Finance Act , 1962

PART I. Income Tax.

1 Income tax and sur-tax for the year 1962-63.

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1962, at the rate of six shillings and four pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1962, shall be charged in respect of the income of any individual the total of which from all sources exceeds two 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, 1961.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1962, 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, 1962.

2 Securities of Agricultural Credit Corporation, Limited.

2.—(1) Subsections (1) and (2) of section 2 of the Finance Act, 1929, shall apply to securities issued by The Agricultural Credit Corporation, Limited, other than the debentures, debenture stock and certificates of charge referred to in those subsections in like manner as they apply to those debentures, debenture stock and certificates of charge.

(2) Clause (h) of Rule I of Case III of Schedule D of the Income Tax Act, 1918, is hereby amended by the insertion of “or other securities” after “debentures, debenture stock or certificates of charge”.

PART II. Customs and Excise.

3 Beer.

3.—(1) In lieu of the duty of excise imposed by subsection (2) of section 9 of the Finance Act, 1957, there shall be charged, levied and paid on all beer brewed within the State on or after the 11th day of April, 1962, a duty of excise at the rate of eleven pounds, sixteen shillings and sixpence for every thirty-six gallons of worts of a specific gravity of one thousand and fifty-five degrees.

(2) In lieu of the duty of customs imposed by subsection (3) of section 9 of the Finance Act, 1957, there shall, as on and from the 11th day of April, 1962, be charged, levied and paid, on mum, spruce or black beer, Berlin white beer, and other preparations (whether fermented or not fermented) of a similar character imported into the State, a duty of customs at the following rates:

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

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

(3) In lieu of the duty of customs imposed by subsection (4) of section 9 of the Finance Act, 1957, there shall, as on and from the 11th day of April, 1962, be charged, levied and paid on all beer of any description (other than beer chargeable with the duty imposed by subsection (2) of this section) imported into the State, a duty of customs at the rate of eleven pounds, seventeen shillings for every thirty-six gallons of beer of which the worts were before fermentation of a specific gravity of one thousand and fifty-five degrees.

(4) There shall be allowed and paid on the exportation as merchandise or the shipment for use as stores of beer on which it is shown to the satisfaction of the Revenue Commissioners, that the duty imposed by subsection (1), subsection (2) or subsection (3) of this section has been paid, a drawback calculated according to the original specific gravity of such beer, at the rate of eleven pounds, sixteen shillings and ninepence on every thirty-six gallons of beer of which the original specific gravity was one thousand and fifty-five degrees.

(5) Where, in the case of beer which is chargeable with the duty imposed by subsection (1) or subsection (3) of this section or in the case of beer on which drawback under subsection (4) of this section is payable, the specific gravity of such beer is not one thousand and fifty-five degrees, the said duty or the said drawback (as the case may be) shall be varied proportionately.

(6) Section 24 of the Finance Act, 1933, shall not apply or have effect in relation to either of the duties of customs to which this section refers.

4 Spirits.

4.—(1) The Finance Act, 1920, as amended by section 8 of the Finance Act, 1952, shall, as on and from the 11th day of April, 1962, be amended by the substitution in Part I of the First Schedule to the said Finance Act, 1920, of the matter set out in the First Schedule to this Act for the matter inserted therein by the said section 8, and subsection (1) of section 3 of the said Finance Act, 1920, shall have effect accordingly.

(2) The duty of excise imposed by subsection (2) of section 3 of the Finance Act, 1920, shall, as on and from the 11th day of April, 1962, be charged, levied and paid at the rate of nine pounds, eleven shillings and twopence the gallon (computed at proof) in lieu of the rate chargeable by virtue of subsection (2) of section 8 of the Finance Act, 1952.

(3) Section 4 of the Finance Act, 1920, shall, as on and from the 11th day of April, 1962, be amended by the deletion of:

“the amount of duty which was payable immediately before the increase of duties on spirits provided for by the Finance Act, 1918.”

and the substitution therefor of:

“whichever of the following amounts may be applicable in each case:

(a) as regards excise duty—
for every gallon of spirits computed at proof	14s. 9d.
(b) as regards customs duty—
in the case of any mixture, compound or preparation in bottle which is entered in such manner as to indicate that the strength is not to be tested, for every gallon of such mixture	£1 0s. 5d.
in any other case, for every gallon of spirits computed at proof	15s. 2d.”

(4) Nothing in this section shall operate to relieve from or to prejudice or affect the additional customs duties or the additional excise duty in respect of immature spirits imposed by section 9 of the Finance Act, 1926.

5 Tobacco.

5.—(1) The duty of customs on tobacco imposed by section 20 of the Finance Act, 1932, shall, during the period beginning on the 11th day of April, 1962, and ending on the 9th day of August, 1962, be charged, levied and paid at the several rates specified in Part I of the second Schedule to this Act in lieu of any other rates.

(2) The duty of excise on tobacco imposed by section 19 of the Finance Act, 1934, shall, during the period beginning on the 11th day of April, 1962, and ending on the 9th day of August, 1962, be charged, levied and paid at the several rates specified in Part II of the second Schedule to this Act in lieu of any other rates.

(3) The rebate on hard pressed tobacco mentioned in subsection (2) of section 17 of the Finance Act, 1940, shall, in respect of any such tobacco sold and sent out for use within the State by any licensed manufacturer during the period beginning on the 11th day of April, 1962, and ending on the 9th day of August, 1962, be at the rate of sixteen shillings and fivepence per pound.

(4) The rebates on unmanufactured tobacco mentioned in subsection (3) of section 20 of the Finance Act, 1932, and subsection (5) of section 19 of the Finance Act, 1934, shall not be payable in respect of any unmanufactured tobacco received by a licensed manufacturer of tobacco on or after the 11th day of April, 1962.

(5) Every licensed manufacturer of tobacco shall, on and after the 11th day of April, 1962, be entitled to receive a rebate as follows in respect of unmanufactured tobacco received by him upon which the duty of customs imposed by section 20 of the Finance Act, 1932, or the duty of excise imposed by section 19 of the Finance Act, 1934, has been paid:—

	Rate of Rebate
Where the quantity received in any year commencing on the 11th day of April—
does not exceed 50,000 lbs.	1s. 6d. per lb. for each lb. thereof
exceeds 50,000 lbs.	1s. 6d. per lb. for each of the first 50,000 lbs.

(6) The duty of customs on tobacco imposed by section 20 of the Finance Act, 1932, shall, as on and from the 10th day of August, 1962, be charged, levied and paid at the several rates specified in Part III of the second Schedule to this Act in lieu of any other rates.

(7) The duty of excise on tobacco imposed by section 19 of the Finance Act, 1934, shall, as on and from the 10th day of August, 1962, be charged, levied and paid at the several rates specified in Part IV of the second Schedule to this Act in lieu of any other rates.

(8) The rebate on hard pressed tobacco mentioned in subsection (2) of section 17 of the Finance Act, 1940, shall, in respect of any such tobacco sold and sent out for use within the State by any licensed manufacturer on or after the 10th day of August, 1962, be at the rate of seventeen shillings and elevenpence per pound.

6 Termination of entertainments duty.

6.—Entertainments duty within the meaning of and chargeable under section 1 of the Finance (New Duties) Act, 1916, shall not be charged or levied on payments for admission to any entertainment held on or after the 1st day of October, 1962.

7 Waiver of small amounts of customs duty.

7.—(1) Subject to subsection (2) of this section, where the customs duty on the goods contained in one consignment or parcel imported on or after the 1st day of August, 1962, or the date of the passing of this Act (whichever is the later) would, when computed according to the laws for the time being in force in relation to customs duties, amount to a sum not exceeding two shillings and sixpence, the duty shall be waived.

(2) The duties chargeable on tobacco, spirits and wine shall not be waived under this section.

8 Termination of minimum charge of customs duty.

8.—(1) The enactments mentioned in subsection (2) of this section shall not apply to any goods imported on or after the 1st day of August, 1962, or the date of the passing of this Act (whichever is the later).

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

(a) section 25 of the Finance Act, 1924,

(b) section 8 of the Finance Act, 1937,

(c) section 9 of the Finance (Agreement with United Kingdom) Act, 1938.

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

9.—(1) Subparagraph (c) of paragraph 4 of Part I of the Schedule to the Finance (Excise Duties) (Vehicles) Act, 1952, is hereby amended by the substitution of “£2 10s.” for “£8”.

(2) If this Act is passed before or on the 1st day of July, 1962, subsection (1) of this section shall come into operation on that day and, if it is passed after that day, the said subsection shall be deemed to have come into operation on that day.

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

10 Confirmation of Orders.

10.—The Imposition of Duties (No. 108) (Used Omnibuses) Order, 1961, and the Imposition of Duties (No. 123) (Tobacco) Order, 1962, are hereby confirmed.

PART III. Initial Allowances, Exemption from Tax, Payments to Associated Companies, Interest on Unpaid Tax: Income Tax, Sur-tax and Corporation Profits Tax.

11 Amendment of Part V of Finance Act, 1956, and Part IV of Finance (Miscellaneous Provisions) Act, 1956.

11.—(1) In relation to capital expenditure incurred within the period beginning on the 14th day of December, 1961, and ending on the 31st day of March, 1965, Part V of the Finance Act, 1956, shall have effect as if “two-fifths” were substituted for “one-fifth” in subsection (1) of section 23 of that Act.

(2) In relation to capital expenditure incurred within the period beginning on the 14th day of December, 1961, and ending on the 31st day of March, 1965 (other than capital expenditure to which section 41 of the Finance Act, 1960, applies), Part IV of the Finance (Miscellaneous Provisions) Act, 1956, shall have effect as if “one-fifth” were substituted for “one-tenth” in subsection (1) of section 16 of that Act.

12 Exemption from tax in respect of interest on certain securities.

12.—(1) Income tax, sur-tax or corporation profits tax shall not be chargeable in respect of the interest on securities which are issued by the Minister for Finance for the purpose of being used in payment of income tax, sur-tax or corporation profits tax, and such interest shall not be reckoned in computing income for the purposes of the Income Tax Acts.

(2) Section 159 of the Income Tax Act, 1918, shall not have effect as respects tax for the year 1963-64 or any subsequent year of assessment.

13 Payments by companies to associated companies in respect of losses.

13.—(1) In this section—

“accounting period” means, in relation to a company, a period for which the accounts of the company have been made up;

“auxiliary company” means a company incorporated not earlier than the 14th day of December, 1961, and not later than the 31st day of March, 1965, being a company—

(a) of whose ordinary share capital—

(i) a part is held beneficially by each of two or more companies, and

(ii) not less than ninety-five per cent. is held beneficially by companies, and

(b) which does not hold any stock, share or security issued by a company holding beneficially a part of such ordinary share capital;

“capital allowances” means allowances, other than allowances falling to be made in computing profits or gains, under Rule 6 of the Rules applicable to Cases I and II of Schedule D, section 5 or section 6 of the Finance Act, 1946, Part V of the Finance Act, 1956, Part IV of the Finance (Miscellaneous Provisions) Act, 1956, Part V of the Finance Act, 1957, or Part V or section 74 of the Finance Act, 1959;

“company” means a body corporate resident in the State and carrying on a trade;

“deficiency payment” means a payment made to an auxiliary company by one of its principal companies under an agreement providing for the principal company to bear, or share in, losses, or a particular loss, sustained by the auxiliary company in a trade carried on by it, not being a payment which, apart from this section, would fall to be taken into account in computing profits or gains or losses of either company or would fall to be treated as income of the auxiliary company;

“ordinary share capital” means, in relation to a company, 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;

“principal company” means, in relation to an auxiliary company, a company which holds beneficially a part of the ordinary share capital of that company;

“trade” means a trade carried on wholly or partly in the State.

(2) Subject to the provisions of this section, where an auxiliary company—

(a) has a deficiency in a trade for an accounting period, and

(b) receives in relation to the trade a deficiency payment in respect of that period, being a deficiency payment in relation to which this subsection applies,

then, in computing for the purposes of income tax the profits or gains or losses of the company and of the principal company from which the payment was received, the payment shall be treated as a trading receipt of the auxiliary company, receivable by that company on the last day of the period, and shall be allowed as a deduction to the principal company as if it were a trading expense incurred on that day.

(3) A deficiency payment in respect of an accounting period shall be a deficiency payment in relation to which subsection (2) of this section applies if (but only if)—

(a) at all times during the period—

(i) the payee company was an auxiliary company, and

(ii) the paying company was, in relation to the payee company, a principal company, and

(b) the payment is made not later than three years after the end of the period.

(4) If an auxiliary company receives in respect of an accounting period a deficiency payment or deficiency payments from one or more principal companies and the payment or the aggregate of the payments exceeds the deficiency in its relevant trade for that period, the excess shall be disregarded for the purposes of this section; and, where payments by more than one principal company are in question, the payments shall be treated as abating in such manner as may be agreed between all the companies concerned or, in default of agreement, as may be determined by the Revenue Commissioners.

(5) Where a deficiency payment is made to an auxiliary company in respect of more than one accounting period of that company or is made by a principal company carrying on more than one trade, the apportioned part of the payment to be attributed for the purposes of this section to any period or trade shall be determined by the Revenue Commissioners.

(6) For the purposes of this section—

(a) a company has a deficiency in a trade for an accounting period if (but only if) the aggregate amount of—

(i) any loss sustained in the trade in the period (computed in like manner as profits or gains under the provisions, other than this section, applicable to Case I of Schedule D),

(ii) any amounts referable to the period of capital allowances falling to be made in charging the profits or gains of the trade for any year of assessment of which the whole or a part is within the period, and

(iii) any payments to which Rule 19 or Rule 21 of the General Rules applies (other than payments to which the said Rule 21 applies by virtue of section 50 of the Finance Act, 1959), being payments made wholly and exclusively for the purposes of the trade and not deductible in computing the profits or gains or losses of the trade,

exceeds the aggregate amount of—

(I) any profits or gains arising from the trade in the period (computed in accordance with the provisions, other than this section, applicable to Case I of Schedule D), and

(II) any amounts referable to the period of balancing charges under Part V of the Finance Act, 1959, falling to be made in charging the profits or gains of the trade for any year of assessment of which the whole or a part is within the period, and

(b) if there is such an excess, the amount of the deficiency shall be taken as being equal to the amount of the excess.

For the purposes of this subsection the amount of an allowance or charge referable to a period shall be taken to be the amount thereof to be taken into account in computing for the purposes of corporation profits tax the profits of the company for that period.