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13 1986

FINANCE ACT, 1986

PART VI

Miscellaneous

Capital Services Redemption Account.

111. —(1) In this section—

the principal section” means section 22 of the Finance Act, 1950 ;

the 1985 amending section” means section 66 of the Finance Act, 1985 ;

the thirty-sixth additional annuity” means the sum charged on the Central Fund under subsection (4);

the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1986, subsection (4) of the 1985 amending section shall have effect with the substitution of “£38,647,426” for “£40,369,034”.

(3) Subsection (6) of the 1985 amending section shall have effect with the substitution of “£29,258,176” for “£31,028,550”.

(4) A sum of £41,472,176 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of December, 1986.

(5) The thirty-sixth additional annuity shall be paid into the Account in such manner and at such times in the relevant financial year as the Minister may determine.

(6) Any amount of the thirty-sixth additional annuity, not exceeding £31,876,450 in any financial year, may be applied towards defraying the interest on the public debt.

(7) The balance of the thirty-sixth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

Application of Age of Majority Act, 1985.

112. —(1) Notwithstanding the provisions of subsection (4) of section 2 of the Age of Majority Act, 1985 , subsections (2) and (3) of the said section 2 shall, subject to subsection (2), apply and have effect for the purposes of the Income Tax Acts and any other statutory provision (within the meaning of the said Act) dealing with the imposition, repeal, remission, alteration or regulation of any tax or other duty under the care and management of the Revenue Commissioners and accordingly subparagraph (vii) of paragraph (b) of the said subsection (4) shall cease to have effect.

(2) Nothing in subsection (1) shall affect a claimant's entitlement to a deduction under section 138A (inserted by the Finance Act, 1985 ) or section 141 (inserted by this Act) of the Income Tax Act, 1967 .

(3) This section shall be deemed to have come into force and shall take effect as on and from the 6th day of April, 1986, and so far as it relates to gift tax or inheritance tax shall have effect in relation to gifts and inheritances taken on or after that date.

Use of electronic data processing.

113. —(1) In this section—

the Acts” means—

(a) the Tax Acts,

(b) the Capital Gains Tax Acts,

(c) section 24 of the Value-Added Tax Act, 1972 ,

(d) the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act, and

(e) Part VI of the Finance Act, 1983 ,

and any instruments made thereunder;

records” means documents which a person is obliged by any provision of the Acts to keep, to issue or to produce for inspection, and any other written or printed material;

tax” means income tax, corporation tax, capital gains tax, value-added tax or residential property tax, as the case may be.

(2) Subject to the agreement of the Revenue Commissioners, records may be stored, maintained, transmitted, reproduced or communicated, as the case may be, by any electronic, photographic or other process approved of by the Revenue Commissioners, and in circumstances where the use of such process has been agreed by them and subject to such conditions as they may impose.

(3) Where, in pursuance of subsection (2), records are preserved by electronic, photographic or other process, a statement contained in a document produced by any such process shall, subject to the rules of court, be admissible in evidence in any proceedings, whether civil or criminal, to the same extent as the records themselves.

(4) Notwithstanding anything in the Tax Acts, duplicates of assessments need not be made, transmitted or delivered.

(5) The entering by an inspector or other authorised officer of details of an assessment and the tax charged therein in an electronic, photographic or other record from which the Collector-General may extract such details by electronic, photographic or other process shall constitute transmission of such details by the inspector or other authorised officer to the Collector-General.

(6) In any proceedings in the Circuit Court, the District Court or the High Court for or in relation to the recovery of any tax, a certificate signed by the Collector-General or other authorised officer certifying that, before the institution of proceedings, a stated sum of tax as so transmitted became due and payable by the defendant—

(a) (i) under an assessment which had become final and conclusive,

(ii) under the provisions of section 429 (4) (inserted by the Finance Act, 1971) of the Income Tax Act, 1967 , or

(iii) under the provisions relating to the specified amount of tax within the meaning of section 30 of the Finance Act, 1976 ,

and

(b) that demand for the payment of the tax has been duly made,

shall be prima facie evidence, until the contrary has been proved, of those facts and a certificate certifying as aforesaid and purporting to be signed by the Collector-General or other authorised officer may be tendered in evidence without proof and shall be deemed, until the contrary is proved, to have been signed by the Collector-General or other authorised officer.

Amendment of provisions relating to payment of interest on tax overpaid.

114. —(1) Section 429 of the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution, in paragraph (a) of the proviso to subsection (4), of “at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month” for “at the rate provided by section 550(1)”, and

(b) by the insertion of the following subsection after subsection (6):

‘(7) 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.”,

and the said paragraph (a), as so amended, is set out in the Table to this subsection.

TABLE

(a) if too much tax has been paid, the amount or amounts overpaid shall, save where the interest amounts to less than £1, be repaid with interest at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month from the date or dates of payment of the amount or amounts giving rise to the overpayment to the date on which the repayment is made; or

(2) Section 30 of the Finance Act, 1976 , is hereby amended—

(a) by the substitution, in subsection (4), of “at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month” for “at the rate or rates in force by virtue of section 550 (1) of the Income Tax Act, 1967 ,”, and

(b) by the insertion of the following subsection after subsection (8):

“(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.”,

and the said subsection (4) (apart from the proviso thereto), as so amended, is set out in the Table to this subsection.

TABLE

(4) Where an overpayment of tax is to be repaid under subsection (3), the overpayment shall carry interest at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month for the period from the date or dates of the payment of the amount or amounts giving rise to the overpayment, as the case may require, to the date on which the repayment is made:

(3) Section 107 of the Finance Act, 1983 , is hereby amended—

(a) by the substitution, in subsection (2), of “at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations,” for “at the rate of 1.25 per cent.”, and

(b) by the insertion of the following subsection after subsection (2):

“(3) 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.”,

and the said subsection (2), as so amended, is set out in the Table to this subsection.

TABLE

(2) Where, under this section, any amount falls to be repaid or retained, there shall be added to such amount simple interest at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, of the amount to be repaid or retained for each month or part of a month from the date of the payment of the excess giving rise to the repayment to the date of the repayment or retention as the case may be. Income tax shall not be deductible on payment of interest under this subsection and such interest shall not be reckoned in computing income for the purposes of the Tax Acts.

(4) This section shall apply and have effect in relation to interest payable under the said paragraph (a) and the said subsections (4) and (2) for any month, or any part of a month, commencing on or after the date of the passing of this Act.

Liability to tax, etc., of holder of fixed charge on book debts of company.

115. —(1) Where a person holds a fixed charge (being a fixed charge which is created on or after the passing of this Act) on the book debts of a company (within the meaning of the Companies Act, 1963 ) and the company fails to pay any relevant amount for which it is liable, then the said person shall, on being notified accordingly in writing by the Revenue Commissioners, become liable to pay such relevant amount on due demand, and on neglect or refusal of payment may be proceeded against in like manner as any other defaulter:

Provided that—

(i) the amount or aggregate amount which the person shall be liable to pay in relation to a company in accordance with this section shall not exceed the amount or aggregate amount which that person has, while the fixed charge on book debts in relation to the said company is in existence, received, directly or indirectly, from that company in payment or in part payment of any debts due by the company to that person, and

(ii) this section shall not apply to any amounts received by the holder of the fixed charge from the company before the date on which he is notified in writing by the Revenue Commissioners that he is liable by reason of this section for payment of a relevant amount due by the company.

(2) In this section “relevant amount” means any amount which the company is liable to remit—

(a) under Chapter IV of Part V of the Income Tax Act, 1967 , and

(b) under the Value-Added Tax Act, 1972 .

Amendment of section 161 (inspectors of taxes) of Income Tax Act, 1967.

116. —(1) The Income Tax Act, 1967 , is hereby amended by the substitution of the following section for section 161:

“161.—(1) The Revenue Commissioners may appoint inspectors of taxes, and all such inspectors and all other officers or persons employed in the execution of this Act shall observe and follow the orders, instructions and directions of the Revenue Commissioners.

(2) The Revenue Commissioners may revoke an appointment made by them under this section.”.

(2) Inspectors of taxes who have been appointed by the Minister for Finance before the passing of this Act shall be deemed to have been appointed by the Revenue Commissioners.

Care and management of taxes and duties.

117. —All taxes and duties (except the excise duties on mechanically propelled vehicles imposed by section 77 ) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

Short title, construction and commencement.

118. —(1) This Act may be cited as the Finance Act, 1986.

(2) Part I (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(3) Part II (so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties.

(4) Part III shall be construed together with the Value-Added Tax Acts, 1972 to 1985, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1986.

(5) Part IV shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts.

(6) Part V shall be construed together with the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act.

(7) Part VI (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts and (so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties and (so far as relating to value-added tax) shall be construed together with the Value-Added Tax Acts, 1972 to 1986, and (so far as relating to stamp duties) shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act and (so far as relating to gift tax or inheritance tax) shall be construed together with the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act and (so far as relating to residential property tax) shall be construed together with Part VI of the Finance Act, 1983 .

(8) Part I shall, save as is otherwise expressly provided therein, be deemed to have come into force and shall take effect as on and from the 6th day of April, 1986.

(9) In Part III , sections 79 , 83 (a) and 85 shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1986, and sections 83 (b) and 89 to 91 (other than paragraph (a) of section 91 ) shall come into force on the 1st day of July, 1986.

(10) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment including this Act.

(11) In this Act, a reference to a Part, section or Schedule is to a Part or section of, or Schedule to, this Act, unless it is indicated that reference to some other enactment is intended.

(12) In this Act, a reference to a subsection, paragraph or subparagraph is to the subsection, paragraph or subparagraph of the provision (including a Schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.