Number 19 of 1973
FINANCE ACT, 1973
ARRANGEMENT OF SECTIONS
Income Tax, Sur-Tax and Corporation Profits Tax
Income Tax
Section | |
Income Tax, Sur-tax and Corporation Profits Tax
Corporation Profits Tax
Continuance of certain exemptions from corporation profits tax. | |
Anti-avoidance and penalty provisions
Restriction of balancing allowances on sale of industrial buildings and structures. | |
Customs and Excise
Death Duties
Provisions consequential on alteration of rates of estate duty. | |
Relief for certain moneys payable under policies of assurance. | |
Stamp Duties
Miscellaneous
Stamp Duty on Capital Companies
Abolition of certain stamp duty and relief in respect of certain payments of stamp duty. | |
Value-Added Tax
Miscellaneous
Charge on first licensing of mechanically propelled vehicles. | |
Policies of Life Insurance
Agreement between the Government of Ireland and the Government of the United Kingdom with respect to certain exemptions from tax
Extension of Charge to Tax to Profits and Income Derived from Activities Carried on and Employments Exercised on the Continental Shelf — Supplementary Provisions
Protocol between the Government of Ireland and the Government of the United Kingdom amending the Agreement for the Reciprocal Relief of Double Taxation in respect of Irish Corporation Profits Tax and United Kingdom Profits Tax, signed on 18 May 1949
Part I
Disallowance of Trading Losses and Restriction of Capital Allowances
Part II
Provisions for Determining the amount of Capital held in a Company through other Companies
Spirits (Rates of Ordinary Customs Duty)
Duties on Tobacco
Part I
Customs
Part II
Customs
Part III
Customs
Part IV
Excise
Scale of Rates of Estate Duty
Stamp Duties on Instruments
Part I
Bond, Covenant or Instrument of any kind whatsoever
Part II
Conveyance or Transfer on sale of any property other than stocks or marketable securities
Part III
Part IV
Mortgage, Bond, Debenture, Covenant (except a marketable security) and Warrant of Attorney to confess and enter up judgment
Amendment of Enactments
Enactments Repealed
Acts Referred to | |
1967, No. 6 | |
1969, No. 21 | |
1972, No. 19 | |
1971, No. 23 | |
1968, No. 14 | |
1968, No. 33 | |
1936, No. 45 | |
1960, No. 7 | |
1964, No. 12 | |
Stamp Act, 1891 | 1891, c. 39 |
1972, No. 22 | |
1929, No. 32 | |
Finance Act, 1920 | 1920, c. 18 |
1949, No. 13 | |
1964, No. 15 | |
1968, No. 7 | |
Friendly Societies Act, 1896 | 1896, c. 25 |
1933, No. 15 | |
Finance Act, 1919 | 1919, c. 32 |
1926, No. 35 | |
1932. No. 20 | |
1940, No. 14 | |
1934, No. 31 | |
Tobacco Act, 1842 | 1842, c. 93. |
Manufactured Tobacco Act, 1863 | 1863, c. 7 |
1961, No. 23 | |
1931, No. 31 | |
Finance (1909-10) Act, 1910 | 1910, c. 8 |
1965, No. 22 | |
1972, No. 17 | |
1951, No, 15 | |
1956, No. 22 | |
1970, No. 14 | |
1935, No. 28 | |
1971, No. 24 | |
Limited Partnerships Act, 1907 | 1907, c. 24 |
Finance Act, 1899 | 1899, c. 9 |
1952, No. 24 | |
1961, No. 24 | |
Roads Act, 1920 | 1920, c. 72 |
1962, No. 15 | |
Number 19 of 1973
FINANCE ACT, 1973
PART I
Income Tax, Sur-Tax and Corporation Profits Tax
Chapter I
Income Tax
Amendment of section 129 of Income Tax Act, 1967.
1.—(1) Section 129 of the Income Tax Act, 1967, is hereby amended by the addition of the following:
“Provided that if the amount of the interest as so calculated is less than £5, the amount of interest payable shall be £5.”.
(2) Subsection (1) shall have effect in relation to interest chargeable for any month commencing on or after the date of the passing of this Act, or any part of such a month, on tax for the transmission of which an employer is or was liable whether before, on or after such date.
Amendment of section 138 of Income Tax Act, 1967.
2.—Section 138 (3) of the Income Tax Act, 1967, is hereby amended by the substitution of “£104” for “£74”.
Amendment of section 141 of Income Tax Act, 1967.
3.—Section 141 of the Income Tax Act, 1967, is hereby amended—
(1) by the substitution for subsection (1A) (inserted by the Finance Act, 1969) of the following subsection:
“(1A) The deduction referred to in subsection (1) shall be:
(a) (i) in the case of a child to whom paragraph (a) of that subsection applies and who is shown by the claimant to have been over the age of 11 years at the commencement of the year of assessment, £170, and in the case of any other such child, £155, or
(ii) in the case of a child to whom paragraph (aa) of that subsection applies and who is shown by the claimant to have been over the age of 11 years at the commencement of the year of assessment, £220, and in the case of any other such child, £205;
(b) in the case of a child to whom subsection (1) (b) (i) applies, £170;
(c) in the case of a child to whom subsection (1) (b) (ii) applies and who is wholly or partly maintained by the claimant at his own expense, £220 if the amount expended by the claimant in the year of assessment on the maintenance of the child is not less than £220, and, where the amount so expended is less than £220, that amount:
Provided that—
(i) any deduction under subsection (1) (b) (ii) shall be in substitution for, and not in addition to, any deduction to which the claimant might be entitled in respect of the child under section 142; and
(ii) a claimant shall not be entitled to more than one deduction under subsection (1) in respect of the same child.”.
(2) by the insertion after subsection (1A) of the following subsections—
“(1AA) Where the claimant is or would on due application be entitled throughout the year of assessment to a children's allowance in respect of more than one child, the deduction to be given under subsections (1) and (2) shall—
(i) in the case of one such child be reduced by £15, and
(ii) in the case of any such children in excess of one, be reduced by £23 each.
(1AAA) Where for the year 1973-74 or any subsequent year of assessment a claimant's total income for the relevant year of assessment from all sources, as estimated in accordance with the provisions of the Income Tax Acts, exceeds £2,500 and the claimant is or would on due application be entitled throughout the year of assessment, to a children's allowance in respect of any child, any deduction in respect of that child to be given under this section shall, in addition to any reduction to be made by virtue of subsection (1AA), be reduced by £42 for the year 1973-74 and by £50 for any subsequent year:
Provided that a claimant who in consequence of the provisions of this subsection has the amount of income tax payable by him increased shall be entitled to have that amount reduced to a sum equal to the aggregate of the following amounts, that is to say, the amount of tax which would have been payable if his total income had amounted to, but not exceeded, £2,500 and the amount by which his total income exceeds £2,500.”.
(3) by the substitution in subsection (1B) of the following definition for the definition of “children's allowance”:
“‘children's allowance’ means an allowance under the Social Welfare (Children's Allowances) Acts, 1944 to 1970, and any subsequent Act together with which those Acts may be cited.”.
(4) Section 523 (1) (a) of the Income Tax Act, 1967, shall have effect as if section 141 (1AAA) (inserted by the Finance Act, 1973) had not been enacted.
Amendment of section 142 of Income Tax Act, 1967.
4.—Section 142 (1) of the Income Tax Act, 1967, is hereby amended by the substitution of “£407” for “£355” (inserted by the Finance Act, 1972) in both places where it occurs and by the substitution of “£347” for “£295” (inserted by the said Finance Act, 1972).
Amendment of section 154 of Income Tax Act, 1967.
5.—For the purposes of section 154 of the Income Tax Act, 1967, no account shall be taken of any tax paid in respect of income for a year of assessment beginning after the year 1972-73 or of any relief to which a person would have been entitled for such a year of assessment in the circumstances mentioned in that section.
Amendment of section 211 of Income Tax Act, 1967.
6.—Section 211 of the Income Tax Act, 1967, is hereby amended by the deletion of subsection (4).
Amendment of section 229 of Income Tax Act, 1967.
7.—Section 229 (1) (i) of the Income Tax Act, 1967, is hereby amended, as on and from the 6th day of April, 1972, by the deletion of the words from “whichever of the following amounts” to the end of the paragraph and the substitution therefor of “an amount equal to four times the person's final remuneration”.
Restriction of section 246 of Income Tax Act, 1967.
8.—(1) Section 246 of the Income Tax Act, 1967, shall not apply to any expenditure incurred on or after the 24th day of July, 1973, and before the 1st day of April, 1975, on the purchase of a new ship.
(2) This section shall not apply to any expenditure incurred under a contract entered into before the 24th day of July, 1973.
Amendment of section 251 of Income Tax Act, 1967.
9.—(1) Section 251 of the Income Tax Act, 1967, is hereby amended by the substitution in subsection (4) (d) (inserted by the Finance Act, 1972) of “the 1st day of April, 1975” for “the 1st day of April, 1973”.
(2) Where on or after the 3rd day of July, 1973, a claim is made by a person for an initial allowance under section 251 of the Income Tax Act, 1967, for any year of assessment in respect of machinery or plant, any allowance made to the person under that section shall not exceed such sum as will, when added to—
(a) the amount of any deduction in respect of the machinery or plant allowed to the person under section 241 of the said Act for that year of assessment, and
(b) the aggregate amount of any deductions allowed to the person in respect of the machinery or plant under the said sections 241 and 251 for earlier years of assessment,
equal the actual amount of the expenditure incurred by him on the provision of the said machinery or plant.
Amendment of section 254 of Income Tax Act, 1967.
10.—Section 254 (2) of the Income Tax Act, 1967, is hereby amended by the substitution of “the 1st day of April, 1975” for “the 1st day of April, 1973” (inserted by the Finance Act, 1971).
Amendment of section 272 of Income Tax Act, 1967.
11.—(1) Section 272 of the Income Tax Act, 1967, is hereby amended by the substitution for subsection (5) of the following subsections:
“(5) Where the aggregate amount of initial allowances and wear and tear allowances made to any person in respect of any machinery or plant exceeds the actual amount of the expenditure incurred by him on the provision of the said machinery or plant,
the amount of such excess (in this subsection referred to as the excess amount) shall, on the occurrence of an event falling within any of the paragraphs (a), (b) or (c) of subsection (1), be deemed to be a payment of an equal amount received by the person on account of sale, insurance, salvage or compensation moneys and shall be added to any other such moneys received in respect of the said machinery or plant and a balancing charge shall be made, and the amount on which it is made shall be an amount equal to—
(a) where there are no sale, insurance, salvage or compensation moneys, the said excess amount, or
(b) where there are sale, insurance, salvage or compensation moneys, the aggregate of such moneys and the said excess amount.
(5A) Where, as respects any machinery or plant, an event falling within any of the paragraphs (a), (b) or (c) of subsection (1) is followed by another event falling within any of those paragraphs, any balancing allowance or balancing charge made to or on a person by virtue of the happening of the later event shall take account of any balancing allowance or balancing charge previously made to or on that person in respect of the expenditure incurred by him on the provision of that machinery or plant.”.
(2) This section shall have effect where, as respects any machinery or plant, the event giving rise to a balancing charge in respect of that machinery or plant occurs or occurred on or after the 3rd day of July, 1973.
Amendment of section 336 of Income Tax Act, 1967.
12.—Section 336 of the Income Tax Act, 1967, is hereby amended by the substitution of “£450” for “£350” (inserted by the Finance Act, 1971).
Amendment of section 357 of Income Tax Act, 1967.
13.—Section 357 (3) of the Income Tax Act, 1967, shall have effect in relation to any dividend paid on or after the 6th day of April, 1973, as if “controls, directly or indirectly, not less than ten per cent. of the voting power in” were substituted for “beneficially owns, directly or indirectly, not less than three-quarters of the ordinary share capital of”.
Amendment of section 387 of Income Tax Act, 1967.
14.—Section 387 of the Income Tax Act, 1967, is hereby amended by the addition thereto of the following subsection—
“(4) (a) Where, under section 456, a body corporate is entitled to deduct income tax from any dividend, not being a dividend to which subsection (2) or (3) applies, tax shall not in any case be deducted at a rate exceeding the rate of income tax as reduced by any relief from that tax given under or by virtue of this Chapter, and the provisions of section 457 shall apply accordingly, with any necessary modifications.
(b) The rate of income tax at which any repayment of income tax for any year of assessment falls to be made shall be subject to such adjustments as may be proper in cases in which relief is given under or by virtue of this Chapter.
(c) Where, by virtue of paragraph (a), income tax is deducted from a dividend at a reduced rate, the amount to be included in respect of the dividend in any return for the purpose of sur-tax shall be an amount which bears the same proportion to the amount of the dividend as the rate of income tax deducted therefrom bears to the rate which would have been authorised to be deducted if this subsection had not been enacted.”.
Amendment of section 439 of Income Tax Act, 1967.
15.—Section 439 (1) of the Income Tax Act, 1967, is hereby amended by the insertion, after paragraph (ii), of the following paragraph:
“(iia) being payable to any body of persons to which the provisions of section 20 of the Finance Act, 1973, apply, is so payable for a period which is or may be three years or longer, or”.
Amendment of section 22 of Finance Act, 1971.
16.—Section 22 (2) of the Finance Act, 1971, is hereby amended by the substitution of “the 1st day of April, 1975” for “the 1st day of April, 1973”.
Amendment of section 26 of Finance Act, 1971.
17.—Section 26 (1) of the Finance Act, 1971, is hereby amended by the substitution of “the 1st day of April, 1975” for “the 1st day of April, 1973”.
Amendment of section 21 of Finance Act, 1972.
18.—Section 21 of the Finance Act, 1972, is hereby amended—
(a) by the addition to subsection (2) of the following proviso:
“Provided that, in the case of any repayment under a statutory scheme established under a public statute, the administrator of the scheme shall be entitled to deduct the tax chargeable in respect of that repayment from the amount thereof”, and
(b) by the substitution in subsection (4) of “if the administrator is entitled under the rules of the relevant scheme or otherwise” for “if the rules of the relevant scheme permit its administrator”.
Payments in respect of thalidomide children.
19.—(1) Income to which this section applies shall be disregarded for all the purposes of the Income Tax Acts.
(2) This section applies to any income consisting of payments made by the foundation known as the Hilfswerk für behinderte Kinder to or in respect of any person handicapped by reason of infirmity which can be linked with the taking by the person's mother during her pregnancy of preparations containing thalidomide.
Bodies for the promotion of Universal Declaration of Human Rights and the implementation of European Convention for the Protection of Human Rights and Fundamental Freedoms.
20.—Where any body of persons having consultative status with the United Nations Organisation or the Council of Europe—
(a) has as its sole or main object the promotion of observance of the provisions of the Universal Declaration of Human Rights or the implementation of the European Convention for the Protection of Human Rights and Fundamental Freedoms or both, and
(b) is precluded by its rules or constitution from the direct or indirect payment or transfer, otherwise than for valuable and sufficient consideration, to any of its members of any of its income or property by way of dividend, gift, division, bonus or otherwise howsoever by way of profit,
there shall, on a claim in that behalf being made to the Revenue Commissioners, be allowed, in the case of the body, such exemption from income tax as falls to be allowed under section 333 of the Income Tax Act, 1967, in the case of a body of persons established for charitable purposes only the whole income of which is applied to charitable purposes only.
Payments to universities.
21.—(1) Where a person carrying on a trade or profession—
(a) pays, on or after the 6th day of April, 1973, any sum to an Irish university for the purpose of enabling the university to undertake research in, or engage in the teaching of, approved subjects, and
(b) the sum so paid is not income to which section 439 of the Income Tax Act, 1967, applies,
the sum so paid shall, if not otherwise so deductible, be deducted as an expense in computing the profits or gains of the person's trade or profession.
(2) For the purposes of this section, “approved subjects” means—
(a) industrial relations,
(b) marketing, and
(c) any other subject which is approved for the purposes of this section by the Minister for Finance.
Recovery of income tax.
22.—Section 131 of the Income Tax Act, 1967, shall apply to the recovery of—
(a) any amount of tax estimated under section 7 of the Finance Act, 1968, and
(b) any amount of tax estimated under section 8 of the said Finance Act, 1968, or any balance of tax so estimated but remaining unpaid,
as if the amount so estimated or the balance of tax so estimated but remaining unpaid were an amount of tax which any person paying emoluments was liable under Chapter IV of Part V of the Income Tax Act, 1967, and any regulations thereunder, to pay to the Revenue Commissioners.
Policies of life insurance.
23.—(1) This section applies to any policy of life insurance made on the life of a person under the age of fifty-six years which is an endowment policy within the meaning of subsection (2) and which is or was issued in respect of an insurance made on or after the 16th day of May, 1973:
Provided that a policy of life insurance issued in respect of an insurance made before the 16th day of May, 1973, shall be treated for the purposes of this section as issued in respect of one made after that date if it is varied on or after that date so as to increase the benefits secured or to extend the term of the insurance.
(2) In this section and in the First Schedule “an endowment policy” means a policy of life insurance which secures a capital sum payable either on survival for a specified term or on earlier death, or earlier death or disability but does not include a policy issued in the course of an industrial assurance business, within the meaning of section 3 of the Insurance Act, 1936.
(3) Relief from income tax under section 143 of the Income Tax Act, 1967, shall be granted in respect of the premiums payable on an endowment policy only if the policy is a qualifying policy within the meaning of the said First Schedule.
Business entertainment expenses.
24.—(1) Section 61 (a) of the Income Tax Act, 1967, shall as respects expenses incurred in providing business entertainment have effect as if “wholly, exclusively and necessarily” were substituted for “wholly and exclusively”.
(2) Expenses incurred in providing business entertainment shall not, except to the extent that they are wholly, exclusively and necessarily laid out or expended for the purposes of a business, be included in computing any expenses of management in respect of which relief may be claimed under section 214 (1) of the Income Tax Act, 1967.
(3) For the purposes of section 241, Chapter III of Part XIV, Chapters I and III of Part XV and Chapters II and V of Part XVI of the Income Tax Act, 1967, and section 22 of the Finance Act, 1971, the use of any asset for providing business entertainment shall, except to the extent that the asset is used for providing business entertainment the expenses incurred in the provision of which are wholly, exclusively and necessarily laid out or expended for the purposes of a trade, be treated as use otherwise than for the purposes of a trade.
(4) The expenses to which subsection (1) applies include, in the case of any person, any sum paid by him to, or on behalf of, or placed by him at the disposal of, a member of his staff for the purpose of defraying expenses incurred or to be incurred by him in providing business entertainment.
(5) For the purposes of this section “business entertainment” means entertainment (including hospitality of any kind) provided by a person, or by a member of his staff, in connection with a trade carried on by that person, but does not include anything provided by him for bona fide members of his staff unless its provision for them is incidental to its provision also for others.
(6) This section shall apply in relation to the provision of a gift as it applies in relation to the provision of entertainment.
(7) In this section—
a reference to expenses incurred in, or to the use of an asset for, providing entertainment includes a reference to expenses incurred in, or to the use of an asset for, providing anything incidental thereto;
a reference to a trade includes a reference to a business or profession;
a reference to the members of a person's staff is a reference to persons employed by that person, directors of a company or persons engaged in the management thereof being for this purpose deemed to be persons employed by it.
(8) Subsections (1) and (2) shall apply to expenses incurred on or after the 16th day of May, 1973, and subsection (3) shall apply to use on or after that date.
Capital allowances for cars costing over £2,500.
25.—(1) In relation to a vehicle to which this section applies, section 241 of the Income Tax Act, 1967, shall have effect as if, for the purposes of subsection (7) of that section, the actual cost of the vehicle were taken to be £2,500 where the expenditure incurred on the provision of the vehicle exceeded that amount and, where a deduction which, apart from this subsection, would be allowed under the said section 241 falls to be reduced by virtue of this subsection, any reference in the Income Tax Acts to a deduction allowed under the said section 241 shall be construed as a reference to that deduction as reduced under this subsection.
(2) In relation to a vehicle to which this section applies, the deductions under the said section 241 to be taken into account for the purposes of Chapters II and V of Part XVI of the Income Tax Act, 1967, in computing the amount of expenditure still unallowed at any time, shall be limited to those computed in accordance with the provisions of subsection (1) and the expenditure incurred on the provision of the vehicle to be taken into account for the said purposes shall be limited to £2,500.
(3) Where the expenditure incurred on the provision of a vehicle to which this section applies exceeds £2,500, any balancing allowance or balancing charge shall be computed, in a case where there are sale, insurance, salvage or compensation moneys, as if the amount of those moneys (or, where in consequence of any provision of the Income Tax Acts other than this subsection some other amount is to be treated as the amount of those moneys, that other amount) were reduced in the proportion which £2,500 bears to the actual amount of the said expenditure.
(4) If, where the expenditure incurred on the provision of a vehicle to which this section applies exceeds £2,500—
(a) the person providing the vehicle (hereinafter referred to as the prior owner) sells the vehicle and the sale is a sale to which section 299 of the Income Tax Act, 1967, applies, or
(b) the prior owner sells the vehicle or gives it away so that subsection (4) of section 277 of the Income Tax Act, 1967, or that subsection as applied by subsection (5) of that section, has effect in relation to the purchaser or donee, or
(c) in consequence of a succession to the trade or profession of the prior owner, section 300 (1) of the Income Tax Act, 1967, has effect,
then, in relation to the purchaser, donee or successor, the price which the vehicle would have fetched if sold in the open market or the expenditure incurred by the prior owner on the provision of the vehicle shall be treated for the purposes of the said section 277, 299 or 300 as reduced in the proportion which £2,500 bears to the actual amount of the said expenditure; and, in the application of subsection (3) to the purchaser, donee or successor, references to the expenditure incurred on the provision of the vehicle shall be construed as references to the expenditure so incurred by the prior owner:
Provided that where this subsection has had effect on any occasion in relation to the vehicle, and no sale or gift of the vehicle has since occurred other than one to which either of the said sections 277 and 299 applies, then, in relation to all persons concerned, the like consequences under this subsection shall ensue as respects a sale, gift or succession falling within paragraphs (a) to (c) which occurs on any subsequent occasion as if the person who in relation to that sale, gift or succession is the prior owner had incurred expenditure on the provision of the vehicle of an amount equal to the expenditure so incurred by the person who was the prior owner on the first-mentioned occasion.
(5) In the application of section 273 (1) of the Income Tax Act, 1967, to a case where the vehicle is the new plant referred to in that subsection, the expenditure shall be disregarded in so far as it exceeds £2,500, but this provision is without prejudice to the application of the foregoing subsections to the vehicle.
(6) Where the expenditure incurred on the provision of a vehicle exceeds £2,500 but under section 303 (3) of the Income Tax Act, 1967, any part of it is to be treated as not having been incurred by a person, the amount which (subject to the foregoing provisions of this section) is to be treated for the purposes of Part XVI of the Income Tax Act, 1967, as having been incurred by that person, shall be reduced in the proportion which £2,500 bears to the said capital expenditure incurred on the provision of the vehicle.
Limit on renewals allowance for cars.
26.—In determining what amount (if any) is allowable—
(a) to be deducted in computing profits or gains chargeable to tax under Schedule D, or
(b) to be deducted from emoluments chargeable to tax under Schedule E, or
(c) to be taken into account for the purposes of a management expenses claim under section 214 of the Income Tax Act, 1967,
in respect of capital expenditure, being expenditure exceeding £2,500, incurred on the provision of a vehicle to which this section applies, the excess over £2,500 shall be disregarded for all purposes; but if on the replacement of the vehicle any amount becomes allowable as aforesaid in respect of capital expenditure on any other vehicle, any deduction falling to be made, in determining the last-mentioned amount, for the value or proceeds of sale of the replaced vehicle or otherwise in respect thereof shall be reduced in the proportion which £2,500 bears to the cost of the replaced vehicle.
Limit on deductions, etc., for hiring cars.
27.—Where apart from this section the amount of any expenditure on the hiring (otherwise than by way of hire-purchase) of a vehicle to which this section applies would be allowed to be deducted or taken into account as mentioned in section 26, and the retail price of the vehicle at the time it was made exceeded £2,500, the said amount shall be reduced in the proportion which £2,500 bears to the said price.
Cars: provisions as to hire-purchase, etc.
28.—(1) In the case of a vehicle to which this section applies, being a vehicle of which the retail price at the time of the contract in question exceeds £2,500, the following provisions shall have effect.
(2) Where a person, having incurred capital expenditure on the provision of a vehicle to which this section applies under a contract providing that he shall or may become the owner of the vehicle on the performance of the contract, ceases to be entitled to the benefit of the contract without becoming the owner of the vehicle, that expenditure shall, so far as it relates to the vehicle, be left out of account for the purposes of section 241 and Chapters II and V of Part XVI of the Income Tax Act, 1967, and in determining what amount (if any) is allowable as mentioned in section 26.
(3) Where subsection (2) has effect, all payments made under the contract shall be treated for income tax purposes (including in particular the purposes of section 27) as expenditure incurred on the hiring of the vehicle otherwise than by way of hire-purchase.
(4) Where the person providing the vehicle takes it under a hire-purchase contract, then in apportioning the payments under the contract between capital expenditure incurred on the provision of the vehicle and other expenditure so much of those payments shall be treated as such capital expenditure as is equal to the price which would be chargeable, at the time the contract is entered into, to the person providing the vehicle if he were acquiring it on a sale outright.
Cars: provisions where hirer becomes owner.
29.—Where a person, having hired (otherwise than by way of hire-purchase) a vehicle to which section 27 applies subsequently becomes the owner thereof and the retail price of the vehicle at the time it was made exceeded £2,500, then for the purposes of the Income Tax Acts (and in particular sections 25 and 27)—
(a) so much of the aggregate of the payments for the hire of the vehicle and of any payment for the acquisition thereof as does not exceed the retail price of the vehicle at the time it was made shall be treated as capital expenditure incurred on the provision of the vehicle, and as having been incurred when the hiring began, and
(b) the payments to be treated as expenditure on the hiring of the vehicle shall be rateably reduced so as to amount in the aggregate to the balance.
Supplementary provisions relating to sections 25 to 29.
30.—(1) Subject to the next following subsection, the vehicles to which sections 25 to 29 apply are mechanically propelled road vehicles constructed or adapted for the carriage of passengers, other than vehicles of a type not commonly used as a private vehicle and unsuitable to be so used.
(2) Sections 25 to 27 and subsections (2) and (3) of section 28 and section 29 do not apply where a vehicle is provided, or, as the case may be, hired, wholly or mainly for the purpose of hire to, or the carriage of, members of the public in the ordinary course of trade.
(3) None of the provisions of sections 25 and 26 or of subsections (2) and (3) of section 28 and section 29 shall apply in relation to a vehicle provided by a person who is a manufacturer of such vehicles as are mentioned in subsection (1), or of parts or accessories for such vehicles, if he shows that it was provided solely for the purpose of testing the vehicle or parts or accessories for such vehicles:
Provided that if during the period of five years beginning with the time when the vehicle was provided he puts it, to any substantial extent, to a use which does not serve that purpose and that purpose only, this subsection shall be deemed not to have had effect in relation to the vehicle.
(4) (a) There shall be made all such additional assessments and adjustments of assessments (including assessments and adjustments of assessments to corporation profits tax) as may be necessary for the purpose of giving effect to subsections (2) and (3) of section 28, section 29 and subsection (3) and any such additional assessments or adjustments of assessments may be made at any time.
(b) in the case of the death of a person who, if he had not died, would under the provisions of subsections (2) and (3) of section 28, section 29 and subsection (3) have become chargeable to tax for any year, the tax which would have been so chargeable shall be assessed and charged upon his executors or administrators and shall be a debt due from and payable out of his estate.
(5) References in sections 25 to 27 to expenditure incurred on the provision or hiring of a vehicle do not include references to expenditure incurred before the 16th day of May, 1973, or to expenditure incurred under a contract entered into before that day where either—
(a) the expenditure is incurred within twelve months after that day, or
(b) the contract is one of hire-purchase or for purchase by instalments,
and subsections (2) and (3) of section 28 and section 29 shall not apply where the contract was entered into before that day.
(6) This section and sections 25 to 29 shall be construed as one with Part XIII and Chapters II and V of Part XVI of the Income Tax Act, 1967, except that in section 26 “capital expenditure” shall be construed without regard to section 303 (1) of that Act.
Income tax on certain dividends.
31.—Subject to the provisions of sections 76 and 77 of the Income Tax Act, 1967, as modified by Part III of Schedule 6 to that Act, where income tax is chargeable under Case III of Schedule D in respect of income which is a dividend, within the meaning of Article 1 of the Agreement set forth in the Second Schedule, being a dividend paid on or after the 6th day of April, 1973, and not later than the 5th day of April, 1975, the income so chargeable to income tax shall include the amount of the tax credit for the payment of which provision is made in the said Article 1.
Confirmation of agreement on double taxation.
32.—The agreement, set forth in the Second Schedule, made on the 2nd day of May, 1973, between the Government and the United Kingdom Government amending the agreement made on the 14th day of April, 1926, and set forth in Part I of Schedule 6 to the Income Tax Act, 1967, as amended by the agreement made on the 25th day of April, 1928, and set forth in that Part, is hereby confirmed and, subject to confirmation by the United Kingdom Parliament, shall have effect accordingly.
Chapter II
Income Tax, Sur-tax and Corporation Profits Tax
Extension of charge to tax to profits and income derived from activities carried on and employments exercised on the Continental Shelf.
33.—(1) In this section and in the Third Schedule—
(a) “exploration or exploitation activities” means activities carried on in connection with the exploration or exploitation of so much of the sea bed and subsoil and their natural resources as is situated in the State or in a designated area;
(b) “exploration or exploitation rights” means rights to assets to be produced by exploration or exploitation activities or to interests in or to the benefit of such assets;
(c) “designated area” means an area designated by order under section 2 of the Continental Shelf Act, 1968;
(d) “tax” means income tax, sur-tax or corporation profits tax, as appropriate, and “for tax purposes” means for purposes of any of the said taxes.
(2) Any profits or gains from exploration or exploitation activities carried on in a designated area or from exploration or exploitation rights shall be treated for tax purposes as profits or gains from activities or property in the State.
(3) Any profits or gains arising to any person not resident in the State from exploration or exploitation activities carried on in the State or in a designated area or from exploration or exploitation rights shall be treated for tax purposes as profits or gains of a trade carried on by that person in the State through a branch or agency.
(4) Where exploration or exploitation activities are carried on by a person on behalf of the holder of a licence granted under the Petroleum and Other Minerals Development Act, 1960, the holder of the licence shall, for the purpose of any assessment to tax, be deemed to be the agent of that person.
(5) Any emoluments from an office or employment in respect of duties performed in a designated area in connection with exploration or exploitation activities shall be treated for tax purposes as emoluments in respect of duties performed in the State.
(6) This section shall have effect for the purposes of income tax (including sur-tax) for the year 1973-74 and subsequent years of assessment and for the purposes of corporation profits tax as respects any profits arising on or after the 1st day of April, 1973.
(7) The Third Schedule shall have effect for the purpose of supplementing this section.
Exemption from tax of income from patent royalties.
34.—(1) In this section—
“a qualifying patent” means a patent in relation to which the research, planning, processing, experimenting, testing, devising, designing, developing or similar activity leading to the invention which is the subject of the patent was carried out in the State;
“income from a qualifying patent” means any royalty or other sum paid in respect of the user of the invention to which the qualifying patent relates and includes any sum paid for the grant of a licence to exercise rights under such patent;
“resident of the State” means any person who is resident in the State for the purposes of income tax and who is not resident elsewhere; a company shall be regarded as a resident of the State if it is managed and controlled in the State.
(2) A resident of the State who makes a claim in that behalf and makes a return in the prescribed form of his total income from all sources, as estimated in accordance with the provisions of the Income Tax Acts, shall be entitled to have any income from a qualifying patent arising to him on or after the 6th day of April, 1973, disregarded for all the purposes of the Income Tax Acts, and of the enactments relating to corporation profits tax.
(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 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.
(4) Where any income arising to a person is, by virtue of this section, to be disregarded, the person shall not be treated, by reason of such disregarding, as having ceased to possess the whole of a single source within the meaning of section 75 of the Income Tax Act, 1967.
(5) For the purpose of arriving at the amount of income to be disregarded under this section for all the purposes of the Income Tax Acts, the Revenue Commissioners may make such apportionments of receipts and expenses as may be necessary.
(6) The relief provided by this section may be given by repayment or otherwise.
(7) The provisions of Schedule 4 and of paragraph IX of Schedule 18 to the Income Tax Act, 1967, shall, with any necessary modifications, apply in relation to exemptions from tax under this section.
Interest on unpaid taxes and duties.
35.—Interest payable under—
(a) section 15 of the Stamp Act, 1891, and subsections (2) and (3) of section 69 of this Act,
(b) section 129 of the Income Tax Act, 1967, or
(c) section 21 of the Value-Added Tax Act, 1972,
shall be payable without any deduction of income tax and shall not be allowed in computing any income, profits or losses for any of the purposes of the Income Tax Acts or of the enactments relating to corporation profits tax.
Chapter III
Corporation Profits Tax
Continuance of certain exemptions from corporation profits tax.
36.—The exemptions from corporation profits tax specified in section 33 (1) of the Finance Act, 1929, shall be given in respect of the period beginning on the 1st day of January, 1973, and ending on the 31st day of December, 1973.
Corporation profits tax on certain dividends.
37.—Where profits chargeable to corporation profits tax under section 52 of the Finance Act, 1920, include a dividend, within the meaning of Article 1 of the Agreement set forth in the Second Schedule to this Act, being a dividend paid on or after the 6th day of April, 1973, and not later than the 5th day of April, 1975, the profits so chargeable shall include the amount of any tax credit appropriate to the dividend for the payment of which provision is made in the said Article I.
Confirmation of protocol on double taxation.
38.—The protocol, set forth in the Fourth Schedule to this Act, signed on the 2nd day of May, 1973, between the Government and the United Kingdom Government amending the agreement set forth in Part I of the Fifth Schedule to the Finance Act, 1949, is hereby confirmed, and, subject to confirmation by the United Kingdom Parliament, shall have effect accordingly.
Chapter IV
Anti-avoidance and penalty provisions
Change in ownership of company: disallowance of trading losses and restriction of capital allowances.
39.—(1) Where a relevant change in the ownership of a company takes place—
(a) no relief shall be given under section 309 of the Income Tax Act, 1967, in respect of a loss sustained in a trade carried on by the company in any year of assessment ending before the change in ownership, by deducting such loss from or setting it off against the amount of the profits or gains on which the company is assessed to income tax under Schedule D in respect of that trade for any year of assessment beginning after the said change in ownership;
(b) the amount of the capital allowances falling to be made in charging the profits or gains of a trade carried on by the company in any year of assessment ending before the change in ownership shall not, for the purposes of section 241 (3), 244 (7), 245 (6), 248, 252, 254 (5), 295 or 305 (1) of the Income Tax Act, 1967, be added to, or deemed to be, or deemed to be part of, the amount of the capital allowances falling to be made in charging the profits or gains of that trade for any year of assessment beginning after the said change in ownership;
(c) no relief shall be given under section 25 of the Finance Act, 1964, in respect of a loss sustained by the company in an accounting period beginning before the change in ownership by deducting such loss from or setting it off against profits arising to the company in an accounting period ending after the change in ownership.
(2) (a) This subsection applies to any company in the ownership of which a relevant change takes place, and which sustains a loss in the year of assessment in which the change in ownership takes place.
(b) In the case of a company to which this subsection applies—
(i) the amount of the loss sustained by the company in the year of assessment in which the change of ownership takes place shall be apportioned on the basis specified in section 107 of the Income Tax
Act, 1967, the amount apportioned to that part of the year of assessment falling before the change in ownership being referred to in this subsection as the pre-change loss and the amount apportioned to that part of the year of assessment falling after the change in ownership being referred to in this subsection as the post-change loss,
(ii) the amount of any income, from which income tax has been deducted, of the company for the said year of assessment shall be apportioned by reference to the date on which that income was received by the company, the amount received in that part of the said year falling before the change in ownership being referred to in this subsection as the pre-change taxed income, and the amount of the said income received in that part of the said year falling after the change in ownership being referred to in this subsection as the post-change taxed income,
(iii) the amount of any income for the said year, other than such income as is referred to in subparagraph (ii), shall be apportioned on the basis specified in section 107 of the Income Tax Act, 1967, the amount apportioned to that part of the said year falling before the change in ownership being referred to in this subsection as the pre-change income and the amount apportioned to that part of the said year falling after the change in ownership being referred to in this subsection as the post-change income.
(c) Where relief under section 307 of the Income Tax Act, 1967, is claimed by a company to which this subsection applies in respect of the year of assessment in which the change in ownership takes place, the amount of any relief to be given under the said section 307 for that year of assessment shall not exceed the sum of the following:
(i) the amount of the relief which would have been given for that year of assessment if the loss sustained by the company in that year of assessment had been only the amount of the pre-change loss and the income of the company for the said year of assessment had been only the amount of the pre-change taxed income together with the amount of the pre-change income;
and
(ii) the amount of the relief which would have been given if the loss sustained by the company in that year of assessment had been only the amount of the post-change loss and the income of the company for the said year of assessment had been only the amount of the post-change taxed income together with the amount of the post-change income.
(d) Any pre-change loss, for which relief is not given or is not given fully under any provision of the Income Tax Acts as modified by this subsection, shall not be taken into account for the purposes of section 309 of the Income Tax Act, 1967.
(3) Where, in charging the profits or gains of a trade carried on by a company, in the ownership of which a relevant change takes place, for the year of assessment in which the change of ownership takes place, capital allowances fall to be made—
(a) so much of any deduction falling to be made under section 241 of the Income Tax Act, 1967, as is attributable to that part of the year of assessment falling before the change in ownership, and
(b) so much of any capital allowances, falling to be made under any provision other than the said section 241, as are in respect of expenditure incurred before the change in ownership,
shall be deemed to be an amount of capital allowances falling to be made in respect of a year of assessment ending before the change in ownership.
(4) (a) Where relief in respect of a loss or an amount of capital allowances given or made to a company in the ownership of which a relevant change takes place has been restricted under this section, then, notwithstanding section 304 (6) of the Income Tax Act, 1967, in applying the provisions of Part XVI of that Act in relation to balancing charges to the company by reference to any event after the change in ownership, any capital allowances falling to be made to the company for any year of assessment ending before the change in ownership shall be disregarded unless the profits or gains of that year of assessment or any subsequent year of assessment ending before the change in ownership were sufficient to give effect to the allowances.
(b) In the application of paragraph (a) it shall be assumed that any profits or gains are applied in giving effect to any such capital allowances in preference to being set off against any loss which is not attributable to such allowances.
(5) In applying subsection (1) (c) to the accounting period in which the relevant change in the ownership of a company takes place, the part ending with the change in ownership, and the part beginning thereafter, shall be treated as two separate accounting periods, and the profits or losses of the accounting period shall be apportioned to the two parts. The apportionment shall be on a time basis according to the respective lengths of those parts except that if it appears that that method would work unreasonably or unjustly such other method shall be used as appears just and reasonable.
(6) (a) For the purposes of this section a relevant change in the ownership of a company shall be regarded as having taken place if—
(i) within any period of three years there is both a change in the ownership of the company and a major change in the nature or conduct of a trade carried on by the company, whether such major change occurs before or after or at the same time as the change in ownership, or
(ii) at any time after the scale of the activities in a trade carried on by the company has become small or negligible, and before any considerable revival of the trade, there is a change in the ownership of the company.
(b) In paragraph (a) “major change in the nature or conduct of a trade” includes—
(i) a major change in the type of property dealt in, or services or facilities provided, in the trade, or
(ii) a major change in customers, outlets or markets of the trade,
and this section shall apply even if the change is the result of a gradual process which began outside the period of three years mentioned in paragraph (a) (i).
(c) The Fifth Schedule to this Act shall have effect for the purpose of supplementing this section.
(7) In this section and in the Fifth Schedule to this Act—
“capital allowances” means allowances, other than allowances falling to be made in computing profits or gains, under section 241 of the Income Tax Act, 1967, or under Part XIV, XV, XVI or XVII of that Act;
“company” means any body corporate.
(8) This section shall not apply if the change of ownership took place before the 16th day of May, 1973, and subsection (6) (a) (i) shall not apply if the major change in the nature or conduct of the trade was completed before that date; but, in other respects, this section shall have effect by reference to circumstances and events before that date as well as by reference to later circumstances and events.
Restriction of balancing allowances on sale of industrial buildings and structures.
40.—(1) This section shall have effect where—
(a) the relevant interest in a building or structure is sold subject to an inferior interest; and
(b) by virtue of the sale a balancing allowance under section 265 of the Income Tax Act, 1967, would, apart from this section, fall to be made to or for the benefit of the person (in this section referred to as the relevant person) who was entitled to the relevant interest immediately before the sale; and
(c) either—
(i) the relevant person, the person to whom the relevant interest is sold and the grantee of the inferior interest, or any two of them, are connected with each other within the meaning of subsection (6), or
(ii) it appears with respect to the sale or the grant of the inferior interest, or with respect to transactions including the sale or grant, that the sole or main benefit which, but for this section, might have been expected to accrue to the parties or any of them was the obtaining of an allowance or deduction under Chapter I of Part XVI of the Income Tax Act, 1967.
(2) For the purposes of the said section 265 the net proceeds to the relevant person of the sale—
(a) shall be taken to be increased by an amount equal to any premium receivable by him for the grant of the inferior interest; and
(b) shall, where no rent, or no commercial rent, is payable in respect of the inferior interest, be taken to be the sum of—
(i) what those proceeds would have been if a commercial rent had been payable and the relevant interest had been sold in the open market, and
(ii) any amount to be added under paragraph (a);
but the net proceeds of the sale shall not, by virtue of this subsection, be taken to be greater than such amount as will secure that no balancing allowance falls to be made.
(3) Where subsection (2) operates, in relation to a sale, to deny or reduce a balancing allowance in respect of any expenditure, the residue of that expenditure immediately after the sale shall be calculated for the purposes of the said Chapter I as if that balancing allowance had been made or, as the case may be, had not been reduced.
(4) Where the terms on which an inferior interest is granted are varied before the sale of the relevant interest, any capital consideration for the variation shall be treated, for the purposes of this section, as a premium for the grant of the interest, and the question whether any and, if so, what rent is payable in respect of the interest shall be determined by reference to the terms as in force immediately before the sale.
(5) In this section—
“inferior interest” means any interest in or right over the building or structure in question, whether granted by the relevant person or by someone else;
“premium” includes any capital consideration except so much of any sum as corresponds to any amount of rent or profits falling to be computed by reference to that sum under section 83 of the Income Tax Act, 1967;
“capital consideration” means consideration which consists of a capital sum or would be a capital sum if it had taken the form of a money payment;
“rent” includes any consideration which is not capital consideration;
“commercial rent” means such rent as might reasonably be expected to have been required in respect of the inferior interest in question, having regard to any premium payable for the grant of the interest, if the transaction had been at arm's length.
(6) For the purposes of this section, persons shall be regarded as connected with each other if they would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968.
(7) This section shall be construed as if it were contained in Chapter I of Part XVI of the Income Tax Act, 1967, and shall apply in any case where the relevant interest is sold on or after the 3rd day of July, 1973.
Amendment of section 117 of Income Tax Act, 1967.
41.—Section 117 of the Income Tax Act, 1967, is hereby amended by the addition of the following subsections:
“(7) Where expense is incurred by a person connected with a body corporate, being expense which if incurred by the body corporate would be expense of the kind mentioned in paragraph (a) of subsection (1), the body corporate shall be deemed, for the purposes of this section, to have incurred the expense and the provisions of subsection (1) shall apply accordingly in relation to any person, being a director or employee of the body corporate, in respect of whom the expense was incurred.
(8) A person shall be regarded as connected with a body corporate for the purposes of subsection (7), if that person is—
(a) a trustee of a settlement, within the meaning of section 447, made by the body corporate, or
(b) a body corporate,
and that person would be regarded as connected with the body corporate for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968.”.
Cesser of section 121 of Income Tax Act, 1967.
42.—Section 121 of the Income Tax Act, 1967, shall not apply or have effect in relation to the year 1973-74 or any subsequent year of assessment.
Amendment of section 128 of Income Tax Act, 1967.
43.—Section 128 of the Income Tax Act, 1967, is hereby amended—
(a) by the insertion in subsection (1) after “documents” of “or to remit tax to the Collector”, and
(b) by the insertion after that subsection of the following subsection:
“(1A) Where the person mentioned in subsection (1) is a body of persons, the secretary shall be liable to a separate penalty of £20.”.
Amendment of section 335 of Income Tax Act, 1967.
44.—Section 335 of the Income Tax Act, 1967, is hereby amended by the addition thereto of the following subsections:
“(2) A registered friendly society shall not be entitled to exemption from tax under this section in relation to any year of assessment, being the year 1973-74 or any subsequent year, if the Revenue Commissioners determine, for the purposes of entitlement to exemption for that year, that the society does not satisfy the following conditions:
(a) that it was established solely for any or all of the purposes set out in section 8 (1) of the Friendly Societies Act, 1896, and not for the purpose of securing a tax advantage; and
(b) that, since its establishment, it has engaged solely in activities directed to achieving the purposes for which it was so established and that it has not engaged in trading activities, other than by way of insurance in respect of members, with a view to the realisation of profits.
(3) In making a determination under this section in relation to a registered friendly society, the Revenue Commissioners shall consider any evidence in relation to the matter submitted to them by the society.
(4) In any case where a friendly society is aggrieved by a determination of the Revenue Commissioners under this section in relation to the society, the society shall be entitled to appeal to the Appeal Commissioners against the determination of the Revenue Commissioners and the Appeal Commissioners shall hear and determine the appeal as if it were an appeal against an assessment to income tax and the provisions of the Income Tax Act, 1967, relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.”.
Amendment of section 413 of Income Tax Act, 1967.
45.—section 413 (2) of the Income Tax Act, 1967, is hereby amended by the substitution of “£100” for “£50”.
Amendment of section 503 of Income Tax Act, 1967.
46.—section 503 (2) of the Income Tax Act, 1967, is hereby amended by the insertion in paragraph (a) (i) (I) after “£500,” of “or, in the case of fraud, £1,000,”.
PART II
Customs and Excise
Beer.
47.—(1) In lieu of the duty of excise imposed by section 27 (1) of the Finance Act, 1971, there shall be charged, levied and paid on all beer brewed within the State on or after the 17th day of May, 1973, a duty of excise at the rate of £31.913 for every thirty-six gallons of worts of a specific gravity of one thousand and fifty-five degrees.
(2) In lieu of the duty of customs imposed by section 27 (2) of the Finance Act, 1971, there shall, as on and from the 17th day of May, 1973, be charged, levied and paid on all beer of any description imported into the State, a duty of customs at the rate of £31.913 for every thirty-six gallons of beer of which the worts were before fermentation of a specific gravity of one thousand and fifty-five degrees.
(3) There shall be allowed and paid on the exportation as merchandise or the shipment for use as stores of beer on which it is shown, to the satisfaction of the Revenue Commissioners, that the duty imposed by subsection (1) or (2) of this section has been paid, a drawback calculated according to the original specific gravity of the beer, at the rate of £31.926 on every thirty-six gallons of beer of which the original specific gravity was one thousand and fifty-five degrees.
(4) Where, in the case of beer which is chargeable with the duty imposed by subsection (1) or (2) of this section or in the case of beer on which drawback under subsection (3) of this section is payable, the specific gravity of the beer is not one thousand and fifty-five degrees, the duty or drawback shall be varied proportionately.
(5) Section 24 of the Finance Act, 1933, shall not apply or have effect in relation to the duty of customs imposed by this section.
Spirits.
48.—(1) The Finance Act, 1920, shall, as on and from the 17th day of May, 1973, be amended by the substitution in Part I of the First Schedule thereto of the matter set out in Part I of the Sixth Schedule to this Act for the matter inserted in the said Part of the said First Schedule by section 28 of the Finance Act, 1971, and section 3 (1) of the said Finance Act, 1920, shall have effect accordingly.
(2) (a) This subsection applies to spirits which at importation are shown to the satisfaction of the Revenue Commissioners to have been manufactured in, and consigned from, the United Kingdom and to have been manufactured therein from materials other than materials falling within Tariff Heading number 22.08 or Tariff Heading number 22.09 in the Schedule to the Imposition of Duties (No. 200) (Customs and Excise Duties and Form of Tariff) Order, 1972.
(b) The duties of customs to which subsection (1) of this section relates shall, as on and from the 17th day of May, 1973, be charged, levied and paid on spirits to which this subsection applies at the rates set out in Part II of the Sixth Schedule to this Act in lieu of the rates chargeable under subsection (1) of this section.
(c) The provisions of section 8 of the Finance Act, 1919, shall not apply to the duties imposed by this subsection.
(d) Section 28 (3) of the Finance Act, 1971, is hereby repealed as on and from the 17th day of May, 1973.
(e) In this subsection the expression “the United Kingdom” means Great Britain, Northern Ireland, the Isle of Man and the Channel Islands.
(3) The duty of excise imposed by section 3 (2) of the Finance Act, 1920, shall, as on and from the 17th day of May, 1973, be charged, levied and paid at the rate of £17.990 the gallon (computed at proof) in lieu of the rate chargeable by virtue of section 28 (4) of the Finance Act, 1971.
(4) Nothing in this section shall operate to relieve from or to prejudice or affect the additional customs duties or the additional excise duty in respect of immature spirits imposed by section 9 of the Finance Act, 1926.
Tobacco.
49.—(1) Subject to subsections (2), (3) and (4) of this section, the duty of customs on tobacco imposed by section 20 of the Finance Act, 1932, shall, as on and from the 17th day of May, 1973, be charged, levied and paid at the several rates specified in Part I of the Seventh Schedule to this Act in lieu of the several rates specified in Parts I, II and III of the Second Schedule to the Finance Act, 1969.
(2) The provisions of section 8 of the Finance Act, 1919, shall apply to the duty mentioned in subsection (1) of this section—
(a) with the substitution of “the area of application of the Acts of the Oireachtas” for “Great Britain and Ireland”, and
(b) as though the descriptions of manufactured tobacco mentioned in Part I of the Seventh Schedule to this Act were included in the first column of the Second Schedule to that Act after the expression “manufactured tobacco” and the appropriate preferential rates mentioned in that Part were mentioned in the second column of the said Second Schedule opposite the mention of those goods in the first column thereof in lieu of the rate mentioned in the said second column opposite the mention of manufactured tobacco in the said first column.
(3) (a) This subsection applies to unmanufactured tobacco which at importation is shown to the satisfaction of the Revenue Commissioners to have been grown in and consigned from the United Kingdom.
(b) The customs duty on tobacco mentioned in subsection (1) of this section shall, as on and from the 17th day of May, 1973, be charged, levied and paid on unmanufactured tobacco to which this subsection applies at the several rates specified in Part II of the Seventh Schedule to this Act in lieu of the several rates specified in Part I thereof.
(c) In this subsection the expression “the United Kingdom” means Great Britain, Northern Ireland, the Isle of Man and the Channel Islands.
(4) (a) This subsection applies to manufactured tobacco which was manufactured in, and consigned from, the United Kingdom and was manufactured therein from materials other than materials falling within Tariff Heading number 24.02 in the Schedule to the Imposition of Duties (No. 200) (Customs and Excise Duties and Form of Tariff) Order, 1972.
(b) The customs duty on tobacco mentioned in subsection (1) of this section shall, as on and from the 17th day of Mays 1973, be charged, levied and paid on manufactured tobacco to which this subsection applies at the several rates specified in Part III of the Seventh Schedule to this Act in lieu of the several rates specified in Part I thereof.
(c) The provisions of section 8 of the Finance Act, 1919, shall apply to the duties imposed by this subsection—
(i) with the substitution of “the area of application of the Acts of the Oireachtas” for “Great Britain and Ireland” and as though the expression “manufactured tobacco” in the first column of the Second Schedule to that Act did not include manufactured tobacco to which this subsection applies,
(ii) as though manufactured tobacco to which this subsection applies, together with the descriptions of such manufactured tobacco in Part III of the Seventh Schedule to this Act, were mentioned separately in the said first column and the appropriate preferential rates specified in that Part were mentioned in the second column of the said Second Schedule opposite the mention of those goods in the first column thereof, and
(iii) subject to the last paragraph (beginning with “Goods shall not be deemed”) of subsection (1) of the said section 8 being disregarded.
(d) In this subsection the expression “the United Kingdom” means Great Britain, Northern Ireland, the Isle of Man and the Channel Islands.
(e) The expression “hard pressed tobacco” mentioned in Part III of the Seventh Schedule to this Act and the next paragraph of this subsection has the same meaning as it has in section 17 of the Finance Act, 1940.
(f) The expression “other pipe tobacco” mentioned in Part III of the Seventh Schedule to this Act means manufactured tobacco of kinds normally intended to be used in pipes, not being hard pressed tobacco.
(5) The duty of excise on tobacco imposed by section 19 of the Finance Act, 1934, shall, as on and from the 17th day of May, 1973, be charged, levied and paid at the several rates specified in Part IV of the Seventh Schedule to this Act in lieu of the several rates specified in Part IV of the Second Schedule to the Finance Act, 1969.
Tobacco (excise duty on certain stocks).
50.—(1) Subject to the provisions of subsections (2) and (3) of this section, there shall be charged, levied and paid on all stocks of tobacco of every description which at five o'clock on the afternoon of the 16th day of May, 1973, are in the ownership or possession of a licensed manufacturer of tobacco and in any place in the State other than a bonded warehouse, a duty of excise, payable by the manufacturer, at the following rate, that is to say:
(a) so far as the stocks consist of unmanufactured tobacco, £0.627 for every pound weight of the stocks, and
(b) so far as the stocks consist of tobacco (including snuff) other than unmanufactured tobacco, £0.627 for every pound weight of unmanufactured tobacco from which, in the opinion of the Revenue Commissioners, the stocks were derived.
(2) The duty imposed by subsection (1) of this section shall not be chargeable on stocks of tobacco in the ownership or possession of a licensed manufacturer of tobacco if it is shown to the satisfaction of the Revenue Commissioners that the total weight of such stocks in the ownership or possession of that manufacturer and upon which, apart from this subsection, the duty would be chargeable, did not exceed 5,500 pounds.
(3) The duty imposed by subsection (1) of this section shall not be chargeable on any manufactured tobacco (including cigarettes, cigars and snuff other than offal snuff) as to which it is shown to the satisfaction of the Revenue Commissioners that it was at five o'clock in the afternoon of the 16th day of May, 1973, fully prepared for sale by retail and that either—
(i) it was not the product of any operation carried out by any manufacturer in whose ownership or possession it was at that time; or
(ii) it was at that time held as retail stock in premises used for selling tobacco by retail; or
(iii) it was at that time in transit from seller to buyer under a contract of sale:
Provided that no tobacco shall be deemed for the purposes of this subsection to have been fully prepared for sale by retail if, according to the ordinary course of business of the person in whose ownership or possession it was or to whom it was in transit, it had still to be subjected to some further process (other than packing) before being sold by him.
(4) Every licensed manufacturer of tobacco shall not later than the 23rd day of May, 1973, make a return to the Revenue Commissioners in a form approved by them giving such information as they may thereby require and, in particular, showing the quantities by weight of tobacco of every description in his ownership or possession at five o'clock in the afternoon of the 16th day of May, 1973, in any place in the State other than a bonded warehouse.
(5) Every licensed manufacturer of tobacco shall—
(a) produce, if so required, to any officer of Customs and Excise the trade books and all accounts and documents belonging to or in the possession of such manufacturer which are necessary for verifying the return made in pursuance of subsection (4) of this section, and
(b) render all reasonable assistance to such officer in the taking of an account of the tobacco which was in the ownership or possession of such manufacturer at five o'clock in the afternoon of the 16th day of May, 1973.
(6) Every licensed manufacturer of tobacco shall, immediately upon making the return required by subsection (4) of this section or on the 23rd day of May, 1973, whichever is the earlier, pay to the Revenue Commissioners the full amount of the duty mentioned in subsection (1) of this section on any tobacco which was in his ownership or possession at five o'clock in the afternoon of the 16th day of May, 1973, and was chargeable with the said duty, and the Revenue Commissioners may, if they think fit, defer the payment of the duty to a date not later than the 1st day of November, 1973, upon the manufacturer giving security by bond or otherwise to their satisfaction that such duty will be paid.
(7) Every manufacturer required by subsection (4) of this section to make such return as is mentioned in that subsection who either fails to make such return or makes a return which is incomplete, false or misleading in any material respect or fails or refuses to do anything which he is required by subsection (5) of this section to do shall be guilty of an offence under the statutes relating to duties of excise and shall for every such offence incur an excise penalty of fifty pounds, and all tobacco in relation to which such offence was committed shall be forfeited.
(8) Where drawback is payable in respect of tobacco on which the excise duty provided for by subsection (1) of this section has been paid, such drawback shall, to the extent of the duty paid in pursuance of the said subsection (1) as determined by the Revenue Commissioners, be a drawback of excise.
Cigarettes for export.
51.—(1) Sections 1, 3, 4, 5 and 8 of the Tobacco Act, 1842, shall not apply in relation to—
(a) cigarettes manufactured, for the purpose of being exported, wholly or partly from articles or goods permitted by the Revenue Commissioners under section 38 of the Finance Act, 1932, to be imported without payment of any duty of customs, or
(b) the manufacture, or anything used in the manufacture, of such cigarettes.
(2) Section 10 of the Manufactured Tobacco Act, 1863, shall apply to cigarettes to which subsection (1) of this section applies upon, but not before, their exportation from the State but shall otherwise apply to manufactured tobacco as if subsection (1) of this section had not been enacted.
Confirmation of Orders.
52.—The Orders mentioned in the Table to this section are hereby confirmed.
TABLE
Imposition of Duties (No. 199) (Excise Duties) (Firearm Certificates) Order, 1972
Imposition of Duties (No. 200) (Customs and Excise Duties and Form of Tariff) Order, 1972
Imposition of Duties (No. 201) (Customs Duties and Form of Customs Tariff) Order, 1973
Imposition of Duties (No. 202) (Customs and Excise Duties and Form of Tariff) (Amendment) Order, 1973
Imposition of Duties (No. 203) (Customs Duties and Form of Customs Tariff) Order, 1973
Imposition of Duties (No. 204) (Customs Duties and Form of Customs Tariff) Order, 1973
Imposition of Duties (No. 205) (Beer, Spirits, Tobacco, Hydrocarbon Oils and Wine) Order, 1973.
PART III
Death Duties
Alteration of rates of estate duty.
53.—In the case of persons dying on or after the 16th day of May, 1973, the scale of rates set out in the Eighth Schedule to this Act shall be, and shall have effect as, the scale of rates of estate duty in lieu of the scale set out in the Second Schedule to the Finance Act, 1972, and appropriate repayments shall be made accordingly.
Provisions consequential on alteration of rates of estate duty.
54.—(1) Section 26 (1) of the Finance Act, 1961, is hereby amended by the substitution of “ten thousand pounds” for “seven thousand five hundred pounds” (inserted by the Finance Act, 1972).
(2) Section 29 of the Finance Act, 1931, is hereby amended by the substitution of “ten thousand pounds” for “seven thousand five hundred pounds” (inserted by the Finance Act, 1972).
(3) Where the net value of the property, real and personal, passing on the death of the deceased, exclusive of property settled otherwise than by the will of the deceased exceeds ten thousand pounds, the amount of legacy and succession duty payable in respect of the property shall not exceed the amount by which the net value of such property, after deduction of the amount of estate duty referable thereto, exceeds ten thousand pounds.
(4) This section shall have effect only in relation to persons dying on or after the 16th day of May, 1973, and appropriate repayments shall be made accordingly.
Amendment of rates of legacy duty and succession duty.
55.—(1) Any legacy or succession duty which under the existing law is payable at the rate of five per cent. shall be payable at the rate of ten per cent. and any legacy or succession duty which under the existing law is payable at the rate of ten per cent. shall be payable at the rate of twenty per cent. on the amount or value of the legacy or succession.
(2) This section shall not take effect, in the case of legacy duty, where the testator by whose will the legacy is given or the intestate on whose death the legacy duty is payable died before the 16th day of May, 1973, and, in the case of succession duty, where the succession was conferred before that date.
Abatement of estate duty.
56.—(1) Section 45 of the Finance Act, 1969, is hereby amended by the substitution of “£4,000” for “£2,000” (inserted by the Finance Act, 1972) and “£2,000” for “£1,000” (inserted by the said Finance Act, 1972) in each place where they respectively occur in subsections (2), (3), (4) and (5).
(2) This section shall have effect only in relation to benefits (within the meaning of the said section 45) accruing on or after the 16th day of May, 1973, and appropriate repayments shall be made accordingly.
Amendment of section 61 of Finance (1909-10) Act, 1910.
57.—(1) Section 61.(1) of the Finance (1909-10) Act, 1910, is hereby amended by the substitution of “£3,000” for “£2,000” (inserted by the Finance Act, 1969).
(2) This section shall have effect only in relation to persons dying on or after the 16th day of May, 1973, and appropriate repayments shall be made accordingly.
Amendment of section 24 of Finance Act, 1965.
58.—(1) Section 24 of the Finance Act, 1965, is hereby amended—
(a) by the substitution in subsection (1) of the following paragraph for paragraph (d):
“(d) The aggregate value of all death benefits payable on a death shall be reduced for estate duty purposes by £7,500 or the said aggregate value, whichever is the lesser.”,
(b) by the deletion in subsection (1) (f) of the definition of “dependent child”
(c) by the deletion in subsection 2 (a) of “, to or for the benefit of the widow or dependent children of the deceased”, and
(d) by the deletion in subsection 2 (b) of “, ‘dependent children’”.
(2) This section shall have effect only in relation to the death of a person dying on or after the 16th day of May, 1973, and appropriate repayments shall be made accordingly.
Relief for certain moneys payable under policies of assurance.
59.—(1) Where the property passing or deemed to pass on the death of the deceased includes policy moneys, the principal value of such policy moneys for estate duty purposes shall be reduced by £7,500 or the said principal value, whichever is the lesser.
(2) In this section—
“policy moneys” means the total amount of the moneys (other than a return of premiums) payable under a policy or policies of assurance effected by the deceased on his own life and payable on his death where—
(a) the consideration for the policy was a premium payable yearly, half-yearly, quarterly or monthly for a period depending on the life of the deceased, and
(b) the total amount of the premiums paid in any period of twelve months did not exceed twenty per cent. of the moneys payable at death,
but also includes moneys payable on the death of the deceased under a policy of insurance issued subject to the condition that the benefits secured by the policy should be payable only if the death of the deceased occurred as the result of an accident.
(3) This section shall have effect only in relation to the death of a person dying domiciled in the State on or after the 16th day of May, 1973, and appropriate repayments shall be made accordingly.
Exemption from duty of certain unit trusts.
60.—(1) In this section—
“securities” means securities (including debenture stock, mortgage bonds and mortgage stock and certificates of charge under the Agricultural Credit Acts, 1927 to 1972) issued, whether before or after the passing of this Act, with a condition that they be exempt from taxation when in the beneficial ownership of persons neither domiciled nor ordinarily resident in the State;
“unit trust scheme” means a unit trust scheme registered in the register established by the Unit Trusts Act, 1972, whose deed expressing the trusts of the scheme, restricts the property subject to those trusts to securities.
(2) Units (within the meaning of the said Unit Trusts Act, 1972) of a unit trust scheme shall be exempt from death duties in connection with the death of any person dying after the passing of this Act who was not domiciled or ordinarily resident in the State at the time of his death and section 12 (2) of the Finance Act, 1951, section 34 (3) of the Finance Act, 1956, and section 39 of the Finance Act, 1970, shall apply to such units as if they were securities.
Amendment of section 33 of Finance Act, 1935.
61.—(1) Section 33 of the Finance Act, 1935, is hereby amended by the substitution for subsection (6) of the following subsection:
“(6) In this section—
‘banker’ means a person who carries on banking business in the State and includes a friendly society, an industrial and provident society, a building society, the Post Office Savings Bank, a trustee savings bank, the Industrial Credit Company, Limited, the Agricultural Credit Corporation Limited, and any person with whom money is lodged or deposited;
‘pay’ includes transfer in the books of a banker and any dealings whatsoever with any moneys which were lodged or deposited in the name of a person who died after the time of the lodgment or deposit and any other person or persons;
‘current account’ means an account which is customarily operated on by means of a cheque or banker's order;
‘banking business’ has the same meaning as in section 2 of the Central Bank Act, 1971;
references to moneys lodged or deposited include references to shares of a building society, friendly society or industrial and provident society.”
(2) This section shall have effect in relation to the death of any person dying on or after the date of the passing of this Act.
PART IV
Stamp Duties
Chapter I
Miscellaneous
Commencement (Chapter 1).
62.—This Chapter shall come into operation on the 1st day of August, 1973, or the date of the passing of this Act, whichever is the later, and shall not have effect in relation to any instrument executed before such coming into operation.
Amendment of section 88 of Stamp Act, 1891
63.—Section 88 of the Stamp Act, 1891, is hereby amended by the substitution of the following subsection for subsection (2):
“(2) As respects an instrument executed on or after the 1st day of June, 1973, or deemed by virtue of this subsection to be a new and separate instrument executed on or after the 1st day of June, 1973, where such total amount is unlimited, the security shall—
(a) if unstamped, or if stamped with ad valorem duty to cover an amount not exceeding £10,000, be available only for £10,000, and
(b) if stamped with ad valorem duty to cover an amount exceeding £10,000, be available for such amount only;
but where any advance or loan is made in excess of £10,000 or such greater amount as may be covered by that duty, the security shall, for the purpose of stamp duty, be deemed to be a new and separate instrument, executed on the day on which the advance or loan is made”.
Amendment of First Schedule to Stamp Act, 1891.
64.—(1) The Heading set out in Part I of the Ninth Schedule to this Act is hereby substituted for the Heading “BOND, COVENANT, or INSTRUMENT of any kind whatsoever” in the First Schedule (as amended by the Finance Act, 1970), to the Stamp Act, 1891.
(2) (a) The Heading set out in Part II of the said Ninth Schedule is hereby substituted for the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities” in the said First Schedule (as so amended).
(b) The Heading in the said First Schedule inserted by paragraph (a) of this subsection shall, subject to the provisions of that Heading, be deemed to include any conveyance or transfer of any property other than stocks or marketable securities operating as a voluntary disposition inter vivos and any reference in that Heading to the amount or value of any consideration shall be construed in relation to duty chargeable on such conveyance or transfer as a reference to the value of the property.
(3) The paragraph set out in Part III of the said Ninth Schedule is hereby substituted for paragraph (3) of the Heading “LEASE” in the said First Schedule (as so amended).
(4) The Heading set out in Part IV of the said Ninth Schedule is hereby substituted for the Heading “MORTGAGE, BOND, DEBENTURE, COVENANT (except a marketable security otherwise specially charged with duty) and WARRANT OF ATTORNEY to confess and enter up judgment” in the said First Schedule (as so amended).
(5) Subject to section 4 of the Stamp Act, 1891, any instrument which, by virtue of any of the preceding provisions of this section, is exempt from duty under any Heading in the said First Schedule mentioned in those provisions shall not be chargeable with duty under any other Heading in the said First Schedule.
Amendment of section 50 of Finance Act, 1969.
65.—Section 50 (2) of the Finance Act, 1969, is hereby amended by the substitution of “fifteen per cent.” for “ten per cent.”.
Revocation of Order.
66.—The Imposition of Duties (No. 206) (Stamp Duty on Certain Instruments) Order, 1973, is hereby revoked.
Chapter II
Stamp Duty on Capital Companies
Interpretation (Chapter II).
67.—In this Chapter, save where the context otherwise requires—
“capital company” means—
(a) a company incorporated with limited liability, or a limited partnership formed under the law of the State or a company or partnership which is incorporated or formed in any other Member State and which, under the law of that State, corresponds to any such company or partnership, or
(b) any other company, firm, association or legal person the shares in whose capital or assets can be dealt in on a stock exchange, or
(c) any other company, firm, association or legal person operating for profit whose members have the right to dispose of their shares to third parties without prior authorisation and are responsible for the debts of the company, firm, association or legal person only to the extent of their shares;
“Member State” means a Member State of the European Economic Community;
“operative date” means the 1st day of August, 1973, or the date of the passing of this Act, whichever is the later;
“registrar” means the registrar of companies within the meaning of the Companies Act, 1963;
“stamp duty” means the stamp duty imposed by section 68 of this Act;
“statement” means the statement required to be delivered under section 69 (1) of this Act;
“third country” means a State which is not a Member State;
“transaction” means a transaction to which section 68 (1) of this Act applies;
a reference to stamp duty paid means stamp duty paid to the Revenue Commissioners.
Charge of stamp duty.
68.—(1) This section applies to the following transactions taking place on or after the operative date—
(a) the formation of a capital company;
(b) the conversion into a capital company of a company, firm, association or legal person which is not a capital company;
(c) an increase in the capital of a capital company by the contribution of assets of any kind other than an increase in capital through capitalisation of profits or of reserves, whether temporary or permanent reserves, but including the conversion of loan stock of a capital company into share capital;
(d) an increase in the assets of a capital company by the contribution of assets of any kind in consideration, not of shares in the capital or assets of the company, but of rights of the same kind as those of members of the company such as voting rights, a share in the profits or a share in the surplus upon liquidation;
(e) the transfer from a third country to the State of the effective centre of management of a capital company whose registered office is in a third country;
(f) the transfer from a third country to the State of the registered office of a capital company whose effective centre of management is in a third country;
(g) the transfer from a Member State to the State of the effective centre of management of a capital company which is not considered to be a capital company in the other Member State;
(h) the transfer from a Member State to the State of the registered office of a capital company whose effective centre of management is in a third country and which is not considered to be a capital company in the Member State from which the registered office is being transferred.
(2) Where, at the date of a transaction, or as a result thereof—
(a) the effective centre of management of the capital company is in the State, or,
(b) if the effective centre of management of the capital company is in a third country, the registered office of the capital company is in the State,
there shall be charged on the statement required to be delivered pursuant to this Chapter a stamp duty (in this Chapter referred to as stamp duty) and the Stamp Act, 1891, shall, subject to the provisions of this Chapter, apply in relation to the said duty as if the said duty were imposed by that Act.
Statement to be charged with stamp duty.
69.—(1) Where any transaction takes place, a statement of the assets, liabilities and expenses referred to in section 70 of this Act shall be delivered to the registrar—
(a) in the case of the formation of a capital company which is to be incorporated under the Companies Act, 1963, or formed under the Limited Partnerships Act, 1907, before the incorporation or registration thereof, and
(b) in any other case, within 30 days after the date of the transaction,
and the statement shall be charged with stamp duty at the rate of £1 for every £100 or part of £100 of the amount determined in accordance with the said section 70;
Provided that in the case referred to in paragraph (a) of this subsection, the statement shall be charged with stamp duty of not less than £1:
Provided also that, in the case referred to in paragraph (a) of this subsection, if there is difficulty in ascertaining the exact amount in respect of which stamp duty is chargeable, the statement shall be charged in the first instance with stamp duty at the rate aforesaid in respect of such amount as the Revenue Commissioners consider appropriate and, if afterwards—
(i) it is established that too little duty has been paid, the additional duty shall be payable and be treated as duty in arrear, and
(ii) it is established that too much duty has been paid, the excess shall be repaid by the Revenue Commissioners with interest at the rate of 9 per cent. per annum.
(2) In the case of neglect to deliver within 30 days after the date of a transaction the statement required under subsection (1) of this section to be so delivered, the capital company concerned shall be liable to pay to the Revenue Commissioners interest at the rate of one pound per cent. upon the amount of duty chargeable and a like sum for every month after the first month during which the neglect shall continue.
(3) Interest on the additional duty payable under subsection (1) (i) of this section shall be charged at the rate of 9 per cent. per annum from the date of the transaction which gave rise to the charge for duty until the date of payment of the duty.
(4) Save in the case of the capital companies specified in section 73 of this Act, the registrar shall not incorporate a capital company which is to be incorporated under the Companies Act, 1963, or register a capital company which is to be formed under the Limited Partnerships Act, 1907, until the statement referred to in subsection (1) of this section in relation to the company is stamped.
Amount on which stamp duty chargeable.
70.—Stamp duty shall be charged—
(a) in the case of a transaction specified in paragraph (a), (c) or (d) of section 68 (1) of this Act, in respect of the amount of the actual value, at the date of the transaction, of the assets of any kind contributed or to be contributed in
connection with the transaction by the members of the capital company concerned after the deduction of the liabilities attaching to such assets and assumed by the capital company and of the expenses incurred by the capital company in connection with such contribution;
(b) in the case of a transaction specified in paragraph (b), (e), (f), (g) or (h) of section 68 (1) of this Act, in respect of the amount of the actual value, at the date of the transaction, of the assets of any kind of the capital company concerned after the deduction of its liabilities on that date and of the expenses incurred by the company in connection with the transaction:
Provided that, in any case, the amount in respect of which stamp duty is charged shall not be less than the actual value or the nominal value (whichever is the greater) of the shares (if any) in the company concerned allotted to the members of the capital company in connection with the transaction or belonging to the members of the capital company immediately after the transaction:
Provided also that, in arriving at the amount of the actual value in respect of which the duty is charged, there shall be excluded the amount of any assets aforesaid contributed in connection with the transaction by a member with unlimited liability or the share of such a member in the assets of the company.
Abolition of certain stamp duty and relief in respect of certain payments of stamp duty.
71.—(1) (a) In the case of any transaction specified in section 68 (1) of this Act which took place on or after the 1st day of January, 1973, stamp duty shall not be chargeable, under section 8 of the Finance Act, 1899, on any statement of the amount proposed to be secured by an issue of loan capital (within the meaning of that section) or under a provision to which this subsection applies, on any instrument, and, in any case where such duty has been paid since the 1st day of January, 1973, in respect of any such transaction the duty so paid shall, on the application of the person who paid the duty, be repaid to that person.
(b) In this subsection “provision to which this subsection applies” means any provision made by or under statute which charges any trust deed or other document securing loan capital (within the meaning of the said section 8) with the stamp duty payable in respect of a mortgage or marketable security.
(2) In the case of any transaction stamp duty shall not be chargeable on any statement under—
(a) section 112 or 113 of the Stamp Act, 1891, in respect of the nominal share capital of a limited company, or
(b) section 11 of the Limited Partnerships Act, 1907, in respect of amounts contributed by limited partners.
(3) In the case of any transaction specified in section 68 (1) which took place or takes place on or after the 1st day of January, 1973, and before the operative date (in this subsection referred to as the relevant period), and in respect of which statements were required to be delivered under either of the acts referred to in subsection (2) of this section and the stamp duty chargeable thereon has been paid, the company that paid the duty may, at any time before the 1st day of August, 1975, deliver statements of the kind specified in section 69 (1) of this Act in respect of all transactions which took place during the relevant period in relation to the capital company and stamp duty shall be charged thereon as if the 1st day of January, 1973, were substituted for the operative date in section 68 of this Act and, if the stamp duty previously paid exceeds the amount of stamp duty charged on the statement, the amount of the excess shall be repaid to the capital company.
(4) Where, under the provisions of sections 112 or 113 of the Stamp Act, 1891, stamp duty has already been paid in respect of the nominal share capital of any capital company and stamp duty again becomes payable under this Chapter by the capital company in respect of any part of that capital that was not issued on the operative date, there shall be allowed, as a deduction against stamp duty, so much of the stamp duty already paid as bears the same proportion to the total stamp duty already paid as the increase in the issued share capital (in so far as it represents the said share capital which was not issued) bears to the nominal share capital in respect of which the stamp duty has already been paid, and, for the purpose of this section, the nominal share capital in respect of which stamp duty has already been paid shall, in any case where there was a reduction in nominal share capital by way of relief under section 21 of the Finance Act, 1965, be deemed to be such share capital as would have been chargeable to duty if there had been no such reduction.
(5) Where, on the operative date, there is included in the share capital of a capital company referred to in subsection (4) of this section shares which are not fully paid up, the total amount remaining to be paid up on those shares at that date shall be treated, for the purposes of that subsection, as nominal share capital which was not issued at that date.
(6) The statement required to be delivered pursuant to this Chapter in respect of a transaction specified in section 68 (1) (c) of this Act shall, in any case where, within the period of four years immediately before the date of the transaction and on or after the operative date, there has been a reduction in the issued capital of the capital company concerned as a result of losses sustained by the company, be charged at the rate of zero per cent. in respect of so much of the amount determined in accordance with section 70 of this Act as corresponds to the reduction in issued capital or to so much of the reduction in issued capital to which the rate of zero per cent. had not been applied in respect of an earlier transaction occurring since the reduction in capital.
Reconstructions or amalgamations of capital companies.
72.—(1) If, in the case of a transaction, a capital company or a capital company which is in the process of being formed (in this section referred to as the transferee company) acquires either—
(a) the undertaking or part of the undertaking of another capital company (in this section referred to as the transferor company), or
(b) share capital of another capital company to an extent that, after that transaction, but not necessarily as a result of that transaction, the transferee company owns at least 75 per cent. of the issued share capital of that other company (in this section referred to as the transferor company),
then, subject to the provisions of this section, stamp duty on the statement delivered in accordance with section 69 (1) shall be charged at the rate of zero per cent. (in this section referred to as the reduced rate):
Provided that, where the percentage referred to in paragraph (b) of this subsection is reached by means of two or more transactions, the reduced rate shall apply only to the transaction whereby this percentage is achieved and to any transaction subsequent to the achievement and retention of that percentage.
(2) Subsection (1) of this section shall apply only where the consideration for the acquisition (except such part thereof as consists of the transfer to or discharge by the transferee company of liabilities of the transferor company) consists—,
(a) where the undertaking or part of the undertaking of the transferor company is acquired, of the issue of shares in the transferee company to the transferor company or to holders of shares in the transferor company; or
(b) where shares of the transferor company are acquired, of the issue of shares in the transferee company to the holders of shares in the transferor company in exchange for shares held by them in the transferor company,
with or without a payment in cash, provided that the payment in cash does not exceed 10 per cent. of the nominal value of the shares in the transferee company which are comprised in the consideration.
(3) The statement, which by virtue of this section is charged at the reduced rate, shall become chargeable with stamp duty at the rate specified in section 69 of this Act if the transferee company does not retain, for a period of five years from the date of the transaction in respect of which stamp duty at the reduced rate was charged, at least 75 per cent. of the issued share capital of the other company and all the shares which it held following that transaction, including the shares acquired whether by way of a transaction or otherwise before that transaction and held at the time thereof:
Provided, however, that the reduced rate shall continue to apply if the transfer, as a result of which the shares in question were not held for a period of five years, was either—
(a) a transfer forming part of a transaction which would of itself qualify for the reduced rate pursuant to subsection (1) of this section, or
(b) a transfer in the course of the liquidation of the transferee company.
(4) Where, by reason of subsection (3) of this section, stamp duty becomes chargeable at the rate specified in section 69 of this Act when the transferee company concerned within a period of five years from the date of any transaction in respect of which stamp duty was charged at the reduced rate—
(a) ceases to retain at least 75 per cent. of the issued share capital of the transferor company concerned, or
(b) disposes of any of the shares of the said transferor company which it held after the transaction to which the reduced rate was applied,
then the statement which was delivered to the registrar pursuant to section 69 (1) of this Act in relation to the transaction in respect of which stamp duty was charged at the reduced rate shall be charged
with stamp duty at the rate which would have been charged in the first instance if subsection (1) of this section had not applied to the transaction and the statement thus charged shall have applied to it the provisions of this Chapter save that, for the purposes of subsections (2) and (3) of section 69 of this Act, the date of the transaction shall be the date on which the event specified in paragraph (a) or (b), as the case may be, of this subsection occurred.
(5) This section shall apply only where the effective centre of management or the registered office of the transferor company concerned is in a Member State.
Exemption for certain companies.
73.—Stamp duty shall not be charged in the case of a transaction that is effected by—
(a) a capital company which is formed for the purpose of and carries on exclusively the business of supplying a public service such as public transport or port facilities, or supplying water, gas or electricity, and not less than fifty per cent. of the issued capital of which is owned by the State or a local authority, or
(b) a capital company whose objects are exclusively cultural, charitable or educational:
Provided that the statement which is required to be delivered in pursuance of section 69 (1) of this Act in relation to such transaction shall not be deemed to be duly stamped unless it has, in accordance with the provisions of section 12 of the Stamp Act, 1891, been stamped with a particular stamp denoting that it is not chargeable with stamp duty.
Appeals in certain cases.
74.—A person who is dissatisfied with a decision of the Revenue Commissioners under this Chapter on the amount of the actual value of any assets referred to in section 70 of this Act may—
(a) in the case of stocks, shares or other securities which are not dealt in on a stock exchange, appeal to the Appeal Commissioners (within the meaning of section 33 of the Finance Act, 1972) against the decision and the said section 33 shall, with any necessary modifications, apply to an appeal under this paragraph as if the appeal were an appeal under that section,
(b) in the case of land, appeal against the decision in the manner prescribed by section 33 of the Finance (1909-10) Act, 1910; and so much of Part I of that Act as relates to appeals shall, with any necessary modifications, apply to an appeal under this paragraph as if the appeal were an appeal under that section.
Recovery of stamp duty and furnishing of information.
75.—(1) Stamp duty and the interest thereon shall be recoverable from the capital company concerned and, in any case where the capital company is not a body corporate, shall be recoverable from the members of the capital company jointly and severally.
(2) All statements used for the purpose of this Chapter shall be in such form and contain such particulars as may be required by the Revenue Commissioners and every person accountable for stamp duty shall, if so required by the Revenue Commissioners, verify such particulars and deliver to them such evidence as they may require relating to any transaction or to any company concerned in any such transaction.
PART V
Value-Added Tax
Commencement (Part V).
76.—This Part (other than section 90, in so far as it amends the definition of “manufacturer” in section 1 (1) of the Principal Act) shall come into operation on the 3rd day of September, 1973.
“Principal Act”.
77.—In this Part “the Principal Act” means the Value-Added Tax Act, 1972.
Amendment of section 3 of Principal Act.
78.—Section 3 of the Principal Act is hereby amended by the insertion of the following subsection after subsection (1):
“(1A) Where—
(a) goods of a kind specified in paragraph (xii) of the Second Schedule are supplied in a form suitable for human consumption without further preparation,
(b) the supply is made—
(i) by means of a vending machine, or
(ii) in the course of operating a hotel, restaurant, cafe, refreshment house, canteen, establishment licensed for the sale of intoxicating liquor, catering business or similar business, or
(iii) in the course of operating any other business in connection with the carrying on of which facilities are provided for the consumption of the goods supplied, and
(c) apart from this subsection, the supply would constitute a delivery of the goods,
the supply shall, for all the purposes of this Act, be deemed to be a rendering of services and not a delivery of goods.”.
Amendment of section 5 of Principal Act.
79.—Section 5 of the Principal Act is hereby amended—
(a) by the substitution for subsection (2) of the following subsection :
“(2) (a) Services, whether or not rendered for a consideration or for a separate consideration, which, apart from this subsection, would not be regarded as rendered by a person in the course of business, shall, subject to and to the extent provided by regulations, be regarded as rendered by him in the course of business if they are connected with any business activity in which he engages.
(b) For the purposes of this subsection and section 32, services shall be regarded as connected with a business activity in which a person engages if he provides facilities for, or contributes in whole or part towards the cost of, rendering them.”, and
(b) by the insertion in subsection (5) after paragraph (b) of the following paragraph :
“(c) This subsection shall not apply to a supply of goods of a kind specified in paragraph (xii) of the Second Schedule.”.
Amendment of section 11 of Principal Act.
80.—Section 11 of the Principal Act is hereby amended—
(a) by the substitution of the following paragraphs for paragraphs (a) and (b) of subsection (1) :
“(a) 6.75 per cent. of the appropriate amount of any consideration, other than consideration to which paragraph (b) applies, which relates to the delivery of goods of a kind specified in Part I of the Third Schedule or the rendering of services of a kind specified in Part II of that Schedule,
(b) 11.11 per cent. of the appropriate amount of any consideration which relates to the promotion of dances and the delivery (if any) of goods of a kind specified in paragraphs (vi) to (viii) and (xii) to (xv) of the Second Schedule or in Part I of the Third Schedule and the rendering (if any) of services which, but for this paragraph, would be chargeable at the rate specified in paragraph (a) delivered or rendered in connection with dances, where payment of the consideration for such delivery or rendering is included in the consideration in respect of admission to the dance or is a condition of admission,”,
(b) by the substitution in subsection (1) (c) of “36.75” for “30.26”,
(c) by the substitution in subsection (1) (e) of “19.50” for “16.37”,
(d) by the insertion of the following subsections after subsection (1):
“(1A) (a) The rate at which tax shall be chargeable shall, in relation to tax chargeable under section 2 (1) (a), be the rate for the time being in force at the time at which the tax becomes due in accordance with subsection (1) or (2), as may be appropriate, of section 19.
(b) Goods or services which are specifically excluded from any paragraph of a Schedule shall, unless the contrary intention is expressed, be regarded as excluded from every other paragraph of that Schedule, and shall not be regarded as specified in that Schedule.
(1B) (a) On receipt of an application in writing from an accountable person, the Revenue Commissioners shall, in accordance with regulations
and after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, make a determination concerning—
(i) whether an activity of any particular kind carried on by the person is an exempted activity, or
(ii) the rate at which tax is chargeable in relation to the delivery by the person of goods of any kind, the delivery of goods in any particular circumstances or the rendering by the person of services of any kind.
(b) The Revenue Commissioners may, whenever they consider it expedient to do so, in accordance with regulations and after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, make a determination concerning—
(i) whether an activity of any particular kind is an exempted activity, or
(ii) the rate at which tax is chargeable in relation to the delivery of goods of any kind, the delivery of goods in any particular circumstances or the rendering of services of any kind.
(c) A determination under this subsection shall have effect for all the purposes of this Act, in relation to an accountable person who makes an application therefor, as on and from the date upon which particulars of the determination are communicated to him in accordance with paragraph (e) (i) and, in relation to any other person, as on and from the date of publication of the determination in the Iris Oifigiúil.
(d) The Revenue Commissioners shall not make a determination under this section concerning any matter which has been determined on
appeal under this Act or which is for the time being governed by an order under section 6 (2) or 11 (8), and shall not be required to make such a determination in relation to any of the matters referred to in an application under paragraph (a) if—
(i) a previous determination has been published in regard to the matter, or
(ii) in their opinion the subject matter of the application is sufficiently free from doubt as not to warrant the making and publication of a determination.
(e) (i) A determination under paragraph (a) shall, as soon as may be after the making thereof, be communicated to the person who made the application therefor by the service on him by the Revenue Commissioners of a notice containing particulars of the determination.
(ii) A determination under paragraph (a) may and a determination under paragraph (b) shall be published in the Iris Oifigiúil and, in that event, it shall also be published in at least one daily newspaper published in the State.
(f) A person, aggrieved by a determination under paragraph (a) made pursuant to an application by him, may, on giving notice in writing to the Revenue Commissioners within the period of twenty-one days beginning on the date of service on him of notice of the determination in accordance with paragraph (e) (i), appeal to the Appeal Commissioners.
(g) Any accountable person who, in the course of business, delivers goods or renders services of a kind or in circumstances specified in a determination under paragraph (a) or (b) may, on giving notice in writing to the Revenue Commissioners within the period of twenty-one days beginning on the date of the publication of the determination in the Iris Oifigiúil, appeal to the Appeal Commissioners.”,
(e) by the insertion of the following subsection after subsection (4):
“(4A) Where—
(a) goods of a kind specified in paragraph (xii) of the Second Schedule are used by a person in the course of the rendering by him of taxable services, and
(b) the goods are supplied by the person to whom the services are rendered or by any other person other than the person by whom the services are rendered,
the person who renders the taxable services shall be deemed to have supplied the goods so used in the course of business and shall be liable, in addition to any other liability imposed on him under this Act, to pay tax on the value of the goods so used at the rate specified in section 11 (1) (a).”, and
(f) by the substitution of the following paragraph for paragraph (a) of subsection (8):
“(a) The Minister may by order vary the Second or Third Schedules by adding to or deleting therefrom descriptions of goods or services of any kind or by varying any description of goods or services for the time being specified therein, and may, in like manner, vary the Fourth Schedule by deleting therefrom descriptions of goods of any kind or by varying any description of goods for the time being specified therein, but no order shall be made under this section for the purpose of increasing any of the rates of tax or extending the classes of activities or goods in respect of which tax is for the time being chargeable.”.
Amendment of section 12 of Principal Act.
81.—Section 12 of the Principal Act is hereby amended—
(a) by the insertion of the following subsection after subsection (1)—
“(1A) (a) A person who, by election or in accordance with the provisions of section 8 (4) is deemed to become an accountable
person, shall, in accordance with regulations, be entitled, in computing the amount of tax payable by him in respect of the first taxable period for which he is so deemed to be an accountable person, to treat as tax deductible under subsection (1) such part of the value of the stock-in-trade (within the meaning of section 34) held by him immediately before the commencement of that taxable period as could reasonably be regarded as the amount which he would be entitled to claim under the said subsection (1) if he had been an accountable person at the time of the delivery to him of such stock-in-trade.
(b) No claim shall lie under this subsection for a deduction for the tax relating to any stock-in-trade (within the meaning of section 34) if, and to the extent that, a deduction under subsection (1) could be claimed apart from this subsection.
(c) This subsection shall have effect in relation to taxable periods commencing on or after the 3rd day of September, 1973.”, and
(b) by the deletion in subsection (1) of paragraph (e).
Amendment of section 19 of Principal Act.
82.—Section 19 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (3):
“(3) (a) Within nine days immediately after the tenth day of the month immediately following a taxable period, an accountable person shall furnish to the Collector-General a true and correct return prepared in accordance with regulations of the amount of tax which became due under section 2 (1) (a) by him during the taxable period and the amount, if any, which may be deducted in accordance with section 12 in computing the amount of tax payable by him in respect of such taxable period, and shall at the same time remit to the Collector-General the amount of tax, if any, payable by him in respect of such taxable period.
(b) Paragraph (a) shall be construed in relation to the taxable period commencing on the first day of July, 1973, as if the reference therein to nine days immediately after the tenth day of the month immediately following a taxable period were a reference to nine days immediately after the tenth day of the month in which the taxable period ends.”.
Amendment of section 26 of Principal Act.
83.—Section 26 of the Principal Act is hereby amended—
(a) by the substitution in subsection (1) of “18 (2)” for “18”, and
(b) by the insertion after subsection (3) of the following subsection:
“(3A) A person who does not comply with section 18 (3) shall be liable to a penalty of £100.”.
Amendment of section 27 of Principal Act.
84.—Section 27 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (5):
“(5) A person who fraudulently or negligently—
(a) issues an invoice in which an amount of tax is stated, in such circumstances that, apart from his liability under subsection (5) or (6) of section 17, the said amount does not represent the amount of tax (if any) which becomes due by him in respect of the transaction to which the invoice relates, or
(b) issues a credit note showing an amount of tax other than that properly applicable to the transaction to which the credit note relates,
shall be liable to a penalty of—
(i) £100, and
(ii) the amount, or, in the case of fraud, twice the amount of his liability under the said subsection (5) or (6), as the case may be, in respect of the issue of any such invoice or credit note.”.
Amendment of section 32 of Principal Act.
85.—Section 32 (1) of the Principal Act is hereby amended by the insertion of the following paragraphs after paragraph (x):
“(xx) the relief (if any) to be given to an accountable person in respect of tax borne or paid by him on stock-in-trade held by him immediately before the commencement of the first taxable period for which he is deemed to become an accountable person;
(xxx) the manner in which a determination may be made for the purposes of section 11 (1B);”.
Amendment of section 35 of Principal Act.
86.—Section 35 of the Principal Act is hereby amended by the insertion after subsection (1) of the following subsection:
“(1A) (a) Where, after the making of an agreement for the delivery of goods or the rendering of services and before the date on which under subsection (1) or (2), as may be appropriate, of section 19 any tax in respect of the transaction would, if the proviso to the said subsection (1) were disregarded, fall due, there is a change in the amount of tax chargeable on the delivery or rendering in question, then, in the absence of agreement to the contrary, there shall be added to or deducted from the total amount of the consideration and any tax stated separately under the agreement an amount equal to the amount of the change in the tax chargeable.
(b) References in this subsection to a change in the amount of tax chargeable on the delivery of goods or the rendering of services include references to a change to or from a situation in which no tax is being charged on the delivery or rendering.”.
Amendment of First Schedule to Principal Act.
87.—The First Schedule to the Principal Act is hereby amended—
(a) by the substitution for paragraph (ix) of the following paragraph:
“(ix) services of a medical or educational nature rendered by hospitals, nursing homes, schools and similar establishments; and catering services rendered—
(a) to patients of a hospital or nursing home in the hospital or nursing home, and
(b) to students of a school in the school;” and
(b) by the insertion after paragraph (xxiii) of the following paragraphs:
“(xxiv) delivery of live horses;
(xxv) delivery of live greyhounds;
(xxvi) the natural or artificial insemination of livestock.”.
Amendment of Second Schedule to Principal Act.
88.—The Second Schedule to the Principal Act is hereby amended—
(a) by the substitution of the following paragraph for paragraph (vii):
“(vii) animal feeding stuff, excluding feeding stuff which is packaged, sold or otherwise designated for the use of dogs, cats, cage birds or domestic pets;”,
and
(b) by the insertion of the following paragraphs after paragraph (x)
“(xi) life saving services provided by the Royal National Lifeboat Institution including the organisation and maintenance of the lifeboat service;
(xii) food and drink of a kind used for human consumption, excluding—
(a) beverages chargeable with any duty of customs or excise specifically charged on spirits, beer, wine, cider, perry or Irish wine, and preparations thereof,
(b) other manufactured beverages, including fruit juices and bottled waters, and syrups, concentrates, essences, powders, crystals or other products for the preparation of beverages, but not including—
(I) tea and preparations thereof,
(II) cocoa, coffee and chicory and other roasted coffee substitutes, and preparations and extracts thereof,
(III) preparations and extracts of meat, yeast, egg or milk,
(c) ice cream, ice lollipops, water ices and similar frozen products, and prepared mixes and powders for making such products,
(d) (I) chocolates, sweets and similar confectionery (including drained, glacé or crystallised fruits), biscuits, crackers and wafers of all kinds, and all confectionery and bakery products other than bread,
(II) for the purposes of this paragraph “bread” means food for human consumption manufactured by baking dough composed exclusively of a mixture of cereal flour and any one or more of the ingredients mentioned in the following subclauses in quantities not exceeding the limitation, if any, specified for each ingredient—
(1) yeast or other leavening or aerating agent, salt, malt extract, milk, water, gluten,
(2) fat, sugar and bread improver, subject to the limitation that the weight of any ingredient specified in this subclause shall not exceed 2 per cent. of the weight of flour included in the dough,
(3) dried fruit, subject to the limitation that the weight thereof shall not exceed 10 per cent. of the weight of flour included in the dough,
other than food packaged for sale as a unit (not being a unit designated as containing only food specifically for babies) containing two or more slices, segments, sections or other similar pieces, having a crust over substantially the whole of their outside surfaces, being a crust formed in the course of baking or toasting,
(e) any of the following when supplied for human consumption without further preparation, namely, potato crisps, potato sticks, potato chips, potato puffs and similar products made from potato, or from potato flour or from potato starch, popcorn, and salted or roasted nuts whether or not in shells;
(xiii) medicine of a kind used for human oral consumption;
(xiv) medicine of a kind used for animal oral consumption, excluding medicine which is packaged, sold or otherwise designated for the use of dogs, cats, cage birds or domestic pets;
(xv) seeds, plants, spores, bulbs, tubers, tuberous roots, corms, crowns and rhizomes, of a kind used for sowing in order to produce food;
(xvi) goods of different kinds which are packaged for sale as a unit (hereinafter in this paragraph referred to as the package) and in relation to which all the following conditions are satisfied—
(a) the package consists of goods in relation to the delivery of some of which for a separate consideration tax would be chargeable at the rate specified in section 11 (1) (d), and in
relation to the delivery of the remainder of which for a separate consideration, tax would be chargeable at the rate specified in section 11 (1) (e),
(b) the consideration for delivery is referable to the package as a whole and not to the different kinds of goods included therein, and
(c) the total tax-exclusive value of the goods included in the package, in relation to the delivery of which for a separate consideration tax would be chargeable at the rate specified in the said section 11 (1) (e), does not exceed 50 per cent. of the total tax-exclusive consideration for the package or 2½ new pence, whichever is the lesser.”.
Amendment of Third Schedule to Principal Act.
89.—The Third Schedule to the Principal Act is hereby amended—
(a) by the substitution in Part I of the Schedule of the following paragraph for paragraph (i):
“(i) Animal medicine excluding medicine—
(a) of a kind specified in paragraph (xiv) of the Second Schedule, or
(b) which is packaged, sold or otherwise designated for the use of dogs, cats, cage birds or domestic pets;”,
(b) by the addition to Part I of the Schedule of the following paragraph:
“(xxxii) goods of different kinds which are packaged for sale as a unit (hereinafter in this paragraph referred to as the package) and in relation to which all the following conditions are satisfied:
(a) the package consists of goods in relation to the delivery of some of which for a separate consideration tax would be chargeable at the rate specified in section 11 (1) (a), and in relation to the delivery of the remainder of which for such a consideration, tax would be chargeable at any other rate or rates,
(b) the consideration for delivery is referable to the package as a whole and not to the different kinds of goods included therein, and
(c) the total tax-exclusive value of the goods included in the package, in relation to the delivery of which for a separate consideration or separate considerations tax would be chargeable at a rate or rates other than the rate specified in the said section 11 (1) (a), does not exceed 50 per cent. of the total tax-exclusive consideration for the package or 2½ new pence, whichever is the lesser,”, and
(c) by the addition to Part II of the Schedule of the following paragraph:
“(vii) the hiring to a person under a contract in writing, other than a contract of a kind referred to in section 3 (1) (b), entered into before the 24th day of October, 1972, of movable goods in the possession of the person on the 1st day of November, 1972, of a kind on the delivery of which, if paragraph (xxviii) of Part I of this Schedule were disregarded, tax would be chargeable at the rate specified in section 11 (1) (e).”.
Miscellaneous amendments of Principal Act.
90.—The Principal Act is hereby amended as specified in column (3) of the Tenth Schedule to this Act.
PART VI
Miscellaneous
Capital Services Redemption Account.
91.—(1) In this section—
“the principal section” means section 22 of the Finance Act, 1950;
“the 1972 amending section” means section 40 of the Finance Act, 1972;
“the twenty-third additional annuity” means the sum charged on the Central Fund under subsection (4) of this section;
“the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.
(2) Subsection (4) of the 1972 amending section shall, in relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of March, 1974, have effect with the substitution of “£4,647,544” for “£4,650,815”.
(3) Subsection (6) of the 1972 amending section shall have effect with the substitution of “£2,933,771” for “£2,993,830”.
(4) A sum of £5,452,955 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 March, 1974.
(5) The twenty-third 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 twenty-third additional annuity, not exceeding £3,510,185 in any financial year, may be applied towards defraying the interest on the public debt.
(7) The balance of the twenty-third additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.
Securities of certain European bodies.
92.—(1) This section applies to any stock or other form of security issued in the State by the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank.
(2) Any stock or other form of security to which this section applies shall be deemed—
(a) to be a security issued under the authority of the Minister for Finance within the meaning of section 466 of the Income Tax Act, 1967, and
(b) to be a security to which section 63 of the Finance Act, 1969, applies,
and those sections shall apply and have effect accordingly.
(3) Section 34 of the Finance Act, 1956, is hereby amended by the addition to subsection (1) of “, or of section 92 of the Finance Act, 1973.”.
(4) Section 474 of the Income Tax Act, 1967, is hereby amended by the addition to subsection (1) of “or section 92 of the Finance Act, 1973.”.
(5) Any stock or other form of security to which this section applies shall be exempt from death duties in connection with the death of any person dying after the passing of this Act who was not domiciled or ordinarily resident in the State at the time of his death and section 39 of the Finance Act, 1970, shall apply to any such stock or other form of security.
(6) The First Schedule (as amended by the Finance Act, 1970) to the Stamp Act, 1891, is hereby amended by the insertion in paragraph 1 of the Heading “GENERAL EXEMPTIONS FROM ALL STAMP DUTIES” after subparagraph (i) of the following paragraph :
“(ia) transfers of any stock or other form of security to which section 92 of the Finance Act, 1973, applies,”.
Amendment of Finance (Excise Duties) (Vehicles) Act, 1952.
93.—(1) The Finance (Excise Duties) (Vehicles) Act, 1952, shall, as respects licences under section 1 of that Act for periods beginning on or after the 1st day of June, 1973, be amended by the substitution in paragraph 1 (a) of Part I of the Schedule thereto of £2, £5, £8, £12 and £15 as the rates of duty in lieu of £1.50, £3, £4.50, £7.00 and £9.50
(2) The Finance (Excise Duties) (Vehicles) Act, 1952, shall, as respects licences under section 1 of that Act for periods beginning on or after the 1st day of June, 1973, be amended by the substitution in Part I of the Schedule thereto of the following subparagraphs for subparagraphs (b), (c) and (d) of paragraph 4:
“(b) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 25 miles per hour on a levels road under their own power) and agricultural engines, not being tractors or engines used for hauling on roads any objects except their own necessary gear, threshing appliances, farming implements or supplies of fuel or water required for the purposes of the vehicles or agricultural purposes | £1. |
(c) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 25 miles per hour on a level road under their own power and not being tractors in respect of which a duty is chargeable at the rate specified in subparagraph (b) of this paragraph) which are used for haulage in connection with agriculture and for no other purpose | £5. |
Where a tractor is fitted with a detachable platform, container or implement (being a platform, container or implement used primarily for farm work), goods or burden of any other description conveyed on or in the platform, container or implement shall be regarded for the purposes of this subparagraph as being hauled by the tractor. | |
(d) tractors of any other description | £50.” |
(3) The Finance (Excise Duties) (Vehicles) Act, 1952, shall, as respects licences under section 1 of that Act for periods beginning on or after the 1st day of June, 1973, be amended by the substitution in Part I of the Schedule thereto of the following paragraph for paragraph 5:
“5. Vehicles (including tricycles weighing more than 8 cwt. unladen) constructed or adapted for use and used for the conveyance of goods or burden of any other description in the course of trade or business (including agriculture and the performance by a local or public authority of its functions) and vehicles constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement by or in which goods being conveyed by such vehicles are processed or manufactured while the vehicles are in motion:
(a) being vehicles which are electrically propelled and which do not exceed 25 cwt. in weight unladen | £20 |
(b) being vehicles which are not such electrically propelled vehicles as aforesaid— | |
(i) not exceeding 12 cwt. in weight unladen | £25 |
(ii) exceeding 12 cwt. but not exceeding 16 cwt. in weight unladen | £31 |
(iii) exceeding 16 cwt. but not exceeding 1 ton in weight unladen | £37 |
(iv) exceeding 1 ton but not exceeding 2 tons in weight unladen | £37, plus £6 for each quarter-ton, or part thereof, of weight unladen in excess of 1 ton |
(v) exceeding 2 tons but not exceeding 3 tons in weight unladen | £61, plus £8 for each quarter-ton, or part thereof, of weight unladen in excess of 2 tons |
(vi) exceeding 3 tons but not exceeding 4 tons in weight unladen | £93, plus £8 for each quarter-ton, or part thereof, of weight unladen in excess of 3 tons |
(vii) exceeding 4 tons but not exceeding 5 tons in weight unladen | £125, plus £10 for each quarter-ton, or part thereof, of weight unladen in excess of 4 tons |
(viii) exceeding 5 tons but not exceeding 6 tons in weight unladen | £165, plus £15 for each quarter-ton, or part thereof, of weight unladen in excess of 5 tons |
(ix) exceeding 6 tons in weight unladen | £225, plus £20 for each quarter-ton, or part thereof, of weight unladen in excess of 6 tons |
with an additional duty, in the case of any vehicle used for drawing a trailer, of—
(I) where the vehicle does not exceed 2 tons in weight unladen | £14 |
(II) where the vehicle exceeds 2 tons but does not exceed 3 tons in weight unladen | £18 |
(III) where the vehicle exceeds 3 tons but does not exceed 4 tons in weight unladen | £24 |
(IV) where the vehicle exceeds 4 tons but does not exceed 5 tons in weight unladen | £32 |
(V) where the vehicle exceeds 5 tons but does not exceed 6 tons in weight unladen | £42 |
(VI) where the vehicle exceeds 6 tons in weight unladen | £54.” |
(4) Subject to subsection (5) of this section, the Finance (Excise Duties) (Vehicles) Act, 1952, shall, as respects licences under section 1 of that Act for periods beginning on or after the 1st day of June, 1973, be amended by the substitution in Part I of the Schedule thereto of the following subparagraph for subparagraph (d) of paragraph 6:
“(d) other vehicles to which this paragraph applies— | £ |
not exceeding 8 horse-power or electrically propelled | 22 |
exceeding 8 horse-power but not exceeding 9 horse-power | 25.50 |
exceeding 9 horse-power but not exceeding 10 horse-power | £29 |
exceeding 10 horse-power but not exceeding 11 horse-power | 33 |
exceeding 11 horse-power but not exceeding 12 horse-power | 37.50 |
exceeding 12 horse-power but not exceeding 13 horse-power | 42 |
exceeding 13 horse-power but not exceeding 14 horse-power | 46-50 |
exceeding 14 horse-power but not exceeding 15 horse-power | 51 |
exceeding 15 horse-power | 55.” |
(5) Subsection (4) of this section shall not have effect in relation to any vehicle—
(a) which is used as a small public service vehicle within the meaning of the Road Traffic Act, 1961, and for no other purpose,
(b) which is fitted with a taximeter and is lawfully used as a street service vehicle within the meaning of the Road Traffic Act, 1961, or for purposes incidental to such user and for no other purpose, or
(c) which is used as a hearse and for no other purpose.
(6) The proceeds, calculated in such manner as the Minister for Finance may direct, of—
(a) the variations of duties effected by this section and section 95 of this Act,
(b) the duty imposed by section 94 of this Act, and
(c) the increases of fees effected by the Road Traffic (Licensing of Drivers) (Amendment) Regulations, 1973,
shall, notwithstanding section 3 of the Finance (Excise Duties) (Vehicles) Act, 1952, be disregarded in any determination of a sum to be issued out of the Central Fund under section 2 (1) of the Roads Act, 1920.
Charge on first licensing of mechanically propelled vehicles.
94.—(1) Subject to the provisions of this section, as on and from the 1st day of June, 1973, before a person proposing to do so takes out a licence under section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952, in respect of a mechanically propelled vehicle specified in subsection (2) of this section not previously the subject of a licence under that section, a duty of excise shall, in addition to the duty of excise chargeable in respect of the vehicle under that section, be charged, levied and paid on and by the person at the appropriate rate specified in the said subsection (2).
(2) The duty imposed by subsection (1) of this section shall be at the following rates:
(a) £1 in relation to a vehicle in respect of which the said duty chargeable under the said section 1 is payable at a rate specified in paragraph 1 of Part I of the Schedule to the said Act;
(b) £5 in relation to any other vehicle (not being a vehicle in respect of which the said duty of excise is not chargeable or leviable).
(3) The duty under this section shall be charged, levied and paid immediately before the taking out of the licence under the said section 1 and shall be collected by and paid to the licensing authority and shall be paid by that authority into the Exchequer in accordance with such directions as may from time to time be given by the Minister for Finance.
(4) For the purpose of levying the duty under this section, a licensing authority shall have within their county or county borough the same powers, duties and liabilities as the Revenue Commissioners and their officers have with respect to duties of excise, and the enactments relating to duties of excise and to punishments and to penalties in connection therewith shall apply accordingly.
(5) Sums paid into the Exchequer and penalties recovered pursuant to this section shall, for the purpose of section 2 of the Roads Act, 1920, be deemed to have been paid into the Exchequer under that Act.
(6) The Road Vehicles (Registration and Licensing) Order, 1958, shall apply in relation to the duty imposed by this section as if it were a duty imposed by section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952.
Increase of driving licence duty.
95.—The Finance (Excise Duties) (Vehicles) Act, 1952, shall, as on and from the 1st day of June, 1973, be amended by the substitution in section 4 (1A) (inserted by the Finance Act, 1961) of the following paragraphs for paragraphs (a) and (b):
“(a) two pounds if the period of the licence is one year, and
(b) two pounds for each year of the period of the licence if that period is two or more years.”.
Repeals.
96.—(1) Each enactment mentioned in column (2) of the Eleventh Schedule to this Act is hereby repealed to the extent specified in column (3) of that Schedule.
(2) This section shall come into operation on the 1st day of August, 1973, or the date of the passing of this Act, whichever is the later:
Provided that, for the purposes of subsections (1) and (3) of section 71 of this Act, this section shall be deemed to have come into operation on the 1st day of January, 1973.
Care and management of taxes and duties.
97.—All taxes and duties (except the excise duties on mechanically propelled vehicles) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.
Short title, construction and commencement.
98.—(1) This Act may be cited as the Finance Act, 1973.
(2) Part I and section 92 of this Act (so far as relating to income tax, including sur-tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation profits tax) shall be construed together with Part V of the Finance Act, 1920, and the enactments amending or extending that Part.
(3) Part II of this Act, so far as it relates to customs, shall be construed together with the Customs Acts and the said Part II and sections 93 and 95 of this Act, so far as they relate to duties of excise, shall be construed together with the Statutes which relate to the duties of excise and the management of those duties.
(4) Part IV of this Act and (so far as relating to stamp duties) section 92 of this Act shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.
(5) Part V of this Act shall be construed together with the Value-Added Tax Act, 1972.
(6) Part I of this Act 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, 1973.
(7) 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.
FIRST SCHEDULE
Policies of Life Insurance
Rules applicable to endowment policies
1. An endowment policy is a qualifying policy if it satisfies the following conditions:
(a) the term specified in the policy in relation to survival must be a term ending not earlier than ten years after the making of the insurance,
(b) premiums must be payable under the policy at yearly intervals or at intervals of six months, three months, two months or one month, and—
(i) until the happening of the event upon which the capital sum secured is payable, or
(ii) until the happening of that event, or the earlier expiry of a specified period shorter than the term specified but also ending not earlier than ten years after the making of the insurance, or
(iii) if the policy is to lapse on the death of a specified person, until one of those times or the policy's earlier lapse,
(c) the total amount of the premiums payable under the policy in any period of twelve months must not exceed—
(i) twice the total amount of the premiums payable in any other such period, or
(ii) one-eighth of the total amount of the premiums which would be payable if the policy were to continue in force for the specified term,
(d) the policy must guarantee that the capital sum payable on death will be equal to three-fourths at least of the total premiums which would be payable if the policy were to continue in force for that term, disregarding any amounts included in those premiums by reason of their being payable otherwise than annually, and
(e) the policy must not secure the provision (except by surrender) at any time before the happening of the event aforesaid of any benefit of a capital nature other than benefits attributable to a right to participate in profits or arising by reason of a person's disability.
2. In applying paragraph 1 to any policy—
(a) no account shall be taken of any provision for the waiver of premiums by reason of a person's disability, and
(b) if the term of the policy runs from a date earlier, but not more than three months earlier, than the making of the insurance, the insurance shall be treated as having been made on that date, and any premium paid in respect of the period before the making of the insurance, or in respect of that period and a subsequent period, as having been payable on that date.
3. References in paragraph 1 (d) to a capital sum payable on death include references to any capital sum, or series of capital sums, payable by reason thereof; and a policy secures a capital sum payable either on death or on disability notwithstanding that the amount payable may vary with the event.
Exceptional mortality risk
4. For the purpose of determining whether any policy is a qualifying policy, there shall be disregarded—
(a) so much of any premium thereunder as is charged on the grounds that an exceptional risk of death is involved, and
(b) any provision under which, on those grounds, any sum may become chargeable as a debt against the capital sum guaranteed by the policy on death.
Connected policies
5. Where the terms of any policy provide that it is to continue in force only so long as another policy does so, neither policy is a qualifying policy unless, if they had constituted together a single policy issued in respect of an insurance made at the time of the insurance in respect of which the first-mentioned policy was issued, that single policy would have been a qualifying policy.
Premiums paid out of sums due under previous policies
6. (1) Where, in the case of a policy under which a single premium only is payable, liability for the payment of that premium is discharged in accordance with subparagraph (2), the policy is a qualifying policy notwithstanding anything in paragraph 1 (b) or paragraph 1 (c) and where, in the case of any other policy, liability for the payment of the first premium thereunder, or of any part of that premium, is so discharged, the premium or part shall be disregarded for the purposes of paragraph 1 (c).
(2) Liability for the payment of a premium is discharged in accordance with this subparagraph if it is discharged by the retention by the company with which the insurance is made of the whole or a part of any sum which has become payable on the maturity of, or on the surrender more than ten years after its issue of the rights conferred by, a policy—
(a) previously issued by the company to the person making the insurance, or, if it is made by trustees, to them or any predecessors in office, or
(b) issued by a company when the person making the insurance was an infant, and securing a capital sum payable either on a specified date falling not more than one month after his attaining the age of twenty-five years or on the anniversary of the policy immediately following his attainment of that age,
being a policy which was itself a qualifying policy, or which would have been a qualifying policy if issued in respect of an insurance made on or after the 16th day of May, 1973.
Substitution, variations, etc.
7. (1) Where one policy (hereafter referred to as the new policy) is issued in substitution for, or on the maturity of and in consequence of an option conferred by, another policy (hereafter referred to as the old policy), the question whether the new policy is a qualifying policy shall, to the extent provided by the rules in subparagraph (2), be determined by reference to both policies.
(2) The said rules (for the purposes of which, the question whether the old policy was a qualifying policy shall be determined in accordance with this Schedule, whatever the date of the insurance in respect of which it was issued) are as follows—
(a) if the new policy would apart from this paragraph be a qualifying policy, but the old policy was not, the new policy is not a qualifying policy unless the person making the insurance in respect of which it is issued was an infant when the old policy was issued, and the old policy was one securing a capital sum payable either on a specified date falling not later than one month after his attaining the age of twenty-five years or on the anniversary of the policy immediately following his attainment of that age;
(b) if the new policy would apart from this paragraph be a qualifying policy, and the old policy was also a qualifying policy, the new policy is a qualifying policy unless—
(i) it takes effect before the expiry of ten years from the making of the insurance in respect of which the old policy was issued, and
(ii) the highest total of premiums payable thereunder for any period of twelve months expiring before that time is less than one-half of the highest total paid for any period of twelve months under the old policy, or under any related policy issued less than ten years before the issue of the new policy (“related policy” meaning any policy in relation to which the old policy was a new policy within the meaning of this paragraph, any policy in relation to which that policy was such a policy, and so on);
(c) if the new policy would not apart from this paragraph be a qualifying policy, and would fail to be so by reason only of paragraph 1 (b) or 1 (c) it is nevertheless a qualifying policy if the old policy was a qualifying policy and—
(i) the old policy was issued in respect of an insurance made more than ten years before the taking effect of the new policy, and the premiums payable for any period of twelve months under the new policy do not exceed the smallest total paid for any such period under the old policy, or
(ii) the old policy was issued outside the State, and the circumstances are as specified in subparagraph (3).
(3) The said circumstances are—
(a) that the person in respect of whom the new insurance is made became resident in the State during the twelve months ending with the date of its issue,
(b) that the issuing company certify that the new policy is in substitution for the old, and that the old was issued either by a branch or agency of the company outside the State or by a company outside the State with whom the first-mentioned company has arrangements for the issue of policies in substitution for ones held by persons coming to the State, and
(c) that the new policy confers on the holder benefits which are substantially equivalent to those which he would have enjoyed if the old policy had continued in force.
8. (1) Subject to the provisions of this paragraph, where the terms of a policy are varied, the question whether the policy after the variation is a qualifying policy shall be determined in accordance with the rules in paragraph 7, with references in those rules to the new policy and the old policy construed for that purpose as references respectively to the policy after the variation and the policy before the variation, and with any other necessary modifications.
(2) In applying any of those rules by virtue of this paragraph, the question whether a policy after a variation would be a qualifying policy apart from the rule shall be determined as if any reference in paragraphs 1 to 5 to the making of an insurance, or to a policy's term, were a reference to the taking effect of the variation or, as the case may be, to the term of the policy as from the variation.
(3) This paragraph does not apply by reason of—
(a) any variation which, whether or not of a purely formal character, does not affect the terms of a policy in any significant respect, or
(b) any variation effected before the end of the year 1973 for the sole purpose of converting into a qualifying policy any policy issued (but not one treated by virtue of section 23 as issued) in respect of an insurance made on or after the 16th day of May, 1973.
SECOND SCHEDULE
Agreement between the Government of Ireland and the Government of the United Kingdom with respect to certain exemptions from tax
The Government of Ireland and the Government of the United Kingdom;
With a view to making such alterations in the Agreement made the 14th April 1926, between the Government of the Irish Free State and the British Government in respect of Double Income Tax as may be necessary in consequence of the alterations in the British Income Tax Acts effected by the British Finance Acts 1971 and 1972;
Have agreed as follows:
Article 1
(1) In Article 1 (a) of the said Agreement the words “British income tax” shall as respects the year 1973-74 and any subsequent year be construed as meaning the basic rate of income tax and the reference to British surtax shall be construed as meaning the excess of liability to British income tax over what it would be if all British income tax were charged at the basic rate only.
(2) Article 1 (a) of the said Agreement shall be further amended by the addition of:
“Where the income is a dividend derived from a company which is resident in the United Kingdom, such a person shall be entitled to payment of the tax credit in respect thereof to which an individual resident in the United Kingdom would have been entitled had he received that dividend.
Provided that there shall be no such entitlement to the tax credit where the recipient of the dividend is a company which either alone or together with one or more associated companies controls directly or indirectly not less than 10 per cent. of the voting power in the company paying the dividend. For the purpose of this paragraph two companies shall be deemed to be associated if one is controlled directly or indirectly by the other, or both are controlled directly or indirectly by a third company.
The term ‘dividend’ includes any item which under the law of the United Kingdom is treated as a distribution of a company.”.
Article 2
Article 1 (b) of the said Agreement shall be amended by the addition of:
“Where the income is a dividend paid by a company which is resident in Ireland to a company which is resident in the United Kingdom and which controls directly or indirectly not less than 10 per cent. of the voting power in the former company, the exemption shall apply only to income tax in excess of 5 per cent. of the dividend.
The term ‘dividend’ includes any payment or other transaction which under the law of Ireland is deemed to be a dividend.”.
Article 3
In Article 2 of the said Agreement, as amended by Article 2 of the Agreement of 25th April 1928, any reference to the standard rate of British income tax shall be construed as meaning the basic rate of British income tax and any reference to British surtax shall be construed as meaning the excess of liability to British income tax over what it would be if all British income tax were charged at the basic rate only.
Article 4
This Agreement shall enter into force on the exchange of Notes confirming that the necessary steps have been taken to give it the force of law in Ireland and the United Kingdom, and shall thereupon have effect:
(a) as respects dividends paid on or after 6th April 1973 and not later than 5th April 1975; and
(b) in other respects for any year of assessment beginning on or after 6th April 1973.
In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Agreement.
Done in two originals at London this 2nd day of May, 1973.
For the Government of Ireland:
DONAL O'SULLIVAN.
For the Government of the United Kingdom:
ANTHONY KERSHAW.
THIRD SCHEDULE
Extension of Charge to Tax to Profits and Income Derived from Activities Carried on and Employments Exercised on the Continental Shelf—Supplementary Provisions
Information
1. The holder of a licence granted under the Petroleum and Other Minerals Development Act, 1960, shall, if required to do so by a notice served on him by an inspector, give to the inspector within the time limited by the notice (which shall not be less than thirty days) such particulars as may be required by the notice of—
(a) transactions in connection with activities authorised by the licence as a result of which any person is or might be liable to tax by virtue of section 33; and
(b) emoluments paid or payable in respect of duties performed in an area in which those activities may be carried on under the licence and the persons to whom they were paid or are payable;
and shall take reasonable steps to obtain the information necessary to enable him to comply with the notice.
2. Schedule 15 to the Income Tax Act, 1967, is hereby amended by the insertion in column (2) thereof of “Finance Act, 1973, Third Schedule, paragraph 1”.
Collection
3. (1) Subject to the following provisions of this Schedule, where any tax is assessed by virtue of section 33 on a person not resident in the State in respect of profits or gains from activities authorised, or carried on in connection with activities authorised, by a licence granted under the Petroleum and Other Minerals Development Act, 1960, or in respect of profits or gains arising from exploration or exploitation rights connected with activities so authorised or carried on, and any of the tax remains unpaid later than thirty days after it has become due and payable, the Revenue Commissioners may serve a notice on the holder of the licence stating particulars of the assessment, the amount of tax remaining unpaid and the date when it became payable, and requiring the holder of the licence to pay that amount, together with any interest due thereon under section 14 of the Finance Act, 1962, or under section 550 of the Income Tax Act, 1967, within thirty days of the service of the notice.
(2) Any amount of tax which a person is required to pay by a notice under this paragraph may be recovered from him as if it were tax due and duly demanded from him; and he may recover any such amount paid by him from the person on whom the assessment was made as a simple contract debt in any court of competent jurisdiction.
4. Paragraph 3 does not apply to any assessment to tax on emoluments from an office or employment referred to in section 33 (5).
5. The said paragraph 3 does not apply if the profits or gains in respect of which the relevant assessment was made arose to the person on whom it was made in consequence of a contract made by the holder of the licence before the 16th day of May, 1973, unless he is a person connected with the holder or the contract was varied on or after that date.
6. For the purpose of this Schedule, a person shall be regarded as connected with the holder, if he would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968.
7. Where, on an application made by a person who will or might become liable to tax which, if remaining unpaid, could be recovered under the said paragraph 3 from the holder of a licence, the Revenue Commissioners are satisfied that the applicant will comply with any obligations imposed on him by the Income Tax Acts or the enactments relating to corporation profits tax, they may issue a certificate to the holder of the licence exempting him from the provisions of that paragraph with respect to any tax payable by the applicant; and where such a certificate is issued, that paragraph shall not apply to any such tax which becomes due while the certificate is in force.
8. The Revenue Commissioners may, by notice in writing given to the holder of a certificate issued under paragraph 7, cancel the certificate from such date, not earlier than thirty days after the service of the notice, as may be specified in the notice.
FOURTH SCHEDULE
Protocol
Between the Government of Ireland and the Government of the United Kingdom Amending the Agreement for the Reciprocal Relief of Double Taxation in Respect of Irish Corporation Profits Tax and United Kingdom Profits Tax, Signed on 18th May 1949
The Government of Ireland and the Government of the United Kingdom;
Desiring to conclude a Protocol to amend the Agreement between the Contracting Parties for the reciprocal relief of double taxation in respect of Irish Corporation Profits Tax and United Kingdom Profits Tax, signed on 18th May 1949 (hereinafter referred to as “the Agreement”);
Have agreed as follows:
Article 1
In Article VII (1) and (2) of the Agreement for the words “beneficially owns, directly or indirectly, not less than three-quarters of the ordinary share capital of” there shall be substituted the words “controls, directly or indirectly, not less than 10 per cent. of the voting power in”.
Article 2
This Protocol, which shall form an integral part of the Agreement, shall come into force when the last of all such things shall have been done in Ireland and the United Kingdom as are necessary to give the Protocol the force of law in Ireland and the United Kingdom respectively, and shall thereupon have effect in respect of dividends paid on or after 6th April 1973.
In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Protocol.
Done in two originals at London this 2nd day of May, 1973.
For the Government of Ireland:
DONAL O'SULLIVAN.
For the Government of the United Kingdom:
ANTHONY KERSHAW.
FIFTH SCHEDULE
PART I
Disallowance of Trading Losses and Restriction of Capital Allowances
Change in ownership of company
1. For the purposes of section 39 there is a change in the ownership of a company—
(a) if a single person acquires more than half of the ordinary share capital of a company, or
(b) if two or more persons each acquire a holding of 5 per cent. or more of the ordinary share capital of the company and those holdings together amount to more than half of the ordinary share capital of the company, or
(c) if two or more persons each acquire a holding of the ordinary share capital of the company, and the holdings together amount to more than half of the ordinary share capital of the company, but disregarding a holding of less than 5 per cent. unless it is an addition to an existing holding and the two holdings together amount to 5 per cent. or more of the ordinary share capital of the company.
2. In applying paragraph 1—
(a) the circumstances at any two points of time with not more than three years between may be compared, and a holder at the later time may be regarded as having acquired whatever he did not hold at the earlier time, irrespective of what he has acquired or disposed of in between,
(b) so as to allow for any issue of shares or other re-organisation of capital, the comparison referred to in subparagraph (a) may be made in terms of percentage holdings of the total ordinary share capital at the respective times, so that a person whose percentage holding is greater at the later time may be regarded as having acquired a percentage holding equal to the increase,
(c) in deciding for the purposes of subparagraphs (b) and (c) of paragraph 1, whether any person has acquired a holding of at least 5 per cent. or a holding which makes at least 5 per cent. when added to an existing holding, acquisitions by, and holdings of, persons who are connected with each other shall be aggregated as if they were acquisitions by, and holdings of, one and the same person, and for the purposes of this subparagraph persons shall be regarded as connected with each other if they would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968,
(d) any acquisition of shares under the will or on the intestacy of a deceased person and any gift of shares, if it is shown that the gift is unsolicited and made without regard to the provisions of section 39, shall be left out of account.
3. Where persons, whether members of the company or not, possess extraordinary rights or powers under the articles of association or under any other document regulating the company and, as a consequence, ownership of ordinary share capital may not be an appropriate test of whether there has been a major change in the persons
for whose benefit the losses or capital allowances may ultimately enure, then in considering whether there has been a change in ownership of the company for the purposes of section 39, holdings of all kinds of share capital, including preference shares, or of any particular category of share capital, or voting power or any other special kind of power, may be taken into account instead of ordinary share capital.
4. Where section 39 has operated to restrict relief by reference to a change in ownership taking place at any time, no transaction or circumstance before that time shall be taken into account in determining whether there is any subsequent change in ownership.
Groups of companies
5. (1) A change in the ownership of a company shall be disregarded for the purposes of section 39 if—
(a) immediately before the change, the company is the 75 per cent. subsidiary of another company, and
(b) that other company continues after the change, despite a change in the direct ownership of the first-mentioned company, to own that first-mentioned company as a 75 per cent. subsidiary.
(2) If there is a change in the ownership of a company which has a 75 per cent. subsidiary, whether owned directly or indirectly, then section 39 shall apply as if there had also been a change in the ownership of the said subsidiary unless under subparagraph (1) the change in ownership of the first-mentioned company is to be disregarded.
Provisions as to ownership
6. For the purposes of section 39 and this Schedule—
(a) references to ownership shall be construed as references to beneficial ownership, and references to acquisition shall be construed accordingly,
(b) the expression “ordinary share capital” has the meaning assigned to it by section 226 (2) (b) of the Income Tax Act, 1967,
(c) a company shall be deemed to be a 75 per cent. subsidiary of another company if and so long as not less than 75 per cent. of its ordinary share capital is owned by that other company, whether directly or through another company or other companies, or partly directly and partly through another company or other companies,
(d) the amount of ordinary share capital of one company owned by a second company through another company or other companies, or partly directly and partly through another company or other companies, shall be determined in accordance with the provisions of Part II of this Schedule,
(e) “share” includes “stock”.
Time of change in ownership
7. If any acquisition of ordinary share capital or other property or rights taken into account in determining that there has been a change in ownership of a company was made in pursuance of a contract of sale or option or other contract, or the acquisition was made by a person holding such a contract, and the contract was made on or after the 16th day of May, 1973, the time when the change in ownership took place shall be determined as if the acquisition had been made when the contract was made with the holder or when the benefit of it was assigned to him so that, in the case of a person exercising an option to purchase shares, he shall be regarded as having purchased the shares when he acquired the option.
Time allowed for making assessments
8. Where the operation of section 39 depends on circumstances or events at a time after the change in ownership, but not more than three years after, an assessment to give effect to the provisions of the said section 39 shall not be out of time if it is made—
(a) in case it is an assessment to income tax, within ten years from the end of the year of assessment within which that time or the latest of those times occurs, or
(b) in case it is an assessment to corporation profits tax, within ten years from the end of the accounting period within which that time or the latest of those times occurs.
Information
9. Any person in whose name any shares, or securities of a company are registered shall, if required by notice in writing by an inspector given for the purposes of section 39 state whether or not he is the beneficial owner of those shares or securities or any of them and, if he is not the beneficial owner of those shares or securities or any of them, shall furnish the name and address of the person or persons on whose behalf those shares or securities are registered in his name.
10. Schedule 15 to the Income Tax Act, 1967, is hereby amended by the insertion in column 2 thereof of “Finance Act, 1973, Fifth Schedule, paragraph 9”.
PART II
Provisions for Determining the Amount of Capital held in a Company Through other Companies
1. Where, in the case of a number of companies, the first company directly owns ordinary share capital of the second and the second directly owns ordinary share capital of the third, then, for the purposes of this Schedule, the first company shall be deemed to own ordinary share capital of the third through the second, and, if the third directly owns ordinary share capital of a fourth, the first shall be deemed to own ordinary share capital of the fourth through the second and third, and the second shall be deemed to own ordinary share capital of the fourth through the third, and so on.
2. In this Part—
(a) any number of companies of which the first company directly owns ordinary share capital of the next and the next directly owns ordinary share capital of the next but one and so on, and, if there are more than three, any three or more of them, are referred to as a series;
(b) in any series—
(i) that company which owns ordinary share capital of another through the remainder is referred to as the first owner;
(ii) that other company the ordinary share capital of which is so owned is referred to as the last owned company;
(iii) the remainder, if one only, is referred to as an intermediary and, if more than one, are referred to as a chain of intermediaries;
(c) a company in a series which directly owns ordinary share capital of another company in the series is referred to as an owner;
(d) any two companies in a series of which one owns ordinary share capital of the other directly, and not through one or more of the other companies in the series, are referred to as being directly related to one another.
3. Where every owner in a series owns the whole of the ordinary share capital of the company to which it is directly related, the first owner shall be deemed to own through the intermediary or chain of intermediaries the whole of the ordinary share capital of the last owned company.
4. Where one of the owners in a series owns a fraction of the ordinary share capital of the company to which it is directly related, and every other owner in the series owns the whole of the ordinary share capital of the company to which it is directly related, the first owner shall be deemed to own that fraction of the ordinary share capital of the last owned company through the intermediary or chain of intermediaries.
5. Where—
(a) each of two or more of the owners in a series owns a fraction, and every other owner in the series owns the whole, of the ordinary share capital of the company to which it is directly related; or
(b) every owner in a series owns a fraction of the ordinary share capital of the company to which it is directly related;
the first owner shall be deemed to own through the intermediary or chain of intermediaries such fraction of the ordinary share capital of the last owned company as results from the multiplication of those fractions.
6. Where the first owner in any series owns a fraction of the ordinary share capital of the last owned body corporate in that series through the intermediary or chain of intermediaries in that series, and also owns another fraction or other fractions of the ordinary share capital of the last owned body corporate, either—
(a) directly, or
(b) through an intermediary or intermediaries which is not a member or are not members of that series, or
(c) through a chain or chains of intermediaries of which one or some or all is not a member or are not members of that series, or
(d) in a case where the series consists of more than three companies, through an intermediary or intermediaries which is a member or are members of the series, or through a chain or chains of intermediaries consisting of some but not all of the companies of which the chain of intermediaries in the series consists,
then, for the purpose of ascertaining the amount of the ordinary share capital of the last owned company owned by the first owner, all those fractions shall be aggregated and the first owner shall be deemed to own the sum of those fractions.
SIXTH SCHEDULE
Spirits (Rates of Ordinary Customs Duty)
Part I
Description of Spirits | Preferential Rates | Full Rates |
(1) | (2) | (3) |
£ | £ | |
For every gallon of Perfumed Spirits entered in such manner as to indicate that the strength is not to be tested | 36.236 | 36.436 |
For every gallon of liqueurs, cordials, mixtures and other preparations in bottle entered in such manner as to indicate that the strength is not to be tested | 30.573 | 30.740 |
For every gallon computed at proof of spirits of any description not heretofore mentioned and mixtures and preparations containing spirits | 22.647 | 22.772 |
Part II
Description of Spirits | United Kingdom Rate |
£ | |
For every gallon of Perfumed Spirits entered in such manner as to indicate that the strength is not to be tested | 28.765 |
For every gallon of liqueurs, cordials, mixtures and other preparations in bottle entered in such manner as to indicate that the strength is not to be tested | 24.270 |
For every gallon computed at proof of spirits of any description not heretofore mentioned and mixtures and preparations containing spirits | 17.978 |
SEVENTH SCHEDULE
Duties on Tobacco
Section 49.
Part I
Customs
Unmanufactured: | £ | |||
if stripped or stemmed: | ||||
containing 10 per cent. or more by weight of moisture | the | lb. | 5.045 | |
containing less than 10 per cent. by weight of moisture | ” | ” | 5.245 | |
if unstripped or unstemmed: | ||||
containing 10 per cent. or more by weight of moisture | ” | ” | 5.043 | |
containing less than 10 per cent. by weight of moisture | ” | ” | 5.243 | |
Full | Preferential | |||
£ | £ | |||
Manufactured: | ||||
cigars | the | lb. | 5.985 | 5.193 |
cigarettes | ” | ” | 5.870 | 5.097 |
cavendish or negrohead | ” | ” | 5.955 | 5.168 |
cavendish or negrohead manufactured in bond | ” | ” | 5.925 | 5.143 |
reconstituted or homogenised tobacco containing 10 per cent. or more by weight of moisture | ” | ” | 5.043 | 5.043 |
reconstituted or homogenised tobacco containing less than 10 per cent. by weight of moisture | the | lb. | 5.243 | 5.243 |
other manufactured tobacco | ” | ” | 5.855 | 5.085 |
snuff containing more than 13 per cent. by weight of moisture | ” | ” | 5.835 | 5.068 |
snuff containing 13 per cent. or less by weight of moisture | ” | ” | 5.955 | 5.168 |
Part II
Customs
Unmanufactured: | £ | ||
if stripped or stemmed: | |||
containing 10 per cent. or more by weight of moisture | the | lb. | 5.043 |
containing less than 10 per cent by weight of moisture | ” | ” | 5.243 |
if unstripped or unstemmed: | |||
containing 10 per cent. or more by weight of moisture | ” | ” | 5.043 |
containing less than 10 per cent. by weight of moisture | ” | ” | 5.243 |
Part III
Customs
Full | Preferential | |||
£ | £ | |||
Manufactured: | ||||
cigars | the | lb. | 5.400 | 5.193 |
cigarettes | ” | ” | 5.298 | 5.097 |
cavendish or negrohead | ” | ” | 5.374 | 5.168 |
cavendish or negrohead manufactured in bond | ” | ” | 5.348 | 5.143 |
reconstituted or homogenised tobacco containing 10 per cent. or more by weight of moisture | ” | ” | 5.043 | 5.043 |
reconstituted or homogenised tobacco containing less than 10 per cent. by weight of moisture | ” | ” | 5.243 | 5.243 |
other manufactured tobacco: | ||||
hard pressed tobacco | ” | ” | 4.455 | 4.254 |
other pipe tobacco | ” | ” | 5.129 | 4.928 |
other manufactured tobacco | ” | ” | 5.286 | 5.085 |
snuff containing more than 13 per cent. by weight of moisture | ” | ” | 5.268 | 5.068 |
snuff containing 13 per cent. or less by weight of moisture | ” | ” | 5.374 | 5.168 |
Part IV
Excise
£ | |||
Unmanufactured: | |||
containing 10 per cent. or more by weight of moisture | the | lb. | 5.043 |
containing less than 10 per cent. by weight of moisture | ” | ” | 5.243 |
Manufactured: | |||
cavendish or negrohead manufactured in bond | ” | ” | 5.143 |
EIGHTH SCHEDULE
Scale of Rates of Estate Duty
Section 53.
Principal Value of the Estate | Rate per cent. of duty | |||||
£ | £ | |||||
Exceeding | 10,000 | and | not | exceeding | 11,000 | 4 |
” | 11,000 | ” | ” | ” | 12,500 | 6 |
” | 12,500 | ” | ” | ” | 15,000 | 8 |
” | 15,000 | ” | ” | ” | 17,500 | 10 |
” | 17,500 | ” | ” | ” | 20,000 | 12 |
” | 20,000 | ” | ” | ” | 25,000 | 14 |
” | 25,000 | ” | ” | ” | 30,000 | 16 |
” | 30,000 | ” | ” | ” | 35,000 | 18 |
” | 35,000 | ” | ” | ” | 40,000 | 21 |
” | 40,000 | ” | ” | ” | 45,000 | 24 |
” | 45,000 | ” | ” | ” | 50,000 | 27 |
” | 50,000 | ” | ” | ” | 55,000 | 30 |
” | 55,000 | ” | ” | ” | 60,000 | 33 |
” | 60,000 | ” | ” | ” | 75,000 | 37 |
” | 75,000 | ” | ” | ” | 100,000 | 41 |
” | 100,000 | ” | ” | ” | 150,000 | 45 |
” | 150,000 | ” | ” | ” | 200,000 | 50 |
” | 200,000 | 55 | ||||
NINTH SCHEDULE
Stamp Duties on Instruments
Part I
Bond, Covenant or Instrument of any kind whatsoever.
(1) Being the only or principal or primary security for any annuity (except upon the original creation thereof by way of sale or security, and except a superannuation annuity), or for any sum or sums of money at stated periods, not being interest for any principal sum secured by a duly stamped instrument, nor rent reserved by a lease. | |
For a definite and certain period, so that the total amount to be ultimately payable can be ascertained. | |
Where the total amount does not exceed ten thousand pounds | Exempt |
Where the total amount exceeds ten thousand pounds | |
For every £200 or any fractional part of £200 of the amount secured | 25p |
For the term of life or any other indefinite period. For every £10, and also for any fractional part of £10, of the annuity or sum periodically payable | 25p |
(2) Being a collateral or auxiliary or additional or substituted security for any of the above-mentioned purposes where the principal or primary instrument is duly stamped. | |
Where the amount secured does not exceed ten thousand pounds | Exempt |
Where the total amount to be ultimately payable can be ascertained and exceeds ten thousand pounds | 50p |
In any other case: | |
For every £10, and also for any fractional part of £10, of the annuity or sum periodically payable | 5p |
(3) Being a grant or contract for payment of a superannuation annuity, that is to say a deferred life annuity granted or secured to any person in consideration of annual premiums payable until he attains a specified age and so as to commence on his attaining that age. | |
For every £10, and also for any fractional part of £10, of the annuity | 5p |
Part II
Conveyance or Transfer on sale of any property other than stocks or marketable securities.
(1) Where the amount or value of the consideration for the sale does not exceed one thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions, in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds one thousand pounds | Exempt |
(2) Where the amount or value of the consideration for the sale exceeds one thousand pounds but does not exceed two thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds two thousand pounds:— | |
For every £50, or fractional part of £50, of the consideration | 25p |
(3) Where the amount or value of the consideration for the sale exceeds two thousand pounds but does not exceed six thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds six thousand pounds:— | |
For every £50, or fractional part of £50, of the consideration | 50p |
(4) Where in the case of a conveyance or transfer on sale or in the case of a conveyance or transfer operating as a voluntary disposition inter vivos the consideration for the sale or the value of the property exceeds six thousand pounds and the instrument contains a certificate by the party to whom the property is being conveyed or transferred to the effect that the person becoming entitled to the entire beneficial interest in the property (or, where more than one person becomes entitled to a beneficial interest therein, each of them) is related to the person or each of the persons immediately theretofore entitled to the entire beneficial interest in the property in one or other of the following ways, that is to say, as a lineal descendant, parent, grandparent, step-parent, husband or wife, brother or sister of a parent or brother or sister, or lineal descendant of a parent, husband or wife or brother or sister:— | |
For every £50, or fractional part of £50, of the consideration or of the value | 50p |
(5) Where the amount or value of the consideration for the sale exceeds six thousand pounds but does not exceed seven thousand five hundred pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds seven thousand five hundred pounds:— |
If the amount or value of the consideration— | |||||||
Exceeds | £6,000 | and | does | not | exceed | £6,250 | £70 |
” | £6,250 | ” | ” | ” | ” | £6,500 | £80 |
” | £6,500 | ” | ” | ” | ” | £6,750 | £90 |
” | £6,750 | ” | ” | ” | ” | £7,000 | £100 |
” | £7,000 | ” | ” | ” | ” | £7,250 | £110 |
” | £7,250 | ” | ” | ” | ” | £7,500 | £120 |
(6) Where the amount or value of the consideration for the sale exceeds seven thousand five hundred pounds but does not exceed ten thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds ten thousand pounds:— | |
For every £50, or fractional part of £50, of the consideration | £1.00 |
(7) Where the amount or value of the consideration for the sale exceeds ten thousand pounds but does not exceed fifty thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds fifty thousand pounds:— | |
For every £50, or fractional part of £50, of the consideration | £1.50 |
(8) Of any other kind whatsoever not hereinbefore described:— | |
For every £50, or fractional part of £50, of the amount or value of the consideration for the sale, or, in the case of a conveyance or transfer operating as a voluntary disposition inter vivos, of the value of the property conveyed or transferred | £2.50 |
Part III
(3) For any other definite term or for any indefinite term of any lands, tenements, or heritable subjects— | |
Where the consideration, or any part of the consideration (other than rent), moving either to the lessor or to any other person, consists of any money, stock, or security, and— | |
(a) The amount or value of such consideration does not exceed one thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds one thousand pounds | Exempt |
(b) The amount or value of such consideration exceeds one thousand pounds but does not exceed two thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds two thousand pounds:— | |
For every £50, or fractional part of £50, of the amount or value | 25p |
(c) The amount or value of such consideration exceeds two thousand pounds but does not exceed six thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds six thousand pounds:— | |
For every £50, or fractional part of £50, of the amount or value | 50p |
(d) The amount or value of such consideration exceeds six thousand pounds but does not exceed seven thousand five hundred pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds seven thousand five hundred pounds:— |
If the amount or value of the consideration— | |||||||
Exceeds | £6,000 | and | does | not | exceed | £6,250 | £70 |
” | £6,250 | ” | ” | ” | ” | £6,500 | £80 |
” | £6,500 | ” | ” | ” | ” | £6,750 | £90 |
” | £6,750 | ” | ” | ” | ” | £7,000 | £100 |
” | £7,000 | ” | ” | ” | ” | £7,250 | £110 |
” | £7,250 | ” | ” | ” | ” | £7,500 | £120 |
(e) The amount or value of such consideration exceeds seven thousand five hundred pounds but does not exceed ten thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds ten thousand pounds:— | |
For every £50, or fractional part of £50, of the amount or value | £1.00 |
(f) The amount or value of such consideration exceeds ten thousand pounds but does not exceed fifty thousand pounds and the lease contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration other than rent exceeds fifty thousand pounds:— | |
For every £50, or fractional part of £50, of the amount or value | £1.50 |
(g) The case is of any other kind whatsoever not hereinbefore described:— | |
For every £50, or fractional part of £50, of the amount or value | £2.50 |
Where the consideration or any part of the consideration is any rent: | |
In respect of such consideration: | |
If the rent, whether reserved as a yearly rent or otherwise, is at a rate or average rate: |
If the term does not exceed 35 years, or is indefinite. | If the term exceeds 35 years, but does not exceed 100 years. | If the term exceeds 100 years. | |||||
Not exceeding £5 per annum | 5p | 30p | 60p | ||||
Exceeding— | |||||||
£5 | and | not | exceeding | £10 | 10p | 60p | £1.20 |
£10 | ” | ” | ” | £15 | 15p | 90p | £1.80 |
£15 | ” | ” | ” | £20 | 20p | £1.20 | £2.40 |
£20 | ” | ” | ” | £25 | 25p | £1.50 | £3.00 |
£25 | ” | ” | ” | £50 | 50p | £3.00 | £6.00 |
£50 | ” | ” | ” | £75 | 75p | £4.50 | £9.00 |
£75 | ” | ” | ” | £1.00 | £1.00 | £6.00 | £12.00 |
£100 | |||||||
For every full sum of £50, and also for any fractional part of £50 thereof | 50p | £3.00 | £6.00 | ||||
PART IV
Mortgage, Bond, Debenture, Covenant (except a marketable security) and Warrant of Attorney to confess and enter up judgment.
(1) Being the only or principal or primary security (other than an equitable mortgage) for the payment or repayment of money— | |
Not exceeding ten thousand pounds | Exempt |
Exceeding ten thousand pounds— | |
For every two hundred pounds, or any fractional part of two hundred pounds, of the amount secured | 25p |
(2) Being a collateral, or auxiliary, or additional, or substituted security (other than an equitable mortgage), or by way of further assurance for the above-mentioned purpose where the principal or primary security is duly stamped— | |
Where the amount secured does not exceed ten thousand pounds | Exempt |
Where the amount secured exceeds ten thousand pounds | 50p |
(3) Being an equitable mortgage: | |
Where the amount secured does not exceed ten thousand pounds | Exempt |
Where the amount secured exceeds ten thousand pounds: | |
For every one hundred pounds, and also for any fractional part of one hundred pounds | 5p |
(4) Transfer, Assignment, or Disposition of any mortgage, bond, debenture, or covenant (except a marketable security) or of any money or stock secured by any such instrument, or by any warrant of attorney to enter up judgment, or by any judgment. | |
Where the amount secured does not exceed ten thousand pounds | Exempt |
Where the amount secured exceeds ten thousand pounds: | |
For every two hundred pounds, and also for any fractional part of two hundred pounds, of the amount transferred, assigned, or disposed, exclusive of interest which is not in arrear | 5p |
And also where any further money is added to the money already secured | The same duty as a principal security for such further money. |
(5) Reconveyance, Release, Discharge, Surrender, Resurrender, or Renunciation of any such security as aforesaid, or of the benefit thereof, or of the money thereby secured: | |
Where the amount secured does not exceed ten thousand pounds | Exempt |
Where the amount secured exceeds ten thousand pounds: | |
For every two hundred pounds, and also for any fractional part of two hundred pounds of the total amount or value of the money at any time secured | 5p |
TENTH SCHEDULE
Amendment of Enactments
Number and Year | Short Title | Amendment |
(1) | (2) | (3) |
No. 22 of 1972 | In section 1 (1), in the definition of “livestock”, “and pigs” shall be substituted for “pigs and horses”; in the definition of “taxable period”, “provided that the taxable period immediately following that commencing on the 1st day of May, 1973, shall be the period commencing on the 1st day of July, 1973, and ending on the 2nd day of September, 1973, and the next succeeding taxable period shall be the period commencing on the 3rd day of September, 1973, and ending on the 31st day of October, 1973” shall be inserted after “November”; and in the definition of “manufacturer”, “and, in relation to goods of a kind specified in the Fourth Schedule, includes a person who in the course of business supplies or arranges for the supply of materials to another person for the purpose of having any such goods made or assembled on his behalf by that other or another person” shall be inserted after “goods”. | |
In section 3, in subsection (1), “, subject to subsection (1A),” shall be inserted after “in relation to goods, shall”; and in subsection (5) (b) “for the time being specified in section 11 (1) (c)” shall be substituted for “of 30.26 per cent.”. | ||
In section 5 (1), “not being a delivery deemed in accordance with section 3 (1 A) to be a rendering of services”, shall be inserted after “goods”. | ||
In section 8, the following subsection shall be substituted for subsection (1) “(1) In this section references to a farming business do not include references to fur farming.”; and in subsection (3), in paragraph (a) (i), “paragraphs (vii), (xii), (xiv) and (xv) of the Second Schedule,” shall be inserted after “specified in”; in paragraph (b) (ii), “or which are goods of a kind specified in paragraphs (vi) to (viii) or (xii) to (xv) of the Second Schedule, delivered to him by persons other than accountable persons” shall be inserted after “accountable persons”; and “either of the rates for the time being specified in paragraphs (a) or (d) of subsection (1) of section 11” shall be substituted for “the rate of 5.26 per cent.”. | ||
In section 10, in subsection (7), “14.81” shall be substituted for “19.20”; in subsection (8) (b) “45” shall be substituted for “60”. | ||
In section 11, in subsection (1) (d), “, other than consideration to which paragraph (b) applies,” shall be inserted after “consideration”, “, (v) or (xvi)” shall be substituted for “or(v)” and “and (xii) to (xv)” shall be inserted after “(viii)”; in subsection (2), “for the time being specified in subsection (1) (c)” shall be substituted for “of 30.26 per cent.” and “for the time being specified in subsection (1) (a) on” shall be substituted for “of 5.26 per cent. of”; and in subsection (3), “paragraph (xvi) of the Second Schedule and paragraph (xxxii) of Part I of the Third Schedule,” shall be inserted after “10 (8) (c),”. | ||
In section 12, in subsection (1), “tax at the rate specified in section 11 (1) (a) on” shall be substituted for “5.26 per cent. of” in both places where it occurs; in subsection (3) (a), “except to the extent that such provision constitutes a rendering of services in respect of which he is accountable for tax,” shall be added. | ||
In section 13, in subsection (2) (b), “, tax were chargeable in respect of the delivery or rendering” shall be inserted after “another accountable person”; and the following subsection shall be substituted for subsection (4) — “(4) For the purposes of this section farming does not include fur farming by a person other than a person to whom paragraph (c) or (d) of section 8 (3) applies.” | ||
In section 15, in subsection (1), “specified in section 11 (1) (a) on” shall be substituted for “of 5.26 per cent. of”; “specified in section 11 (1) (c) on” shall be substituted for “of 30.26 per cent. of” and “specified in section 11 (1) (e) on” shall be substituted for “of 16.37 per cent. of”; in subsection (2), “and (xii) to (xv)” shall be inserted after “(viii)” and in subsection (4) (b), “14.81” shall be substituted for “19.20”. | ||
In section 17 (1), “at any of the rates specified in section 11 (1), including the rate of zero per cent.,” shall be inserted after “chargeable”. | ||
In section 25(2), “11 (1B) or” shall be inserted before “23”. | ||
In section 32 (1) (b), “by a person of a service which is connected with any” shall be substituted for “of a service by a person for the purpose of a”. | ||
In the Third Schedule, in Part I, “other than horses and greyhounds” shall be added to paragraph (iv); “for a purpose other than the production of food” shall be added to paragraph (vi); “including textile” shall be substituted in paragraph (xi) for “excluding”; “other than food and drink of a kind specified in paragraph (xii) of the Second Schedule” shall be added to paragraph (xv); and “other than by oral consumption” shall be inserted in paragraph (xvi), after “use”. |
ELEVENTH SCHEDULE
Enactments Repealed
Session and Chapter or Number and Year | Short Title | Extent of Repeal |
(1) | (2) | (3) |
54 & 55 Vict., c. 39 | Stamp Act, 1891 | In section 83, the words “makes, issues” and “or offers for subscription”. In the First Schedule, the headings—“Bond for securing the payment or repayment of money or the transfer or retransfer of stock”, “Debenture for securing the payment or repayment of money or the transfer or retransfer of stock”, “Foreign Security” and subheads (1), (3), (4) and (5) of the heading “Marketable Security”. Sections 112 and 113. |
59 & 60 Vict., c.28 | Finance Act, 1896 | Section 12. |
62 & 63 Vict., c. 9 | Finance Act, 1899 | Section 8. |
3 Edw. VII, c. 46 | Revenue Act, 1903 | Section 5. |
7 Edw. VII, c. 13 | Finance Act, 1907 | Section 10. |
7 Edw. VII, c. 24 | Limited Partnerships Act, 1907 | Section 11. |
No. 22 of 1965 | Paragraph (A) of subsection (1) and subsection (4) of section 31. |