Finance Act , 1954

PART I. Income Tax.

1 Income tax and sur-tax for the year 1954-55.

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1954, at the rate of seven shillings and sixpence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1954, shall be charged in respect of the income of any individual the total of which from all sources exceeds one thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1953.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1954, in relation to income tax and sur-tax shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1954.

2 Increase of personal allowance.

2.—(1) Subsection (1) of section 18 of the Finance Act, 1920, as amended by section 2 of the Finance Act, 1947 (No. 15 of 1947), and by section 2 of the Finance Act, 1951 (No. 15 of 1951), shall be construed and have effect as if—

(a) “three hundred pounds” were substituted therein for “two hundred and eighty pounds”, and

(b) “one hundred and fifty pounds” were substituted therein for “one hundred and forty pounds”.

(2) Where, but for this subsection, the claimant would be entitled to a deduction of one hundred and fifty pounds under subsection (1) of section 18 of the Finance Act, 1920, as amended by subsection (1) of this section, then, if the claimant proves that in the year of assessment he or she is a widower or a widow, the claimant shall be entitled to a deduction of one hundred and seventy-five pounds in lieu of the said deduction of one hundred and fifty pounds.

3 Exemption where total income does not exceed £240, and marginal relief.

3.—(1) (a) Any individual who, in the manner prescribed by the Income Tax Acts, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves that his total income for the year of assessment does not exceed two hundred and forty pounds shall be entitled to exemption from income tax.

(b) Any individual who would, but for the fact that his total income exceeds two hundred and forty pounds, be entitled to exemption as provided in paragraph (a) of this subsection, shall be entitled to have the amount of income tax payable in respect of his total income, if that amount would but for the provisions of this paragraph exceed a sum equal to three-fifths of the amount by which his total income exceeds two hundred and forty pounds, reduced to that sum.

(2) All such provisions of the Income Tax Acts as apply in relation to allowances or deductions within the meaning of the Third Schedule to the Finance Act, 1920, shall, with any necessary modifications, apply in relation to exemptions from or reductions of tax under this section.

(3) In this section “total income” means total income from all sources as estimated in accordance with the provisions of the Income Tax Acts.

4 Increase of deductions in respect of children.

4.—(1) Subsection (1) of section 21 of the Finance Act, 1920, as amended by subsequent enactments, is hereby further amended by the substitution of “a deduction of eighty-five pounds” for “a deduction of eighty pounds” (inserted by section 3 of the Finance Act, 1951 (No. 15 of 1951)).

(2) Section 4 of the Finance Act, 1944 (No. 18 of 1944), is hereby amended—

(a) by the substitution, in subsection (1), of “the Social Welfare (Children's Allowances) Acts, 1944 to 1952” for “the Act of 1944”, and

(b) by the deletion of subsections (2), (3) and (4).

5 Cesser of section 3 of the Finance Act, 1935, in certain cases.

5.—(1) In this section, “relevant property” means any tenement or rateable hereditament to which, but for this section, section 3 of the Finance Act, 1935 (No. 28 of 1935), would apply.

(2) Where an individual claims in the manner prescribed and proves that he is the owner of the relevant property and that he occupies it exclusively for the purposes of his own residence, then—

(a) the said section 3 shall not apply or have effect in relation to the relevant property,

(b) tax under Schedule A of the Income Tax Act, 1918, shall accordingly be charged in respect of the relevant property as if the said section 3 had not been enacted, and

(c) if tax has been charged in respect of the relevant property otherwise than in accordance with this section, any tax overpaid shall be repaid.

(3) The relevant property shall be deemed to be occupied exclusively for the purposes of his own residence by the individual referred to in subsection (2) of this section where it is mainly occupied by him for such purposes and no part thereof is occupied for the purposes of trade but a part thereof is occupied for the purposes of a profession or vocation.

6 Exemption of certain pensions from income tax.

6.—(1) Income to which this section applies shall be exempt from income tax (including sur-tax) and shall not be reckoned in computing income for the purposes of the Income Tax Acts.

(2) This section applies to—

(a) the pension payable under section 1 of the MacSwiney (Pension) Act, 1950 (No. 30 of 1950), and

(b) a pension payable under the Pensions Act, 1952 (No. 27 of 1952).

7 Amendment of section 3 of the Finance Act, 1925.

7.—Section 3 (which relates to exemption of certain military pensions and gratuities) of the Finance Act, 1925 (No. 28 of 1925), is hereby amended by the insertion therein of the following subsection in lieu of subsection (2) now (by virtue of section 2 of the Finance Act, 1950 (No. 18 of 1950)) contained in the said section 3:

“(2) The wounds and disabilities pensions to which section 16 of the Finance Act, 1919, applies shall include and be deemed always to have included—

(a) all wound and disability pensions, and all increases in such pensions, granted under the Army Pensions Acts, 1923 to 1953, and

(b) all gratuities in respect of wounds or disabilities similarly granted,

and the said section 16 shall be construed and have effect accordingly”

8 Application of section 8 of the Finance Act, 1932.

8.—Section 8 of the Finance Act, 1932 (No. 20 of 1932), shall apply and be deemed always to have applied to any allowance granted under section 4 of the Army Pensions Act, 1953 (No. 23 of 1953), to the widow, parent, sister or brother of a person who was killed during the Rising of April and May, 1916.

9 Application of section 4 of the Finance Act, 1950.

9.—Section 4 of the Finance Act, 1950 (No. 18 of 1950), shall apply and be deemed always to have applied to any allowance payable under section 45 of the Army Pensions Act, 1953 (No. 23 of 1953).

10 Amendment of section 11 of the Finance Act, 1924.

10.—(1) Section 11 of the Finance Act, 1924 (No. 27 of 1924), is hereby amended—

(a) by the substitution in subsection (1) of “£600” for “£300”,

(b) by the substitution in subsection (2) of “£50” for “£25”.

(2) Subsection (1) of this section shall come into operation on the date of the passing of this Act.

11 Amendment of section 3 of the Finance Act, 1941.

11.—Section 3 of the Finance Act, 1941 (No. 14 of 1941), as amended by section 2 of the Finance Act, 1943 (No. 16 of 1943), is hereby further amended by the insertion, after the words “ten years” where they secondly occur in paragraph (b) of subsection (1) of the said section 3, of the words “or, where the said part of his income arises in any one (hereinafter referred to as the particular country) of the countries coming under the description lastly set forth in subsection (3) of this section, that he was, prior to the said year of assessment, resident in any two or more, one of which is the particular country, of the countries coming under the said description for periods amounting in the aggregate to not less than ten years”.

12 Payment of interest on Electricity Supply Board and Córas Iompair Éireann securities.

12.—(1) Any stock or other forms of security issued after the passing of this Act by the Electricity Supply Board or by Córas Iompair Éireann shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 2 of the Finance Act, 1924 (No. 27 of 1924), and that section shall apply accordingly.

(2) Notwithstanding anything contained in paragraph (l) of Rule 3 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, or in Rules 19, 20 and 21 of the General Rules applicable to Schedules A, B, C, D and E of the said Act, in computing for the purposes of assessment under the said Schedule D the amount of the profits or gains of the Electricity Supply Board, or of Córas Iompair Éireann, as the case may be, for any period for which accounts are made up, there shall be allowed as a deduction the amount of the interest on stock or other forms of security which, by direction of the Minister for Finance given under section 2 of the Finance Act, 1924, as applied by this section, is paid by the Electricity Supply Board or by Córas Iompair Éireann, as the case may be, without deduction of tax for such period.

(3) There shall be added to Rule 1 of Case III of Schedule D of the Income Tax Act, 1918, the following clause, that is to say:

“(i) interest on stock or other forms of security issued by the Electricity Supply Board or by Córas Iompair Éireann in cases where such interest is paid without deduction of tax.”

PART II. Customs and Excise.

13 Beer—customs duties.

13.—(1) In this section “the Act of 1952” means the Finance Act, 1952 (No. 14 of 1952).

(2) The duty of customs imposed by section 9 of the Act of 1952 on mum, spruce or black beer, Berlin white beer, and other preparations (whether fermented or not fermented) of a similar character imported into the State, shall be charged, levied and paid, as on and from the 22nd day of April, 1954, at the following rates:

(a) for every thirty-six gallons of beer of which the worts are, or were before fermentation, of a specific gravity not exceeding one thousand two hundred and fifteen degrees—thirty-seven pounds;

(b) for every thirty-six gallons of beer of which the worts are, or were before fermentation, of a specific gravity exceeding one thousand two hundred and fifteen degrees—forty-three pounds, eight shillings.

(3) The duty of customs imposed by section 9 of the Act of 1952 on all beer of any description (other than beer chargeable with the duty imposed by subsection (1) of the said section) imported into the State shall be charged, levied and paid, as on and from the 22nd day of April, 1954, at the rate of nine pounds, five shillings 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.

(4) There shall be allowed and paid on exportation or shipment for use as stores of imported beer on which it is shown, to the satisfaction of the Revenue Commissioners, that duty at a rate provided by subsection (2) or subsection (3) of this section has been paid, a drawback, calculated according to the original specific gravity of such beer, at the rate of nine pounds, four shillings and nine pence on every thirty-six gallons of beer of which the original specific gravity was one thousand and fifty-five degrees.

(5) Where, in the case of beer which is chargeable with duty at the rate provided by subsection (3) of this section or in the case of beer on which drawback under subsection (4) of this section is payable, the specific gravity of such beer is different from the specific gravity mentioned in the said subsection (3) or in the said subsection (4) (whichever is relevant), the said duty or the said drawback (as the case may be) shall be varied proportionately.

(6) Section 24 of the Finance Act, 1933 (No. 15 of 1933), shall not apply or have effect in relation to either of the duties of customs to which this section refers.

14 Beer—excise duties.

14.—(1) In this section “the Act of 1952” means the Finance Act, 1952 (No. 14 of 1952).

(2) The duty of excise imposed by section 10 of the Act of 1952 shall, in respect of beer chargeable with that duty, be charged, levied and paid, as on and from the 22nd day of April, 1954, at the rate of nine pounds, four shillings and six pence for every thirty-six gallons of worts of a specific gravity of one thousand and fifty-five degrees.

(3) There shall be allowed and paid on exportation as merchandise or for use as ship's stores of beer on which it is shown, to the satisfaction of the Revenue Commissioners, that duty at the rate provided by subsection (2) of this section has been paid, a drawback, calculated according to the original specific gravity of such beer, at the rate of nine pounds, four shillings and nine pence for every thirty-six gallons of which the original specific gravity was one thousand and fifty-five degrees.

(4) In the case of beer of which the specific gravity is different from the specific gravity mentioned in the relevant subsection of this section, the duty chargeable or the drawback payable (as the case may be) in pursuance of this section shall be varied proportionately.

15 Matches—excise duty.

15.—The duty of excise imposed by subsection (2) of section 4 of the Finance Act, 1945 (No. 20 of 1945), shall, in respect of matches chargeable with that duty, be charged, levied and paid, as on and from the 22nd day of April, 1954, at the several rates specified in the First Schedule to this Act.

16 Entertainments duty—rural areas.

16.—(1) In this section—

“entertainments duty” means the excise duty referred to by that name in, and chargeable under, section 1 of the Finance (New Duties) Act, 1916;

“the census of population” means the census of population which is for the time being the latest published such census;

“town” means a town having commissioners under the Towns Improvement (Ireland) Act, 1854, or any other place which is designated as a town in the census of population.

(2) Entertainments duty shall not be charged or levied as respects payments for admission to any entertainment held on or after the 1st day of September, 1954, in a place not situated in or within three miles of—

(a) a county or other borough, or

(b) an urban district, or

(c) a town,

having, in any such case, according to the census of population, a population exceeding one thousand.

(3) Where entertainments duty has been paid as respects payments for admission to any entertainment held on or after the 1st day of September, 1954, in a place not situated in or within three miles of—

(a) a county or other borough, or

(b) an urban district, or

(c) a town,

having, in any such case, according to the census of population, a population exceeding two thousand the Revenue Commissioners shall repay to the proprietor of the entertainment an amount equal to fifty per cent. of the duty so paid.

(4) Subsections (2) and (3) of this section shall have effect subject to the proviso that where it is shown to the satisfaction of the Revenue Commissioners that the population of a county or other borough, an urban district or a town, according to the census of population, includes persons enumerated by reference to their being in any religious community, educational establishment, orphanage, hospital, mental institution or county home or in any prison or reformatory, the population of the county or other borough, urban district or town according to the census shall be treated for the purposes of the said subsections as being reduced by the number of those persons.

(5) Subsection (2) of this section shall have effect subject to the proviso that—

(a) where the census of population (being a census published after the passing of this Act) shows that the population of a county or other borough, an urban district or a town exceeds one thousand, and

(b) the population of the county or other borough, urban district or town according to the immediately preceding census of population did not exceed one thousand,

the population of the county or other borough, urban district or town according to the census of population shall, with respect to the period of two years beginning on the date of publication of the census of population, be treated for the purposes of subsection (2) of this section as being reduced so as not to exceed one thousand.

(6) Subsection (3) of this section shall have effect subject to the proviso that—

(a) where the census of population (being a census published after the passing of this Act) shows that the population of a county or other borough, an urban district or a town exceeds two thousand, and

(b) the population of the county or other borough, urban district or town according to the immediately preceding census of population did not exceed two thousand,

the population of the county or other borough, urban district or town according to the census of population shall, with respect to the period of two years beginning on the date of publication of the census of population, be treated for the purposes of subsection (3) of this section as being reduced so as not to exceed two thousand.

(7) The references in paragraph (b) of subsection (5) and paragraph (b) of subsection (6) of this section to the population of the county or other borough, urban district or town according to the immediately preceding census of population shall be construed, where the proviso contained in subsection (4) of this section had effect in relation to that population, as references to that population as reduced as specified in that proviso.

(8) Where a repayment of duty is due under the provisions of section 6 of the Finance Act, 1953 (No. 21 of 1953), as respects any entertainment to which subsection (3) of this section applies such repayment shall be calculated by reference to the total amount of duty paid as reduced by the amount repayable under the provisions of the said subsection (3).

(9) If any question arises as to the census of population applicable at any time for the purposes of this section or as to the date of publication of any such census the Minister for Finance may certify accordingly and the certificate shall be conclusive.

17 Boots and shoes—customs duties.

17.—(1) The duties of customs chargeable on boots and shoes by section 9 of, and the Second Schedule to, the Finance Act, 1934 (No. 31 of 1934), as amended by subsequent enactments, shall cease to be chargeable on the passing of this Act.

(2) There shall be charged, levied and paid a duty of customs at the rate of sixty per cent. of the value of the article, on every of the following articles imported into the State, that is to say: