FINANCE (INCREASE OF INCOME TAX) ACT, 1931

AN ACT TO CHARGE INCOME TAX FOR THE YEAR BEGINNING ON THE 6th DAY OF APRIL, 1931, AT AN INCREASED RATE AND TO MAKE SUCH MODIFICATIONS IN THE LAW RELATING TO INCOME TAX AS MAY BE NECESSARY FOR GIVING EFFECT TO SUCH CHARGE. [20th November, 1931.]

BE IT ENACTED BY THE OIREACHTAS OF SAORSTÁT EIREANN AS FOLLOWS:—

1 Increase of income tax for the year 1931-32.

1.—Income tax shall be charged for the year beginning on the 6th day of April, 1931 at the rate of three shillings and sixpence in the pound instead of the rate of three shillings in the pound mentioned in sub-section (1) of section 1 of the Finance Act, 1931 (No. 31 of 1931), and sub-section (3) of that section shall, subject to the provisions of this Act, apply in relation to the said income tax to be charged under this section in like manner as it applied in relation to the income tax charged under that section.

2 Validation of deductions.

2.—(1) Nothing in this Act shall render invalid anything done before the passing of this Act nor shall anything in this Act render invalid or improper any deduction in respect of income tax which was made before the passing of this Act or is made within ten days after such passing and, in either case, would have been a proper deduction if this Act had not been passed.

• (2) Every deduction in respect of the income tax for the year beginning on the 6th day of April, 1931, made before the passing of this Act by reference to a rate of three shillings and sixpence in the pound shall be treated for all purposes (including the purposes of any legal proceedings instituted before the passing of this Act, as having been made by reference to the proper rate of such tax.

3 Automatic variation of tax charged in assessments.

3.—(1) The amount payable by virtue of any assessment to income tax for the year beginning on the 6th day of April, 1931 which was made before the passing of this Act shall, by virtue of this Act and without more, be deemed to be varied to such extent as is necessary to give effect to the change made by this Act in the rate of such tax.

• (2) Where notice of an assessment has been issued before the passing of this Act and the amount payable by virtue of such assessment is deemed by this section to be varied, it shall not be necessary to issue any further notice of such assessment or to give any notice of the said variation of the amount payable by virtue of such assessment.

• (3) This section shall not apply in the case of income chargeable under Schedule C of the Income Tax Act, 1918, or under Rule 6 or Rule 7 of the Miscellaneous Rules applicable to Schedule D of that Act.

4 Making good insufficient deductions.

4.—(1) In the case of income chargeable under Schedule C of the Income Tax Act, 1918, or under Rule 6 or Rule 7 of the Miscellaneous Rules applicable to Schedule D of that Act or in the case of payments falling under Rule 21 of the General Rules applicable to all the Schedules of that Act, any deficiency in the amount deducted in respect of income tax for the year beginning on the 6th day of April, 1931 from a payment made before or within ten days after the passing of this Act shall, if such deficiency arises from the change made by this Act in the rate of such tax, be made good so far as possible by increasing the deduction required or authorised by law to be made from the next and (so far as necessary) any subsequent payment made after the passing of this Act and before the expiration of one year and ten days from such passing.

• (2) A deficiency made good under this section shall be accounted for and assessed or recovered as the case may be, in the same manner as the tax deducted from the original payment is to be accounted for and assessed or recovered.

5 Modification of section 211 of the Income Tax Act, 1918.

5.—(1) Section 211 (which relates to charge and deduction of tax in any year not charged or deducted before the passing of the annual Act) of the Income Tax Act, 1918, shall, in relation to the income tax for the year beginning on the 6th day of April, 1931, have effect subject to the following modifications, that is to say:—

• (a) the expression “the passing of the Act imposing the tax for that year” shall be construed as meaning the eleventh day after the passing of this Act;

• (b) the words “half-yearly or quarterly” contained in sub-section (1) of the said section shall be omitted;

• (c) the words “or the person by or through whom the payments were made, as the case may be,” shall be inserted in the said sub-section (1) after the words “the agents entrusted with the payment of the interest, dividends, or other annual profits or gains”;

• (d) sub-section (2) of the said section shall apply with respect to—

• (i) any royalty or other sum paid in respect of the user of a patent from which a deduction of tax may be made under paragraph 2 of Rule 19 of the General Rules applicable to all the Schedules of the Income Tax Act, 1918, and

• (ii) any dividend from which a deduction of tax may be made under Rule 20 of the said General Rules,

as it applies with respect to any rent, interest, annuity, or other annual payment;

• (e) the reference to the Act imposing tax for the year shall where it last occurs in sub-section (2) of the said section, be construed as a reference to this Act.

• (2) The modifications effected by this section in section 211 of the Income Tax Act, 1918, shall, in so far as they apply to a case to which section 4 of this Act applies, have effect subject to the provisions of the said section 4.

6 Limitation of preceding provisions.

6.—The foregoing provisions of this Act (other than the first section thereof) shall have effect only in connection with or for the purpose of the change made by the said first section in the rate of the income tax for the year beginning on the 6th day of April, 1931, and no further.

7 Care and management of tax.

7.—The tax imposed by this Act is hereby placed under the care and management of the Revenue Commissioners.

8 Short title and construction.

8.—(1) This Act may be cited as the Finance (Increase of Income Tax) Act, 1931.

• (2) This Act shall be construed together with the Income Tax Acts.