Finance Act , 1956

PART I. Income Tax.

1 Income tax and sur-tax for the year 1956-57.

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1956, at the rate of seven shillings and sixpence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1956, 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, 1955.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1956, 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, 1956.

2 Amendment of section 32 of Income Tax Act, 1918.

2.—Section 32 of the Income Tax Act, 1918, as amended by subsequent enactments, is hereby further amended as follows:

(i) in paragraph (c) of subsection (3) “or, where special terms apply to the insurance on the life of the insured person, of the prescribed capital sum” shall be inserted after “capital sum assured” and “or the prescribed capital sum” shall be inserted after “any such capital sum” and after “the sum actually assured”;

(ii) after subsection (3) the following subsection shall be inserted:

“(3A) In paragraph (c) of subsection (3) of this section—

‘special terms’ in relation to an insurance means terms which, by reason of special circumstances concerning the health of the insured person, are less favourable as to the amounts of the premiums payable or as to the capital sum payable on death, than those which would otherwise be available from the same insurer;

‘the prescribed capital sum’ means, in relation to an insurance (in this definition referred to as the said insurance), to which special terms apply, on the life of an insured person, the capital sum which would have been payable by the insurer on the death of that person by virtue of an insurance to which special terms did not apply and which, except as regards the capital sum payable on death, was in all respects the same as the said insurance.”

3 Exemption of certain interest.

3.—(1) Where the total income of an individual for the year of assessment includes, or would but for this section include, any sums (in this section referred to as the said sums) paid or credited in respect of interest on deposits with a trustee savings bank, with the Post Office Savings Bank or with any of the commercial banks, the said sums shall be disregarded for all the purposes of the Income Tax Acts if or in so far as the said sums do not exceed twenty-five pounds, but the provisions of the Income Tax Acts as regards the making by the individual of a return of his total income shall apply as if this section had not been enacted.

(2) Subsection (1) of this section shall have effect subject to the proviso that where an application under Rule 17 of the General Rules applicable to Schedules A, B, C, D and E of the Income Tax Act, 1918, or under section 8 of that Act is made for the year of assessment by a married man or by his wife, and the aggregate of the said sums which are included, or which would but for this section be included, in the total incomes of the spouses exceeds twenty-five pounds, the amount of the said sums to be disregarded for that year in the case of each spouse shall be the amount which bears the same proportion to twenty-five pounds as the amount of the said sums which are included, or which would but for this section be included, in the total income of that spouse bears to the aggregate of the said sums which are included, or which would but for this section be included, in the total incomes of the spouses; and that, in the absence of any such application as aforesaid, a like apportionment shall, where necessary, be made.

(3) Where any sums arising to an individual are, by virtue of this section, to be disregarded, the individual 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 10 of the Finance Act, 1929 (No. 32 of 1929).

(4) In this section—

“total income” means total income from all sources as estimated in accordance with the provisions of the Income Tax Acts;

“the commercial banks” means the Bank of Ireland, the Hibernian Bank, Limited, the Munster and Leinster Bank, Limited, the National Bank, Limited, the Northern Bank, Limited, the Provincial Bank of Ireland, Limited, the Royal Bank of Ireland, Limited, the Ulster Bank, Limited, Ansbacher & Company, Limited, the Commercial Banking Company, Limited, Guinness & Mahon and the National City Bank, Limited;

“trustee savings bank” has the same meaning as in the Trustee Savings Banks Acts, 1863 to 1920.

4 Increase of personal allowance for married man.

4.—Subsection (1) of section 18 of the Finance Act, 1920, as amended by subsequent enactments, is hereby further amended by the substitution of “a deduction of three hundred and ten pounds” for “a deduction of three hundred pounds”.

5 Deductions in respect of children.

5.—(1) Subsection (1) of section 21 of the Finance Act, 1920, is hereby amended by the insertion at the end of that subsection of “and a child in respect of whom an adoption order under the Adoption Act, 1952 (No. 25 of 1952), is in force”.

(2) Subsection (2) of section 21 of the Finance Act, 1920, is hereby amended by the deletion of “at the commencement of that year” where those words firstly appear in that subsection.

6 Increase of deduction in respect of dependent relative.

6.—Subsection (1) of section 22 of the Finance Act, 1920, as amended by subsequent enactments, is hereby further amended by the substitution of “a deduction of sixty pounds” for “a deduction of fifty pounds”.

7 Amendment of section 7 of Finance Act, 1932.

7.—(1) In this section “the principal section” means section 7 of the Finance Act, 1932 (No. 20 of 1932).

(2) Where—

(a) a company has issued any stocks, shares or securities in respect of which a certificate under subsection (2) of the principal section has been given and continues to have effect, and

(b) the company subsequently issues, whether before or after the passing of this Act, any stocks, shares or securities—

(i) offered or allotted to the holders as such, at or about the time of such subsequent issue, of the first-mentioned stocks, shares or securities or of a particular class thereof, and

(ii) so offered or allotted on a basis calculated by reference to the respective holdings of those holders,

the stocks, shares or securities which the company subsequently issues as aforesaid shall, for the purposes of the principal section, be deemed to be issued for public subscription.

(3) Notwithstanding anything contained in paragraphs (b) and (c) of subsection (2) of the principal section, a certificate may be given under that subsection in respect of any stocks, shares or securities of a company which were or are issued as fully paid up and which, by virtue of subsection (2) of this section, are deemed to be issued for public subscription.

(4) Where a certificate is given under subsection (2) of the principal section in respect of any stocks, shares or securities which, by virtue of subsection (2) of this section, are deemed to be issued for public subscription, relief or repayment under subsection (1) of the principal section shall, nevertheless, not be granted in respect of any dividend or interest on the stocks, shares or securities which was payable before the date of the certificate.

PART II. Customs and Excise.

8 Tobacco.

8.—(1) In this section—

“the Act of 1932” means the Finance Act, 1932 (No. 20 of 1932);

“the Act of 1934” means the Finance Act, 1934 (No. 31 of 1934);

“the Act of 1952” means the Finance Act, 1952 (No. 14 of 1952).

(2) The duty of customs on tobacco imposed by section 20 of the Act of 1932 shall, as on and from the 9th day of May, 1956, be charged, levied and paid at the several rates specified in Part I of the First Schedule to this Act in lieu of the several rates at which the said duty is now chargeable by virtue of section 12 of the Act of 1952.

(3) The duty of excise on tobacco imposed by section 19 of the Act of 1934 shall, as on and from the 9th day of May, 1956, be charged, levied and paid at the several rates specified in Part II of the First Schedule to this Act in lieu of the several rates at which the said duty is now chargeable by virtue of section 12 of the Act of 1952.

(4) Subsections (3) and (4) of the said section 19 of the Act of 1934, and subsection (5) thereof subject to subsection (5) of this section, shall apply to tobacco which is chargeable with the duty of excise imposed by subsection (1) of the said section 19 at a rate specified in Part II of the First Schedule to this Act, and for the purpose of such application references in the said subsections (3), (4) and (5) of the said section 19 to Part I of the Sixth Schedule to the said Act of 1934 shall be construed and have effect as references to Part II of the First Schedule to this Act.

(5) The rebate on unmanufactured tobacco mentioned in subsection (3) of section 20 of the Act of 1932, as amended by section 18 of the Act of 1934, and in subsection (5) of section 19 of the Act of 1934, shall, on and from the 9th day of May, 1956, be at the rate of five pence per pound.

(6) The rebate on hard pressed tobacco mentioned in subsection (2) of section 17 of the Finance Act, 1940 (No. 14 of 1940), shall, in respect of any such tobacco sold and sent out for use within the State by any licensed manufacturer on or after the 9th day of May, 1956, be at the rate of twelve shillings and four pence per pound.

(7) As respects unmanufactured tobacco which, apart from this subsection, would be entitled by virtue of section 5 of the Finance Act, 1950 (No. 18 of 1950), to the preferential rates of customs duties specified in the Second Schedule to the Finance Act, 1949 (No. 13 of 1949), the duty of customs chargeable thereon on delivery from bonded warehouse shall, as on and from the 9th day of May, 1956, be charged, levied and paid at the rates for unmanufactured tobacco specified in Part III of the First Schedule to this Act.

9 Tobacco (excise duty on certain stocks)

9.—(1) Subject to the provisions of subsection (2) of this section, there shall be charged, levied and paid on all stocks of tobacco of every description which at five o'clock in the afternoon of the 8th day of May, 1956, 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, seven shillings and eleven pence for every pound weight of the stocks, and

(b) so far as the stocks consist of tobacco (including snuff) other than unmanufactured tobacco, seven shillings and eleven pence 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 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 8th day of May, 1956, 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.

(3) Every licensed manufacturer of tobacco shall not later than the 15th day of May, 1956, 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 8th day of May, 1956, in any place in the State other than a bonded warehouse.

(4) 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 (3) 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 8th day of May, 1956.

(5) Every licensed manufacturer of tobacco shall, immediately upon making the return required by subsection (3) of this section or on the 15th day of May, 1956, whichever is the earlier, pay to the Revenue Commissioners the full amount of the duty mentioned in this section on any tobacco which was in his ownership or possession at five o'clock in the afternoon of the 8th day of May, 1956, 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 January, 1957, upon the manufacturer giving security by bond or otherwise to their satisfaction that such duty will be paid.

(6) Every manufacturer required by subsection (3) 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 (4) 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.

(7) Where drawback is payable in respect of tobacco on which the excise duty imposed 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.

10 Mineral hydrocarbon light oil.

10.—(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 1 of the Finance (Customs Duties) (No. 4) Act, 1931 (No. 43 of 1931), as amended by subsequent enactments, shall in respect of mineral hydrocarbon light oil chargeable with that duty, be charged, levied and paid as on and from the 9th day of May, 1956, at the rate of two shillings and three pence farthing the gallon in lieu of the rate specified in paragraph (b) of subsection (1) of section 6 of the Act of 1952.

(3) The duty of excise imposed by section 1 of the Finance (Miscellaneous Provisions) Act, 1935 (No. 7 of 1935), as amended by subsequent enactments, shall in respect of mineral hydrocarbon light oil chargeable with that duty which is sent out, on or for sale or otherwise, from the premises of the manufacturer thereof on or after the 9th day of May, 1956, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of mineral hydrocarbon oil, be charged, levied and paid at the rate of two shillings and one penny farthing the gallon in lieu of the rate specified in paragraph (b) of subsection (2) of section 6 of the Act of 1952.

11 Hydrocarbon oil.

11.—(1) In this section “the Act of 1935” means the Finance Act, 1935 (No. 28 of 1935).

(2) As on and from the 11th day of May, 1956, the rate of any rebate allowed under subsection (2) of section 21 of the Act of 1935, shall be—

(a) as respects the oil commonly known as tractor vaporising oil, one shilling and eight pence the gallon; and

(b) as respects any other hydrocarbon oil, one shilling and seven pence the gallon.

(3) As on and from the 11th day of May, 1956, the rate of any rebate allowed under subsection (4) of section 21 of the Act of 1935, shall be—

(a) as respects the oil commonly known as tractor vaporising oil, one shilling and six pence the gallon; and

(b) as respects any other hydrocarbon oil, one shilling and five pence the gallon.

12 Matches.

12.—(1) In lieu of the duty of customs imposed by section 4 of the Finance Act, 1945 (No. 20 of 1945), there shall be charged, levied and paid as on and from the 9th day of May, 1956, on all imported matches a duty of customs at the several rates specified in Part I of the Second Schedule to this Act.

(2) In lieu of the duty of excise imposed by section 4 of the Finance Act, 1945 (No. 20 of 1945), as amended by section 15 of the Finance Act, 1954 (No. 22 of 1954), there shall be charged, levied and paid as on and from the 9th day of May, 1956, on all matches made in the State a duty of excise at the several rates specified in Part II of the Second Schedule to this Act.

13 Bets.

13.—The duty on bets imposed by section 24 of the Finance Act, 1926 (No. 35 of 1926), shall (subject and without prejudice to the provisions of section 20 of the Finance Act, 1931 (No. 31 of 1931)) be charged, levied and paid on bets entered into on or after the 1st day of July, 1956, at the rate of ten per cent. of the amount of the bet in lieu of the rate of seven and one-half per cent. mentioned in section 18 of the Finance Act, 1941 (No. 14 of 1941).

14 Table waters.

14.—(1) The duties of customs on table waters imposed by section 7 of the Finance Act, 1916, shall on and after the 9th day of May, 1956, be charged, levied and paid at the rate of one shilling and four pence per gallon in lieu of the rates provided for by the said section 7, section 11 of the said Act and section 17 of the Finance Act, 1924 (No. 27 of 1924).

(2) The duties of excise on table waters imposed by section 4 of the Finance (New Duties) Act, 1916, shall on and after the 9th day of May, 1956, be charged, levied and paid at the rate of one shilling per gallon in lieu of the rates provided for by the said section 4 and section 11 of the Finance Act, 1916.

15 Entertainments duty—ball or dance.