First Previous (Chapter IV Corporation tax) Next (Chapter VI Income Tax and Corporation Tax: Relief for Certain Capital Expenditure)

16 1981

FINANCE ACT, 1981

Chapter V

Income Tax And Corporation Tax

Exemption of payments out of Employers' Temporary Subvention Fund.

18. —(1) A payment to which this section applies shall be disregarded for all the purposes of the Tax Acts.

(2) This section applies to any payment made, whether before or after the passing of this Act, to an employer in respect of a person employed by him, being a payment out of the fund known as the Employers' Temporary Subvention Fund which was established on the 28th day of August, 1980, and is administered by a committee representative of the Irish Congress of Trade Unions, the Federated Union of Employers and the Confederation of Irish Industry.

Amendment of section 34 (exemption from tax of income from patent royalties) of Finance Act, 1973.

19. Section 34 (3) of the Finance Act, 1973 , is hereby amended by the substitution of “an invention which is the subject of a qualifying patent” for “an invention which is the subject of a patent”, and the said section 34 (3), as so amended, is set out in the Table to this section.

TABLE

(3) Where, under section 92 of the Patents Act, 1964 , or any corresponding provisions of the law of any other country, an invention which is the subject of a qualifying patent is made, used, exercised or vended by or for the service of the State or the government of the country concerned, the provisions of this section shall have effect as if the making, user, exercise or vending of the invention had taken place in pursuance of a licence and any sums paid in respect thereof were income from a qualifying patent.

Amendment of provisions relating to relief in respect of increase in stock values.

20. —(1) Section 31A (inserted by the Finance Act, 1976 ) of the Finance Act, 1975 , is hereby amended by the substitution of “1981” for “1980”—

(a) in paragraph (iv) (inserted by the Finance Act, 1979 ) of the proviso (inserted by the Finance Act, 1977 ) to subsection (4) (a),

(b) in subsection (7) (inserted by the Finance Act, 1977 ), and

(c) in subsection (9) (inserted by the Finance Act, 1977 ) in each place where it occurs,

and the said paragraph, the said subsection (7) (other than the proviso) and the said subsection (9) (other than the proviso), as so amended, are set out in the Table to this subsection.

TABLE

(iv) a deduction shall not be allowed under the provisions of this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 1981.

(7) Where in relation to an accounting period a company's opening stock value exceeds its closing stock value, the amount of the excess (in this section referred to as the company's “decrease in stock value”) shall, if the accounting period ends on a date before the 6th day of April, 1981, be treated in the computation of the company's trading income for the purposes of corporation tax, as a trading receipt of the company's trade for that accounting period:

(9) In the computation of a company's trading income for the purposes of corporation tax for any accounting period which ends on or after the 6th day of April, 1981, in which there is a decrease in stock value, there shall be treated as a trading receipt of the company's trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C where—

A is the aggregate amount of the company's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1981,

B is the aggregate amount of the company's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1981, and

C is the aggregate of the amounts which under this subsection are treated as trading receipts of the company's trade for preceding accounting periods:

(2) Section 12 of the Finance Act, 1976 , is hereby amended—

(a) by the substitution of “, 1980-81 or 1981-82” for “or 1980-81” (inserted by the Finance Act, 1980 ) in paragraph (c) (inserted by the Finance Act, 1979 ) of subsection (2),

(b) by the substitution in subsection (3) of “1981-82” for “1980-81” (inserted by the Finance Act, 1980 ), and

(c) by the substitution of “1981” for “1980” (inserted by the Finance Act, 1980 ) in each place where it occurs in subsection (5) (inserted by the Finance Act, 1978 ) and subsection (6) (inserted by the Finance Act, 1977 ),

and the said paragraph, the said subsection (3), the said subsection (5) (other than the proviso) and the said subsection (6) (other than the proviso), as so amended, are set out in the Table to this subsection.

TABLE

(c) Where a deduction allowed by virtue of this section in computing a person's trading profits of a trade for an accounting period has effect for the year 1979-80, 1980-81 or 1981-82, the amount of the deduction shall, notwithstanding any provision to the contrary, be three-fourths of the amount which, apart from this paragraph, would be the amount of the deduction for that accounting period.

(3) Any deduction allowed by virtue of this section in computing a person's trading profits for an accounting period shall not have effect for any purpose of the Income Tax Acts for any year of assessment prior to the year 1974-75 or later than the year 1981-82.

(5) In the computation of a person's trading income for an accounting period in which there is a decrease in stock value and which ends on a date in the period from the 6th day of April, 1976, to the 5th day of April, 1981, the amount of that decrease shall be treated as a trading receipt of the trade for that accounting period:

(6) In the computation of a person's trading income for any accounting period in which there is a decrease in stock value and which ends on or after the 6th day of April, 1981, there shall be treated as a trading receipt of the trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C

where—

A is the aggregate amount of the person's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1981,

B is the aggregate amount of the person's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1981, and

C is the aggregate of the amounts which are treated as trading receipts of the person's trade for preceding accounting periods which ended on or after the 6th day of April, 1981:

Extension of section 67 (distributions to non-resident individuals) of Corporation Tax Act, 1976.

21. Section 67 of the Corporation Tax Act, 1976 , shall, with any necessary modifications, apply in relation to a distribution to which section 64 of that Act applies, which is made on or after the 6th day of April, 1978, and which is received by a company that is not resident in the State as it applies in relation to a distribution received by an individual.

Amendment of section 152 (provisions as to tax under section 151) of Corporation Tax Act, 1976.

22. Section 152 of the Corporation Tax Act, 1976 , is hereby amended, as respects any assessment to income tax which is made on or after the date of the passing of this Act, by the insertion after subsection (3) of the following subsection:

“(4) Section 551 (1) of the Income Tax Act, 1967 , shall not apply where, by virtue of section 98 (4), there is any discharge or repayment of tax assessed under section 151.”.