, be deemed to be income for the purpose of assessment of income tax and shall be assessed and charged under Schedule D of the Income Tax Act, 1918, or under Schedule E of that Act, as the case may require.

(2) To remove doubts it is hereby declared and enacted that the word “annuity” and the word “pension” in the charging provision of Schedule E of the Income Tax Act, 1918, shall include and be deemed always to have included respectively an annuity which is paid voluntarily or is capable of being discontinued and a pension which is so paid or is so capable.

5. —(1) The following Rule shall be and is hereby inserted in the General Rules applicable to Schedules A, B, C, D, and E of the Income Tax Act, 1918, in lieu of Rule 18 now contained therein and those Rules shall be construed and have effect accordingly, that is to say:—

“18.—(1) Where a person dies whether before, on, or after the 6th day of April, 1932, an assessment or an additional first assessment (as the case may be), may be made for the year of assessment in which such person dies or for any one or more of the six years next preceding that year in respect of the profits or gains which arose or accrued to such person before his death, and the amount of the tax on such profits or gains shall be a debt due from and payable out of the estate of such person, and the executor or administrator of such person shall be assessable and chargeable in respect of such tax.

(2) No assessment under this rule shall be made later than six years after the expiration of the year of assessment nor, in any case, later than three years after the expiration of the year of assessment in which the deceased person died.

(3) The executor or administrator of any such deceased person shall, when required by a particular notice so to do, prepare and deliver to the inspector of taxes a true and correct statement in writing signed by such executor or administrator and containing particulars, to the best of his judgment and belief, of the profits or gains which arose or accrued to such deceased person before his death and in respect of which such executor or administrator is assessable under this rule, and the provisions of the Income Tax Acts relating to statements to be delivered by any person shall apply, with any necessary modifications, to statements to be delivered under this rule.

(4) Nothing in this rule shall apply to or affect statements to be delivered or assessments to be made in respect of a trade, profession, or vocation carried on by two or more persons jointly.”

(2) The Rule inserted by the foregoing sub-section of this section in the General Rules applicable to Schedules A, B, C, D, and E of the Income Tax Act, 1918, shall have effect in relation to assessments made after the passing of this Act in respect of tax chargeable for any year of assessment whether beginning before or after the passing of this Act.

(3) The references in sub-section (3) of section 10 of the Finance Act, 1929 (No. 32 of 1929), to a person ceasing to possess a source of income or profits shall be construed as referring to a cesser occurring by reason of the person dying while in possession of the source of income or profits as well as to a cesser occurring in the lifetime of such person, and for the purposes of the said sub-section (3) such death shall be deemed to cause a cesser, and such cesser shall be deemed to take place on the day of such death, and the said section 10 shall apply and have effect accordingly.

(4) The reference in sub-section (1) of section 12 of the Finance Act, 1929 (No. 32 of 1929), to the discontinuance of a trade, profession, or vocation shall be construed as referring to a discontinuance occurring by reason of the death while carrying on such trade, profession or vocation of the person carrying on the same as well as to a discontinuance occurring in the lifetime of such person, and for the purposes of the said section 12 such death shall be deemed to cause a discontinuance and such discontinuance shall be deemed to take place on the day of such death, and the said section shall apply and have effect accordingly.

6. —(1) The following rule shall be added to the rules applicable to Case III of Schedule D of the Income Tax Act, 1918, that is to say:—

“5. Notwithstanding anything in Schedule A or the rules applicable thereto or section 187 of the Income Tax Act, 1918, in any case where the annual rent payable for any premises occupied for the purposes of any trade, profession, or vocation is in excess of the annual value ascertained as prescribed by the said section 187, it shall be lawful for the Revenue Commissioners to cause an assessment to be made upon the person receiving or entitled to such rent in respect of so much of the excess of such rent over the said annual value as will, together with the amount of the assessment under Schedule A, make up the full amount of the income arising from the letting of such premises.

Premises shall not be deemed to be occupied for the purposes of any trade, profession, or vocation within the meaning of this rule where the premises are mainly occupied for residential purposes and no part thereof is occupied for the purposes of trade but a part thereof is occupied for the purposes of a profession or vocation.

Any assessment made under this rule shall be computed in accordance with rule 2 of the rules applicable to this Case.

Rent for the purpose of this rule shall be taken to be the full amount payable by the occupier, and in arriving at the amount chargeable under this rule a deduction shall be made for any portion of such rent wholly and irrecoverably lost, for any portion of such rent voluntarily foregone by agreement with the occupier, and for any sums which the person receiving or entitled to the rent is obliged, by agreement with the occupier, to pay or satisfy out of the rent in respect of any rates or assessments which by law are charged upon the occupier, and for the cost of maintenance, repairs, insurance, and management, ultimately paid or borne by the person receiving or entitled to such rent.

Where an assessment under Schedule D is made under this rule no allowance shall be granted under Rules 7 and 8 of No. V of Schedule A or section 203.

Where a rent in excess of the annual value ascertained as prescribed by the said section 187 is payable by the person assessed then, in arriving at the amount of the assessment under this rule, no deduction shall be made in respect of such rent, but the person assessed shall on making payment thereof be entitled, in addition to the deduction of income tax which he is entitled to make under the rules of Schedule A, to deduct and retain thereout a sum representing the amount of the tax on the excess of the rent over such annual value at the rate or rates of tax in force during the period through which such payment was accruing due.

Every person occupying any premises for the purpose of any trade, profession, or vocation shall, when so required by a notice from an inspector of taxes and within the time limited by such notice, prepare and deliver to such inspector a return stating—

(a) the names and places of residence of all persons to whom rent is payable by him in respect of such premises or any part thereof, and

(b) the amounts of all rents so payable by him, and

(c) particulars of all agreements in relation to the maintenance, repair, or insurance of such premises or any part thereof or the payment of any rates or taxes payable in respect of or charged on such premises or any part thereof.

The provisions of the Income Tax Acts relating to the failure to deliver lists, declarations, and statements in accordance with a general or particular notice shall apply to the said returns required by this rule.”

(2) Sub-section (1) of section 10 of the Finance Act, 1929 (No. 32 of 1929), shall not apply to any income assessed under Rule 5 added by this section to the rules applicable to Case III of Schedule D of the Income Tax Act, 1918.

7. —(1) Where an individual who is resident in Saorstát Eireann and is not resident elsewhere claims and proves to the satisfaction of the Special Commissioners that he is entitled to the beneficial ownership of any stock, shares, or security to which this section applies, the following provisions shall have effect, that is to say:—

(a) such individual shall be entitled to repayment of twenty per cent. of the income tax applicable to any dividend or interest received by him in respect of such stock, shares, or security, save in so far as relief or repayment in respect of such tax has been or is granted under any other provision of the Income Tax Acts;

(b) in estimating the total income from all sources of such individual for the purposes of income tax and sur-tax the amount of any dividend or interest in respect of such stock, shares, or security shall be deemed to be diminished by twenty per cent.

(2) This section shall apply to all stocks, shares, and securities issued for public subscription after the passing of this Act in respect of which the Minister for Finance certifies that he is satisfied, after consultation with the Minister for Industry and Commerce, that all the following conditions are complied with in relation to such stock, share, or security, that is to say:—

(a) such stock, share, or security is or was issued by a company which complies with the following provisions that is to say, such company—

(i) is incorporated by or under the laws of Saorstát Eireann, and

(ii) is a company limited by shares within the meaning of the Companies (Consolidation) Act, 1908, and

(iii) is managed and controlled in Saorstát Eireann, and

(iv) carries on or (in the case of a company which has not commenced to carry on business) intends to carry on its business wholly or mainly in Saorstát Eireann; and

(b) the capital raised by the issue of such stock, share, or security is or is intended to be or has been devoted to the establishment or extension in Saorstát Eireann of one or more industries as defined by this section; and

(c) no part of the said capital so raised is intended to be or is being or has been used for the purpose of acquiring (directly or indirectly) an existing business or any share or interest in an existing business or of purchasing investments, or of paying off existing loans or debentures; and

(d) such issue of stock, shares, or security is so described and designated that it is readily distinguishable from all other (if any) issues of such company.

(3) Every warrant, cheque, or order drawn or made for the payment of any dividend or interest in respect of any stock, share, or security to which this section applies shall indicate clearly either (as the case may require)—

(a) that the whole of the sum for which such warrant, cheque, or order is drawn or made is a payment of or on account of dividend or interest in respect of such stock, share, or security; or

(b) that a part (the amount of which is separately stated) of such sum is a payment of or on account of such dividend or interest.

(4) Any stock, share, or security to which this section applies shall cease to be a stock, share, or security (as the case may be) to which this section applies if and when the Minister for Finance certifies in relation to such stock, share, or security that he is satisfied, after consultation with the Minister for Industry and Commerce, either—

(a) that the company by which such stock, share, or security was issued has ceased to comply with the provisions set forth in paragraph (a) of sub-section (2) of this section; or

(b) that the capital raised by the issue of such stock, share, or security has been or is being devoted wholly or partly to purposes other than the establishment or extension in Saorstát Eireann of one or more industries as defined by this section; or

(c) that such capital is being used wholly or partly in contravention of paragraph (c) of sub-section (2) of this section; or

(d) that such issue of stock, shares, or security has ceased to be described and designated in accordance with paragraph (d) of sub-section (2) of this section; or

(e) that sub-section (3) of this section is not being complied with in relation to such stock, share, or security.

(5) In this section the word “industry” means any trade or business whatsoever save and except the purchase and sale of imported coal, the manufacture or distribution of gas for lighting, heating, or power, the carrying on, organisation, or conduct of road transport, the provision of amusement or entertainment of any kind, the holding (otherwise than by way of investment of reserve or subsidiary funds) of or dealing in stocks, shares, or securities, whether of all kinds or of any particular class or classes or of one or more particular companies.

8. —(1) Every allowance granted under section 8 of the Army Pensions Act, 1923 (No. 26 of 1923), as amended by the Army Pensions Act, 1927 (No. 12 of 1927), to the widow or to any child or dependent of a person who was killed during the rising of April and May, 1916, shall be exempt from income tax (including surtax), and shall not be reckoned in computing income for the purposes of the Income Tax Acts.

(2) In this section, the word “killed” has the same meaning as it has in the said section 8 of the Army Pensions Act, 1923 .

9. —(1) Where the Special Commissioners have, after the passing of this Act, entertained an appeal against an assessment to income tax for any year of assessment (whether beginning before or after the passing of this Act) and, after hearing argument on such appeal, have postponed giving their determination on such appeal either for the purpose of considering such argument or for the purpose of affording to the appellant an opportunity of submitting in writing further evidence or argument, the Special Commissioners may, unless they consider a further hearing of such appeal to be necessary, cause their determination of such appeal to be sent by post to the parties to such appeal.

(2) Where the determination of an appeal by the Special Commissioners is sent to the parties by post under this section, a declaration of dissatisfaction under paragraph (a) of sub-section (1) of section 149 of the Income Tax Act, 1918, or a notice requiring a re-hearing under sub-section (1) of section 196 of that Act may be made or given in writing within twelve days after the day on which such determination is so sent to the person making such declaration or giving such notice, as the case may be.

10. —Subject to the provisions of this section, exemption shall be granted from income tax (including super-tax, or sur-tax, as the case may be) in respect of so much of the income of a citizen of the United States of America not resident in the Irish Free State or of a corporation organised in the United States of America as is derived from the operation of a ship or ships documented under the laws of the United States of America.