PART I

Income Tax, Resource Tax, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

1. —As respects the year 1982-83 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended—

(a) in subsection (2) of section 1, by the substitution of “£4,400” for “£4,000” and of “£2,200” for “£2,000”, and

(b) in subsection (6) of section 2, by the substitution of “£5,000” for “£4,600”, of “£6,000” for “£5,600”, of “£2,500” for “£2,300” and of “£3,000” for “£2,800”,

and the said subsections (2) and (6), as so amended, are set out in the Table to this section.

TABLE

(2) In this section “the specified amount” means—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £4,400, and

(b) in any other case, £2,200.

(6) In this section “the specified amount” means—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in paragraph (a) of the said section 138, £5,000:

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £6,000;

(b) in any other case, £2,500:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £3,000.

2. —(1) Where a deduction falls to be made from the total income of an individual for the year 1982-83 or any subsequent year of assessment in respect of relief to which the individual is entitled under a provision mentioned in column (1) of the Table to this subsection and the amount of the deduction would, but for this section, be an amount specified in column (2) of the said Table, the amount of the deduction shall, in lieu of being the amount specified in the said column (2), be the amount specified in column (3) of the said Table opposite the mention of the amount in the said column (2).

TABLE

(2) Section 6 of the Finance Act, 1974 , section 6 of the Finance Act, 1978 , section 3 of the Finance Act, 1979 , section 4 of the Finance Act, 1980 , and section 2 of the Finance Act, 1981 , shall have effect subject to the provisions of this section.

(3) The First Schedule shall have effect for the purpose of supplementing subsection (1).

3. — Section 8 of the Finance Act, 1980 , is hereby amended, as respects the year 1982-83 and subsequent years of assessment, by the substitution of the following Table for the Table to the said section:

“TABLE

PART I

PART II

”

4. —(1) This section shall have effect in relation to income tax for the year 1982-83 and subsequent years of assessment.

(2) (a) In relation to a person chargeable to tax in respect of an employment, this section shall have effect for a year of assessment in relation to a car which, by reason of the employment, is made available (without a transfer of the property in it) to him and it is in that year available for his private use.

(b) In relation to a car in respect of which this section has effect for a year of assessment—

(i) Chapter III of Part V of the Income Tax Act, 1967 , shall not have effect for that year in relation to the expense incurred in connection with the provision of the car, and

(ii) for that year, there shall be treated as emoluments of the employment by reason of which the car is made available, and accordingly chargeable to income tax, the amount, if any, by which the cash equivalent of the benefit of the car for the year exceeds the aggregate for the year of the amounts which the employee is required to make good and actually makes good to the employer in respect of any part of the costs of providing or running the car:

Provided that any part of such aggregate in respect of which the said cash equivalent is reduced under subsection (3) (a) shall be disregarded for the purposes of this subparagraph.

(3) (a) The cash equivalent of the benefit of a car for a year of assessment shall be 20 per cent. of the original market value of the car, but shall be reduced—

(i) where no part of the cost, for that year, of the fuel used in the course of the private use of the car by the employee is borne directly or indirectly by the employer, by 3 per cent. of the original market value of the car,

(ii) where no part of the cost, for that year, of the insurance of the car is borne directly or indirectly by the employer, by 2 per cent. of the original market value of the car,

(iii) where no part of the cost, for that year, of repair and servicing of the car is borne directly or indirectly by the employer, by 2 per cent. of the original market value of the car, and

(iv) where no part of the excise duty, for that year, on the licence under section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952 , relating to the car is borne directly or indirectly by the employer, by ½ per cent. of the original market value of the car.

(b) Where a car in respect of which this section has effect in relation to a person for a year of assessment is made available to him for part only of that year, the cash equivalent of the benefit of that car as respects that person for that year shall be an amount which bears to the full amount of the cash equivalent of the said car for that year (ascertained under paragraph (a)) the same proportion as that part of the year bears to the said year.

(4) (a) Where, in relation to a person, the business mileage for a year of assessment exceeds 10,000, the cash equivalent of the benefit of the car for that year, instead of being the amount ascertained under subsection (3), shall be the percentage of that amount applicable to that business mileage under the Table to this subsection.

(b) In the Table to this subsection any percentage shown in column (3) is that applicable to any business mileage for a year of assessment which

(i) exceeds the lower limit shown in column (1), and

(ii) does not exceed the upper limit (if any) shown in column (2),

opposite the mention of that percentage in column (3).

TABLE

(5) (a) Where any amount is to be treated as emoluments of an employment under subsection (2) (b) (ii) for a year of assessment, it shall be the duty of the person who is chargeable to tax in respect of that amount to deliver in writing to the inspector, not later than thirty days after the end of that year, particulars of the car, of its original market value, and of the business mileage and private mileage for the year of assessment.

(b) If, in relation to a year of assessment—

(i) a person makes default in the delivery of particulars in relation to the original market value of a car in respect of which this section has effect in relation to him or in relation to his business mileage or his private mileage for the year, or

(ii) the inspector is not satisfied with the particulars which have been delivered by the person,

then the original market value or business mileage or private mileage which is to be taken into account for the purpose of computing the amount of the tax to which that person is to be charged shall be such value or mileage, as the case may be, as, according to the best of the inspector's judgment, ought to be so taken into account:

Provided that, in the absence of sufficient evidence to the contrary, the business mileage for a year of assessment in relation to a person shall be determined by deducting 5,000 from the total number of miles travelled in that year by that person in a car or cars in respect of which this section has effect in relation to him.

(c) The inspector, in making a computation for the purposes of an assessment or of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), before the end of the year of assessment to which the computation relates, in relation to a person in relation to whom this section has effect for that year of assessment, shall make an estimate of that person's business mileage for the purpose of the computation, and the provisions of section 528 of the Income Tax Act, 1967 , shall, with any necessary modifications, have effect in relation to the estimate so made as it has in relation to an estimate made under that section.

(d) A value or mileage taken into account under paragraph (b) may be amended by the Appeal Commissioners or the Circuit Court on the hearing or the rehearing of an appeal against an assessment in respect of the employment in the performance of the duties of which the business mileage is done.

(6) (a) This subsection applies to any car in the case of which the inspector is satisfied (whether on a claim under this subsection or otherwise) that it has for any year been included in a car pool for the use of the employees of one or more employers.

(b) A car is to be treated as having been so included for a year if—

(i) in that year it was made available to, and actually used by, more than one of those employees and, in the case of each of them, it was made available to him by reason of his employment but it was not in that year ordinarily used by any one of them to the exclusion of the others; and

(ii) in the case of each of them any private use of the car made by him in that year was merely incidental to his other use of it in the year; and

(iii) it was in that year not normally kept overnight on or in the vicinity of any residential premises where any of the employees was residing, except while being kept overnight on premises occupied by the person making the car available to them.

(c) Where this subsection applies to a car, then for the year in question the car is to be treated under this section as not having been available for the private use of any of the employees.

(d) A claim under this subsection in respect of a car for any year may be made by any one of the employees mentioned in paragraph (b) (i) above (they being referred to in paragraph (e) as “the employees concerned”) or by the employer on behalf of all of them.

(e) (i) Any person who is aggrieved by a decision of the inspector on any question arising under this subsection may, by notice in writing to that effect given to the inspector within two months from the date on which notice of the decision is given to him, make an application to have his claim for relief heard and determined by the Appeal Commissioners.

(ii) Where an application is made under subparagraph (i), the Appeal Commissioners shall hear and determine the claim in like manner as an appeal made to them against an assessment and all the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

(iii) On an appeal against the decision of the inspector on a claim under this section all the employees concerned may take part in the proceedings, and the determination of the Appeal Commissioners or the Circuit Court, as the case may be, shall be binding on all those employees, whether or not they have taken part in the proceedings.

(iv) Where an appeal against the decision of the inspector on a claim under this subsection has been determined, no appeal against the inspector's decision on any other such claim in respect of the same car while in the same car pool and the same year shall be entertained.

(7) Section 178 (1) of the Income Tax Act, 1967 , is hereby amended by the insertion after paragraph (aa) of the following paragraph:

“(aaa) particulars of any car, within the meaning of section 4 of the Finance Act, 1982, made available to those persons by reason of that employment;”.

(8) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column (1) thereof of “Finance Act, 1982, section 4”.

(9) (a) In this section—

“business mileage for a year of assessment”, in relation to a person, means the total number of whole miles travelled in the year in the course of business use by that person of a car or cars in respect of which this section has effect in relation to that person;

“business use”, in relation to a car in respect of which this section has effect in relation to a person, means travelling in the car which that person is necessarily obliged to do in the performance of the duties of his employment;

“car” means any mechanically propelled road vehicle constructed or adapted for the carriage of passengers other than a vehicle of a type not commonly used as a private vehicle and unsuitable to be so used;

“employment” means an office or employment of profit such that any emoluments (within the meaning of section 111 of the Income Tax Act, 1967 ) thereof would fall to be charged to tax and related expressions shall be construed accordingly;

“private use”, in relation to a car, means use of the car other than business use.

(b) For the purposes of this section—

(i) (I) a car made available in any year to an employee by reason of his employment is deemed to be available in that year for his private use unless the terms on which the car is so made available prohibit such use and no such use is made of the car in that year;

(II) a car made available to an employee by his employer or by a person connected with the employer is deemed to be made available to him by reason of his employment (unless the employer is an individual and it can be shown that the car was made so available in the normal course of his domestic, family or personal relationships);

(III) a car shall be treated as available to a person and for his private use if it is available to a member or members of his family or household;

(IV) references to a person's family or household are references to his spouse, his sons and daughters and their spouses, his parents and his servants, dependants and guests;

(ii) in relation to a car in respect of which this section has effect expenditure in respect of any costs borne by a person connected with the employer shall be treated as borne by the employer;

(iii) a person shall be regarded as connected with another person if he would be so regarded under section 16 (3) of the Finance (Miscellaneous Provisions) Act, 1968 , for the purposes of Part IV of that Act;

(iv) the original market value of a car is the price (including any duty of customs, duty of excise, or value-added tax, chargeable on the car) which it might reasonably have been expected to fetch if sold in the State singly in a retail sale in the open market immediately before the date of its first registration in the State under section 6 of the Roads Act, 1920, or under corresponding earlier legislation, or elsewhere under the corresponding legislation of any country or territory.

5. —(1) The Income Tax Act, 1967 , is hereby amended by the insertion after section 142 of the following section:

“142A.—(1) In this section—

‘residential premises’ means property held under a tenancy, being—

(a) a building or part of a building used or suitable for use as a dwelling, and

(b) land which the occupier of a building or part of a building used as a dwelling has for his own occupation and enjoyment with the said building or part as its garden or grounds of an ornamental nature;

‘rent’ includes any periodical payment in the nature of rent made in return for a special possession of residential premises, or for the use, occupation or enjoyment of residential premises, but does not include so much of any rent or payment as—

(a) is paid or made to defray the cost of maintenance of or repairs to residential premises for which in the absence of agreement to the contrary the tenant would be liable,

(b) relates to the provision of goods or services,

(c) relates to any right or benefit other than the bare right to use, occupy and enjoy residential premises, or

(d) is the subject of a right of reimbursement or a subsidy from any source enjoyed by the person making the payment, unless such reimbursement or subsidy cannot be obtained;

‘tenancy’ includes any contract, agreement or licence, under or in respect of which rent is paid, but does not include—

(a) a tenancy which, apart from any statutory extension, is a tenancy for a freehold estate or interest or for a definite period of 50 years or more,

(b) a tenancy in relation to which the person beneficially entitled to the rent is a Minister of the Government, the Commissioners of Public Works in Ireland, or a housing authority for the purposes of the Housing Act, 1966 , or

(c) a tenancy in relation to which an agreement or provision exists under which the rent paid or part of it is or may be treated as consideration or part consideration, in whatever form, for the creation of a further or greater estate, tenancy or interest in the residential premises concerned or in any other property.

(2) (a) In relation to income tax for 1983-84 and each subsequent year of assessment, if an individual (referred to in this section as ‘a claimant’) proves that—

(i) at any time during the year of assessment he was of the age of sixty-five years or upwards, and

(ii) in the year ending on the 31st day of December prior to that year of assessment, he has made a payment on account of rent in respect of residential premises which, during the period in respect of which the payment was made, was his only or main residence,

he shall be entitled to a deduction of an amount equal to the aggregate of all such payments proved to be so made, or to the relevant limit, whichever is the lesser:

Provided that in the case of a claimant who is a husband assessed to tax for the year of assessment in accordance with the provisions of section 194, any payments made by his spouse, in respect of which she would have been entitled to relief under this section if she were assessed to tax for the year of assessment in accordance with the provisions of section 193 (apart from the proviso thereto), shall be deemed to have been made by the claimant.

(b) In this subsection ‘the relevant limit’ means—

(i) in the case of a claimant who is entitled to a deduction under section 138 (a), £1,000, and

(ii) in any other case, £500.

(3) (a) Where a payment is made partly on account of rent and partly on account of anything which is not rent, such apportionment of the payment shall be made as is necessary in order to determine for the purposes of this section the amount paid on account of rent.

(b) Any apportionment required by this subsection shall be made by the inspector according to the best of his knowledge and judgment.

(c) (i) Any person who is aggrieved by a decision of the inspector on any question arising under this subsection may, by notice in writing to that effect given to the inspector within thirty days from the date on which notice of the decision is given to him, make an application claiming relief against the decision and the claim shall be heard and determined by the Appeal Commissioners.

(ii) Where an application is made under subparagraph (i), the Appeal Commissioners shall hear and determine the claim in like manner as an appeal made to them against an assessment and all the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

(4) Where a payment on account of rent is made in respect of any period, that payment shall be deemed for the purposes of this section to be made in the year into which the period falls:

Provided that if the period falls partly into one year and partly into another year, the amount of the payment made in respect of that period shall be apportioned to each year in the proportion which the part of the period falling into that year bears to the whole of the period and the amount so apportioned to a year shall be deemed, for the purposes of this section, to be paid in that year.

(5) (a) Any claim for relief under this section in respect of a payment on account of rent shall be accompanied by—

(i) a certificate and statement in a form (being a form prescribed by the Revenue Commissioners) signed by the claimant setting forth—

(A) the name, address and income tax reference number of the claimant,

(B) the name and address of the person or body of persons beneficially entitled to the rent under the tenancy under which the rent was paid,

(C) the postal address of the premises in respect of which the rent was paid, and

(D) full particulars of the tenancy under which the rent was paid,

and

(ii) in respect of each payment on account of rent in respect of which relief is claimed a receipt or acknowledgement given pursuant to the provisions of subsection (6).

(b) Failure to furnish any of the particulars mentioned in paragraph (a) (i) or failure to furnish a receipt or acknowledgement mentioned in paragraph (a) (ii) shall be grounds for refusal of the claim:

Provided that—

(i) the inspector may waive the requirement at paragraph (a) (i) (B) on receipt of satisfactory proof that the claimant's inability to comply therewith is bona fide, and

(ii) the inspector may waive the requirement at paragraph (a) (ii) on receipt of satisfactory proof of the total rent paid in the relevant period and on being furnished with the name and address of the person or body of persons to whom it was paid.

(c) (i) Any person who is aggrieved by a decision of the inspector on any question arising under this subsection may, by notice in writing to that effect given to the inspector within thirty days from the date on which notice of the decision is given to him, make an application to have his claim for relief heard and determined by the Appeal Commissioners.

(ii) Where an application is made under subparagraph (i), the Appeal Commissioners shall hear and determine the claim in like manner as an appeal made to them against an assessment to tax and all the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

(6) (a) Where at any time after the passing of this Act a payment is made on account of rent by a person (hereafter in this subsection referred to as ‘the tenant’) who is entitled to relief under this section or who has reason to believe that he may be so entitled and at the time of such payment the tenant requests a receipt or acknowledgement of the payment, the person or body of persons beneficially entitled to the rent shall, within 7 days from the date of the payment, give to the tenant a receipt or acknowledgement of that payment and, thereafter, in respect of any subsequent payment on account of rent to which that person or body of persons is beneficially entitled and which is made by the tenant, the person or body of persons shall, within 7 days from the date of the payment, give to the tenant a receipt or acknowledgement of the payment, whether requested to do so or not.

(b) Any receipt or acknowledgement given pursuant to this subsection shall be in writing and shall contain—

(i) the name and address of the tenant,

(ii) the name and address of the person or body of persons giving the receipt or acknowledgement, and

(iii) the amount of the payment and the period in respect of which it is paid.

(7) (a) The Revenue Commissioners may make regulations, for the purpose of giving effect to this section, with respect to the allowance granted by this section, or to any matter ancillary or incidental thereto, or, in particular and without prejudice to the generality of the foregoing, to provide for—

(i) the proof by a claimant of payment on account of rent,

(ii) the disclosure of information by a person in receipt of a payment on account of rent,

(iii) the maintenance of records and the production to and inspection by persons authorised by the Revenue Commissioners of such records and the taking by such persons of copies of, or of extracts from, such records,

(iv) for appeals with respect to matters arising under the regulations which would not otherwise be the subject of an appeal.

(b) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(8) Any deduction under this section shall be in substitution for, and not in addition to, any deduction to which the individual might be entitled in respect of the same payments under any other provision of the Income Tax Acts.”.

(2) The Income Tax Act, 1967 , is hereby further amended—

(a) in section 198(1)(a), by the insertion in subparagraph (iv) after “sections” of “142A,”, and

(b) in Schedule 15, by the insertion in column (1) of “section 142A or Regulations thereunder”.

6. —(1) In this section—

“insurable employment” has the meaning assigned to it by section 2 (1) of the Social Welfare (Consolidation) Act, 1981 ;

“specified emoluments” means emoluments within the meaning of section 111 (4) of the Income Tax Act, 1967 , which arise to a specified employed contributor from an insurable employment;

“specified employed contributor” means a person who is an employed contributor for the purposes of the Social Welfare (Consolidation) Act, 1981 , but does not include a person—

(a) who is an employed contributor for those purposes by reason only of sect ion 65 (1) of that Act,

(b) in whose case section 10(7) of that Act has effect, or

(c) to whom Article 7 of the Social Welfare (Modifications of Insurance) Regulations, 1979 (S.I. No. 87 of 1979), applies.

(2) For the purpose of ascertaining the amount of the income on which an individual (being an individual who is a specified employed contributor) is to be charged to income tax for the year 1982-83 in a case where the total income of the individual for the said year consists of or includes specified emoluments (including in a case where the individual is a husband who is assessed to tax in accordance with the provisions of section 194 of the Income Tax Act, 1967 , any specified emoluments of his wife which are deemed to be income of his by that section for the purposes referred to in that section)—

(i) a deduction of £312 shall be made from so much, if any, of the specified emoluments (but not including, in the case where the individual is a husband assessed as aforesaid, the specified emoluments, if any, of his wife) as arise to the individual, and

(ii) in the case where the individual is a husband assessed as aforesaid, a deduction of £312 shall be made from so much, if any, of the specified emoluments as arise to his wife.

(3) Any deduction to be made under this section from specified emoluments shall be given in priority to any deduction to be made under section 138B of the Income Tax Act, 1967 , from those emoluments.

(4) All such provisions of the Income Tax Acts as apply in relation to the deductions specified in sections 138 to 143 of the Income Tax Act, 1967 , shall apply in relation to a deduction under this section.

7. —In relation to income tax for the year 1982-83 and subsequent years of assessment, section 152 of the Income Tax Act, 1967 , is hereby amended by the insertion of the following subsection after subsection (1):

“(1A) (a) In this subsection—

‘policy of insurance’ includes a provision or arrangement for the purpose of securing a deferred annuity;

‘premium’ includes such a sum as is referred to in section 143(1)(b);

‘special terms’, in relation to a policy of insurance, means terms or conditions which, by reason of special circumstances concerning the health of the insured person, are less favourable as to the amounts of the premiums payable than those which would otherwise be available from the same insurer.

(b) Where the aggregate amount of the premiums paid on a policy of insurance containing special terms is in excess of the aggregate amount of the premiums which would have been payable on the policy of insurance if it did not contain special terms and were in all other respects unchanged—

(i) relief shall be given under sections 143 and 151 in respect of the amount of the excess without regard to the provisions of subsection (1), and

(ii) in determining the amount of any other relief to be given under those sections, apart from relief in respect of the excess, subsection (1) shall have effect as if the excess had not been paid.”.

8. —(1) (a) In this section—

“employee”, in relation to an employer, means an individual employed by the said employer in an employment to which Chapter III of Part V of the Income Tax Act, 1967 , applies including, in a case where the employer is a body corporate, a director, within the meaning of that Chapter, of the body corporate;

“employer”, in relation to an individual, means—

(i) a person of whom the individual or his spouse is an employee,

(ii) a person of whom the individual becomes an employee subsequent to the making of a loan by the person to the individual, and while any part of the loan, or of another loan replacing it, is outstanding,

(iii) a person connected with a person referred to in paragraph (i) or (ii);

“loan” includes any form of credit, and references to a loan include references to any other loan applied directly or indirectly towards the replacement of another loan;

“preferential loan” means a loan, in respect of which no interest is payable or interest is payable at a preferential rate, made directly or indirectly to an individual or his spouse by a person who in relation to the individual is an employer;

“preferential rate” means a rate less than the specified rate;

“the specified rate” means—

(i) subject to paragraph (ii) of this definition, the rate of 12 per cent. per annum or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, or

(ii) in a case where—

(I) a preferential loan is made to an employee by an employer,

(II) the making of loans, for a stated term of years at a rate of interest which does not vary for the duration of the loan, forms part of the trade of the employer, and

(III) the rate of interest at which the employer in the course of his trade at the time the preferential loan is or was made makes or made loans at arm's length to persons, other than employees, for the purposes of purchasing a dwelling-house for occupation by the borrower as a residence is less than 12 per cent. per annum,

the first-mentioned rate in subparagraph (III).

(b) For the purposes of this section a person shall be regarded as connected with another person if he would be so regarded for the purposes of section 8 of the Finance Act, 1978 .

(c) In this section a reference to a loan being made by a person includes a reference to a person assuming the rights and liabilities of the person who originally made the loan and to a person arranging, guaranteeing or in any way facilitating a loan or the continuation of a loan already in existence.

(2) Where an individual has, at any time during a year of assessment, being the year 1982-83 or any subsequent year of assessment, a preferential loan or loans made directly or indirectly to him by a person who, at the time the loan is made, is, or at a time subsequent to the making of the loan, becomes, an employer in relation to the individual, the individual shall, subject to the provisions of subsection (4), be regarded for the purposes of section 110 of the Income Tax Act, 1967 , or, in a case where profits or gains from an employment with that person would be chargeable to tax under Case III of Schedule D, for the purposes of a charge to tax under the said Case III, as having received in that year of assessment as a perquisite of an office or employment with that person a sum equal to—

(a) if no interest is payable on the preferential loan or loans, the amount of interest which would have been payable in that year, if interest had been payable on the loan or loans at the specified rate, or

(b) if interest is paid or payable at a preferential rate or rates, the difference between the aggregate amount of interest paid or payable in that year and the amount of interest which would have been payable in that year, if interest had been payable on the loan or loans at the specified rate,

and the individual or, in the case of an individual who is a wife whose husband is chargeable to tax for the year of assessment in accordance with the provisions of section 194 of the Income Tax Act, 1967 , the husband of the individual, shall be charged to tax accordingly.

(3) Where an individual has a loan made to him directly or indirectly in the year 1982-83 or any subsequent year of assessment, by a person who, at the time the loan is made or at a time subsequent to the making of the loan, is or becomes an employer in relation to the individual and the loan or any interest payable on the loan is released or written off, in whole or in part, the individual shall be deemed for the purposes of section 110 of the Income Tax Act, 1967 , or in a case where profits or gains from an employment with that person would be chargeable to tax under Case III of Schedule D for the purposes of a charge to tax under the said Case III, to have received in the year of assessment in which the release or writing off took place as a perquisite of an office or employment with that person a sum equal to that which is released or written off and the individual or, in the case of an individual who is a wife whose husband is chargeable to tax for the year of assessment in accordance with the provisions of section 194 of the Income Tax Act, 1967 , the husband of the individual shall be charged to tax accordingly.

(4) Where for any year of assessment a sum is chargeable to tax under subsection (2) in respect of a preferential loan or loans or under subsection (3) in respect of an amount of interest written off or released, the individual to whom the loan or loans were made shall be deemed, for the purposes of sections 76 (1) and 496 of, and paragraph 1 (2) of Part III of Schedule 6 to, the Income Tax Act, 1967 , to have paid in the year of assessment an amount or additional amount of interest, as the case may be, on the loan or loans equal to the said sum or the individual by whom the interest written off or released was payable shall be deemed for the said purposes to have paid in the year of assessment the interest released or written off.

(5) This section shall not apply to a loan made by an employer, being an individual, and shown to have been made in the normal course of his domestic, family or personal relationships.

(6) Section 178 (1) of the Income Tax Act, 1967 , is hereby amended by the substitution for paragraph (aa) of the following paragraph—

“(aa) particulars of any preferential loan, within the meaning of section 8 of the Finance Act, 1982, which is made, released or written off by him, in whole or in part, and particulars of any interest released, written off or refunded by him in whole or in part and which was payable or paid on a preferential loan; and”.

(7) Any amount chargeable to tax by virtue of this section shall not be emoluments for the purpose of section 138B of the Income Tax Act, 1967 .

(8) Section 10 of the Finance Act, 1979 , shall not apply or have effect in relation to the year 1982-83 or any subsequent year of assessment.

(9) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

9. —(1) In this section—

“military service” means the performance of duty as a member of an organisation to which Part II of the Army Pensions Act, 1932 , applies, but includes military service within the meaning of that Part of that Act, military service within the meaning of the Military Service Pensions Act, 1924 , and service in the Forces within the meaning of the Military Service Pensions Act, 1934 ;

“relevant legislation” means the Army Pensions Acts, 1923 to 1980, the Military Service Pensions Acts, 1924 to 1964, the Connaught Rangers (Pensions) Acts, 1936 to 1964, any Act passed before or after the passing of this Act amending any of those Acts and any regulation (in so far as it affects a pension, allowance, benefit or gratuity under any of those Acts or any Act so passed) made before or after such passing under the Pensions (Increase) Act, 1964 , or under any of those Acts or any such Act so passed;

“relevant military service” means military service during any part of a period referred to in section 5 (2) of the Army Pensions Act, 1932 , or, in the case of a qualified person within the meaning of the Connaught Rangers (Pensions) Act, 1936 , the circumstances referred to in paragraphs (a), (b) and (c) of section 2 of that Act;

“veteran of the War of Independence” means a person who—

(a) was a member of an organisation to which Part II of the Army Pensions Act, 1932 , applies, or a qualified person within the meaning of the Connaught Rangers (Pensions) Act, 1936 , and

(b) was engaged in relevant military service.

(2) A pension, allowance, benefit or gratuity, in so far as it is related to the relevant military service of a veteran of the War of Independence, or to an event which happened during or in consequence of such relevant military service, which is paid under the relevant legislation—

(a) to such veteran or

(b) to the wife or widow or to a child or other dependant or partial dependant of such veteran,

shall be exempt from tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.

(3) This section shall have effect for the year 1980-81 and subsequent years of assessment.

10. — Section 485 (5) of the Income Tax Act, 1967 , is hereby amended, with effect as on and from the date of the passing of this Act—

(a) by the substitution in paragraphs (a) and (b) of “£15,000” for “£2,000” (inserted by the Finance Act, 1972 ), and

(b) by the substitution in paragraphs (b) and (c) of “£2,500” for “£250” (inserted by the Finance Act, 1972 ),

and the said paragraphs, as so amended, are set out in the Table to this section.

TABLE

(a) if the sum certified in the certificate to be in default exceeds £15,000, to charge and (where appropriate) to add to that sum and (in any case) to levy under the certificate such fees and expenses, calculated according to the scales appointed by the Minister for Justice under paragraph (a) of subsection (1) of section 14 of the Enforcement of Court Orders Act, 1926 , and for the time being in force, as he would be entitled so to charge or add and to levy if the certificate were an execution order within the meaning of the Enforcement of Court Orders Act, 1926 , (in this section referred to as an “execution order”) of the High Court,

(b) if the sum certified in the certificate to be in default exceeds £2,500 but does not exceed £15,000, to charge and (where appropriate) to add to that sum and (in any case) to levy under the certificate such fees and expenses, calculated according to the said scales, as he would be entitled so to charge or add and to levy if the certificate were an execution order of the Circuit Court, and

(c) if the sum certified in the certificate to be in default does not exceed £2,500, to charge and (where appropriate) to add to that sum and (in any case) to levy under the certificate such fees and expenses, calculated according to the said scales, as he would be entitled so to charge or add and to levy if the certificate were an execution order of the District Court.

11. — Section 486 of the Income Tax Act, 1967 , is hereby amended, with effect as on and from the date of the passing of this Act—

(a) by the substitution in subsection (1) of “£15,000” for “£2,000” (inserted by the Finance Act, 1972 ), and

(b) by the substitution in subsection (2) of “£2,500” for “£250” (inserted by the Finance Act, 1972 ),

and the said subsections (1) and (2), as so amended, are set out in the Table to this section.

TABLE

(1) Where the amount due (whether before or after the passing of this Act) in respect of income tax does not exceed £15,000, the Collector or other officer of the Revenue Commissioners, duly authorised to collect the said tax may sue in his own name in the Circuit Court for the said amount so due as a debt due to the Minister for Finance.

(2) Where the amount so due does not exceed £2,500, the Collector or other officer of the Revenue Commissioners duly authorised to collect the said tax may sue in his own name in the District Court for the said amount so due as a debt due to the Minister for Finance.

12. —Section 7 of, and the Second Schedule to, the Finance Act, 1979 , shall have effect, for the purpose of ascertaining the amount of income on which a person is to be charged to income tax for the year 1982-83, as if—

(a) “1982-83” were substituted for “1979-80” in subsection (1), and the following proviso were added to the said subsection:

“Provided also that in a case where the claimant is a husband who is assessed to tax in accordance with the provisions of section 194 of the Income Tax Act, 1967 , this subsection shall have effect as if ‘£900’ were substituted for‘£450’”,

and

(b) in paragraph 1 of that Schedule—

(i) “the period commencing on the 6th day of April, 1982, and ending on the 5th day of April, 1983” were substituted for “the period commencing on the 6th day of April, 1979, and ending on the 5th day of April, 1980” in the definition of “qualifying period”, and

(ii) “the 5th day of April, 1982” were substituted for “the 5th day of April, 1979” in the definition of “residential premises”,

and

(c) in paragraph 4 (1) of that Schedule, “1982-83” were substituted for “1979-80”.