Finance Act , 1957

PART I. Income Tax.

1 Income tax and sur-tax for the year 195758.

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1957, at the rate of seven shillings and sixpence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1957, 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, 1956.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1957, 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, 1957.

2 Amendment of Rule 6 of Rules applicable to Cases I and II of Schedule D of Income Tax Act, 1918.

2.—(1) The amount of any deduction under Rule 6 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, shall, in the case of any year of assessment beginning on or after the 6th day of April, 1958, be computed as if paragraph (1) of the said Rule 6 had provided, in relation to any

such year, for a deduction equal to five-fourths of the amount considered by the authority having jurisdiction in the matter to be just and reasonable as representing the diminished value by reason of wear and tear during the year of the machinery or plant.

(2) References to the said Rule 6 which are contained in section 3 of the Finance Act, 1949 (No. 13 of 1949), and in subsection (1) of section 24 of the Finance Act, 1956 (No. 22 of 1956), shall be construed as including references to the said Rule 6 as amended by this section.

(3) Paragraph (4) of the said Rule 6 shall have effect as if from “as” to the end of the paragraph were deleted and “as is due” were substituted therefor.

(4) Paragraph (5) of the said Rule 6 shall have effect as if the amount therein referred to were an amount equivalent to the amount which would be allowable under paragraph (1) of the said Rule 6 if the machinery or plant were, during the period of the letting, in use for the purposes of a trade carried on by the lessor.

(5) The provisions of this section shall not apply to any deduction allowable—

(a) under the said Rule 6 as representing the diminished value by reason of wear and tear of any vehicle suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles, or

(b) by virtue of an election under the proviso which was added to paragraph (1) of the said Rule 6 by section 3 of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956).

3 Amendment of section 20 (1) (b) of Finance Act, 1922.

3.—Paragraph (b) of subsection (1) of section 20 of the Finance Act, 1922 (being the paragraph inserted by section 3 of the Finance Act, 1940 (No. 14 of 1940)) is hereby amended by the insertion therein after subparagraph (i) of the following subparagraph:

“(ia) being payable to any university or college, being a university or college in the State, for the purpose of enabling such university or college to carry on research, is so payable for a period which is or may be three years or longer, or”.

4 Amendment of section 7 of Finance Act, 1932.

4.—(1) In relation to stocks, shares and securities of a company whose trade or business consists wholly or mainly of the production for sale of manufactured goods—

(a) the following subsection shall, with effect as from the commencement of section 7 of the Finance Act, 1932 (No. 20 of 1932), be substituted for subsection (2) of that section:

“(2) This section shall apply to all stocks, shares, and securities issued after the passing of this Act in respect of which the Revenue Commissioners certify that they are satisfied that all the following conditions are complied with in relation to such stock, share or security, that is to say:

(a) such stock, share or security is or was issued by a company which complies with the following provisions, that is to say, such company—

(i) is incorporated by or under the laws of the State, and

(ii) is a company limited by shares within the meaning of the Companies (Consolidation) Act, 1908, and

(iii) is managed and controlled in the State, and

(iv) carries on or (in the case of a company which has not commenced to carry on business) intends to carry on its business wholly or mainly in the State; and

(b) the stocks, shares or securities—

(i) have been issued for public subscription, or

(ii) belong to a class of the company's stocks, shares or securities that is quoted on a Stock Exchange in the State, and the number of individuals as described in subsection (1) of this section who are beneficial owners of stocks, shares or securities of that class is not less than fifty; and

(c) such issue of stock, shares or security is so described and designated that it is readily distinguishable from all other (if any) issues of such company.”; and

(b) the following subsection shall, with effect as from the commencement of section 7 of the Finance Act, 1932, be substituted for subsections (4) and (5) of that section:

“(4) Any stock, share or security to which this section applies shall cease to be a stock, share or security (as the case may be) to which this section applies if and when the Revenue Commissioners certify in relation to such stock, share or security that they are satisfied that the company's trade or business has ceased to consist wholly or mainly of the production for sale of manufactured goods or that, as respects the company, all or any of the conditions set forth in paragraph (a) of subsection (2) of this section or, as respects such stock, share or security, all or any of the conditions set forth in paragraphs (b) and (c) of subsection (2) of this section, or in subsection (3) of this section, have ceased to be complied with.”

(2) In relation to stocks, shares and securities of a company whose trade or business consists wholly or mainly of the production for sale of manufactured goods, section 7 of the Finance Act, 1935 (No. 28 of 1935), is hereby repealed with effect as from the commencement of that section.

(3) Where a certificate is given by virtue of this section in respect of any stocks, shares or securities, relief or repayment under subsection (1) of section 7 of the Finance Act, 1932, shall, nevertheless, not be granted in respect of any dividend or interest on the stocks, shares or securities which is payable prior to the 6th day of April, 1958.

(4) Nothing in this section shall—

(a) affect the validity of any certificate under subsection (2) of section 7 of the Finance Act, 1932, issued before the passing of this Act, or

(b) in a case in which such a certificate has been so issued, prevent the issue of a certificate under subsection (4) (as originally enacted) of section 7 of the Finance Act, 1932,

(5) Where—

(a) a company (in this subsection referred to as the holding company) holds beneficially more than ninety per cent. (in nominal value) of the issued stocks, shares and securities of any other company or companies,

(b) all of such stocks, shares or securities are such as would qualify for a certificate of the Revenue Commissioners under subsection (2) of section 7 of the Finance Act, 1932, as amended by subsection (1) of this section, but for paragraph (b) of that subsection as so amended, and

(c) such holding is the sole or main business of the holding company,

subsections (1), (2) and (3) of this section shall, so long as the foregoing conditions subsist, have effect in relation to stocks, shares and securities issued by the holding company as if the holding company were a company whose trade or business consisted wholly or mainly of the production for sale of manufactured goods.

5 Amendment of section 12 of Finance (Miscellaneous Provisions) Act, 1956.

5.—Section 12 of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956), is hereby amended by the addition thereto of the following subsections:

“(5) (a) For any year of claim, other than the year of assessment commencing on the 6th day of April, 1957, subsection (1) of this section shall have effect as if, for ‘shall be reduced by fifty per cent.’ where occurring at the end of the subsection, there were substituted ‘shall be reduced to nil’.

(b) For any year of claim, other than the year of assessment commencing on the 6th day of April, 1957, subsection (3) of this section shall have effect as if, for ‘shall be reduced by fifty per cent.’ where occurring at the end of the subsection, there were substituted ‘shall be reduced to nil’.

(6) (a) Income tax payable by a company for a year of claim other than the year of assessment commencing on the 6th day of April, 1957, so far as such income tax is referable to profit on the sale of goods exported out of the State may, notwithstanding anything contained in this section, be reduced by twenty-five per cent., but such reduction shall be in substitution for and not in addition to any other reduction of income tax, under the provisions of this section, for the year of claim.

(b) For the purposes of this subsection ‘profit on the sale of goods exported out of the State’ shall be taken to be such sum as bears to the amount of the company's profits for the year of claim, computed in accordance with the Income Tax Acts, which is attributable to the sale of goods (whether exported or not), the same proportion as the amount receivable in the basis period from the sale of goods exported bears to the total amount receivable by the company from the sale of goods (whether exported or not) in the basis period.”

6 Payment of interest on Bord na Móna securities.

6.—(1) Any stock or other forms of security issued after the passing of this Act by Bord na Móna 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 the Income Tax Acts, Bord na Móna shall be entitled to have the amount of income tax which, but for this section, it would be liable ultimately to bear for any year of assessment reduced by a sum representing income tax on 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 Bord na Móna without deduction of tax in that year of assessment.

(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:

“(k) interest on stock or other forms of security issued by Bord na Móna in cases where such interest is paid without deduction of tax.”

PART II. Customs and Excise.

7 Tobacco.

7.—(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 1956” means the Finance Act, 1956 (No. 22 of 1956).

(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, 1957, be charged, levied and paid at the several rates specified in Part I of the Schedule to this Act in lieu of the several rates at which the said duty is now chargeable by virtue of section 8 of the Act of 1956.

(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, 1957, be charged, levied and paid at the several rates specified in Part II of the Schedule to this Act in lieu of the several rates at which the said duty is now chargeable by virtue of section 8 of the Act of 1956.

(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 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 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, 1957, 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, 1957, be at the rate of twelve shillings and ten 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, 1957, be charged, levied and paid at the rates for unmanufactured tobacco specified in Part III of the Schedule to this Act.

8 Tobacco (excise duty on certain stocks).

8.—(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, 1957, 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, three shillings and two pence for every pound weight of the stocks, and

(b) so far as the stocks consist of tobacco (including snuff) other than unmanufactured tobacco, three shillings and two 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, 1957, 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, 1957, 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, 1957, 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, 1957.

(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, 1957, 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, 1957, 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, 1958, 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.

9 Beer.

9.—(1) In this section “the Act of 1952” means the Finance Act, 1952 (No. 14 of 1952), and “the Act of 1954” means the Finance Act, 1954 (No. 22 of 1954).

(2) In lieu of the duty of excise imposed by section 10 of the Act of 1952, as amended by section 14 of the Act of 1954, there shall be charged, levied and paid on all beer brewed within the State on or after the 9th day of May, 1957, a duty of excise at the rate of ten pounds, five shillings and six pence for every thirty-six gallons of worts of a specific gravity of one thousand and fifty-five degrees.

(3) In lieu of the duty of customs imposed by subsection (1) of section 9 of the Act of 1952, as amended by section 13 of the Act of 1954, there shall, as on and from the 9th day of May, 1957, be charged, levied and paid, 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, a duty of customs at the following rates, that is to say: