Finance Act , 1958

PART I. Income tax.

1 Income tax and sur-tax for the year 1958-59.

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1958, at the rate of seven shillings and sixpence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1958, 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, 1957.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1958, 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, 1958.

2 Market gardening.

2.—(1) In this section “market garden land” means land in the State occupied as a nursery or garden for the sale of the produce (other than land used for the growth of hops) and “market gardening” .shall be construed accordingly.

(2) Notwithstanding anything in Schedule B, or in the Rules applicable thereto, market gardening shall, for all the purposes of the Income Tax Acts in relation to the person by whom it is carried on, be treated as a trade and—

(a) the profits or gains thereof shall be charged under Case I of Schedule D, and

(b) income tax shall not be charged under Schedule B in respect of the occupation of market garden land,

but where land is market garden land for part only of the year of assessment, tax shall be charged under Schedule B on that land for that year on so much of the assessable value of that land as bears to that value the same proportion as the remainder of that year bears to one year.

(3) Where part of property valued under the Valuation Acts as a unit is market garden land—

(a) the annual value of the market garden land, for the purposes of Rule 5 of the Rules applicable to Cases I and II of Schedule D, shall be arrived at by apportionment of the rateable valuation of the property,

(b) the assessable value for the purposes of any assessment under Schedule B in respect of the remainder of the property shall be arrived at by apportionment of the amount which would have been the assessable value of the property, for the purposes of Schedule B, if no part thereof had been market garden land, and

(c) any apportionment required by this subsection shall be made by the inspector of taxes according to the best of his knowledge and judgment.

(4) An apportionment made under paragraph (c) of subsection (3) of this section may be amended by the Special Commissioners, or by the Circuit Judge, on the hearing, or the re-hearing, of an appeal against an assessment made on the basis of the apportionment, but, on the hearing, or the re-hearing, of any such appeal, a certificate of the Commissioner of Valuation tendered by either party to the appeal and certifying, as regards property valued under the Valuation Acts as a unit, the amount of the rateable valuation of the property attributable to any part of the property, shall be conclusive as to the amount so attributable.

(5) Where, for any year of assessment, tax under Case I of Schedule D in respect of the profits or gains of market gardening is chargeable on, or by reference to, the amount of the profits or gains of a year or period falling wholly or partly before the 6th day of April, 1958, that amount shall be computed as if subsection (1) of this section had had effect for the whole of that year or period.

3 Amendment of section 5 of Finance Act, 1929.

3.—The following subsections shall, with effect as from the commencement of section 5 of the Finance Act, 1929 (No. 32 of 1929), be substituted for subsections (2) and (3) of that section:—

“(2) (a) The Special Commissioners shall from time to time appoint times and places for the hearing of appeals against assessments and the Clerk to the Special Commissioners shall give notice of such times and places to the inspector of taxes or such other officer as aforesaid.

(b) The inspector of taxes or such other officer as aforesaid shall give notice in writing to each person who has given notice of appeal of the time and place appointed for the hearing of his appeal, but—

(i) notice under this paragraph shall not be given in a case in which paragraph (b) of subsection (3) of this section has effect either consequent upon an agreement referred to in that paragraph or consequent upon a notice referred to in paragraph (d) of that subsection, and

(ii) in a case in which it appears to the inspector or other officer that an appeal may be settled by agreement under subsection (3) of this section, he may refrain from giving notice under this paragraph or may by notice in writing withdraw a notice already given.

(3) (a) This subsection applies to any assessment in respect of which notice of appeal has been given, not being an assessment the appeal against which has been determined by the Special Commissioners or which has become final and conclusive under subsection (6) of this section.

(b) Where, in relation to an assessment to which this subsection applies, the inspector of taxes or such other officer as aforesaid and the appellant come to an agreement, whether in writing or otherwise, that the assessment is to stand good, is to be amended in a particular manner or is to be discharged or cancelled, the inspector or other officer shall give effect to the agreement and thereupon, if the agreement is that the assessment is to stand good or is to be amended, the assessment or the amended assessment, as the case may be, shall have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given.

(c) An agreement which is not in writing shall be deemed not to be an agreement for the purposes of paragraph (b) of this subsection unless—

(i) the fact that an agreement was come to, and the terms agreed upon, are confirmed by notice in writing given by the inspector of taxes or such other officer as aforesaid to the appellant or by the appellant to the inspector or other officer, and

(ii) twenty-one days have elapsed since the giving of that notice without the person to whom it was given giving notice in writing to the person by whom it was given that he desires to repudiate or withdraw from the agreement.

(d) Where an appellant gives notice in writing to the inspector of taxes or such other officer as aforesaid that he desires not to proceed with his appeal against an assessment to which this subsection applies, paragraph (b) of this subsection shall have effect as if the appellant and the inspector or other officer had, on the appellant's notice being received, come to an agreement in writing that the assessment should stand good.

(e) The references in this subsection to an agreement being come to with an appellant and the giving of notice to or by an appellant include references to an agreement being come to with, and the giving of notice to or by, a person acting on behalf of the appellant in relation to the appeal.”

4 Evidence in certain cases.

4.—(1) Statements made or documents produced by or on behalf of a person shall not be inadmissible in any such proceedings as are mentioned in subsection (2) of this section by reason only that it has been drawn to his attention that—

(a) in relation to income tax or sur-tax, the Revenue Commissioners may accept pecuniary settlements instead of instituting proceedings, and

(b) though no undertaking can be given as to whether or not the Revenue Commissioners will accept such a settlement in the case of any particular person, it is the practice of the Revenue Commissioners to be influenced by the fact that a person has made a full confession of any fraud or default to which he has been a party, and has given full facilities for investigation,

and that he was or may have been induced thereby to make the statements or produce the documents.

(2) The proceedings referred to in subsection (1) of this section are:

(a) any criminal proceedings against the person in question for any form of fraud or wilful default in connection with or in relation to income tax or sur-tax; and

(b) any proceedings against him for the recovery of any sum due from him, whether by way of tax, fine, forfeiture or penalty, in connection with or in relation to income tax or sur-tax.

5 Notices.

5.—(1) Any notice which under the Income Tax Acts is authorised or required to be given by the Revenue Commissioners or an inspector of taxes or other officer of the Revenue Commissioners may be served by post.

(2) Any notice which under the Income Tax Acts is authorised or required to be given by the Revenue Commissioners may be signed and given by an officer of the Revenue Commissioners authorised by them for the purpose of giving notices of the class to which the notice belongs and, if so signed and given, shall be as valid and effectual as if signed under the hands of the Revenue Commissioners and given by them.

(3) Prima facie evidence of any notice given under the Income Tax Acts by the Revenue Commissioners or an inspector of taxes or other officer of the Revenue Commissioners may be given in any proceedings by production of a document purporting to be a copy of the notice, and it shall not be necessary to prove the official positions or position of the persons or person by whom the notice purports to be given or, if it is signed, the signatures or signature or that the persons or person signing and giving it were or was authorised so to do.

(4) This section shall have effect notwithstanding any other provision of the Income Tax Acts.

(5) This section shall come into operation on the passing of this Act, but as well as applying to notices given after such passing, it shall also apply, and be deemed always to have applied, to notices given before such passing.

6 Information as to payments to employees.

6.—(1) In section 105 of the Income Tax Act, 1918, the references to payments made to persons in respect of their employment and to the remuneration of persons in their employment shall be deemed to include references—

(a) to any payments made after the 5th day of April, 1958, to employed persons in respect of expenses,

(b) to any payments made after that day on behalf of employed persons and not repaid, and

(c) to any payments made after that day to the employees in a trade or business for services rendered in connection with the trade or business, whether the services were rendered in the course of their employment or not.

(2) The reference in paragraph (a) of subsection (1) of this section to payments made to employed persons in respect of expenses includes a reference to sums put at the disposal of an employed person and paid away by him.

7 Amendment of section 3 of Finance Act, 1925.

7.—Section 3 of the Finance Act, 1925 (No. 28 of 1925), is hereby amended by the substitution in subsection (2) (inserted by section 7 of the Finance Act, 1954 (No. 22 of 1954)) of “Army Pensions Acts, 1923 to 1957, or those Acts and any subsequent Act together with which those Acts may be cited” for “Army Pensions Acts, 1923 to 1953”.

8 General rule as to tax on husbands and wives.

8.—(1) Subject to sections 9, 10, 11, and 12 of this Act, a woman's income chargeable to tax shall, so far as it is income for a year of assessment or part of a year of assessment during which she is a married woman living with her husband, be deemed for income tax (including sur-tax) purposes to be his income and not to be her income, but the question whether there is any income of hers chargeable to tax for any year of assessment and, if so, what is to be taken to be the amount thereof for tax purposes shall not be affected by the provisions of this subsection.

(2) Any tax falling to be assessed in respect of any income which, under subsection (1) of this section, is to be deemed to be the income of a woman's husband shall, instead of being assessed on her, or on her trustee, guardian, curator or committee, or on her executors or administrators, be assessable on him or, in the appropriate cases, on his trustee, guardian, curator or committee, or on his executors or administrators, but nothing in this subsection shall affect the operation of Rule 10 of the Rules applicable to Cases I and II of Schedule D.

(3) References in this section to a woman's income include references to any sum which, apart from this section, would fall to be included in computing her total income, and this subsection has effect in relation to any such sum notwithstanding that some enactment (including, except so far as the contrary is expressly provided, an enactment passed after the passing of this Act) requires that that sum should not be treated as income of any person other than her.

(4) This section has effect subject to Rule 17 of the General Rules and section 8 of the Income Tax Act, 1918.

9 Consequences, as respects personal allowances, of exercise of option by husband or wife for separate assessment.

9.—(1) This section shall have effect as respects personal reliefs where, by virtue of an application under Rule 17 of the General Rules, income tax for any year is to be assessable and chargeable on the incomes of a husband and a wife as if they were not married.

(2) The total relief from tax given to the husband and the wife by way of personal reliefs shall be the same as if the application had not had effect with respect to the year and, subject to subsection (3) of this section, the benefit flowing from the personal reliefs may be given either by way of reduction of the amount of the tax to be paid, or by repayment of any excess of tax which has been paid, or by both of these means, as the case requires, and shall be allocated to the husband and the wife—

(a) so far as it flows from relief under section 32 of the Income Tax Act, 1918, to the husband or the wife according as he or she made the payment giving rise to the relief.

(b) so far as it flows from relief under section 16 of the Finance Act, 1920, in proportion to the amounts of their respective earned incomes,

(c) so far as it flows from relief in respect of a dependent relative under section 22 of the Finance Act, 1920, or relief in respect of a child under subsection (2) of section 21 of that Act, to the husband or the wife according as he or she maintains the relative or child,

(d) so far as it flows from relief under section 4 of the Finance Act, 1951 (No. 15 of 1951), in proportion to the amounts of their respective total incomes, and

(e) as to the balance, in proportion to the amounts of their respective assessable incomes,

(3) Where the amount of relief allocated to the husband under subsection (2) of this section exceeds the income tax chargeable on the income of the husband for the year of assessment, the balance shall be applied to reduce the income tax chargeable on the income of the wife for that year, and where the amount of relief allocated to the wife under that subsection exceeds the income tax chargeable on her income for the year of assessment, the balance shall be applied to reduce the income tax chargeable on the income of the husband for that year.

(4) Returns of the total incomes of the husband and the wife may be made for the purposes of this section either by the husband or by the wife but, if the Revenue Commissioners are not satisfied with any such return, they may obtain a return from the wife or the husband, as the case may be.

(5) The Revenue Commissioners may by notice require returns for the purposes of this section to be made at any time, and the provisions of the Income Tax Acts relating to penalties for neglect or refusal to deliver, or for delay in delivering, true and correct statements of profits or gains shall, with the necessary modifications, apply in the case of the neglect or refusal to make, or wilful delay in making, any such return.

(6) In this section “personal reliefs” means any relief under section 32 of the Income Tax Act, 1918, under sections 16, 18, 19, 20, 21, 22, and 23 of the Finance Act, 1920, under section 4 of the Finance Act, 1951 (No. 15 of 1951), or under section 3 of the Finance Act, 1954 (No. 22 of 1954).

10 Collection from wife of tax assessed on husband attributable to her income.

10.—(1) Where—

(a) an assessment to income tax or sur-tax (hereafter in this section referred to as the original assessment) has been made for the year beginning on the 6th day of April, 1958, or any subsequent year of assessment on a man, or on a man's trustee, guardian, curator or committee, or on a man's executors or administrators,

(b) the Revenue Commissioners, in the case of an assessment to income tax, or the Special Commissioners, in the case of an assessment to sur-tax, are of opinion that, if an application for separate assessment under Rule 17 of the General Rules or under section 8 of the Income Tax Act, 1918, had been in force with respect to that year of assessment, an assessment in respect of, or of part of, the same income would have fallen to be made on, or on the trustee, guardian, curator or committee of, or on the executors or administrators of, a woman who is the said man's wife or was his wife in that year of assessment, and

(c) the whole or part of the amount payable under the original assessment has remained unpaid at the expiration of twenty-eight days from the time when it became due,

the Revenue Commissioners, or, as the case may be, the Special Commissioners, may give to her, or, if she is dead, to her executors or administrators, or, if such an assessment as is referred to in paragraph (b) of this subsection could, in the event therein referred to, have been made on her trustee, guardian, curator, or committee, to her or to her trustee, guardian, curator, or committee, a notice—

(i) stating particulars of the original assessment and of the amount remaining unpaid thereunder, and

(ii) stating particulars, to the best of their judgment, of the assessment which would have fallen to be made as aforesaid,

and requiring the person to whom the notice is given to pay the amount which would have been payable under the last-mentioned assessment if it conformed with those particulars, or the amount remaining unpaid under the original assessment, whichever is the less.

(2) The same consequences as respects—

(a) the imposition of a liability to pay, and the recovery of, the tax,

(b) priority for the tax in bankruptcy or in the administration of the estate of a deceased person,

(c) appeals to the Special Commissioners, the re-hearing of such appeals and the stating of cases for the opinion of the High Court, and

(d) the ultimate incidence of the liability imposed,

shall follow on the giving of a notice under subsection (1) of this section to a woman, or to her trustee, guardian, curator or committee, or to her executors or administrators, as would have followed on the making on her, or on her trustee, guardian, curator or committee, or on her executors or administrators, as the case may be, of such an assessment as is referred to in paragraph (b) of subsection (1) of this section, being an assessment which—

(i) was made on the day of the giving of the notice,

(ii) charged the same amount of tax as is required to be paid by the notice,

(iii) fell to be made and was made by the authority who made the original assessment, and

(iv) was made by that authority to the best of his or their judgment,

and the provisions of the Income Tax Acts relating to the matters specified in paragraphs (a) to (d) of this subsection shall, with the necessary adaptations, have effect accordingly.

(3) Where a notice is given under subsection (1) of this section, tax up to the amount required to be paid by the notice shall cease to be recoverable under the original assessment.

(4) Where the amount payable under a notice given under subsection (1) of this section is reduced as the result of an appeal or of the stating of a case for the opinion of the High Court—

(a) the Revenue Commissioners shall, if, in the light of that result, they are satisfied that the original assessment was excessive, cause such relief to be given by way of repayment or otherwise as appears to them to be just; but

(b) subject to any relief so given, a sum equal to the reduction in the amount payable under the notice shall again become recoverable under the original assessment.

(5) The Revenue Commissioners, the Special Commissioners and the inspector of taxes or other proper officer shall have the like powers of obtaining information with a view to the giving of, and otherwise in connection with, a notice under subsection (1) of this section as they would have had with a view to the making of, and otherwise in connection with, such an assessment as is referred to in paragraph (b) of subsection (1) of this section if the necessary conditions had been fulfilled for the making of such an assessment.

11 Right of husband to disclaim liability for tax on deceased wife's income.

11.—(1) Where a woman dies who, at any time before her death, was a married woman living with her husband, he or, if he is dead, his executors or administrators may, not later than two months from the date of the grant of probate or letters of administration in respect of her estate or, with the consent of her executors or administrators, at any later date, give to her executors or administrators and to the inspector of taxes a notice in writing declaring that, to the extent permitted by this section, he or they disclaims or disclaim responsibility for unpaid income tax or unpaid sur-tax in respect of all income of hers for any year of assessment or part of a year of assessment, being a year of assessment or part of a year of assessment which began on or after the 6th day of April, 1958, and during which he was her husband and she was living with him.

(2) A notice given pursuant to this section to the inspector of taxes shall be deemed not to be a valid notice unless it specifies the names and addresses of the woman's executors or administrators.

(3) Where a notice under this section has been given to a woman's executors or administrators and to the inspector of taxes—

(a) it shall be the duty of the Revenue Commissioners and the Special Commissioners to exercise such powers as they may then or thereafter be entitled to exercise under section 10 of this Act in connection with any assessment made on or before the date when the giving of the said notice is completed, being an assessment in respect of any of the income to which the said notice relates, and

(b) the assessments (if any), whether to income tax or to surtax, which, may be made, after that date shall, in all respects and in particular as respects the persons assessable and the tax payable, be the assessments which would have fallen to be made if—

(i) an application for separate assessment under Rule 17 of the General Rules or under section 8 of the Income Tax Act, 1918, as the case may be, had been in force in respect of the year of assessment in question, and

(ii) all assessments previously made had been made accordingly.

(4) In this section “the inspector of taxes” means, in relation to a notice, any inspector of taxes who might reasonably be considered by the person giving the notice to be likely to be concerned with the subject-matter thereof or who declares himself ready to accept the notice.

(5) Any notice under this section may be served by post.

12 Construction of references to married women living with their husbands, and special provisions as to certain spouses geographically separated.

12.—(1) A married woman shall be treated for income tax purposes as living with her husband unless either—

(a) they are separated under an order of a court of competent jurisdiction or by deed of separation, or

(b) they are in fact separated in such circumstances that the separation is likely to be permanent.

(2) Where a married woman is living with her husband and either—

(a) one of them is, and one of them is not, resident in the State for a year of assessment, or

(b) both of them are resident in the State for a year of assessment but one of them is, and one of them is not, absent from the State throughout that year,

the same consequences shall follow for income tax (including surtax) purposes as would have followed if, throughout that year of assessment, they had been in fact separated in such circumstances that the separation was likely to be permanent.

(3) Where subsection (2) of this section applies and the net aggregate amount of income tax (including sur-tax) falling to be borne by the husband and the wife for the year is greater than it would have been but for the provisions of that subsection, the Revenue Commissioners shall cause such relief to be given (by the reduction of such assessments on the husband or the wife or the repayment of such tax paid (by deduction or otherwise) by the husband or the wife as the Revenue Commissioners may direct) as will reduce the said net aggregate amount by the amount of the excess.

PART II. Customs and Excise.

13 Termination of customs duty on cinematograph films.

13.—The duty of customs on cinematograph films imposed by section 17 of the Finance Act, 1932 (No. 20 of 1932), shall not be charged or levied on any article imported on or after the 24th day of April, 1958.

14 Hydrocarbon oils—amendment of section 10 (8) of Finance Act, 1957.

14.—Subsection (8) of section 10 of the Finance Act, 1957 (No. 20 of 1957), is hereby amended—

(a) by the substitution of “a person, who carries on a passenger road service within the meaning of section 2 of the Road Transport Act, 1932 (No. 2 of 1932), and who either is the licensee under a passenger licence granted under section 11 of that Act in respect of the passenger road service or is exempted from the application of section 7 of that Act” for “the licensee under a passenger licence granted under section 11 of the Road Transport Act, 1932(No. 2 of 1932)”,

(b) by the substitution of “the passenger road service” for “a passenger road service in respect of which the licence was granted”, and

(c) by the substitution of “him” for “the licensee”.

15 Motor car duty— amendment of section 12 (2) of Finance (Agreement with United Kingdom) Act, 1938.

15.—Subsection (2) of section 12 of the Finance (Agreement with United Kingdom) Act, 1938 (No. 12 of 1938), is hereby amended by the deletion of paragraph (f).

16 Entertainments duty—amendment of section 10 (4) (c) of Finance Act, 1948.

16.—Paragraph (c) of subsection (4) of section 10 of the Finance Act, 1948 (No. 12 of 1948), is hereby amended, as respects entertainments held on or after the 1st day of August, 1958, by the substitution of “fifty per cent” for “thirty per cent.”

17 Entertainments duty— restriction of section 6 of Finance Act, 1953.

17.—(1) The Revenue Commissioners shall not make a repayment under subsection (1) of section 6 of the Finance Act, 1953 (No. 21 of 1953), to the proprietor of an entertainment held on or after the 19th day of June, 1958, if the duration of the entertainment exceeds two and one-half hours.

(2) Where an entertainment consists of two or more displays of the same programme in its entirety, each such display shall for the purposes of this section but for no other purpose be deemed to be a separate entertainment.

18 Termination of additional excise duty on tobacco dealer's licence.

18.—The additional duty of excise on a tobacco dealer's licence imposed by section 26 of the Finance Act, 1932 (No. 20 of 1932), shall not be charged or levied on any licence the period of validity of which commences on or after the 1st day of July, 1958.

19 Further exemptions in respect of hawkers' licences.

19.—In addition to the persons specified in subsection (3) of section 12 of the Finance Act, 1930 (No. 20 of 1930), and section 24 of the Finance Act, 1931 (No. 31 of 1931), it shall not be necessary for a licence to be taken out under the Hawkers Act, 1888, by any person selling hydrocarbon oil or lubricating grease and no other goods.

20 Amendment of Finance (Excise Duties) (Vehicles) Act, 1952.

20.— (1) In this section “the Act” means the Finance (Excise Duties) (Vehicles) Act, 1952 (No. 24 of 1952).

(2) The following subsection shall be inserted immediately after subsection (11) of section 1 of the Act:—

“(11A) In such cases and subject to such conditions as the Minister for Local Government may prescribe by regulations—

(a) a licence under this section or a general licence under section 9 of the Roads Act, 1920, may be surrendered prior to its expiry, and

(b) a repayment in respect of the duty paid on a licence surrendered under this subsection may be made at such rate as the Minister for Local Government may prescribe by regulations.”

(3) The following paragraph shall be substituted for paragraph (b) of subsection (1) of section 2 of the Act:—

“(b) (i) the vehicle is used in a condition or manner or for a purpose which would, if it was used solely in that condition or manner or for that purpose, render it chargeable with duty at a rate higher than that at which duty has been paid, or

(ii) in the case of a vehicle to which, by virtue of the operation of paragraph 3 of Part II of the Schedule to this Act, subparagraph (c) of paragraph 4 of Part I of the Schedule applies—

(I) it is used in a condition or manner or for a purpose which, or

(II) it is used when the person who took out the licence has an occupation which

would, if it had been shown at the time of the taking out of the licence that it was used in that condition or manner or for that purpose or that that person had that occupation, have rendered it chargeable with duty at a rate higher than that at which duty has been paid, and”.

(4) The following paragraph shall be substituted for paragraph 3 of Part II of the Schedule to the Act:—

“3. (1) Where, apart from this paragraph, subparagraph (c) of paragraph 4 of Part I of this Schedule would apply to a vehicle, that subparagraph shall not apply to it (and sub-paragraph (d) of that paragraph shall apply to it accordingly) unless the person taking out the licence shows to the satisfaction of the licensing authority either—

(a) that his only or chief occupation is farming and that the vehicle is used only occasionally on public roads and then only—

(i) for the haulage of the produce of his farm and articles required for the farm, including the farmhouse and farm buildings, but excluding the haulage of fuel if being transported as a commodity for sale, or

(ii) for the haulage of similar goods for another farmer, provided that such goods are not hauled for reward, or

(iii) for the haulage for another farmer for reward of—

(I) milk being hauled to a creamery or cream-separating station, or

(II) separated milk being hauled from a creamery or cream-separating station, or

(III) milk containers being hauled to or from a creamery or cream-separating station, or

(iv) for the haulage of livestock for reward, and that the livestock—

(I) are owned by a person resident not more than two miles from the haulier's residence,

(II) are being hauled to or from a farm from or to a livestock auction mart or a place where a market or fair specified by order made by the Minister for Industry and Commerce under the Transport Act, 1958, is held,

(III) are being hauled only on the day on which such auction, market or fair takes place, and

(IV) are not being hauled in either direction on any part of a public road which is more than twenty miles by public road from the hauliers residence, or

(b) that he is a contractor engaged to do agricultural work on a farm and that the vehicle is used on public roads only for the haulage of articles required by him for the purpose of doing that work.

(2) Where a farm is carried on as part of or in connection with—

(a) a hospital, sanatorium, convalescent home or similar institution,

(b) a mental institution within the meaning of the Mental Treatment Act, 1945 (No. 19 of 1945),

(c) a monastery, convent or similar institution, or

(d) a college, school or similar institution,

the person carrying on the farm shall be regarded for the purposes of this paragraph as being a person whose chief occupation is farming.”

(5) If this Act is passed before or on the 1st day of July, 1958, subsection (4) of this section shall come into operation on that day and, if it is passed after that day, it shall be deemed to have come into operation on that day.

(6) The appropriate repayments shall be made having regard to the provisions of subsections (4) and (5) of this section and the repayments shall be made in accordance with such directions as may be given by the Minister for Local Government.

21 Confirmation of Orders.

21.—The Imposition of Duties (No. 5) (Special Import Levies and Miscellaneous Customs Duties) (Amendment) Order, 1957 (S.I. No. 163 of 1957), the Imposition of Duties (No. 11) (Roofing Slates) Order, 1957 (S.I. No. 275 of 1957), and the Imposition of Duties (No. 28) (Special Import Levies and Miscellaneous Customs Duties) Order, 1958 (S.I. No. 92 of 1958), are hereby confirmed.

PART III. Death Duties.

22 Restriction of section 7 (4) of Finance Act, 1894.

22.—(1) In relation to a death which occurs after the passing of this Act, any duty which, because it has become payable or has been paid under the laws of any territory outside the State, becomes allowable or is allowed against the estate duty, payable under the laws of the State, by way of relief from double taxation, shall not be allowable under subsection (4) of section 7 of the Finance Act, 1894.

(2) In relation to a death which occurred before the passing of this Act—

(a) any duty which before such passing, because it had become payable or had been paid under the laws of any territory outside the State, became allowable or was allowed against the estate duty, payable under the laws of the State, by way of relief from double taxation, shall not be and shall be deemed never to have been allowable under subsection (4) of section 7 of the Finance Act, 1894, and

(b) any duty which after such passing, because it has become payable or has been paid under the laws of any territory outside the State, becomes allowable or is allowed against the estate duty, payable under the laws of the State, by way of relief from double taxation, shall not be allowable under subsection (4) of section 7 of the Finance Act, 1894.

PART IV. Expenses Allowances and Benefits in Kind: Income Tax and Sur-Tax.

23 Expenses allowances, etc.

23.—(1) Subject to the provisions of this Part of this Act, any sum paid in respect of expenses, by a body corporate to any of its directors or to any person employed by it in an employment to which this Part of this Act applies, shall, if not otherwise chargeable to income tax as income of that director or employee, be treated for the purposes of Rule 1 of the Rules applicable to Schedule E as a perquisite of the office or employment of that director or employee and included in the emoluments thereof assessable to income tax (including sur-tax) accordingly, but nothing in this subsection shall prevent a claim for a deduction being made under Rule 9 of those Rules in respect of any money expended wholly, exclusively and necessarily in performing the duties of the office or employment.

(2) The reference in subsection (1) of this section to any sum paid in respect of expenses includes a reference to any sum put by a body corporate at the disposal of a director or employee and paid away by him.

24 Benefits in kind to be taken into account.

24.—(1) Subject to the following provisions of this Part of this Act, where—

(a) a body corporate incurs expense in or in connection with the provision, for any of its directors or for any person employed by it in an employment to which this Part of this Act applies, of living or other accommodation,

of entertainment, of domestic or other services or of other benefits or facilities of whatsoever nature, and

(b) apart from this section, the expense would not be chargeable to income tax as income of the director or employee,

Rules 1 and 9 of the Rules applicable to Schedule E and section 105 of the Income Tax Act, 1918, shall have effect in relation to so much of the expense as is not made good to the body corporate by the director or employee as if the expense had been incurred by the director or employee and the amount thereof had been refunded to him by the body corporate by means of a payment in respect of expenses, and income tax (including sur-tax) shall be chargeable accordingly.

(2) Subsection (1) of this section shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee, in any of its business premises, of any accommodation, supplies or services provided for the director or employee himself and used by him solely in performing the duties of his office or employment.

(3) Subsection (1) of this section shall not apply to expense incurred by the body corporate in or in connection with the provision of living accommodation for an employee in part of any of its business premises which include living accommodation if the employee is, for the purpose of enabling him properly to perform his duties, required by the terms of his employment to reside in the accommodation and either—

(a) the accommodation is provided in accordance with a practice which, since before the beginning of the ten years ending with the passing of this Act, has commonly prevailed in trades of the class in question as respects employees of the class in question, or

(b) it is necessary, in the case of trades of the class in question, that employees of the class in question should reside on premises of the class in question,

but this subsection shall not apply where the employee is a director of the body corporate in question or of any other body corporate over which that body corporate has control or which has control over that body corporate or which is under the control of a person who also has control over that body corporate.

(4) Subsection (1) of this section shall not apply to expense incurred by the body corporate in or in connection with the provision of meals in any canteen in which meals are provided for the staff generally.

(5) Subsection (1) of this section shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee himself, or for his spouse, children or dependants, of any pension, annuity, lump sum, gratuity or other like benefit to be given on his death or retirement.

(6) Any reference in this section to expense incurred in or in connection with any matter includes a reference to a proper proportion of any expense incurred partly in or in connection with that matter.

25 Valuation of benefits in kind.

25.—(1) Any expense incurred by a body corporate in the acquisition or production of an asset which remains its own property shall be left out of account for the purposes of section 24 of this Act.

(2) Where the making of any such provision as is mentioned in subsection (1) of section 24 of this Act takes the form of a transfer of the property in any asset of the body corporate, and, since the acquisition or production thereof by the body corporate, the asset has been used or has depreciated, the body corporate shall be deemed to have incurred in the making of that provision expense equal to the value of the asset at the time of the transfer.

(3) (a) Where a body corporate is assessed or assessable under Schedule A in respect of any premises the whole or any part of which is made available by it as living or other accommodation for any of its directors or employees, and either the body corporate pays no rent in respect of the premises or the annual amount of the rent paid by it is less than the amount of the assessment under Schedule A on the premises, section 24 of this Act shall have effect as if the body corporate paid in respect of the premises an annual rent equal to the amount of the assessment under Schedule A on the premises.

(b) In this subsection “the amount of the assessment under Schedule A” means an amount which would have been the amount of the assessment thereunder for the year of assessment in question if section 3 of the Finance Act, 1935 (No. 28 of 1935), had not been enacted.

(4) Where an asset which continues to belong to the body corporate is used wholly or partly in the making of any such provision as is mentioned in subsection (1) of section 24 of this Act, and the asset is not premises, the body corporate shall be deemed for the purposes of that section to incur (in addition to any other expense incurred by it in connection with the asset, not being expense to which subsection (1) of this section applies) annual expense in connection therewith of an amount equal to the annual value of the use of the asset, but where any sum by way of rent or hire is payable by the body corporate in respect of the asset—

(a) if the annual amount of the rent or hire is equal to or greater than the annual value of the use of the asset, this subsection shall not apply, and

(b) if the annual amount of the rent or hire is less than the annual value of the use of the asset, the rent or hire shall be left out of account for the purposes of that section.

(5) Any reference in this section to a body corporate which is assessable under Schedule A in respect of any premises shall be deemed to include a reference to a body corporate which would be so assessable if a state of affairs which subsists during any part of the year had subsisted for the whole of the year.

26 Meaning of “director”, “employment” and “employment to which this Part of this Act applies.”

26.—(1) In this Part of this Act, “director” means—

(a) in relation to a body corporate the affairs whereof are managed by a board of directors or similar body, a member of that board or similar body,

(b) in relation to a body corporate the affairs whereof are managed by a single director or similar person, that director or person,

(c) in relation to a body corporate the affairs whereof are managed by the members themselves, a member of the body corporate,

and includes any person in accordance with whose directions or instructions the directors of a body corporate, defined in accordance with the preceding provisions of this subsection, are accustomed to act, but a person shall not, within the meaning of this subsection, be deemed to be á person in accordance with whose directions or instructions the directors of a body corporate are accustomed to act by reason only that those directors act on advice given by him in a professional capacity.

(2) In this Part of this Act, “employment” means an employment such that any emoluments thereof would fall to be assessed under Schedule E, and references to persons employed by, or employees of, a body corporate include any person who takes part in the management of the affairs of the body corporate and is not a director thereof.

(3) Subject to the provisions of this subsection and subsection (4) of this section, the employments to which this Part of this Act applies are employments the emoluments of which, estimated for the year of assessment in question according to the provisions of the Income Tax Acts and on the basis that they are employments to which this Part of this Act applies, and without any deduction being made under Rule 9 of the Rules applicable to Schedule E in respect of money expended in performing the duties thereof, are fifteen hundred pounds or more:

Provided that—

(a) where a person is employed in two or more employments by the same body corporate, and the total of the emoluments of those employments, for the year of assessment in question, estimated as aforesaid, is fifteen hundred pounds or more, all those employments shall be treated as employments to which this Part of this Act applies, and

(b) where a person is a director of a body corporate, all employments in which he is employed by the body corporate shall be treated as employments to which this Part of this Act applies.

(4) All the directors of, and persons employed by, a body corporate over which another body corporate has control shall be treated for the purposes of the proviso to subsection (3) of this section (but not for any other purpose) as if they were directors of, or, as the case may be, as if the employment were an employment by, that other body corporate.

27 Additional provisions as to information.

27.—(1) In subsection (2) of section 105 of the Income Tax Act, 1918, the references to a company shall be deemed to include references to any body corporate and “director” shall have the same meaning as in this Part of this Act.

(2) Where, for the purposes of a return under the said section 105, a body corporate apportions expenses incurred partly in or in connection with a particular matter and partly in or in connection with other matters—

(a) the return shall contain a statement that the sum included in the return is the result of such an apportionment,

(b) the body corporate, if required so to do by notice from the inspector of taxes, shall prepare and deliver to the inspector, within the time limited by the notice, a return containing full particulars as to the amount apportioned and the manner in which and the grounds on which the apportionment has been made, and

(c) where the inspector is dissatisfied with any such apportionment of expenses, he may, for the purposes of assessment, apportion the expenses, but the body corporate may, on giving notice in writing to the inspector within twenty-one days after being notified of any such apportionment made by the inspector, appeal against that apportionment to the Special Commissioners.

(3) The Special Commissioners shall hear and determine an appeal to them under subsection (2) of this section as if it were an appeal to them against an assessment to income tax and the provisions of the Income Tax Acts relating to the re-hearing of an appeal or the statement of a case for the opinion of the High Court on a point of law, shall, with the necessary modifications, apply accordingly.

(4) The provisions of the Income Tax Acts relating to returns under the said section 105 shall apply in relation to any return required under subsection (2) of this section.

28 Application of Part IV.

28.—This Part of this Act shall not apply in relation to any body corporate unless it carries on a trade or its functions consist wholly or mainly in the holding of investments or other property.

29 Interpretation of previous provisions of Part IV.

29.—(1) In the preceding provisions of this Part of this Act “business premises”, in relation to a body corporate, includes all premises occupied by that body for the purpose of any trade carried on by it:

Provided that, except where the reference is expressly to premises which include living accommodation, “business premises” does not include so much of any such premises as aforesaid as is used wholly or mainly as living accommodation for any of the directors of the body corporate or for any persons employed by the body corporate in any employment to which this Part of this Act applies.

(2) Any reference in the preceding provisions of this Part of this Act to anything provided for a director or employee shall, unless the reference is expressly to something provided for the director or employee himself, be construed as including a reference to anything provided for the spouse, family, servants, dependants or guests of that director or employee, and the reference in the proviso to subsection (1) of this section to living accommodation for directors or employees shall be construed accordingly.

(3) In the preceding provisions of this Part of this Act, “control”, in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person.

30 Unincorporated bodies, partnerships and individuals.

30.—(1) The preceding provisions of this Part of this Act shall apply in relation to unincorporated societies and other bodies as they apply in relation to bodies corporate, and, in connection with the said preceding provisions, the definition of “control” in subsection (3) of section 29 of this Act shall, with the necessary adaptations, also so apply.

(2) The preceding provisions of this Part of this Act shall apply in relation to any partnership carrying on any trade, profession or vocation as they would apply in relation to a body corporate carrying on a trade, if so much thereof as relates to directors of the body corporate or persons taking part in the management of the affairs of the body corporate were omitted, but—

(a). “control”, in relation to a partnership, means the right to a share of more than one half of the assets, or of more than one half of the income, of the partnership, and

(b) where such a partnership as aforesaid has control over a body corporate to which this Part of this Act applies (“control” being construed for this purpose in accordance with the definition thereof in subsection (3) of section 29 of this Act)—

(i) any employment of any director of that body corporate by the partnership shall be an employment to which this Part of this Act applies, and

(ii) all the employments of any person who is employed both by the partnership and by the body corporate (being employments by the partnership or the body corporate) shall, for the purpose of seeing whether those employments or any of them are employments to which this Part of this Act applies, be treated as if they were employments by the body corporate.

(3) The provisions of subsection (2) of this section shall apply in relation to individuals as they apply in relation to partnerships but nothing in this subsection shall be construed as requiring an individual to be treated in any circumstances as under the control of another person.

PART V. Retirement and Other Benefits for Directors and Employees: Income Tax and Sur-Tax.

31 Interpretation (Part V).

31.—(1) In this Part of this Act, except where the context otherwise requires—

“director” means—

(a) in relation to a body corporate the affairs whereof are managed by a board of directors or similar body, a member of that board or similar body,

(b) in relation to a body corporate the affairs whereof are managed by a single director or similar person, that director or person,

(c) in relation to a body corporate the affairs whereof are managed by the members themselves, a member of the body corporate,

and includes any person who is to be or has been a director;

“employee”, in relation to a body corporate, includes any person taking part in the management of the affairs, of the body corporate who is not a director, and includes a person who is to be or has been an employee;

“final remuneration” means, in relation to a director or employee of a body corporate, the average annual amount of (his remuneration from the body corporate over the last three years of his service with the body corporate, and the amount of a person's remuneration for any year shall be taken to be the amount thereof on which he would be assessable under the provisions of the Income Tax Acts, if those provisions required the assessment to be based on the profits or gains of that year and not on those of any other year or period, reduced by any deduction (other than deductions under section 32 of the Finance Act, 1921, or under section 38 of this Act) which would be allowable in computing profits or gains under the said Acts, and by any deductions which would be allowable in respect of wear and tear of any machinery or plant: Provided that, in the case of a director of a company, remuneration shall not include any director's fee or similar remuneration received by him in his capacity as such director;

“part-time director” means, in relation to a body corporate, a director who is not required to devote substantially the whole of his time to the service of the body corporate;

“part-time employee” means, in relation to a body corporate, an employee who is not required to devote substantially the whole of his time to the service of the body corporate;

“proprietary director” means a director of a company who is either the beneficial owner of, or able, either directly or through the medium of other companies or by any other indirect means, to control, more than fifteen per cent. of the ordinary share capital of the company;

“proprietary employee” means, in relation to a company, an employee who is the beneficial owner of, or able, either directly or through the medium of other companies or by any other indirect means, to control, more than fifteen per cent. of the ordinary share capital of the company;

“retirement or other benefit” means any pension, annuity, lump sum, gratuity or other like benefit to be given on retirement, or in anticipation of retirement, or, in connection with past service, after retirement, or on or in connection with death during service or after retirement, or to be given on or in anticipation of or in connection with any change in the nature of the service of the person in question, except that it does not include any pension, annuity, lump sum, gratuity, or other like benefit which is to be afforded solely by reason of the death or disability of a person resulting from an accident arising out of or in the course of his office or employment and for no other reason;

“service” means service as an employee or director of the body corporate in question and “retirement” shall be construed accordingly;

“statutory superannuation scheme” means a scheme set up by or under any enactment relating to superannuation.

(2) For the purposes of the definitions in subsection (1) of this section of “proprietary director” and “proprietary employee”—

(a) ordinary share capital which is owned or controlled as referred to in the definitions by a person being a spouse or an infant child of a director or employee, or by the trustee of a trust for the benefit of a person or persons being or including any such person or such director or employee, shall be deemed to be owned or controlled by such director or employee and not by any other person, and

(b) “ordinary share capital” means all the issued capital (by whatever name called) of the company, other than capital the holders whereof have a right to a dividend at a fixed rate or a rate fluctuating in accordance with the rate of income tax, but have no other right to share in the profits of the company.

(3) Where an alteration has been made in a retirement benefits scheme at any time after the 23rd day of April, 1958, the scheme shall, for the purposes of this Part of this Act, be deemed to have become a new scheme coming into being on the date of the alteration, but this subsection shall not apply to an alteration approved by the Revenue Commissioners.

(4) Any reference in this Part of this Act to the provision for a person of retirement or other benefits includes a reference to the provision of benefits payable to that person's spouse, children, dependants or legal personal representatives.

(5) Any reference in this Part of this Act to the provision of retirement or other benefits, or of a pension or annuity, by a body corporate includes a reference to the provision thereof by means of a contract with a third person.

(6) This Part of this Act shall apply in relation to unincorporated societies or other bodies as it applies in relation to bodies corporate, but the reference in this subsection to unincorporated societies or other bodies shall be deemed not to include a reference to individuals in partnership.

32 Charge to tax in respect of provision for retirement or other benefits to directors and employees of bodies corporate.

32.—(1) Subject to section 33 of this Act, where, pursuant to a scheme for the provision of future retirement or other benefits for persons consisting of or including directors or employees of a body corporate (in this Part of this Act referred to as a retirement benefits scheme), the body corporate in any year of assessment pays a sum with a view to the provision of any such benefits for any director or employee thereof, then (whether or not the accrual of the benefits is dependent on any contingency)—

(a) the sum paid, if not otherwise chargeable to income tax as income of the director or employee, shall be deemed for all the purposes of the Income Tax Acts to be income of that director or employee for that year of assessment and assessable to income tax under Case VI of Schedule D; and

(b) where the payment is made under any such insurance or contract as is mentioned in section 32 of the Income Tax Act, 1918, relief, if not otherwise allowable, shall be given to the director or employee under that section in respect of the payment and shall be given to the extent, if any, to which such relief would have been allowable to him if the payment had been made by him and the insurance or contract under which the payment is made had been made with him.

(2) Subject to section 33 of this Act, where—

(a) an agreement is in force between a body corporate and a director or employee thereof for the provision for him of any future retirement or other benefits afforded by a retirement benefits scheme, or a person is serving as a director or employee of a body corporate in connection wherewith there is a retirement benefits scheme, relating to persons of the class within which he falls, under which any such benefits will be provided for him,

(b) the body corporate does not, or does not fully, secure the provision of the benefits by the payment of such sums as are mentioned in subsection (1) of this section, and

(c) the circumstances in which the benefits are to accrue are not such as will render the benefits assessable to income tax as emoluments of his office as a director or of his employment,

then (whether or not the accrual of the benefits is dependent on any contingency), in each year of assessment in which the agreement is in force or the director or employee is serving as aforesaid, up to and including the year of assessment in which the benefits accrue or there ceases to be any possibility of the accrual thereof, a sum equal to the annual sum which the body corporate would have had to pay in that year under a contract with a third person which secured the provision by that third person of those benefits or, as the case may be, of those benefits so far as not already secured by the payment of such sums as are mentioned in subsection, (1) of this section, shall be deemed for all the purposes of the Income Tax Acts to be income of the director or employee for that year and assessable to income tax under Case VI of Schedule D.

(3) Where the body corporate pays any sum as mentioned in subsection (1) of this section in relation to several directors or employees, the sum so paid shall, for the purpose of that subsection, be apportioned among them by reference to the separate sums which would have had to be paid to secure the separate benefits to be provided for them respectively, and the part of the sum apportioned to each of them shall be deemed for that purpose to have been paid separately in relation to that one of them.

33 Exemptions from charge to tax under section 32.

33.—(1) The following payments shall be exempted from the operation of subsection (1) of section 32 of this Act:

(a) payments to a superannuation fund approved (whether in whole or in part) by the Revenue Commissioners for the purposes of section 32 of the Finance Act, 1921;

(b) payments made by way of premium pursuant to a retirement benefits scheme, the benefits whereunder are secured by premiums payable by the body corporate, with or without contributions by the directors or employees affected, under life or endowment assurance or life annuity contracts, being a scheme which was in operation before the 24th day of April, 1958,

subject to the proviso that paragraph (b) of this subsection shall not apply in relation to a payment made in respect of a director or employee admitted to membership of the scheme after the commencement of this Part of this Act or in respect of a person who at any time during the year of assessment is—

(i) a proprietary director,

(ii) a part-time director,

(iii) a proprietary employee, or

(iv) a part-time employee.

(2) (a) Neither subsection (1) nor subsection (2) of section 32 of this Act shall apply so as to cause any sum to be treated as income as therein mentioned where the retirement benefits scheme in question is—

(i) a statutory superannuation scheme,

(ii) an excepted scheme, or

(iii) a scheme which is for the time being approved by the Revenue Commissioners under section 34 of this Act.

(b) In this subsection “excepted scheme” means a retirement benefits scheme relating to persons, none of whom is a proprietary director, part-time director, proprietary employee or part-time employee, under the terms of which the aggregate value of all benefits which may be provided for any person cannot exceed £3,000 (where there are more retirement benefits schemes than one subsisting for the time being in connection with the body corporate and relating to persons of the same class, all such schemes taken together being deemed to constitute a single scheme for the purposes of this definition).

(3) Where—

(a) in respect of the provision for a director or employee of any future retirement or other benefits, a sum (in this subsection referred to as the charged sum) has been deemed to be income of his by virtue either of subsection (1) or of subsection (2) of section 32 of this Act,

(b) subsequently the director or employee proves to the satisfaction of the Revenue Commissioners, or on appeal to the satisfaction of the Special Commissioners, that no payment in respect of, or in substitution for, the benefits has been made and that some event has occurred by reason whereof no such payment will be made, and

(c) within three years from the time when that event occurred, the director or employee claims relief under this subsection,

the Revenue Commissioners shall give relief in respect of tax on the charged sum by repayment or otherwise as may be appropriate; and, if the director or employee satisfies the Revenue Commissioners, or on appeal the Special Commissioners, as aforesaid in relation to some particular part of the benefits but not the whole thereof, the Revenue Commissioners may give such relief as may seem to them just and reasonable.

(4) Where, apart from this subsection, any sum would be deemed, by virtue of subsection (1) or of subsection (2) of section 32 of this Act, to be income of an employee for any year of assessment, but, for that year, the employee is, under the provisions of the Income Tax Acts, either not assessable to income tax in respect of the emoluments of his employment or is so assessable in respect thereof on the basis of the amount received in the State, that subsection shall not apply so as to cause that sum to be deemed to be income of his for that year.

34 Approval of retirement benefits schemes.

34.—(1) Subject to section 35 of this Act, the Revenue Commissioners shall approve a retirement benefits scheme for the purposes of this Part of this Act if it is shown to their satisfaction that the scheme satisfies all the following conditions:

(a) that the scheme is established in connection with a trade or undertaking carried on wholly or partly in the State by a body corporate resident for income tax purposes therein;

(b) that the benefits afforded by the scheme may accrue only to—

(i) directors or employees of the body corporate on retirement, either on reaching a specified age (not exceeding seventy years) or on becoming permanently incapacitated at an earlier age, or

(ii) the widows, children or other dependants or the legal personal representatives of persons who are or have been directors or employees of the body corporate, on the death of such persons;

(c) that each person to whom the scheme relates has, under it, a specified right to defined benefits and has been made aware of the terms of the scheme;

(d) that the nature of the benefits afforded by the scheme is the same in relation to all the persons to whom the scheme relates;

(e) that not less than one-third of the cost of providing the benefits payable under the scheme, to or in respect of each of the persons to whom the scheme relates, is borne by the body corporate;

(f) that no sum paid by the body corporate for the purposes of providing benefits under the scheme may be applied to any other purpose or may be repaid to the body corporate;

(g) that, where any director or employee contributes to the cost of providing the benefits under the scheme, no sum so contributed by any person may be applied to any purpose other than the provision of those benefits or may be refunded to him;

(h) that—

(i) the aggregate value of all benefits which may accrue to any person on his retirement may not exceed the value, at the date of such retirement, of a pension for his life equal to one-sixtieth of his final remuneration multiplied by the number of his years of service, or the value, at such date, of a pension for his life equal to two-thirds of his final remuneration whichever is the lesser, and

(ii) the fraction of such aggregate value which may be represented by the value of the benefits, if any, given otherwise than by way of non-commutable pension or annuity does not exceed one-fourth;

(i) that the aggregate value of all benefits (in this subparagraph referred to as death benefits), which may accrue on the death during his service of any person, may not exceed the value of the benefits which might, consonant with the condition set forth in subparagraph (i) of paragraph (h) of this subsection, have been provided for him on retirement on attaining the specified age, if he had continued to serve until he attained that age at an annual rate of remuneration equal to his final remuneration, and that the value of all such death benefits which may be given otherwise than by way of non-commutable pension or annuity may not exceed whichever of the following amounts is the greatest:

(i) the sum of one thousand pounds,

(ii) an amount equal to the person's final remuneration,

(iii) an amount equal to one-thirtieth of the person's final remuneration multiplied by the number of his years of service or by forty-five, whichever is the lesser,

(iv) an amount equal to the aggregate of the sums contributed by the person under the scheme, together with reasonable interest on those sums;

(j) that—

(i) the aggregate value of all benefits which may accrue, on the death after his retirement of any person, may not exceed an amount equal to the aggregate value of the benefits to which that person became entitled on his retirement reduced by the total amount of all payments made or due up to such death in respect of such benefits, or

(ii) the only benefit which may accrue on the death after his retirement of any person is a non-commutable pension to his widow or other dependant of an amount not exceeding one-half of the pension or annuity to which that person had been entitled at the time of his death;

(k) that the pensions or annuities provided under the scheme are not assignable in whole or in part;

(l) that the scheme includes provision securing that no rights to any benefit provided or to be provided under the scheme (whether or not the accrual of the benefit is dependent on a contingency) shall be surrendered in whole or in part; and

(m) that no service of a person in whatever capacity while he is—

(i) a proprietary director,

(ii) a part-time director,

(iii) a proprietary employee, or

(iv) a part-time employee,

may be taken into account for any of the purposes of the scheme.

(2) The Revenue Commissioners may, if they think fit, having regard to the circumstances of the particular case, and subject to such conditions as they think proper to impose, approve a retirement benefits scheme for the purposes of this Part of this Act notwithstanding that one or more of the following paragraphs applies:

(i) the condition set out in paragraph (a) of subsection (1) of this section is not satisfied,

(ii) while the provision of benefits which may accrue only in the circumstances mentioned in paragraph (b) of that subsection is the principal purpose of the scheme, such provision is not its sole purpose,

(iii) the condition set out in paragraph (f) of that subsection is not satisfied because, if the amount of the sums paid by the body corporate for the purpose of providing benefits under the scheme in respect of any person or persons is in excess of the amount required to provide benefits in accordance with the scheme for such person or persons, a sum in relation to the excess may be repaid to the body corporate,

(iv) the condition set out in paragraph (g) of that subsection is not satisfied because sums contributed by a director or employee may be refunded to him (with or without reasonable interest thereon) on the cessation of his service in circumstances such that he does not become entitled to a pension payable either immediately or at some future date,

(v) in exceptional circumstances the aggregate value of the benefits which may accrue on the retirement of a director or employee may exceed the limit set out in subparagraph (i) of paragraph (h) of that subsection, or the value of such benefits which may be given otherwise than by way of non-commutable pension or annuity may exceed the limit set out in subparagraph (ii) of paragraph (h) of that subsection,

(vi) the aggregate value of the benefits which may be given, otherwise than by way of non-commutable pension or annuity, on the death during his service of any person may exceed the limit set out in paragraph (i) of that subsection,

(vii) the condition set out in paragraph (m) of that subsection is not satisfied in relation to a part-time director or part-time employee,

provided that the scheme otherwise satisfies the conditions set out in that subsection and that all payments under the scheme to persons to whom the scheme relates are payable by or through a person resident, for income tax purposes, in the State.

(3) Where the Revenue Commissioners have given their approval to a scheme, they may at any time, by notice in writing to the body corporate in question, withdraw their approval on such grounds, and as from such date (including a date before the date of the notice) as may be specified in the notice and where any approval is withdrawn under this subsection, such assessments as, having regard to section 32 of this Act, may be appropriate consequent upon the withdrawal shall thereupon be made.

(4) In the case of a scheme in existence on the commencement of this Part of this Act which does not then satisfy the conditions set out in subsection (1) of this section or which is not then a scheme which the Revenue Commissioners see fit to approve under subsection (2) of this section but which is so altered before the 6th day of April, 1960, or within such further time as the Revenue Commissioners may allow, as to be approvable under subsection (1) or subsection (2) of this section, approval thereof after the 6th day of April, 1959, shall, if the Revenue Commissioners so direct, be deemed to have had effect as from that day.

35 Aggregation and severance of schemes.

35.—(1) References in this Part of this Act to a retirement benefits scheme shall be construed in accordance with the following provisions:

(a) references to such a scheme shall, in relation to a deed, agreement, series of agreements, or other arrangements providing for retirement or other benefits for persons of two or more classes, be construed as references to so much thereof as relates to persons of a single class, and accordingly a deed, agreement, series of agreements or other arrangements so providing shall be treated for the purposes of this Part of this Act as constituting two or more retirement benefits schemes relating respectively to the different classes;

(b) references to such a scheme include references to a deed, agreement, series of agreements, or other arrangements providing for retirement or other benefits for persons consisting of or including a director or employee, or directors or employees, of a body corporate (or, in a case falling within paragraph (a) of this subsection, to so much thereof as relates to a person or persons of any one class), notwithstanding that it or they relates or relate only to a small number of directors or employees, or to a single director or employee.

(2) For the purpose of determining, in the case of a retirement benefits scheme submitted for the approval of the Revenue Commissioners, whether the conditions specified in subsection (1) of section 34 of this Act are satisfied, the scheme shall be considered in conjunction with any other scheme or schemes subsisting in connection with the body corporate and relating to persons of the class to which the scheme in question relates and if the said conditions are satisfied in the case of all the schemes taken together, those conditions shall be taken to be satisfied in the case of each of them, and, if not, those conditions shall be taken to be satisfied in the case of none of them.

(3) The Revenue Commissioners may, if they think fit—

(a) approve a part of a retirement benefits scheme, or

(b) approve such a scheme notwithstanding that, having regard to another such scheme subsisting in connection with the body corporate, the scheme in question is to be treated by virtue of the last preceding subsection as not satisfying the conditions aforesaid,

and references in this Part of this Act to a retirement benefits scheme approved under section 34 of this Act shall be deemed to include references to a part of a scheme approved under this subsection.

36 Certain amounts to be deemed to be income.

36.—(1) This section applies in relation to a retirement benefits scheme which is approved by the Revenue Commissioners by exercise of the powers conferred on them by subsection (2) of section 34 of this Act, in a case to which paragraph (v) of that subsection applies.

(2) Where, under a retirement benefits scheme in relation to which this section applies, any benefit is provided for a director or employee on his retirement, otherwise than by way of non-commutable pension or annuity, and the total value of all benefits so provided under all retirement benefits schemes in relation to which this section applies exceeds the amount which would have satisfied the condition specified in subparagraph (ii) of paragraph (h) of subsection (1) of section 34 of this Act, the amount of such excess (hereafter in this section referred to as the excess) shall be deemed, for all the purposes of the Income Tax Acts, to be income of the director or employee for the year of assessment in which his retirement takes place and assessable to income tax under Case VI of Schedule D:

Provided that the director or employee shall, on proof of the relevant facts to the satisfaction of the Revenue Commissioners, be entitled to have the total amount of income tax and sur-tax payable by him for the year of assessment reduced to the total of the two following amounts:

(i) the amount of income tax and sur-tax which would have been payable by him if this subsection had not been enacted, and

(ii) income tax and sur-tax on the amount of the excess at rates respectively ascertained in the manner specified in subsection (3) of this section.

(3) There shall be ascertained:

(a) the amounts of income tax and sur-tax respectively which would have been payable by the director or employee for the year of assessment in which his retirement takes place if his total income for that year had not included any remuneration from the office or employment from which he has retired, but had included a full year's payment of the non-commutable pension or annuity, if any, provided for him on his retirement, and

(b) the additional amounts of income tax and sur-tax, over and above the amounts ascertained in accordance with paragraph (a) of this subsection, which would have been payable by him if his total income for the year of assessment had, in addition to the income specified in that paragraph, included a full year's payment of a pension for his life (hereafter in this subsection referred to as the notional pension) the value of which, at the date of his retirement, would have been equal to the excess,

and the rates of income tax and sur-tax respectively for the purposes of paragraph (ii) of the proviso to subsection (2) of this section shall then be ascertained by dividing the additional amounts of income tax and sur-tax respectively computed in accordance with paragraph (b) of this subsection by the amount of the notional pension.

(4) (a) Rule 21 of the General Rules shall apply to any payment made in respect, or on account, of the excess as if such payment were a payment of interest charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recoverable from the person by or through whom the payment is made.

(b) This subsection shall not affect the liability of the director or employee in question to assessment to tax by virtue of this section under Case VI of Schedule D, or the amount on which he may be so assessed to tax, but, for the purposes of collection, credit shall be given to him for the amount deducted and accounted for under this subsection.

(5) Where the aggregate value of all benefits provided on or in connection with the retirement of a director or employee under all retirement benefits schemes subsisting in connection with the body corporate does not exceed £3,000, this section shall not take effect in relation to such director or employee.

37 Application of Rule 21 of General Rules to certain payments.

37.—(1) This section applies in relation to a retirement benefits scheme approved by the Revenue Commissioners by exercise of the powers conferred on them by subsection (2) of section 34 of this Act, in a case to which paragraph (vi) of that subsection applies.

(2) Where, under a retirement benefits scheme in relation to which this section applies, any benefit is provided, otherwise than by way of non-commutable pension or annuity, on the death during his service of a director or employee and the total value of all benefits so provided under that scheme and under all other schemes exempt from the operation of section 32 of this Act, subsisting in connection with the body corporate, exceeds the amount which would have satisfied the condition specified in paragraph (i) of subsection (1) of section 34 of this Act, Rule 21 of the General Rules shall apply to any payment made in respect, or on account, of such excess as if the payment were a payment of interest charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recoverable from the person by or through whom the payment is made.

(3) Nothing in this section shall cause any such excess as is referred to in subsection (2) of this section to be treated, for any purpose of the Income Tax Acts, as income either of the legal personal representative of the deceased director or employee or of any other person.

(4) Where the aggregate value of all benefits provided on or in connection with the death during his service of a director or employee under all retirement benefits schemes subsisting in connection with the body corporate does not exceed £3,000 this section shall not taken effect in relation to such director or employee.

38 Allowance of contributions as deductions, etc.

38.—(1) Where, under the terms of a retirement benefits scheme approved by the Revenue Commissioners under section 34 of this Act, a director or employee contributes towards the cost of providing the benefits afforded by the scheme, any amount so contributed by the director or employee shall, for the purpose of assessment under Schedule E, be allowed as a deduction from the remuneration from his office or employment and such deduction shall be made in accordance with subsection (3) of section 17 of the Finance Act, 1929 (No. 32 of 1929), but

(a) the amount (hereafter in this paragraph referred to as the said amount), otherwise allowable under this subsection for any year of assessment, of any deduction or deductions shall, where necessary, be reduced (including reduced to nil) so that the total amount of the said amount and of the deduction, if any, allowable for the same year of assessment under subsection (1) of section 32 of the Finance Act, 1921, in respect of contributions made to a superannuation fund relating to the same office or employment, shall not exceed 15 per cent. of the remuneration from the office or employment concerned for the year, or the portion of a year, for which the relevant contributions were made, and

(b) no deduction shall be allowable in respect of a contribution which is repaid before the end of the year of assessment in which it is made.

(2) Where any contributions made by a director or employee under an approved scheme within the meaning of subsection (1) of this section are repaid to him during his lifetime—

(a) Rule 21 of the General Rules shall apply to the amount of the contributions repaid as if it were a payment of interest charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recovered from the person by or through whom the repayment is made,

(b) for the purposes of income tax (excluding sur-tax) the amount of the contributions repaid shall not be regarded as income of the director or employee but, on making a claim in that behalf, he shall be entitled to be repaid so much of the tax deducted under paragraph (a) of this subsection as is in excess of a sum equal to tax on the amount of the contributions repaid, exclusive of any contributions or portions of contributions which were not allowable as deductions under subsection (1) of this section, at a rate ascertained by dividing the total of the additional amounts of income tax which would have been payable by him for the six years of assessment preceding that in which the contributions were repaid if no deduction had been allowed under the said subsection (1) by reference to the payment of those contributions, by the total of the deductions which were actually so allowed for those years, and

(c) for the purposes of sur-tax, the contributions repaid shall, to the extent to which they were allowed as deductions under subsection (1) of this section, be treated as income of the several years of assessment for which they were so allowed and any necessary additional assessments to sur-tax may be made accordingly.

(3) Paragraph (b) of the proviso to subsection (1) of section 32 of the Finance Act, 1921, shall cease to have effect and no relief under section 32 of the Income Tax Act, 1918, shall be allowed for any year of assessment in respect of a payment if, for that year, a deduction—

(a) is allowable under section 32 of the Finance Act, 1921. consequent upon paragraph (b) of the proviso to subsection (1) of that section having ceased to have effect, or

(b) is allowable under subsection (1) of this section,

in respect of that payment or in respect of a similar payment made in the year preceding the year of assessment.

39 Delivery of particulars of retirement benefits schemes, etc.

39.—(1) It shall be the duty of a body corporate—

(a) to deliver to the inspector of taxes within the time specified in this subsection, particulars of any retirement benefits scheme subsisting in connection with the body corporate on the commencement of this Part of this Act, or coming into being after such commencement, other than a scheme operated through a fund approved by the Revenue Commissioners under section 32 of the Finance Act, 1921, or a statutory superannuation scheme, and

(b) when required so to do by notice given by the inspector of taxes, to furnish within the time limited by the notice such further particulars as he may reasonably require with regard to any retirement benefits scheme subsisting in connection with the body corporate or to the persons to whom it relates.

The time for delivery of particulars under paragraph (a) of this subsection shall be—

(i) in the case of a scheme that came into being before the commencement of this Act, six months beginning with such commencement, and

(ii) in the case of a scheme coming into being after such commencement, three months beginning with the date of its coming into being.

(2) Where a retirement benefits scheme is for the time being approved for the purposes of this Part of this Act, it shall be the duty of the person having the management of the scheme, when required so to do by notice given by the inspector of taxes, to furnish within the time limited by the notice such particulars relating to the carrying out of the scheme as the inspector may reasonably require, including (in particular and without prejudice to the generality of the foregoing)—

(a) particulars of payments made to provide benefits under the scheme,

(b) particulars of payments made in respect of or on account of benefits under the scheme and of persons to whom such payments were made, and

(c) particulars of contributions refunded under the scheme and of any interest paid on such contributions.

(3) (a) Subsections (1) and (3) of section 107 of the Income Tax Act, 1918, shall apply in relation to particulars required by or under this section as they apply in relation to a list, declaration or statement required by notice referred to in the said subsection (1).

(b) In a case in which the said subsection (1) applies by virtue of the foregoing paragraph, the reference therein to the time limited in a notice shall be construed, where particulars are required to be delivered by paragraph (a) of subsection (1) of this section, as a reference to the time specified in that subsection.

(4) Where a body corporate deducts from the emoluments which it pays to any of its directors or employees, or pays on his behalf, any contributions of that director or employee under an approved retirement benefits scheme, particulars of the deduction or payment shall be included in the appropriate return of wages and salaries required to be furnished under section 105 of the Income Tax Act, 1918.

PART VI. Retirement Annuities: Income Tax and Sur-Tax.

40 Retirement annuities (relief for premiums, and earned income relief).

40.—(1) Where, in the year beginning on the 6th day of April, 1958, or in any subsequent year of assessment, an individual—

(a) is (or would but for an insufficiency of profits or gains be) chargeable to tax in respect of relevant earnings from any trade, profession, vocation, office or employment carried on or held by him, and

(b) pays a premium or other consideration under an annuity contract for the time being approved by the Revenue Commissioners as being a contract the main benefit secured by which is a life annuity for the individual in his old age (hereafter in this Part of this Act referred to as a qualifying premium),

relief from tax may be given in respect of the qualifying premium under section 41 of this Act, and any annuity payable to the same or another individual shall be treated as earned income of the annuitant to the extent to which it is payable in return for any amount on which relief is so given.

(2) Subject to subsection (3) of this section, the Revenue Commissioners shall not approve a contract unless it appears to them to satisfy the conditions that it is made by the individual with a person lawfully carrying on in the State the business of granting annuities on human life, and that it does not—

(a) provide for the payment by that person during the life of the individual of any sum except sums payable by way of annuity to the individual,

(b) provide for the annuity payable to the individual to commence before he attains the age of sixty or after he attains the age of seventy,

(c) provide for the payment by that person of any other sums except sums payable by way of annuity to the individual's widow or widower and any sums which, in the event of no annuity becoming payable either to the individual or to a widow or widower, are payable to the individual's personal representatives by way of return of premiums, by way of reasonable interest on premiums or by way of bonuses out of profits,

(d) provide for the annuity, if any, payable to a widow or widower of the individual to be of a greater annual amount than that paid or payable to the individual, or

(e) provide for the payment of any annuity otherwise than for the life of the annuitant,

and that it does include provision securing that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment.

(3) The Revenue Commissioners may, if they think fit, and subject to any conditions they think proper to impose, approve a contract otherwise satisfying the foregoing conditions, notwithstanding that the contract provides for one or more of the following matters:

(a) for the payment after the individual's death of an annuity to a dependant not the widow or widower of the individual;

(b) for the payment to the individual of an annuity commencing before he attains the age of sixty, if the annuity is payable on his becoming permanently incapable through infirmity of mind or body of carrying on his own occupation or any occupation of a similar nature for which he is trained or fitted;

(c) if the individual's occupation is one in which persons customarily retire before attaining the age of sixty, for the annuity to commence before he attains that age (but not before he attains the age of fifty);

(d) for the annuity payable to any person to continue for a term certain (not exceeding ten years), notwithstanding his death within that term, or for the annuity payable to any person to terminate, or be suspended, on marriage (or remarriage) or in other circumstances;

(e) in the case of an annuity which is to continue for a term certain, for the annuity to be assignable by will, and in the event of any person dying entitled to it, for it to be assignable by his personal representatives in the distribution of the estate so as to give effect to a testamentary disposition, or to the rights of those entitled on intestacy or to an appropriation of it to a legacy or to a share or interest in the estate.

(4) So much of subsection (1) of this section as provides that an annuity shall be treated, in whole or in part, as earned income of the annuitant shall apply only in relation to the annuitant to whom the annuity is made payable by the terms of the contract.

(5) The foregoing provisions of this section shall apply in relation to a contribution under a trust scheme approved by the Revenue Commissioners as they apply in relation to a premium under an annuity contract so approved, with the modification that, for the condition as to the person with whom the contract is made, there shall be substituted a condition that the scheme—

(a) is established under the law of, and administered in, the State,