Finance Act , 1958

(b) is established for the benefit of individuals engaged in or connected with a particular occupation (or one or other of a group of occupations), and for the purpose of providing retirement annuities for them, with or without subsidiary benefits for their families or dependants, and

(c) is so established under irrevocable trusts by a body of persons comprising or representing the majority of the individuals so engaged in the State,

and with the necessary adaptations of other references to the contract or the person with whom it is made; and exemption from income tax shall be allowed in respect of income derived from investments or deposits of any fund maintained for the purpose aforesaid under a scheme for the time being approved under this subsection.

(6) The Revenue Commissioners may at any time, by notice in writing given to the persons by and to whom premiums are payable under any contract for the time being approved under this section or to the trustees or other persons having the management of any scheme so approved, withdraw that approval on such grounds and 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such date (including a date before the date of the notice) as may be specified in the notice and where any approval is withdrawn under this section, such assessments as may be appropriate for the purpose of withdrawing any reliefs given under this Part of this Act consequent upon the approval shall thereupon be made.

(7) For the purposes of this Part of this Act, a married woman's relevant earnings shall not be treated as her husband's relevant earnings, notwithstanding that her income chargeable to tax is treated as his income.

(8) Subject to subsection (7) of this section, “relevant earnings” in relation to any individual means, for the purposes of this Part of this Act, any income of his chargeable to tax for the year of assessment in question, being either—

(a) income arising in respect of remuneration from an office or employment of profit held by him other than a pensionable office or employment,

(b) income from any property which is attached to or forms part of the emoluments of any such office or employment of profit held by him, or

(c) income which is chargeable under Schedule B or Schedule D and is immediately derived by him from the carrying on or exercise by him of his trade, profession or vocation either as an individual or, in the case of a partnership, as a partner personally acting therein,

but does not include any remuneration from an investment company of which he is—

(i) a proprietary director as defined in section 31 of this Act, or

(ii) a proprietary employee as defined in that section.

In this subsection “investment company” means a company the income whereof consists mainly of investment income, and “investment income” means, in relation to a company, income which, if the company were an individual, would not be earned income.

(9) For the purposes of this Part of this Act, an office or employment is a pensionable office or employment if, and only if, service in it is service to which a sponsored superannuation scheme relates (not being a scheme under which the benefits provided in respect of that service are limited to a lump sum payable on the termination of the service through death before the age of seventy or some lower age or disability before the age of seventy or some lower age); but references to a pensionable office or employment apply whether or not the duties are performed wholly or partly in the State or the holder is chargeable to tax in respect of it.

Service in an office or employment shall not for the purposes of this definition be treated as service to which a sponsored superannuation scheme relates by reason only of the fact that the holder of the office or employment might (though he does not) participate in the scheme by exercising or refraining from exercising an option open to him by virtue of that service.

(10) In subsection (9) of this section and in the First Schedule to this Act “sponsored superannuation scheme” means a scheme or arrangement relating to service in particular offices or employments and having for its object or one of its objects to make provision in respect of persons serving therein against future retirement or partial retirement, against future termination of service through death or disability, or against similar matters, being a scheme or arrangement under which any part of the cost of the provision so made is or has been borne otherwise than by those persons by reason of their service (whether it is the cost or part of the cost of the benefits provided, or of paying premiums or other sums in order to provide those benefits, or of administering or instituting the scheme or arrangement); but for this purpose a person shall be treated as bearing by reason of his service the cost of any payment made or agreed to be made in respect of his service, if that payment or the agreement to make it is treated under the Income Tax Acts as increasing his income or would be so treated if he were chargeable to tax under Schedule E in respect of his emoluments from that service.

(11) Nothing in sections 4 and 6 of the Policies of Assurance Act, 1867, shall be taken to apply to any contract approved under this section.

41 Nature and amount of relief for qualifying premiums.

41.—(1) Where relief is to be given under this section in respect of any qualifying premium paid by an individual, the amount of that premium shall be deducted from or set off against his relevant earnings for the year of assessment in which the premium is paid:

Provided that the amount which may be deducted or set off in any year of assessment (whether in respect of one or more qualifying premiums) shall not be more than the sum of five hundred pounds, nor more than one-tenth of his net relevant earnings for that year, and where the condition in paragraph (a) of subsection (1) of section 40 of this Act is satisfied as respects part only of that year, then, for the said sum of five hundred pounds, there shall be substituted the sum which bears to it the same proportion as that part bears to the whole year (but so that in the case of individuals holding a pensionable office or employment, and of individuals born in or before the year 1917, this proviso shall have effect subject to the provisions of the First Schedule to this Act).

(2) If in any year of assessment a reduction or a greater reduction would be made under this section in the relevant earnings of an individual but for an insufficiency of net relevant earnings, the amount of the reduction which would be made but for that insufficiency, less the amount of any reduction which is made in that year, shall be carried forward to the next following year, and shall be treated for the purposes of relief under this section as the amount of a qualifying premium paid in that following year, and so on for succeeding years (if necessary).

(3) For the purposes of relief under this section, an individual's relevant earnings are those earnings before giving effect to any deduction falling to be made therefrom in respect of a loss or in respect of any allowance under Rule 6 of the Rules applicable to Cases I and II of Schedule D, subsection (3) of section 5 or section 6 of the Finance Act, 1946 (No. 15 of 1946), Part V of the Finance Act, 1956 (No. 22 of 1956), Part IV of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956), or Part V of the Finance Act, 1957 (No. 20 of 1957), and references to income in the following provisions of this section (other than references to total income) shall be construed similarly.

(4) Subject to the following provisions of this section, “net relevant earnings” means, in relation to any individual, the amount of his relevant earnings for the year of assessment in question, less the amount of any deductions falling to be made from the relevant earnings in computing his total income for that year being either—

(a) deductions in respect of payments made by him, or

(b) deductions in respect of losses or of such allowances as are mentioned in subsection (3) of this section, being losses or allowances arising from activities, profits or gains of which would be included in computing relevant earnings of the individual or of the individual's wife or husband for the year beginning on the 6th day of April, 1958, or a later year of assessment.

(5) Where, in any year of assessment for which an individual claims and is allowed relief under this section, there falls to be made in computing the total income of the individual or that of the individual's wife or husband a deduction in respect of any such loss or allowance of the individual as is referred to in paragraph (b) of subsection (4) of this section, and the deduction or part of it falls to be so made from income other than relevant earnings, the amount of the deduction made from that other income shall be treated as reducing the individual's net relevant earnings for subsequent years of assessment (being deducted as far as may be from those of the immediately following year, whether or not he claims or is entitled to claim relief under this section for that year, and so far as it cannot be so deducted, then from those of the next year, and so on).

(6) Where an individual's income for any year of assessment consists partly of relevant earnings, and partly of other income, then, as far as may be, any deductions which fall to be made in computing his total income, and which may be treated in whole or in part either as made from relevant earnings or as made from other income, shall be treated for the purposes of this section as being made from those relevant earnings in so far as they are deductions in respect of any such loss as is referred to in paragraph (b) of subsection (4) of this section and otherwise as being made from that other income.

(7) An individual's net relevant earnings for any year of assessment are to be computed without regard to any relief which falls to be given for that year under this section either to the individual or to the individual's wife or husband.

(8) An individual's relevant earnings, in the case of partnership profits, shall be taken to be his share, computed in accordance with the Income Tax Acts, of the partnership income, but the amount to be included in respect of those earnings in arriving at his net relevant earnings shall be his share of that income after making therefrom all such deductions (if any) in respect of payments made by the partnership or in respect of any such allowance as is mentioned in subsection (3) of this section falling to be made to the partnership for the year commencing on the 6th day of April, 1958, or a later year of assessment, as would be made therefrom, if the partnership were an individual, in computing the net relevant earnings of that individual.

(9) Where relief under this section for any year of assessment is claimed and allowed (whether or not relief then falls to be given for that year), and afterwards there is made any additional assessment, alteration of an assessment, or other adjustment of the claimant's liability to tax, there shall be made also such adjustments, if any, as are consequential thereon in the relief allowed or given under this section for that or any subsequent year of assessment.

(10) Where relief under this section is claimed and allowed for any year of assessment in respect of any payment, relief shall not be given in respect of it under any other provision of the Income Tax Acts for the same or a later year of assessment nor (in the case of a payment under an annuity contract) in respect of any other premium or consideration for an annuity under the same contract; and references in the Income Tax Acts to relief in respect of life assurance premiums shall not be taken to include relief under this section.

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

42 Taxation of assurance companies doing annuity business.

42.— (1) Where an assurance company carries on pension annuity business—

(a) exemption from income tax shall be allowed in respect of income from investments and deposits of so much of the company's annuity fund as is referable to that business, and

(b) the company shall not be entitled to treat as paid out of profits or gains brought into charge to tax any part so referable of the annuities paid by the company.

(2) Except in the case of an assurance company charged to tax in accordance with the provisions applicable to Case I of Schedule D in respect of the profits of its life assurance business or in respect of (where the company has made an election under subsection (3) of section 3 of the Finance Act, 1947 (No. 15 of 1947)) the profits of its ordinary life assurance business, profits arising to an assurance company from pension annuity business, or from general annuity business, shall be treated as annual profits or gains within Schedule D, and be chargeable under Case VI of that Schedule, and for that purpose—

(a) the business of each such class shall be treated separately, and

(b) subject to the foregoing paragraph, the profits therefrom shall be computed in accordance with the provisions applicable to Case I of Schedule D (and without regard to the provisions of Rule 2 of the Rules applicable to Case VI of Schedule D as to the period to be taken in computing profits for the purposes of the said Case VI):

Provided that in making any such computation—

(i) the provisions of subsection (1) of section 3 of the Finance Act, 1947, shall apply with the necessary modifications and, in particular, with the omission therefrom of all references to policy-holders,

(ii) no deduction shall be allowed in respect of any expense being an expense of management referred to in section 33 of the Income Tax Act, 1918, and

(iii) there may be set off against the profits any loss, to be computed on the same basis as the profits, which has been sustained in annuity business of the same class in any previous year for which this section was in operation; but no such loss shall be taken into account more than once for the purposes of this paragraph.

(3) Where income from the investments of the foreign life assurance fund of an assurance company having its head office in the State has been relieved from tax under Rule (2) of the Rules contained in Part II of the First Schedule to the Finance Act, 1929 (No. 32 of 1929), a corresponding reduction shall be made in any amount on which the company is chargeable to tax by virtue of subsection (2) of this section in like manner as a corresponding reduction is made under subsection (5) of section 33 of the Income Tax Act, 1918, in the relief granted to the company in respect of expenses of management.

(4) Where an assurance company not having its head office in the State carries on life assurance business through any branch or agency in the State, then, any charge to tax under subsection (2) of this section for any year of assessment on the profits arising to the company from pension annuity business, or from general annuity business,—

(a) shall be made on an amount bearing to the total amount of those profits, wherever arising, the same proportion as, under Rule 3 of the Rules applicable to Case III of Schedule D, the part of the income of the company's life assurance fund charged to tax under the said Case III bears in that year to the total amount of that income, and

(b) shall not be treated as a charge to tax in respect of life assurance business for the purposes of paragraph (4) of the said Rule 3.

(5) The exemption from tax conferred by subsection (1) of this section shall not exclude any sums from being taken into account as receipts in computing profits or gains or losses for any purpose of the Income Tax Acts; and an assurance company shall not, by virtue of subsection (2) of this section, be entitled to any relief under section 2 of the Finance Act, 1945 (No. 20 of 1945), in respect of losses on its pension annuity business or on its general annuity business.

(6) For the purposes of this section “general annuity business” means any annuity business which is not pension annuity business, and any division to be made between the two classes of business shall be made on the principle of referring to pension annuity business any premiums falling within subsection (7) of this section, together with the part resulting therefrom of the company's annuity fund and liability for annuities, and of dealing with other incomings and outgoings accordingly:

Provided that a division as at the commencement of the year beginning on the 6th day of April, 1958, or any earlier time may be made by apportionment according to the company's liability at that time on contracts then falling within paragraph (b) of subsection (7) of this section and on other annuity contracts.

(7) The premiums to be referred to pension annuity business are those payable under contracts falling (at the time when the premium is payable) within one or other of the following descriptions:

(a) any contract with an individual who is, or would but for an insufficiency of profits or gains be, chargeable to tax in respect of relevant earnings (as defined in section 40 of this Act) from a trade, profession, vocation, office or employment carried on or held by him, being a contract approved by the Revenue Commissioners under that section; and

(b) any contract with the trustees or other persons having the management of a superannuation fund within the meaning of section 32 of the Finance Act, 1921, or of a scheme approved under section 40 of this Act, being a contract which—

(i) was entered into for the purposes only of that fund or scheme or, in the case of a fund part only of which is approved under the said section 32, then for the purposes only of that part of that fund, and

(ii) (in the case of a contract entered into or varied after the coming into force of this section) is so framed that the liabilities undertaken by the assurance company under the contract correspond with liabilities against which the contract is intended to secure the fund (or the relevant part of it) or scheme.

(8) This section shall be construed in accordance with section 237 of the Income Tax Act, 1918; and for the purposes of this section “annuity business” means the business of granting annuities on human life and “premium” includes any consideration for an annuity.

(9) The following transitional provisions shall have effect for the purposes of subsection (2) of this section:

(a) where tax for any year of assessment is chargeable on the amount of the profits for a year falling wholly or partly before the 6th day of April, 1958, that amount shall be computed as if subsections (1) and (5) of this section had had effect for the whole of that year; and

(b) where, in arriving at the amount on which tax is chargeable for any year of assessment, it is necessary to divide and apportion profits or gains or losses for a period for which accounts have been made up and which falls wholly or partly before the 6th day of April, 1958, the profits or gains or losses for such period shall be computed as if subsections (1) and (5) of this section had had effect for the whole of the period.

43 Supplementary provisions for Part VI.

43.—(1) Relief shall not be given under section 41 of this Act in respect of a qualifying premium except on a claim made to and allowed by the inspector of taxes, but any person aggrieved by any decision of the inspector of taxes on any such claim may, on giving notice in writing to the said inspector within twenty-one days after the notification to him of the decision, appeal to the Special Commissioners.

(2) The Special Commissioners shall hear and determine an appeal to them under subsection (1) 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.

(3) The Revenue Commissioners may make regulations prescribing the procedure to be adopted in giving effect to this Part of this Act in so far as such procedure is not otherwise provided for and, without prejudice to the generality of the foregoing provision, may by such regulations—

(a) prescribe the manner and form in which claims for relief from or repayment of tax are to be made,

(b) prescribe the time limit for the making of any such claim as aforesaid,

(c) require the trustees or other persons having the management of an approved trust scheme to deliver from time to time such information and particulars as the Revenue Commissioners may reasonably require for the purposes of this Part of this Act, and

(d) apply for purposes of this Part of this Act or of the regulations any provision of the Income Tax Acts (with or without modifications).

(4) If any person, for the purpose of obtaining for himself or any other person any relief from or repayment of tax under this Part of this Act, knowingly makes any false statement or false representation, he shall be liable to a penalty of five hundred pounds.

PART VII. Relief From Double Taxation: Income Tax, Sur-Tax, Corporation Profits Tax and Death Duties.

44 Agreements for relief from double taxation of income.

44.—(1) If the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of income tax, sur-tax or corporation profits tax and any taxes of a similar character, imposed by the laws of the State or by the laws of that territory, and that it is expedient that those arrangements should have the force of law, then, subject to the provisions of this Part of this Act, the arrangements shall, notwithstanding anything in any enactment, have the force of law.

(2) The provisions of the Second Schedule to this Act—

(a) shall have effect where arrangements which have the force of law by virtue of this section provide that tax payable under the laws of the territory concerned shall be allowed as a credit against tax payable in the State,

(b) in relation to the convention between the Government and the Government of the United States of America which was given the force of law by section 12 of the Finance Act, 1950 (No. 18 of 1950), shall be substituted for the provisions contained in Part II of the Second Schedule to that Act, and

(c) in relation to the agreement between the Government and the Government of Canada which was given the force of law by section 14 of the Finance Act, 1955 (No. 13 of 1955), be substituted for the provisions contained in Part II of the Second Schedule to that Act.

(3) Any arrangements to which the force of law is given under this section may include provision for relief from tax for periods before the passing of this Act or before the making of the arrangements and provisions as to income which is not itself subject to double taxation, and the preceding provisions of this section shall have effect accordingly.

(4) In subsection (4) of section 13 of the Finance Act, 1950, references to a dividend paid before the passing of that Act shall include references to a dividend paid before the making by the Government of an order to which subsection (1) of this section relates, and the said subsection (4) shall be construed accordingly.

(5) For the purposes of subsection (1) of this section, arrangements made with the head of a foreign state shall be regarded as made with the government thereof.

45 Apportionments.

45.—The necessary apportionments as respects corporation profits tax shall be made where arrangements having the force of law by virtue of section 44 of this Act apply to the unexpired portion of an accounting period current at a date specified by the arrangements, and any such apportionment shall be made in proportion to the number of months or fractions of months in the part of the relevant accounting period before the said date and in the remaining part thereof respectively.

46 Agreements for relief from double death duties.

46.—(1) If the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of estate duty payable under the laws of the State and any duty of a similar character imposed under the laws of the State or under the laws of that territory, and that it is expedient that those arrangements should have the force of law, the arrangements shall, notwithstanding anything in any enactment, have the force of law.

(2) Where arrangements have the force of law by virtue of this section—

(a) subsection (4) of section 7 of the Finance Act, 1894, shall not have effect in relation to duty to which the arrangements apply chargeable under the laws of the territory concerned, and

(b) if the territory concerned is one to which section 20 of the Finance Act, 1894, applies, no allowance shall be made under that section in respect of duty to which the arrangements apply chargeable under the laws of that territory.

(3) Any arrangements to which the force of law is given under this section may include provision for relief from duty in the case of deaths occurring before the passing of this Act or before the making of the arrangements and provisions as to property which is not itself subject to double duty, and the provisions of this section shall have effect accordingly.

(4) For the purposes of subsection (1) of this section, arrangements made with the head of a foreign state shall be regarded as made with the government thereof.

47 Regulations.

47.—The Revenue Commissioners may from time to time make regulations generally for carrying out the provisions of this Part of this Act or any arrangements having the force of law thereunder and may, in particular, but without prejudice to the generality of the foregoing, by those regulations provide—

(a) for securing that relief from taxation imposed by the laws of the territory to which any such arrangements relate does not enure to the benefit of persons not entitled thereto, and

(b) for authorising, in cases where tax deductible from any periodical payment has, in order to comply with any such arrangements, not been deducted and it is discovered that the arrangements do not apply to that payment, the recovery of the tax by assessment on the person entitled to the payment or by deduction from subsequent payments.

48 Disclosure of information.

48.—Where any arrangements have the force of law by virtue of this Part of this Act, the obligation as to secrecy imposed by any enactment shall not prevent the Revenue Commissioners or any authorised officer of the Revenue Commissioners from disclosing to any authorised officer of the government with which the arrangements are made such information as is required to be disclosed under the arrangements.

49 Supplementary.

49.— (1) Any order made under this Part of this Act may be revoked by a subsequent order and any such revoking order may contain such transitional provisions as appear to the Government to be necessary or expedient.

(2) Where an order is proposed to be made under this Part of this Act, a draft thereof shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann.

50 Amendment of section 15 of Finance Act, 1951

50.—For the purposes of section 15 of the Finance Act, 1951 (No. 15 of 1951), an arrangement made with the head of a foreign state shall be regarded as made with the government thereof.

PART VIII. Purchases of Shares by Financial Concerns and Persons Exempted from tax and Restriction on Relief for Losses by Repayment of tax in Case of Dividends Paid out of Accumulated Profits: Income tax, Sur-tax and Corporation Profits Tax.

51 Purchases of shares by financial concerns and persons exempted from tax.

51.—(1) Where, on or after the 19th day of June, 1958, a person engaged in carrying on a trade which consists of or comprises dealings in shares or other investments becomes entitled to receive a dividend on a holding of shares of a class to which this section applies, being shares sold or issued to him or otherwise acquired by him on or after the operative date and not more than six years before the date on which the dividend becomes payable, and the dividend is to any extent paid out of profits accumulated before the date on which the shares were so acquired, then, if those shares, or those shares together with—

(a) any other shares the dividend on which is payable to that person and which were sold or issued to him or otherwise acquired by him on or after the operative date and not more than six years before the date on which the dividend becomes payable, and

(b) in a case where the trade is under the same control as another trade which consists of or comprises dealings in shares or other investments, any shares the dividend on which is payable to the person engaged in carrying on that other trade and which were sold or issued to him or otherwise acquired by him on or after the operative date and not more than six years before the date on which the dividend becomes payable, and

(c) any such shares as are to be brought into account under subsection (3) of this section,

amount to ten per cent. or more of the issued shares of that class, the net amount of the dividend received on the shares in the holding shall, to the said extent to which it was paid out of profits accumulated before the shares were acquired, be brought into account in computing for the purposes of the Income Tax Acts the profits or gains or losses of the trade as if it were a trading receipt which had not borne tax.

(2) Where, on or after the 19th day of June, 1958, a person entitled under any enactment (including this Act) to an exemption from income tax which extends to dividends on shares becomes entitled to receive a dividend on a holding of shares of a class to which this section applies, being shares sold or issued to him or otherwise acquired by him on or after the operative date and not more than six years before the date on which the dividend becomes payable, and the dividend is to any extent paid out of profits accumulated before the date on which the shares were so acquired, then, if those shares, or those shares together with—

(a) any other shares the dividend on which is payable to that person and which were sold or issued to him or otherwise acquired by him on or after the operative date and not more than six years before the date on which the dividend becomes payable, and

(b) any such shares as are to be brought into account under subsection (3) of this section,

amount to ten per cent. or more of the issued shares of that class, the exemption shall, to an extent proportionate to the said extent to which the dividend is paid out of profits accumulated before the date on which the shares were acquired, not apply to the dividend:

Provided that if any annual payment is payable by that person out of the dividend, that annual payment shall be deemed as to the whole thereof to be paid out of profits or gains not brought into charge to tax and Rule 21 of the General Rules shall apply accordingly.

(3) If two or more persons, being persons engaged in carrying on trades of the kind mentioned in subsection (1) of this section or entitled to an exemption of the kind mentioned in subsection (2) of this section, have each acquired shares in a company and the transactions in pursuance of which the acquisition was made were either transactions entered into by those persons acting in concert or transactions together comprised in any arrangements made by any person, then, in the application of either of those subsections in relation to a dividend payable to one of those persons on shares which include shares so acquired (or shares acquired in right of those shares), there shall be taken into account under paragraph (c) of subsection (1), or, as the case may be, paragraph (b) of subsection (2), any shares the dividend on which is payable to any other of those persons, being shares so acquired by that other person (or shares acquired in right of those shares).

(4) Where any shares have been sold or otherwise disposed of by a person who held shares of that kind acquired at different times (whether or not including a time before the operative date), it shall be assumed for the purposes of this section that shares which have been held for a longer time have been disposed of before shares which have been held for a shorter time.

(5) Where, at the time when a trade is, or is deemed to be, set up and commenced, any shares form part of the trading stock belonging to the trade, those shares shall be regarded for the purposes of this section as having been acquired at that time by the person then engaged in carrying on the trade; and, subject to the foregoing provisions of this subsection, where there is a change in the persons engaged in carrying on a trade which is not a change on which the trade is deemed to be discontinued, the provisions of this section shall apply in relation to the person so engaged after the change as if anything done to or by his predecessor had been done to or by him.

(6) The provisions of the Third Schedule to this Act shall have effect for the purpose of ascertaining whether a dividend is to be regarded as paid to any extent out of profits accumulated before a given date.

(7) For the purposes of this section and the Third Schedule to this Act—

(a) “company” includes any body corporate, but does not extend to a company not resident in the State;

(b) “person” includes any body of persons, and references to a person entitled to any exemption from income tax include, in a case of an exemption expressed to apply to income of a trust or fund, references to the persons entitled to make claims for the granting of that exemption;

(c) “shares of a class to which this section applies” means shares of any class forming part of a company's share

capital other than a class of fully-paid preference shares carrying only a right to dividends at a rate per cent, of the nominal value of the shares which is fixed or fluctuates only in accordance with the rate of income tax and which in the opinion of the Special Commissioners does not substantially exceed the yield generally obtainable on preference shares the prices of which are quoted on stock exchanges in the State;

(d) “share” includes stock other than debenture or loan stock;

(e) shares shall be regarded as of different classes if the rights and obligations respectively attached to them are as regards the payment of dividends or the amount paid up or in any other respect distinguishable;

(f) any reference to shares acquired in right of other shares includes a reference to shares acquired in pursuance of an offer or invitation which was restricted to holders of those other shares;

(g) two trades shall be regarded as under the same control if they are carried on by persons one of whom is a body of persons over whom the other has control (within the meaning assigned to that expression by subsection (8) of this section), or both of whom are bodies of persons under the control (as so defined) of a third person, and several trades shall be regarded as under the same control if each is under the same control as all of the others,

and in the last foregoing paragraph “body of persons” includes a partnership.

(8) For the purposes of paragraph (g) of subsection (7) of this section, the following shall be taken to be the meaning assigned to “control” by this subsection:

“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, and, 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.

52 Restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits.

52.—(1) Where a person carries on a trade other than such a trade as is mentioned in subsection (1) of section 51 of this Act, and his income for any year of assessment includes a dividend (being a dividend which, on or after the 19th day of June, 1958, he becomes entitled to receive) the net amount of which would, if the trade were such a trade as is mentioned in that subsection, be required to any extent to be brought into account as a trading receipt which has not borne tax, then, in ascertaining whether any or what repayment of tax is to be made to that person under section 34 of the Income Tax Act, 1918, by reference to any loss sustained in the trade and the aggregate amount of his income for the said year of assessment, there shall be left out of account—

(a) the gross amount corresponding to so much of the said net amount as would have been required to be brought into account as aforesaid, and

(b) any tax paid on the amount required to be left out of account under paragraph (a) of this subsection.

(2) For the purposes of this section “person” includes any body of persons.

53 Operative date, effect and construction.

53.—(1) In this Part of this Act and the Third Schedule thereto “the operative date” means the 6th day of April, 1957.

(2) This Part of this Act and the Third Schedule thereto shall have and be deemed to have effect as on and from the operative date and, for that purpose, shall be construed, where appropriate, as if this Act had been passed on the operative date.

(3) This Part of this Act and the Third Schedule thereto shall, so far as they relate to income tax (including sur-tax), be construed together with the Income Tax Acts and shall, so far as they relate to corporation profits tax, be construed together with Part V of the Finance Act, 1920, and the enactments amending or extending that Part.

PART IX. Recovery of Taxes and Amendment of Finance (Miscellaneous Provisions) Act, 1956: Income tax, Sur-tax and Corporation Profits tax.

54 Proceedings in the High Court in respect of taxes.

54.—(1) Without prejudice to any other means by which payment of sums due in respect of income tax, sur-tax or corporation profits tax may be enforced, an officer of the Revenue Commissioners, authorised by them for the purposes of this subsection, may sue in his own name in the High Court for the recovery of any sum due in respect of any of those taxes, as a debt due to the Minister for Finance for the benefit of the Central Fund, from the person charged therewith or from his executors or administrators or from any person from whom the sum in question is collectable, whether the person so charged was so charged before or after the passing of this Act, and the proceedings may be commenced by summary summons.

(2) If an officer who has commenced proceedings pursuant to this section, or who has continued the proceedings by virtue of this subsection, dies or otherwise ceases for any reason to be an officer authorised for the purposes of subsection (1) of this section—

(a) the right of such officer to continue the proceedings shall cease and the right to continue them shall vest in such other officer so authorised as may be nominated by the Revenue Commissioners,

(b) where such other officer is nominated under paragraph (a) of this subsection, he shall be entitled accordingly to be substituted as a party to the proceedings in the place of the first-mentioned officer, and

(c) where an officer is so substituted, he shall give notice in writing of the substitution to the defendant.

(3) In proceedings pursuant to this section, a certificate signed by a Revenue Commissioner certifying the following facts, namely, that a person is an officer of the Revenue Commissioners and that he has been authorised by them for the purpose of subsection (1) of this section, shall be evidence until the contrary is proved of those facts.

(4) In proceedings pursuant to this section, a certificate signed by a Revenue Commissioner certifying the following facts, namely, that the plaintiff has ceased to be an officer of the Revenue Commissioners authorised by them for the purposes of subsection (1) of this section, that another person is an officer of the Revenue Commissioners, that such other person has been authorised by them for the purposes of subsection (1) of this section and that he has been nominated by them, in relation to the proceedings, for the purposes of subsection (2) of this section, shall be evidence until the contrary is proved of those facts.

(5) In proceedings pursuant to this section—

(a) a certificate signed by an inspector of taxes certifying the fact that before the institution of the proceedings a stated sum for income tax became due and payable by the defendant under an assessment which had become final and conclusive, and

(b) a certificate signed by a collector of income tax certifying the following facts, namely, that he is the collector duly authorised to collect the said stated sum, that before the institution of the proceedings payment of the said stated sum was duly demanded from the defendant and that the said stated sum or a stated part thereof remains due and payable by the defendant,

shall be evidence until the contrary is proved of those facts.

(6) In proceedings pursuant to this section—

(a) a certificate signed by the Clerk to the Special Commissioners certifying the following facts, namely, that before the institution of the proceedings a stated sum for sur-tax became due and payable by the defendant under an assessment which had become final and conclusive and that before the institution of the proceedings payment thereof was duly demanded from the defendant, and

(b) a certificate signed by the Accountant-General of Revenue certifying the fact that the said stated sum or a stated part thereof remains due and payable by the defendant,

shall be evidence until the contrary is proved of those facts.

(7) In proceedings pursuant to this section—

(a) a certificate signed by an officer of the Revenue Commissioners certifying the following facts, namely, that before the institution of the proceedings a stated sum for corporation profits tax became due and payable by the defendant under an assessment which had become final and conclusive and that before the institution of the proceedings payment thereof was duly demanded from the defendant, and

(b) a certificate signed by the Accountant-General of Revenue certifying the fact that the said stated sum or a stated part thereof remains due and payable by the defendant,

shall be evidence until the contrary is proved of those facts.

(8) (a) Each of the following provisions of this section shall be a relevant provision of this section for the purposes of this subsection:

(i) subsection (3),

(ii) subsection (4),

(iii) paragraph (a) of subsection (5),

(iv) paragraph (b) of subsection (5),

(v) paragraph (a) of subsection (6),

(vi) paragraph (b) of subsection (6),

(vii) paragraph (a) of subsection (7),

(viii) paragraph (b) of subsection (7).

(b) In proceedings pursuant to this section, a certificate certifying the fact or facts referred to in a relevant provision and purporting to be signed as specified in that provision may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by a person holding, at the time of the signature, the office or position indicated in the certificate as the office or position of the person signing.

(9) All or any of the sums due from any one person in respect of any one or more of the taxes mentioned in subsection (1) of this section may be included in the same summons.

(10) The provisions of subsection (2) of section 27 of the Finance Act, 1946 (No. 15 of 1946), shall apply to proceedings pursuant to this section as if those provisions were in terms made applicable thereto.

(11) Subject to this section, the rules of the High Court for the time being applicable to civil proceedings commenced by summary summons shall apply to proceedings pursuant to this section.

55 Extension of section 7 of Finance Act, 1923.

55.—(1) In this section “the principal section.” means section 7 of the Finance Act, 1923 (No. 21 of 1923).

(2) Subject to subsection (3) of this section, subsections (1) and (2) of the principal section shall apply in relation to the recovery of sur-tax and corporation profits tax, whether assessed before or after the passing of this Act, as they apply in relation to the recovery of income tax.

(3) In any application of subsection (1) of the principal section in relation to the recovery of sur-tax or corporation profits tax, that subsection shall have effect with the substitution of “an officer of the Revenue Commissioners, authorised by them for the purposes of this subsection ” for “the Collector by whom the sum so in default is collectable.”

(4) Where an order which was made before the passing of this Act under section 12 of the Court Officers Act, 1945 (No. 25 of 1945), contains a reference to levy under a certificate issued under the principal section, that reference shall be construed as including a reference to levy under a certificate issued under the principal section as extended by this section.

56 Amendment of Finance (Miscellaneous Provisions) Act, 1956.

56.—(1) In this section “the Act” means the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956).

(2) Subject to subsection (3) of this section, section 10 of the Act is hereby amended as follows:

(a) in the definition of “year of claim”, “ten” shall, except in relation to subsection (6) of section 12 of the Act, be substituted for “five”,

(b) a year of assessment (in this paragraph referred to as the said year) commencing on or after the 6th day of April, 1960, and not later than the 6th day of April, 1969, may, except in relation to subsection (6) of section 12 of the Act, be a first year of claim in a case in which none of the three consecutive years of assessment of which the first is the year commencing on the 6th day of April, 1957, is or can be the first year of claim for the purpose of making and proving a claim for the said year under section 12 of the Act,

(c) in the definition of “accounting period”, “1966” shall, except in relation to subsection (10) of section 13 of the Act, be substituted for “1961”,

(d) the definition of “goods” shall include—

(i) fish produced within the State on a fish farm, and

(ii) cultivated mushrooms, cultivated within the State,

and, in a case in which books are printed within the State otherwise than by their publisher and they or some of them are exported by their publisher (not being a case to which the proviso to the said definition applies), the books shall be regarded for the purposes of the said definition as having been manufactured within the State by their publisher.

(3) Relief from income tax shall not be given by virtue of subsection (2) of this section in respect of any year of assessment after the year of assessment commencing on the 6th day of April, 1969.

(4) The amendment specified in paragraph (d) of subsection (2) of this section shall have effect as from the passing of the Act, and relief from tax in relation to the period between such passing and the passing of this Act may be given accordingly either by repayment or otherwise as the Revenue Commissioners consider proper.

(5) Subsection (2) of section 15 of the Act is hereby amended, with effect as from the passing of the Act, by the substitution of “body corporate” for “company”.

(6) Section 16 of the Act is hereby amended, with effect as from the 6th day of April, 1958, by the insertion after subsection (5) of the following subsection:

“(5a) Section 4 of the Finance Act, 1937 (No. 18 of 1937), shall apply in relation to an industrial building allowance as it applies in relation to deductions allowable in respect of wear and tear of machinery or plant.”

PART X. Stamp Duties.

57 Agreements as to stamp duty on certain instruments.

57.—(1) The Revenue Commissioners may enter into an agreement with any banker for the composition, in accordance with the following provisions of this section, of the stamp duty chargeable under the heading “Bill of Exchange payable on demand” in the First Schedule to the Stamp Act, 1891, on such instruments—

(a) drawn on the banker by his customers on forms supplied by him, or

(b) drawn by the banker on himself or another banker,

as may be specified in the agreement.

(2) Any such agreement shall be in such form and terms and shall contain such conditions as the Revenue Commissioners think proper and, in particular, the agreement shall require the banker to deliver to the Revenue Commissioners periodical accounts in respect of the instruments to which it relates giving particulars—

(a) of forms supplied by him to his customers with a view to their being completed and issued as such instruments by the customers, and of forms so supplied but returned unused or spoilt, and

(b) of such instruments issued by him.

(3) While any such agreement remains in force, any instrument to which it relates and which bears such indication of the payment of stamp duty as the Revenue Commissioners may require shall not be chargeable with stamp duty, but, in lieu thereof and by way of composition, the banker who has entered into the agreement shall pay to the Revenue Commissioners, on the delivery of any account under the agreement, such sums as would, but for the provisions of this section, have been chargeable by way of stamp duty on instruments to which the agreement relates issued during the period to which the account relates, it being assumed for this purpose that the number of those instruments issued by his customers was equal to the number of forms supplied less the number of forms returned as mentioned in paragraph (a) of subsection (2) of this section.

(4) Where a banker makes default in delivering any account required by any such agreement or in paying the duty payable on the delivery of any such account, he shall be liable to a fine not exceeding fifty pounds for any day during which the default continues and shall also be liable to pay, in addition to the duty, interest thereon, which shall be recoverable in the same manner as if it were part thereof, at the rate of five per cent. per annum from the date when the default begins.

58 Termination of stamp duty on certain receipts.

58.—Stamp duty shall not be chargeable on any receipt given in respect of any sum paid to the Irish Land Commission under or consequent upon section 2 of the Irish Church Act Amendment Act, 1881.

59 Termination of stamp duty on certain instruments.

59.—Stamp duty shall not be chargeable on any instrument (including an instrument executed but not stamped before the passing of this Act) where the amount of such duty chargeable thereon, but for this section, would be payable solely out of moneys provided by the Oireachtas.

60 Termination of stamp duty on certain bonds.

60.—Stamp duty shall not be charged on any bond referred to in the First Schedule to the Stamp Act, 1891, under the heading which begins “Bond given pursuant to the directions of any Act”.

PART XI. Miscellaneous and General.

61 Capital Services Redemption Account.

61.—(1) In this section—

“the principal section” means section 22 of the Finance Act, 1950 (No. 18 of 1950);

“the 1957 amending section” means section 25 of the Finance Act, 1957 (No. 20 of 1957);

“the eighth additional annuity” means the sum charged on the Central Fund under subsection (4) of this section;

“the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.

(2) Subsection (4) of the 1957 amending section shall, in relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of March, 1959, have effect with the substitution of “£601,122” for “£598,588”.

(3) Subsection (6) of the 1957 amending section shall have effect with the substitution of “£409,390” for “£416,149”.

(4) A sum of £717,012 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of March, 1959.

(5) The eighth additional annuity shall be paid into the Account in such manner and at such times in the relevant financial year as the Minister may determine.

(6) Any amount of the eighth additional annuity, not exceeding £528,332 in any financial year, may be applied towards defraying the interest on the public debt.

(7) The balance of the eighth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

62 Termination of payments into the Capital Fund.

62.—Subsection (3) of section 4 of the Central Fund Act, 1956 (No. 12 of 1956), shall not apply in relation to Exchequer receipts in respect of Special Import Levy which are received into the Exchequer after the 31st day of March, 1958.

63 Holding and investment of moneys of Post Office Savings Bank.

63.—(1) The following provisions shall have effect in relation to moneys of the Post Office Savings Bank:

(a) such moneys, as well as being capable of being held in currency of the State, may also be held in currency of the United States of America or currency of the Dominion of Canada,

(b) such moneys may be invested in any of the following securities:

(i) securities of the Government,

(ii) securities guaranteed as to capital and interest by the Minister for Finance,

(iii) stock of the Bank of Ireland,

(iv) securities or mortgages of the council of a county, the corporation of a county borough, the corporation of Dún Laoghaire or a harbour authority within the meaning of the Harbours Act, 1946 (No. 9 of 1946),

(v) securities of the government of Great Britain,

(vi) securities of the government of the United States of America,

(vii) securities of the government of the Dominion of Canada,

(c) such moneys may also be invested in an interest bearing deposit account with a bank, being a bank in the State, Great Britain, the United States of America or the Dominion of Canada.

(2) In subsection (1) of this section “securities” includes stocks and funds.

(3) Subsections (1) and (2) of this section shall be deemed to have come into operation on the 1st day of April, 1958.

64 Investment of moneys of Savings Certificates Reserve Fund.

64.—Subsection (2) of section 34 of the Finance Act, 1929 (No. 32 of 1929), is hereby amended by the substitution of “investments for the time being authorised for the investment of moneys of the Post Office Savings Bank” for “stocks, funds and securities mentioned in paragraphs (a), (b) and (c) of subsection (1) of section 18 of the Adaptation of Enactments Act, 1922 (No. 2 of 1922), and securities guaranteed as to principal and interest by the Government of Saorstát Éireann”.

65 Expenses incurred in connection with management of prize bonds.

65.—(1) The reference in subsection (4) of section 22 of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956), to expenses incurred in connection with the management of prize bonds shall be construed as a reference to those expenses as calculated in such manner as may be determined by the Minister for Finance.

(2) Sections 2 and 4 of the Bank Act, 1892, as applied by section 19 of the Finance Act, 1937 (No. 18 of 1937), shall not apply in relation to prize bonds.

(3) Subsections (1) and (2) of this section, shall be deemed to have come into operation on the passing of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956).

66 Repeals.

66.—Each enactment specified in column (2) of the Fourth Schedule to this Act is hereby repealed to the extent specified in column (3) of that Schedule as on and from the date specified in column (4) of that Schedule.

67 Care and management of taxes and duties.

67.—All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

68 Short title, construction and commencement.

68.—(1) This Act may be cited as the Finance Act, 1958.

(2) Parts I, IV, V and VI of this Act and the First Schedule thereto shall be construed together with the Income Tax Acts.

(3) Part II of this Act, so far as it relates to duties of customs, shall be construed together with the Customs Acts and, so far as

it relates to duties of excise shall be construed together with the Statutes which relate to the duties of excise and the management of those duties.

(4) Parts VII and IX of this Act and the Second Schedule thereto shall, so far as they relate to income tax (including sur tax), be construed together with the Income Tax Acts and shall, so far as they relate to corporation profits tax, be construed together with Part V of the Finance Act, 1920, and the enactments amending or extending that Part.

(5) Part X of this Act shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6) Part I of this Act shall, save as is otherwise expressly provided therein, be deemed to come into force and shall take effect as on and from the 6th day of April, 1958.

(7) Part VI of this Act and the First Schedule thereto shall be deemed to come into force and shall take effect as on and from the 6th day of April, 1958.

(8) Parts IV and V of this Act shall come into operation on the 6th day of April, 1959.

(9) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment, including this Act.

FIRST SCHEDULE. Retirement Annuities (Adjustments Of Limit On Qualifying Premiums).

Part I. Holders of Pensionable Office or Employment.

(a) paragraph 1 of this Schedule shall not apply if the condition in paragraph (a) of subsection (1) of section 40 of this Act is not satisfied at any time during that part of the year; but

(b) if the condition is satisfied at such a time and is also satisfied at a time during the remainder of the year, paragraph 1 of this Schedule shall apply but for one-tenth there shall be substituted therein such less proportion as may be just.

(a) income arising in respect of remuneration from any pensionable office or employment, or

(b) income from any property which is attached to or forms part of the emoluments of any pensionable office or employment.

Part II. Persons born in or before 1917.

TABLE.

Year of birth.	Sum.	Percentage.
1916 or 1917	£550	11 per cent.
1914 or 1915	£600	12 per cent.
1912 or 1913	£650	13 per cent.
1910 or 1911	£700	14 per cent.
1909 or any earlier year	£750	15 per cent.

(a) receives any income in respect of a pension payable under or in pursuance of a sponsored superannuation scheme or otherwise purchased or provided for him by another person, or

(b) has a right under a sponsored superannuation scheme to a pension which is not presently payable, whether because it is suspended or because it is to become payable only at a future time or on the happening of some contingency (but not including a right dependant also on service in an office or employment for the time being held by him).

(2) In this paragraph, “pension” includes any superannuation or other allowance or deferred pay.

SECOND SCHEDULE. Provisions As To Relief From Income Tax (Including Sur-Tax) And Corporation Profits Tax By Way Of Credit In Respect Of Foreign Tax.

Interpretation.

“arrangements” means arrangements for the time being in force by virtue of section 44 of this Act or of section 12 of the Finance Act, 1950 (No. 18 of 1950), or of section 14 of the Finance Act, 1955 (No. 13 of 1955);

“income tax” includes sur-tax;

“income”, in relation to corporation profits tax, means profits;

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

“the Irish taxes” means income tax (including sur-tax) and corporation profits tax;

“foreign tax” means, in relation to any territory in regard to which arrangements have the force of law, any tax chargeable under the laws of that territory for which credit may be allowed under the arrangements.

(2) Any reference in this Schedule to foreign tax shall be construed, in relation to credit to be allowed under any arrangements, as a reference only to tax chargeable under the laws of the territory in regard to which the arrangements are made.

General.

(2) The credit to be allowed shall be first applied in reducing the amount of any corporation profits tax chargeable in respect of the income and, so far as it cannot be so applied, in reducing the income tax chargeable in respect thereof.

(3) Nothing in this paragraph authorises the allowance of credit against any Irish tax against which credit is not allowable under the arrangements.

Requirements as to incorporation and residence.

(2) Credit shall not be allowed against income tax for any year of assessment unless the person in respect of whose income the tax is chargeable is resident in the State for that year.

Limit on total credit—corporation profits tax.

Limit on total credit—income tax.

(a) in the case of a person whose income is chargeable to income tax but not to sur-tax, a rate ascertained by dividing the income tax payable by that person for that year by the amount of the total income of that person for that year;

(b) in the case of a person whose income is chargeable to sur-tax, the sum of the following rates—

(i) the rate which would have been the appropriate rate in his case if his income had been chargeable to income tax but not to sur-tax, and

(ii) the rate ascertained by dividing the sur-tax payable by him for that year by the amount of his total income for that year:

Provided that where, under the arrangements, credit is not to be allowed against sur-tax for the year, the rate shall be calculated in all cases as in the case of persons whose incomes are chargeable to income tax but not to sur-tax, and where, under the arrangements, credit is not to be allowed except against surtax for the year, the rate shall be that ascertained by dividing the sur-tax payable by the person in question for the year by the amount of his total income for the year.

(2) For the purpose of determining the said rate, the tax payable by any person for any year shall be computed without regard to any relief in respect of life assurance premiums and without any reduction thereof for any credit allowed or to be allowed under any arrangements having effect by virtue of section 44 of this Act, but shall be deemed to be reduced by any tax which, otherwise than under Rule 20 of the General Rules, the person in question is entitled to charge against any other person, and the total income of any person shall be deemed to be reduced by the amount of any income the income tax upon which that person is entitled to charge as aforesaid.

(3) Where credit for foreign tax falls to be allowed in respect of any income and any relief would, but for the provisions of this subparagraph, fall to be allowed in respect of that income under section 3 of the Finance Act, 1941 (No. 14 of 1941), the said relief shall not be allowed.

Effect on computation of income of allowance of credit.

(2) Where the income includes a dividend and, under the arrangements, foreign tax not chargeable directly or by deduction in respect of the dividend is to be taken into account in considering whether any, and if so what, credit is to be allowed against the Irish taxes in respect of the dividend, the amount of the income shall for the purposes of corporation profits tax, be treated as increased by the amount of the foreign tax not so chargeable which falls to be taken into account in computing the amount of the credit.

(3) Notwithstanding anything in the preceding provisions of this paragraph, where part of the foreign tax in respect of the income (including any foreign tax which, under subparagraph (2) of this paragraph, falls to be treated as increasing the amount of the income) cannot be allowed as a credit against any of the Irish taxes, the amount of the income shall be treated for the purposes of corporation profits tax as reduced by that part of that foreign tax.

(2) Where the income tax payable depends on the amount received in the State, the said amount shall be treated as increased by the amount of the credit allowable against income tax.

(3) Where the last preceding subparagraph does not apply—

(a) no deduction shall be made for foreign tax (whether in respect of the same or any other income), and

(b) where the income includes a dividend and under the arrangements foreign tax not chargeable directly or by deduction in respect of the dividend is to be taken into account in considering whether any, and if so what, credit is to be allowed against the Irish taxes in respect of the dividend, the amount of the income shall be treated as increased by the amount of the foreign tax not so chargeable which falls to be taken into account in computing the amount of the credit, but

(c) notwithstanding anything in the preceding provisions of this subparagraph, where any part of the foreign tax in respect of the income (including any foreign tax which, under clause (b) of this subparagraph, falls to be treated as increasing the amount of the income) either falls to be allowed as a credit against corporation profits tax, or cannot be allowed as a credit against any of the Irish taxes, the amount of the income shall be treated for the purposes of income tax as reduced by that part of that foreign tax.

(4) In relation to the computation of the total income of a person for the purpose of determining the rate mentioned in paragraph 5 of this Schedule, the preceding provisions of this paragraph shall have effect subject to the following modifications:

(a) for the reference in subparagraph (2) to the amount of the credit allowable against income tax, there shall be substituted a reference to the amount of the foreign tax in respect of the income (in the case of a dividend foreign tax not chargeable directly or by deduction in respect of the dividend being left out of account), and

(b) clauses (b) and (c) of subparagraph (3) shall not apply,

and subject to those modifications shall have effect in relation to all income in the case of which credit falls to be allowed for foreign, tax under any arrangements.

Special provisions as to dividends.

The relevant profits are:

(a) if the dividend is paid for a specified period, the profits of that period;

(b) if the dividend is not paid for a specified period, but is paid out of specified profits, those profits;

(c) if the dividend is paid neither for a specified period nor out of specified profits, the profits of the last period for which accounts of the body corporate were made up which ended before the dividend became payable:

Provided that if, in a case falling under subparagraph (a) or subparagraph (c) of this paragraph, the total dividend exceeds the profits available for distribution of the period mentioned in the said subparagraph (a) or the said subparagraph (c), as the case may be, the relevant profits shall be the profits of that period plus so much of the profits available for distribution of preceding periods (other than profits previously distributed or previously treated as relevant for the purposes of this paragraph) as is equal to the excess; and for the purposes of this proviso the profits of the most recent preceding period shall first be taken into account, then the profits of the next most recent preceding period, and so on.

(a) the arrangements provide, in relation to dividends of some classes, but not in relation to dividends of other classes, that foreign tax not chargeable directly or by deduction in respect of dividends is to be taken into account in considering whether any, and if so what, credit is to be allowed against the Irish taxes, in respect of the dividends, and

(b) a dividend is paid which is not of a class in relation to which the arrangements so provide,

then, if the dividend is paid to a company which controls, directly or indirectly, not less than one half of the voting power in the company paying the dividend, credit shall be allowed as if the dividend were a dividend of a class in relation to which the arrangements so provide.

Miscellaneous.

(2) In this paragraph “the relevant year of assessment” means, in relation to credit for foreign tax in respect of any income, the year of assessment for which that income falls to be charged to income tax or would fall so to be charged if any income tax were chargeable in respect thereof.

THIRD SCHEDULE. Dividends Regarded as Paid out of Profits Accumulated Before Given Date.

(a) if it is declared for a period falling wholly before the relevant date,

(b) if there are no profits of the company arising in the period beginning with the relevant date and ending with the date on which the dividend is payable, or

(c) if, out of such profits of the company as arose in the said period beginning with the relevant date, no part is, having regard to paragraph 3 of this Schedule, available for payment of the dividend.

(2) Subject as aforesaid, where, out of such profits of the company as arose in the said period beginning with the relevant date, some part is, having regard to paragraph 3 of this Schedule, available for payment of the dividend but the total amount distributed in payment of the net dividend on all the shares of the class in question exceeds the said part of the profits, the dividend shall be regarded for the said purposes as paid out of profits accumulated before the relevant date to an extent which is the same as the proportion which the excess bears to the said total amount.

(3) For the purposes of this Schedule a dividend which is declared for a period falling partly before the relevant date, and partly after, shall be regarded as consisting of two dividends respectively declared for the two parts of the period and of amounts proportionate to those parts.

(a) if it became payable within one year from that date, and

(b) if in the opinion of the Special Commissioners the annual rate of dividend on the shares in question in the said year—

(i) is not substantially greater than the annual rate of dividend on those shares in the period of three years ending on the relevant date, or

(ii) in a case where the shares in question were acquired in the ordinary course of a business of arranging public issues and placings of shares, represents a yield on the cost to the person receiving the dividend which is not substantially greater than the yield obtainable by investing in comparable shares the prices of which are quoted on stock exchanges in the State.

(2) For the purposes of clause (b) of the foregoing subparagraph the Special Commissioners shall have regard to all dividends paid on the shares in the respective periods, to any share-issue made in those periods to holders of the shares and, in a case under subclause (i) of the said clause (b) where the shares were not in existence three years before the relevant date, to the dividends paid on, and any share-issue made to holders of, any shares surrendered in exchange for the first-mentioned shares or in right of which the first-mentioned shares were acquired, and shall take such averages and make such adjustments as may appear to them to be required for a fair comparison.

(2) There shall be deducted from the said profits such amount, whether fixed or proportionate to the amount of the profits, as in the opinion of the Special Commissioners ought justly and reasonably to be treated as set aside for payment of dividends on any other class of shares in the company, having regard to the respective rights attaching to the shares and on the assumption that the total amount available for distribution by way of net dividend on all the shares in the company over any period will be proportionately greater or less than the profits of the company arising in the period beginning on the relevant date and ending on the date on which the dividend mentioned in the foregoing subparagraph is payable, according as the first-mentioned period is longer or shorter than the second-mentioned period.

(3) In a case where, in the period beginning on the relevant date and ending on the date on which the dividend is payable, no previous dividend became payable on the shares of the class in question, the whole of the profits of the company arising in the period, less any deduction to be made under the last foregoing subparagraph, shall be regarded as available for payment of the dividend.

(4) If any previous dividend became payable in the said period on the same shares, there shall be determined in accordance with the foregoing paragraphs the extent, if any, to which that previous dividend is to be regarded as paid out of profits accumulated before the relevant date, and the profits of the company arising in the said period, less any deduction to be made as aforesaid, shall be regarded as primarily available for payment of the net amount of that previous dividend so far as it is not regarded as paid out of profits accumulated before the relevant date and only such balance, if any, as remains shall be regarded as available for payment of the later dividend.

(5) Where under subparagraph (2) of this paragraph it falls to the Special Commissioners to determine what should be set aside for payment of dividends on shares of any class, and dividends on shares of that class have been treated under this Schedule as paid to any extent out of profits accumulated before the relevant date, the Special Commissioners may take that fact into account and reduce the amount to be so set aside accordingly.

(2) The said profits shall be the income of the company for the period diminished by—

(a) the income tax actually borne by the company for any year of assessment in the said period (including any sur-tax borne by the company under section 21 of the Finance Act, 1922, and the First Schedule to that Act), and

(b) the corporation profits tax payable by the company for any accounting period in the said period:

Provided that where relief has been afforded to the company under section 12 of the Finance Act, 1950 (No. 18 of 1950), section 14 of the Finance Act, 1955 (No. 13 of 1955) or section 44 of this Act, references in this subparagraph to tax actually borne or to tax payable shall be construed as references to the tax which would have been borne or payable if that relief had not been given.

(3) In ascertaining for the purposes of this paragraph the amount of income tax and corporation profits tax by which the income of the company for the period is to be diminished, any tax on the amount to be deducted under clause (d) of subparagraph (3) of paragraph 5 of this Schedule shall be left out of account.

(2) There shall be computed the aggregate amount—

(a) of any profits or gains arising in the period from any trade carried on by the company computed in accordance with the provisions applicable to Case I of Schedule D, and

(b) of any income for any year of assessment in the period (computed in accordance with the provisions of the Income Tax Acts) other than profits or gains arising from any such trade.

(3) There shall be deducted from the said aggregate amount the sum of the following amounts, that is to say—

(a) any loss sustained by the company in the period in any such trade (computed in the same manner as profits or gains under the provisions applicable to Case I of Schedule D),

(b) any allowances in respect of any such trade under Rule 6 of the Rules applicable to Cases I and II of Schedule D, subsection (3) of section 5 or section 6 of the Finance Act, 1946 (No. 15 of 1946), Part V of the Finance Act, 1956 (No. 22 of 1956), Part IV of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956), or Part V of the Finance Act, 1957 (No. 20 of 1957), for any year of assessment in the period,

(c) any payments made by the company in any year of assessment in the period to which Rule 19 or Rule 21 of the General Rules applies, other than payments which are deductible in computing the profits or gains or losses of a trade carried on by it, and

(d) if the company is not engaged in carrying on such a trade as is mentioned in subsection (1) of section 51 of this Act and has received in a year of assessment in the period a dividend (being a dividend which, on or after the 19th day of June, 1958, the company became entitled to receive) which, if the company had been engaged in such a trade, would have been required by the said subsection (1) to be brought into account to any extent as mentioned therein, such amount as would, after deduction of income tax at the rate authorised to be deducted by Rule 20 of the General Rules, be equal to the amount which would have been so required to be brought into account,

and the balance shall be the income of the company for the period.

FOURTH SCHEDULE. Enactments Repealed.

Session and Chapter or Number and Year	Short Title	Extent of Repeal	Date of Repeal
(1)	(2)	(3)	(4)
8 & 9 Geo. 5, c. 40	Income Tax Act, 1918.	In paragraph (c) of subsection (1) of section 103, the words “living with her husband, or a married woman whose husband is not accountable for the payment of any tax charged on her,”; section 171; subsections (5) and (6) of section 220; in section 237, the words “married woman,”; Rule 8 of the Rules applicable to Schedule B; Rule 16 of the General Rules.	The 6th day of April, 1958.
10 & 11 Geo. 5, c. 18	Finance Act, 1920.	Section 25.	The 6th day of April, 1958.
No. 14 of 1942.	Finance Act, 1942.	Section 22.	The 1st day of April, 1958.
No. 35 of 1945.	Finance (Miscellaneous Provisions) Act, 1945.	Section 2.	The 1st day of April, 1958.
No. 15 of 1951.	Finance Act, 1951.	Subsection (4) of section 4.	The 6th day of April, 1958.