Finance Act , 1963

55.—Where any amount of tax is due for payment and is not paid, simple interest on the amount shall be paid by the accountable person, and such interest shall be calculated from the date on which the amount became due for payment and at a rate of one per cent. for each month or part of a month during which the amount remains unpaid.

56 Recovery of tax.

56.—(1) (a) Without prejudice to any other mode of recovery, the provisions of any enactment relating to the recovery of income tax and the provisions of any rule of court so relating shall apply to the recovery of any tax due in accordance with this Part of this Act and the regulations thereunder as they apply in relation to the recovery of income tax.

(b) In particular and without prejudice to the generality of paragraph (a) of this subsection, that paragraph applies the provisions of section 162 of the Income Tax Act, 1918, section 7 of the Finance Act, 1923, sections 11 and 38 of the Finance Act, 1924, and section 54 of the Finance Act, 1958.

(c) Provisions as applied by this subsection shall so apply subject to any modifications specified by regulations under section 52 of this Act.

(2) In proceedings instituted by virtue of this section or any regulation under this Part of this Act for the recovery of any amount of tax—

(a) a certificate signed by an officer of the Revenue Commissioners which certifies that a stated amount of tax is due and payable by the defendant shall be evidence until the contrary is proved that that amount is so due and payable, and

(b) a certificate certifying as aforesaid and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.

(3) Any reference in the foregoing subsections of this section to an amount of tax includes a reference to interest payable in the case in question under section 55 of this Act.

(4) Subject to this section, the rules of the court concerned for the time being applicable to civil proceedings shall apply to proceedings by virtue of this section or any regulations under this Part of this Act.

(5) Where an order which was made before the passing of this Act under section 12 of the Court Officers Act, 1945, contains a reference to levy under a certificate issued under section 7 of the Finance Act, 1923, that reference shall be construed as including a reference to levy under a certificate issued under the said section 7 as extended by this section.

57 Penalties.

57.—(1) A person who contravenes subsection (2) of section 50 of this Act shall be liable to a penalty of twenty pounds.

(2) A person who does not comply with subsection (3) of section 49 of this Act or any provision of regulations under this Part of this Act in relation to registration, the keeping of accounts, the furnishing of statements, or the production for inspection or removal of documents shall be liable to a penalty of twenty pounds, together with, in the case of a continuing non-compliance, a penalty of the like amount for every day on which the non-compliance is continued.

(3) Where a person mentioned in the foregoing subsection is a body of persons, the secretary shall be liable to a separate penalty of twenty pounds.

(4) All penalties under this section may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any penalty under any Act relating to the excise, and, notwithstanding subsection (4) of section 10 of the Petty Sessions (Ireland) Act, 1851, summary proceedings under this section may be instituted within three years from the date of the incurring of the penalty.

(5) Where—

(a) a person does not comply with subsection (3) of section 49 of this Act or any provision of regulations under this Part of this Act requiring him to furnish any statement or to produce for inspection or permit removal of any documents,

(b) compliance is required within a particular period, and

(c) such person continues, during a further period of two or more days, not to furnish the particulars or statement or produce for inspection or permit removal of the documents,

the non-compliance shall be regarded, for the purposes of subsection (2) of this section, as a non-compliance continuing on every day, other than the first, of the further period.

(6) In proceedings for recovery of a penalty under this section—

(a) a certificate signed by an officer of the Revenue Commissioners which certifies that he has inspected the relevant records of the Revenue Commissioners and that it appears from them that, during a stated period, a stated statement was not furnished by the defendant shall be evidence until the contrary is proved that the defendant did not, during that period, furnish that statement,

(b) a certificate signed by an officer of the Revenue Commissioners which certifies that he has inspected the relevant records of the Revenue Commissioners and that it appears from them that a stated document was duly sent to the defendant on a stated day shall be evidence until the contrary is proved that that person received that document in the ordinary course,

(c) a certificate certifying as provided for in paragraph (a) or paragraph (b) of this subsection and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.

(7) Subject to this section, the rules of the court concerned for the time being applicable to civil proceedings shall apply to proceedings pursuant to this section.

58 Fraudulent return, etc.

58.—(1) Where a person fraudulently or negligently, for the purposes of this Part of this Act or of regulations made thereunder, produces, furnishes, gives, sends or otherwise makes use of, any incorrect return, account, estimate, statement, information, book, document, record or declaration, he shall, subject to subsection (2) of this section, be liable to a penalty of—

(a) one hundred pounds, and

(b) the amount, or, in the case of fraud, twice the amount, of the difference between the amount of tax paid by such person for the period in question, and the amount of tax properly payable by such person if the said return, account, estimate, statement, information, book, document, record or declaration had been correct.

(2) Where a person mentioned in the foregoing subsection is a body of persons—

(a) the reference in paragraph (a) of that subsection to one hundred pounds shall be construed as a reference to five hundred pounds, or, in the case of fraud, one thousand pounds, and

(b) the secretary shall be liable to a separate penalty of one hundred pounds, or in the case of fraud, two hundred pounds.

(3) Where any such return, account, estimate, statement, information, book, document, record, or declaration as is mentioned in subsection (1) of this section was made or submitted by a person neither fraudulently nor negligently and it comes to his notice (or, if he has died, to the notice of his personal representatives) that it was incorrect, then, unless the error is remedied without unreasonable delay, the return, account, estimate, statement, information, document, book, record or declaration, shall be treated for the purposes of this section as having been negligently made or submitted by him.

(4) If a person, in a case in which he represents that he is a registered person or uses a registration number, procures the supply to himself of goods or the provision for himself of services in circumstances in which tax is chargeable and fails to notify the seller or provider that the tax is chargeable, he shall be liable to a penalty of five hundred pounds, and, in addition, he shall be liable to pay to the Revenue Commissioners the amount of any tax, which the seller or provider has failed to pay.

(5) Notwithstanding anything in section 59 of this Act, proceedings for the recovery of any penalty under this section shall not be out of time by reason that they are commenced after the time allowed by the said section 59.

(6) For the purposes of this section, any return, account, estimate, statement, information, book, document or declaration submitted on behalf of a person shall be deemed to have been submitted by that person unless he proves that it was submitted without his consent or knowledge.

(7) Any reference in the foregoing subsections of this section to an amount of tax includes a reference to interest payable in the case in question under section 55 of this Act.

59 Time limits.

59.—(1) Subject to subsection (3) of this section and subsection (5) of section 58 of this Act, proceedings for recovery of any penalty under this Part of this Act may be commenced at any time within six years next after the date on which it was incurred.

(2) Where the person who has incurred any penalty has died, any proceedings under this Part of this Act, which have been or could have been commenced against him may be continued or commenced against his executor or administrator, as the case may be, and any penalty awarded in proceedings so continued or commenced shall be a debt due from and payable out of his estate.

(3) Subsection (1) of this section shall, in relation to proceedings commenced by virtue of subsection (2) of this section have effect as if “not later than three years after the expiration of the year in which the deceased person died in a case in which the grant of probate or letters of administration was made in that year and at any time not later than two years after the expiration of the year in which such grant was made in any other case, but the foregoing provisions of this subsection shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year in which the deceased person died, the proceedings may be begun at any time before the expiration of two years next after the end of the year in which the corrective affidavit was lodged” were substituted for “within six years next after the date on which it was incurred.”

60 Penalty for assisting in making incorrect returns, etc.

60.—Any person who assists in or induces the making or delivery, for any purposes of tax, of any return, or account, statement or declaration which he knows to be incorrect shall be liable to a penalty of £500.

61 Proceedings in the High Court in respect of penalties.

61.—(1) Without prejudice to any other mode of recovery of a penalty under this Part of this Act, an officer of the Revenue Commissioners, authorised by them for the purposes of this subsection, may sue in his own name by civil proceedings for the recovery of the penalty in the High Court as a liquidated sum and the provisions of section 94 of the Courts of Justice Act, 1924, shall apply accordingly.

(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 purposes 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 certificate certifying the facts referred to in subsection (3) or (4) of this section and purporting to be signed by a Revenue Commissioner may be tendered in evidence without proof, and shall be deemed until the contrary is proved to have been so signed.

(6) Subject to this section, the rules of the High Court for the time being applicable to civil proceedings shall apply to proceedings pursuant to this section.

62 Application of section 222 of Income Tax Act, 1918.

62.—The provisions of section 222 of the Income Tax Act, 1918, shall apply to any penalty incurred under this Part of this Act.

63 Substitution of agent, etc., for person not resident in State.

63.—Where a person who is accountable for any tax, or on whom any duties are imposed by this Part of this Act or regulations made thereunder, is not resident in the State, the Revenue Commissioners may, by notice in writing served on any agent, manager or factor, who is resident in the State and has acted on behalf of that person in the matters by reference to which that person is accountable or those duties are imposed, direct that he shall be substituted for that person as the person accountable for the tax or that he shall be under an obligation to discharge those duties or any of them and, upon such direction having been served, he shall stand substituted accordingly and shall be subject to the same penalties as if he were the person who is accountable for the tax or on whom those duties are imposed.

64 Charge of tax on imported goods.

64.—(1) Sections 48 to 63 of this Act shall not apply to tax provided for by paragraph (b) of subsection (1) of section 47 of this Act and that tax shall, subject to subsection (2) of this section, be charged on every article imported on or after the 1st day of November, 1963, at the rate of two and one-half per cent. of the value of the article.

(2) Tax as aforesaid shall not be charged on—

(a) live animals,

(b) earth, stone, gravel, sand or cement,

(c) seeds, fertilisers and animal feeding stuffs,

(d) an article mentioned in the Second Schedule to this Act imported as stock for his business by a registered person who is a dealer in such articles,

(e) an article, not being an article mentioned in the Second Schedule to this Act, imported—

(i) as stock for his business,

(ii) as materials for manufacture,

(iii) as furniture, fittings, office requisites, plant or equipment for his business,

by a registered person,

(f) any article which is declared by the Minister for Finance by order to be an article not chargeable with tax on being imported into the State.

(3) Subject to the foregoing provisions of this section, the provisions of the Customs Consolidation Act, 1876, and the enactments amending that Act and other enactments relating to Customs shall apply to tax referred to in this section as if it were a duty of customs.

(4) The value of an article for the purposes of this section shall be the value as defined in section 15 of, and the Third Schedule to, the Finance Act, 1952, increased by the amount of any customs duty payable thereon.

65 Extension of certain Acts.

65.—(1) Section 1 of the Provisional Collection of Taxes Act, 1927, is hereby amended by the insertion of “, and also turnover tax,” before “but no other tax or duty”.

(2) Section 1 of the Imposition of Duties Act, 1957, is hereby amended by the insertion after paragraph (g) of the following paragraph:

“(gg) terminate or vary in any manner or respect whatsoever and as from a specified day turnover tax;”

but no order shall be made under that Act for the purpose of increasing the rate of the tax or extending the classes of activities or goods in respect of which tax is for the time being chargeable.

(3) Section 39 of the Inland Revenue Regulation Act, 1890, is hereby amended by the insertion of “turnover tax,” before “stamp duties”.

66 Collection of tax.

66.—Turnover tax shall be paid to and collected and levied by the Collector-General.

PART VII. Industrial and Provident Societies: Income Tax and Corporation Profits Tax.

67 Interpretation (Part VII).

67.—In this Part of this Act, save where the context otherwise requires—

“capital allowance” means any allowance, other than an allowance 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;

“loan interest”, in relation to a society, means any interest payable by the society in respect of any mortgage, loan, loan stock, or deposit;

“share interest”, in relation to a society, means any interest, dividend, bonus, or other sum payable to a shareholder of the society by reference to the amount of his holding in the share capital of the society;

“society” means a society registered under the Industrial and Provident Societies Acts, 1893 to 1936;

and references to the payment of share interest or loan interest include references to the crediting of such interest.

68 Deduction as expenses of certain sums, etc.

68.—(1) It is hereby declared that in computing, for the purposes of Case I of Schedule D or of Rule 4 of the Rules applicable to Case III of that Schedule, the profits or gains of a society there are to be deducted as expenses any sums which—

(a) represent a discount, rebate, dividend, or bonus granted by the society to members thereof or other persons in respect of amounts paid or payable by or to them on account of their transactions with the society being transactions which are taken into account in the said computation, and

(b) are calculated by reference to the said amounts or to the magnitude of the said transactions and not by reference to the amount of any share or interest in the capital of the society.

(2) A society whose business consists mainly in the making of investments, and the principal part of whose income is derived therefrom, shall be entitled to relief under section 33 of the Income Tax Act, 1918, in the same manner and to the same extent as if the business of the society were the business of a company.

(3) Where any profits or gains of a society which, but for the repeal by this Act of subsection (4) of section 39 of the Income Tax Act, 1918, would not be chargeable to tax are so chargeable by virtue of that repeal and the computation of profits or gains is required to be made by reference to any year or period other than the year of assessment, the computation for that year or period shall be made in accordance with the provisions of this Part of this Act notwithstanding that those provisions were not in force in that year or period or some part thereof.

(4) (a) Where for the year 1962-63 a society was entitled to exemption from tax in respect of the profits of a trade carried on by it—

(i) no capital allowance in respect of any property used for the purposes of the trade shall be carried forward from the year 1962-63, and

(ii) no loss, or portion of a loss, which was sustained before the 6th day of April, 1963, shall be carried forward under section 14 of the Finance Act, 1929.

(b) Where for the year 1962-63 or any previous year of assessment an annual allowance, balancing allowance or balancing charge in respect of capital expenditure on the construction of a building or structure might have been made to or on a society under Part V of the Finance Act, 1959, but for the circumstance that the society was exempt from tax under Schedule D, any annual allowance, balancing allowance or balancing charge falling to be made in respect of the expenditure under the said Part V for the year 1963-64 or a subsequent year of assessment shall be computed as if every annual allowance, balancing allowance and balancing charge which might have been made as aforesaid had been made:

Provided that nothing in this paragraph shall affect the provisions of subsection (5) of section 26 of the Finance Act, 1959.

(c) Where for the year 1962-63 or any previous year of assessment an annual allowance in respect of capital expenditure on the purchase of patent rights might have been made to or on a society under Part V of the Finance Act, 1959, but for the circumstance that the society was exempt from tax under Schedule D, the amount of the expenditure remaining unallowed (within the meaning of section 48 of the said Act) shall, in relation to any balancing allowance or balancing charge under the said Part V falling to be made to or on the society in respect of the expenditure for the year 1963-64 or a subsequent year of assessment, be computed as if every annual allowance which might have been made as aforesaid had been made.

(5) Where any profits or income of a society arising in the year 1963-64 have, by virtue of the repeal by this Act of subsection (4) of section 39 of the Income Tax Act, 1918, ceased to be exempt from income tax chargeable by deduction and the tax has not been deducted therefrom or, having been deducted therefrom, the tax has been repaid before the passing of this Act, an assessment may be made on the society under Case VI of Schedule D as if the profits or income were annual profits or gains chargeable under that Case.

69 Allowance of deductions in respect of loan interest, etc.

69.—(1) With effect as on and from the 1st day of January, 1963, in computing the profits of a society for the purposes of corporation profits tax, deductions shall, notwithstanding anything in paragraph (b) of the proviso to subsection (2) of section 53 of the Finance Act, 1920, be allowed in respect of share interest and loan interest.

(2) For the purpose of giving effect to subsection (1) of this section, to subsection (5) of section 70 of this Act and to the repeal by this Act of part of paragraph (h) of the proviso to subsection (2) of section 53 of the Finance Act, 1920, and section 53 of the Finance Act, 1921, where part of an accounting period is before and part after the beginning of the 1st day of January, 1963, the following provisions shall apply:

(a) the profits of the accounting period shall first be computed as if this Act had not been passed and the profits attributable to the part of the accounting period before the 1st day of January, 1963, shall be taken to be the sum which bears to the profits of the accounting period computed as aforesaid the same proportion as the length of that part bears to the length of the accounting period;

(b) the profits of the accounting period shall then be computed as if subsection (1) of this section and subsection (5) of the said section 70 and the said repeal had effect as respects the whole of any accounting period ending on or after the 1st day of January, 1963, and the profits attributable to the part of the accounting period after the 31st day of December, 1962, shall be taken to be the sum which bears to the profits of the accounting period computed as aforesaid the same proportion as the length of that part bears to the length of the accounting period, and

(c) the profits of the accounting period for the purposes of corporation profits tax shall be ascertained by adding together the sums which under the foregoing paragraphs are to be taken to be the profits attributable respectively to the parts of the accounting period before the 1st day of January, 1963, and after the 31st day of December, 1962.

70 Disregard of profits or losses attributable to certain transactions.

70.—(1) In this section—

“agricultural society” means a society—

(a) in relation to which both the following conditions are satisfied:

(i) that the number of the society's members is not less than fifty,

(ii) that all or a majority of the society's members are persons who are mainly engaged in, and derive the principal part of their income from, husbandry, or

(b) to which a certificate under paragraph (a) of subsection (2) of this section relates;

“fishery society” means a society—

(a) in relation to which both the following conditions are satisfied:

(i) that the number of the society's members is not less than twenty,

(ii) that all or a majority of the society's members are persons who are mainly engaged in, and derive the principal part of their income from, fishing, or

(b) to which a certificate under paragraph (b) of subsection (2) of this section relates;

“exempted transactions” means—

(a) in relation to an agricultural society, transactions falling within any of the following classes of transactions:

(i) the selling by wholesale of milk, cream, butter, cheese, eggs, poultry, meat or specified commodities,

(ii) the selling by retail of seeds, fertilisers or other commodities or articles, being specified commodities or articles, entering into or associated with agricultural production,

(iii) the auctioning of livestock, the artificial insemination of animals or the provision of specified services, and

(b) in relation to a fishery society, transactions falling within any of the following classes of transactions:

(i) the selling by wholesale of fresh or processed fish,

(ii) the auctioning or transportation of fish,

(iii) the selling of commodities or articles used in catching fish or of specified commodities or articles;

“selling by wholesale” means selling goods of any class to a person who carries on a trade of selling goods of that class or uses goods of that class for the purposes of a trade carried on by him.

(2) (a) The Minister for Finance may, on the recommendation of the Minister for Agriculture, give a certificate entitling a society to be treated, for the purposes of this section, as an agricultural society notwithstanding—

(i) that the number of the society's members is less than fifty, or

(ii) that persons such as are described in subparagraph (ii) of paragraph (a) of the definition of “agricultural society” contained in the foregoing subsection do not constitute a majority of the society's members.

(b) The Minister for Finance may, on the recommendation of the Minister for Lands, give a certificate entitling a society to be treated, for the purposes of this section, as a fishery society notwithstanding—

(i) that the number of the society's members is less than twenty, or

(ii) that persons such as are described in subparagraph (ii) of paragraph (a) of the definition of “fishery society” contained in the foregoing subsection do not constitute a majority of the society's members.

(c) In paragraph (a) of the definition of “exempted transactions” contained in the foregoing subsection “specified” means specified in a certificate given by the Minister for Finance on the recommendation of the Minister for Agriculture and in paragraph (b) of that definition “specified” means specified in a certificate given by the Minister for Finance on the recommendation of the Minister for Lands.

(d) A certificate under paragraph (a), (b) or (c) of this subsection—

(i) shall have effect as from such date, whether before or after the date on which it is given, as may be stated therein,

(ii) shall be published in the Iris Oifigiúil as soon as may be after it is given, and

(iii) may be revoked by the Minister for Finance at any time.

(e) Where a certificate is revoked under the foregoing paragraph, notice of the revocation shall be published as soon as may be in the Iris Oifigiúil.

(3) Where, in the case of a trade carried on by a society, the transactions in any year or period for which the accounts of the society are made up, being a year or period throughout which the society was an agricultural society or a fishery society, include exempted transactions, so much of the profits or gains or the loss (as the case may be) of that year or period (computed in accordance with the provisions, other than this section, applicable to Case I of Schedule D) as is attributable to the exempted transactions shall be disregarded for all the purposes of the Income Tax Acts.

(4) In relation to any trade, the amount of the profits or gains or loss attributable to the exempted transactions of any year or period shall be taken to be the amount which bears to the full amount of the profits or gains or, as the case may be, the full amount of the loss for the year or period the same proportion as the aggregate of the amounts receivable by the society, by virtue of those transactions, from the sale of goods or the provision of services bears to the aggregate of all amounts receivable by the society, by virtue of transactions in the year or period from the sale of goods or the provision of services.

(5) (a) Where, in the case of a trade carried on by a society, a proportion of the profits or gains or loss of any year or period is, under the foregoing provisions of this section, to be disregarded for all the purposes of the Income Tax Acts, a like proportion of the relevant profits or, as the case may be, the relevant loss of the year or period shall be disregarded for all the purposes of the enactments relating to corporation profits tax.

(b) For the purposes of paragraph (a) of this subsection the amount of “the relevant profits” or of “the relevant loss” for any year or period shall be taken to be, where the society's business consists wholly in the carrying on of the trade concerned, the profits or, as the case may be, the loss of the society for the year or period computed in accordance with the enactments, other than this section, relating to corporation profits tax and, in any other case, what would have been the amount of the profits or, as the case may be, the loss of the society for the year or period computed as aforesaid if its business had consisted wholly in the carrying on of the trade concerned.

(6) Where for any year of assessment any capital allowances or any balancing charges under Part V of the Finance Act, 1959, fall to be made in charging to income tax the profits or gains of a trade carried on by a society and a proportion of the profits or gains or, as the case may be, the loss of the basis period is disregarded under this section, the amount of allowances or the amount of charges which, but for this subsection, would have been made shall be diminished in like proportion.

In this subsection—

(a) the reference to capital allowances falling to be made for any year of assessment does not include a reference to any amount carried forward from any previous year,

(b) “basis period” means, in relation to a year of assessment, the period on the profits or gains of which income tax for that year falls to be finally computed under Case I of Schedule D in respect of the trade in question or, where, by virtue of any Act, the profits or gains of any other period are to be taken to be the profits or gains of the said period, that other period.

(7) All amounts receivable by an agricultural society or a fishery society from the sale of goods, being amounts which are so receivable by virtue of exempted transactions, shall be disregarded for all the purposes of Part III of the Finance (Miscellaneous Provisions) Act, 1956, and where, in a case in which relief from income tax is given to the society under that Part, any share interest is payable with deduction of tax, subsection (2) of section 15 of that Act shall not apply.

(8) Where a society claims relief from income tax or corporation profits tax by virtue of this section, the Revenue Commissioners may by notice in writing require the society to make available, within such time as may be specified in the notice, for inspection by an inspector of taxes or other officer nominated by them, all books, records and documents containing information as to its trading transactions for the year or period concerned, and if the society fails to comply with such notice, no relief under this section shall be given.

71 Payment of interest without deduction of tax.

71.—(1) Notwithstanding anything in the Income Tax Acts, any share interest or loan interest paid by a society shall be paid without deduction of tax:

Provided that this subsection—

(a) shall not apply to any share interest or loan interest payable to a person whose usual place of abode is not within the State, and

(b) shall not render improper any such deduction made before the 1st day of August, 1963, which would have been a proper deduction if this section had not been enacted.

(2) There shall be added to Rule 1 of Case III of Schedule D the following clause:

“(1) share interest or loan interest paid by a society registered under the Industrial and Provident Societies Acts, 1893 to 1936, being interest which by virtue of section 71 of the Finance Act, 1963, is payable without deduction of tax.”

(3) (a) Where, in a case in which section 70 of this Act applies, a society claims repayment of tax under section 36 of the Income Tax Act, 1918, in respect of interest paid by it in any year of assessment, the amount repayable shall be determined on the basis that so much of the interest as exceeds the appropriate proportion thereof was not paid out of profits or gains brought into charge to tax.

(b) Where, in any year of assessment, a society, in a case in which section 70 of this Act applies, pays any share interest or loan interest, from which tax is deductible, or makes any other annual payment, so much of the aggregate of the gross amounts of all such payments as exceeds the appropriate proportion thereof shall be treated as not having been paid out of profits or gains brought into charge and Rule 21 of the General Rules shall apply accordingly.

In this paragraph “annual payment” means any payment from which, apart from any insufficiency of profit or gains of the person making it, tax is deductible under Rule 19 of the General Rules.

(c) Where in any year of assessment a society pays share interest or loan interest (other than loan interest in respect of which a claim such as is mentioned in paragraph (a) of this subsection is made) without deduction of tax in accordance with subsection (1) of this section, it may claim, in a case in which section 70 of this Act applies, that the appropriate proportion of the total amount so paid, or, in any other case, that the total amount so paid, be deducted from its total income for that year and, where such a claim is made, any appropriate relief from tax shall be given by repayment or otherwise.

Subsections (5) and (6) of section 34 of the Income Tax Act, 1918, shall apply to a claim under this paragraph as they apply to a claim under that section, except that it shall not be necessary to use a prescribed form.

(d) Where for any year of assessment the amount of share interest and loan interest falling to be deducted from a society's total income under the immediately preceding paragraph exceeds the amount of the said total income, section 10 of this Act shall have effect as if the society had been assessed to tax under Rule 21 of the General Rules in respect of the payment of the excess and had paid tax under that assessment on the amount of such payment.

(e) In this subsection “the appropriate proportion” of any amount of interest or annual payment paid by a society in a year of assessment means the portion of that amount which bears to the whole the same proportion as the amount of the society's total income for the year bears to what would, but for section 70 of this Act, have been the amount of the society's total income for that year.

(f) For the purposes of this subsection the total income of a society shall be taken to be its total income from all sources for the purposes of income tax computed in the manner in which it would be computed if the society were an individual but without regard to any such interest or annual payment as is mentioned in paragraph (a), (b) or (c) of this subsection.

(g) Any reference in the foregoing provisions of this subsection to loan interest or other interest does not include a reference to interest which is allowable as a deduction in the computation of the profits or gains of a trade carried on by the society.

(h) On or before the 1st day of May in each year (commencing with the year 1964), every society shall deliver to the inspector of taxes a return in such form as the Revenue Commissioners may prescribe, showing—

(i) the name and place of residence of every person to whom share interest or loan interest amounting to the sum of five pounds or more has been paid by the society in the year of assessment which ended next before the said 1st day of May, and

(ii) the amount of such share interest or loan interest paid in that year to each of those persons,

and if such a return is not duly made as respects any year of assessment, the society shall not be entitled to any deduction under paragraph (c) of this subsection in respect of any payments of share interest or loan interest which it was required to include in the return, and the amount of any deduction in respect of any such payments by reference to which relief has been given under the said paragraph (c) may, if not otherwise made good, be assessed under Case VI of Schedule D and recovered from the society accordingly.

(4) This section shall be deemed to have come into operation on the 6th day of April, 1963.

PART VIII. Penalties and Assessments: Income Tax, Sur-tax and Corporation Profits Tax.

72 Application of Part VIII.

72.—The following provisions of this Part of this Act shall have effect in relation to any penalties incurred (whether by commission or omission) after the passing of this Act with respect to any year of assessment, or, as the case may be, accounting period, whether ending before or ending after such passing.

73 Penalties for failure to make certain returns, etc.

73.—(1) Where any person—

(a) has been required, by notice or precept given under or for the purposes of any of the provisions specified in the first or second column of the Third Schedule to this Act, to deliver any return, statement, declaration, list or other document, to furnish any particulars, to produce any document, or to make anything available for inspection, and he fails to comply with the notice or precept, or

(b) fails to do any act, furnish any particulars or deliver any account in accordance with any of the provisions specified in the third column of that Schedule,

he shall, subject to subsection (2) of this section and section 76 of this Act, be liable to a penalty of one hundred pounds and, if the failure continues after judgment has been given by the court before which proceedings for the penalty have been commenced, to a further penalty of ten pounds for each day on which the failure so continues.

(2) Where the said notice was given under or for the purposes of any of the provisions specified in the first column of the said Schedule and the failure continues after the end of the year of assessment following that during which the notice was given, the first of the penalties mentioned in subsection (1) of this section shall be two hundred and fifty pounds.

(3) The preceding provisions of this section shall have effect subject to the proviso to subsection (4) of section 100 and the proviso to subsection (1) of section 105 of the Income Tax Act, 1918.

74 Penalty for fraudulently or negligently making incorrect returns, etc.

74.—(1) Where a person fraudulently or negligently—

(a) delivers any incorrect return or statement of a kind mentioned in any of the provisions specified in the first column of the Third Schedule to this Act,

(b) makes any incorrect return, statement or declaration in connection with any claim for any allowance, deduction or relief, or

(c) submits to the Revenue Commissioners, the Special Commissioners or an inspector of taxes any incorrect accounts in connection with the ascertainment of his liability to income tax (including sur-tax),

he shall, subject to section 76 of this Act, be liable to a penalty of—

(i) one hundred pounds, and

(ii) the amount, or, in the case of fraud, twice the amount, of the difference specified in subsection (1) of section 75 of this Act.

(2) Where a person fraudulently or negligently furnishes, gives, produces or makes any incorrect return, information, certificate, document, record, statement, particulars, account or declaration of a kind mentioned in any of the provisions specified in the second or third column of the Third Schedule to this Act, he shall, subject to section 76 of this Act, be liable to a penalty of one hundred pounds, or, in the case of fraud, of two hundred and fifty pounds.

(3) Where any such return, statement, declaration or accounts as is or are mentioned in subsection (1) of this section was or were made or submitted by a person neither fraudulently nor negligently and it comes to his notice (or, if he has died, to the notice of his personal representatives) that it or they was or were incorrect, then, unless the error is remedied without unreasonable delay, the return, statement, declaration or accounts shall be treated for the purposes of this section as having been negligently made or submitted by him.

(4) Subject to subsection (2) of section 77 of this Act, proceedings for the recovery of any penalty under subsection (1) or (2) of this section shall not be out of time by reason that they are commenced after the time allowed by subsection (1) of section 10 of the Finance Act, 1925.

75 Provisions supplementary to section 74.

75.—(1) The difference referred to in paragraph (ii) of subsection (1) of section 74 of this Act is the difference between—

(a) the amount of tax payable for the relevant years of assessment by the said person (including any amount deducted at source and not repayable), and

(b) the amount which would have been the amount so payable if the return, statement, declaration or accounts as made or submitted by him had been correct.

(2) The relevant years of assessment for the purposes of subsection (1) of this section are, in relation to anything delivered, made or submitted in any year of assessment, that year, the next following year, and any preceding year of assessment; and the references in that subsection to the amount of tax payable include sur-tax, except that, in relation to anything done in connection with a partnership, they do not include any tax not chargeable in the partnership name.

(3) For the purposes of section 74 of this Act, any accounts submitted on behalf of a person shall be deemed to have been submitted by that person unless he proves that they were submitted without his consent or knowledge.

76 Increased penalties in the case of body of persons.

76.—(1) Where the person mentioned in section 73 of this Act is a body of persons as defined by section 237 of the Income Tax Act, 1918—

(a) the body of persons shall be liable to—

(i) in case the notice was given under or for the purposes of any of the provisions specified in the first column of the Third Schedule to this Act and the failure continues after the end of the year of assessment following that during which the notice was given—a penalty of one thousand pounds, and

(ii) in any other case—a penalty of five hundred pounds,

and, if the failure continues after judgment has been given by the court before which proceedings for the penalty have been commenced, a further penalty of fifty pounds for each day on which the failure so continues, and

(b) the secretary shall be liable to—

(i) in case the notice was given under or for the purposes of any of the provisions specified in the first column of the Third Schedule to this Act and the failure continues after the end of the year of assessment following that during which the notice was given—a separate penalty of two hundred pounds, and

(ii) in any other case—a separate penalty of one hundred pounds.

(2) Where the person mentioned in section 74 of this Act is a body of persons as defined by section 237 of the Income Tax Act, 1918—

(a) in the case of such fraud or negligence as is mentioned in subsection (1) of that section—

(i) the body of persons shall be liable to a penalty of—

(I) five hundred pounds, and

(II) the amount, or, in the case of fraud, twice the amount, of the difference specified in subsection (1) of section 75 of this Act, and

(ii) the secretary shall be liable to a separate penalty of one hundred pounds, or, in the case of fraud, two hundred pounds,

(b) in the case of any such fraud or negligence as is mentioned in subsection (2) of that section—

(i) the body of persons shall be liable to a penalty of five hundred pounds, or, in the case of fraud, one thousand pounds, and

(ii) the secretary shall be liable to a separate penalty of one hundred pounds, or, in the case of fraud, two hundred pounds.

(3) The preceding provisions of this section shall have effect subject to the proviso to subsection (4) of section 100 and the proviso to subsection (1) of section 105 of the Income Tax Act, 1918, but otherwise shall have effect notwithstanding anything contained in that Act.

77 Proceedings against executor or administrator.

77.—(1) Where the person who has incurred any penalty has died after the passing of this Act, any proceedings under this Act which have been or could have been commenced against him may be continued or commenced against his executor or administrator, as the case may be, and any penalty awarded in proceedings so continued or commenced shall be a debt due from and payable out of his estate.

(2) Subsection (1) of section 10 of the Finance Act, 1925, shall, in relation to proceedings commenced by virtue of subsection (1) of this section, have effect as if “not later than three years after the expiration of the year of assessment in which the deceased person died in a case in which the grant of probate or letters of administration was made in that year and at any time not later than two years after the expiration of the year of assessment in which such grant was made in any other case, but the foregoing provisions of this subsection shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year of assessment in which the deceased person died, the proceedings may be begun at any time before the expiration of two years next after the end of the year of assessment in which the corrective affidavit was lodged” were substituted for “within six years next after the date on which such fine or penalty was incurred”.

78 Penalty for assisting in making incorrect return, etc.

78.—Any person who assists in or induces the making or delivery for any purposes of income tax (including sur-tax) of any return, account, statement or declaration which he knows to be incorrect shall be liable to a penalty of five hundred pounds.

79 Evidence of income for purposes of Part VIII.

79.—For the purposes of this Part of this Act, any assessment which can no longer be varied by the Special Commissioners on appeal or by the order of any court shall be sufficient evidence that the income in respect of which tax is charged in the assessment arose or was received as stated therein.

80 Recovery of penalties.

80.—(1) Without prejudice to any other mode of recovery of a penalty under this Part of this Act, section 43 of the Finance Act, 1958, or section 23 or 59 of the Finance Act, 1959, an officer of the Revenue Commissioners, authorised by them for the purposes of this subsection, may sue in his own name by civil proceedings for the recovery of the penalty in the High Court as a liquidated sum and the provisions of section 94 of the Courts of Justice Act, 1924, shall apply accordingly.

(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 purposes 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 certificate certifying the facts referred to in subsection (3) or (4) of this section and purporting to be signed by a Revenue Commissioner may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been so signed.

(6) Subject to this section, the rules of the High Court for the time being applicable to civil proceedings shall apply to proceedings pursuant to this section.

81 Application of Part VIII to corporation profits tax.

81.—The provisions of the Fourth Schedule to this Act shall have effect for the purpose of making, with respect to corporation profits tax, provision corresponding to the preceding provisions of this Part of this Act.

82 Interpretation (Part VIII).

82.—(1) In this Part of this Act—

“assessment” includes additional assessment;

“secretary” includes such persons as are mentioned in subsection (1) of section 106 of the Income Tax Act, 1918, and subsection (1) of section 55 of the Finance Act, 1920, and, in relation to the duty under subsection (2) of the said section 55 of giving notice of winding up, shall be construed as referring to the liquidator;

and references to this Part of this Act include references to the Fourth Schedule to this Act.

(2) For the purposes of this Part of this Act, a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Commissioners or officer concerned may have allowed; and where a person had a reasonable excuse for not doing anything required to be done, he shall be deemed not to have failed to do it if he did it without unreasonable delay after the excuse had ceased.

PART IX. Taxation of Rents and certain other Payments: Income Tax and Sur-Tax.

83 Interpretation (Part IX).

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

“easement” includes any right, privilege or benefit in, over or derived from premises;

“lease” includes an agreement for a lease and any tenancy, but does not include a mortgage, and “lessee” and “lessor” shall be construed accordingly, and “lessee” and “lessor” include, respectively, the successors in title of a lessee or a lessor;

“long lease” means a lease granted for a term exceeding fifty years;

“premises” means any lands, tenements or hereditaments in the State;

“premium” includes any like sum, whether payable to the immediate or a superior lessor;

“rent” includes anything in the nature of rent and any payment made by the lessee to defray the cost of work of maintenance of or repairs to the premises, not being work required by the lease to be carried out by the lessee;

“short lease” means a lease granted for a term not exceeding fifty years;

“unit of valuation” means any lands, tenements or hereditaments valued under the Valuation Acts as a unit.

(2) In ascertaining, for the purposes of the definitions of “long lease” and “short lease” contained in the foregoing subsection, the duration of a lease, the following provisions shall have effect :

(a) where the terms of the lease include provision for the determination thereof by notice given either by the lessor or by the lessee, the lease shall not be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice;

(b) where any of the terms of the lease (whether relating to forfeiture or to any other matter) or any other circumstance render it unlikely that the lease will continue beyond a date falling before the expiration of the term of the lease, the lease shall not be treated as having been granted for a term longer than one ending on that date.

(3) Where the estate or interest of any lessor of any premises is the subject of a mortgage and either the mortgagee is in possession or the rents and profits are being received by a receiver appointed by or on the application of the mortgagee, that estate or interest shall be deemed, for the purposes of this Part of this Act, to be vested in the mortgagee, and references to a lessor shall be construed accordingly; but the amount of the liability to tax of any such mortgagee shall be computed as if the mortgagor was still in possession or, as the case may be, no receiver had been appointed, and as if it were the amount of the liability of the mortgagor that was being computed.

84 Taxation of rents under short leases.

84.—(1) The profits or gains arising from any rent in respect of any premises under a short lease shall, to the extent provided for by this Part of this Act, be deemed, for all the purposes of the Income Tax Acts, to be annual profits or gains within Schedule D and the lessor shall be chargeable in respect thereof under Case VI of that Schedule.

(2) Notwithstanding anything in Rule 2 of the Rules applicable to the said Case VI, income tax in respect of profits or gains chargeable by virtue of this section shall in all cases be computed on the full amount of the profits or gains of the year of assessment.

(3) Subject to the subsequent provisions of this Part of this Act, the amount of the profits or gains to be charged under this section shall be arrived at by making from any rent to which the lessor becomes entitled in the year of assessment the deductions authorised by the next following subsection.

(4) The deductions authorised by this subsection are deductions by reference to any or all of the following matters:

(a) the amount, if any, on which the lessor is liable to pay, by deduction or otherwise, income tax under Schedule A for the year of assessment in respect of the premises;

(b) the excess, if any, of the amount of any rent payable by the lessor in respect of the premises, or in respect of a portion thereof, under a short lease over the amount referred to in the immediately preceding paragraph or, as the case may be, the portion of the latter amount which is referable to the portion of the premises in respect of which the rent is payable by the lessor;

(c) any sums borne by the lessor, in accordance with the conditions of the lease, in respect of county rate, municipal rate or other rate, whether such sums are by law charged upon him or upon the lessee;

(d) the cost to the lessor of any services rendered or goods provided by him, otherwise than by way of maintenance or repairs, being services or goods which he is legally bound under the lease to render or provide but in respect of which he receives no separate consideration;

(e) the cost of maintenance, repairs, insurance and management of the premises in so far as such cost is, by reason of obligations imposed by the lease, borne by the lessor,

and the amount of the deduction to be made by reference to each of the foregoing matters shall be the amount which would fall to be so made in computing profits or gains under the provisions applicable to Case I of Schedule D if it were enacted that the receipt of rent under a short lease should be deemed to be a trade carried on during the currency of the lease by the lessor for the time being and that the premises comprised in the lease should be deemed to be occupied for the purposes of that trade.

For the purposes of this subsection the currency of a lease shall be deemed to include a period, immediately following its termination, during which the lessor, immediately before the termination, was not in occupation of the premises or any part thereof, but was entitled to possession thereof, if at the end of that period the premises have become subject to another short lease granted by him.

(5) Where a lessor is entitled to rent in respect of premises (hereafter in this subsection referred to as the said premises) under a short lease and—

(a) the said premises do not comprise the whole of a unit of valuation or the whole of two or more such units, or

(b) a rent is payable by the lessor under a short lease in respect of premises which comprise the whole or a part of the said premises and other premises,

the inspector of taxes shall make, according to the best of his knowledge and judgment, any appropriate apportionment of rateable valuation or of rent payable by the lessor in determining the amount of any deduction under paragraph (a), (b) or (c) of the immediately preceding subsection.

(6) An apportionment made under subsection (5) of this section may be amended by the Special Commissioners, or by the Circuit Judge, on the hearing, or the re-hearing, of an appeal against an assessment made on the basis of such apportionment; but, on the hearing, or the re-hearing, of any such appeal, a certificate of the Commissioner of Valuation, tendered by either party to the appeal and certifying, as regards premises valued under the Valuation Acts as a unit, the amount of the rateable valuation of the premises attributable to any part of the premises, shall be conclusive as to the amount so attributable.

85 Additional deductions in certain cases.

85.—(1) In this section—

“excepted profits or gains” means profits or gains arising from rent under a short lease in respect of premises which comprise the whole of what was, on the 6th day of April, 1963, a unit of valuation where, for the year of assessment, all the following conditions are satisfied, that is to say:

(a) the premises are premises to which subsection (2) of this section applies;

(b) the lease imposes no obligation on the lessee to maintain or repair the fabric or exterior of any building or to contribute to the cost of such maintenance or repairs, and

(c) the rent to which the lessor is entitled or, in a case in which a deduction is allowable under paragraph (c) of subsection (4) of section 84 of this Act in arriving at the amount of the profits or gains for the purpose of assessment under Case VI of Schedule D, the said rent reduced by the deduction allowable as aforesaid, does not exceed fifty-two pounds per annum;

“profit rent” means, in relation to any premises in respect of which a lessor is, in a year of assessment, entitled to rent under a short lease, the amount (hereafter in this definition referred to as the assessable amount) on which, but for the provisions of the following subsections of this section, the lessor would have been chargeable for the year of assessment under Case VI of Schedule D, in respect of profits or gains arising from the said rent, increased by any deduction allowed under paragraph (a) of subsection (4) of section 84 of this Act in arriving at the assessable amount and reduced by the amount, if any, by which any deduction allowed under paragraph (b) of the said subsection (4) in arriving at the assessable amount falls short of the deduction which would have been so allowable if—

(i) no deduction had been allowable under the said paragraph (a), and

(ii) the said paragraph (b) and subsection (5) of the said section 84 applied to any payment to which section 94 of this Act applies as they apply to any rent payable under a short lease.

(2) (a) This subsection applies to any premises which is shown to the satisfaction of the Revenue Commissioners (or, on appeal, to the satisfaction of the Special Commissioners) to be in the year of assessment a controlled dwelling within the meaning of the Rent Restrictions Act, 1960.

(b) Where for any year of assessment a person is chargeable under Case VI of Schedule D in respect of profits or gains arising from any rent in respect of any premises to which this subsection applies under a short lease, the amount on which he would, apart from this subsection, be so chargeable shall be reduced by an amount equal to two-fifths of the profit rent:

Provided that, for any year of assessment, the aggregate of all amounts by which profits or gains, other than excepted profits or gains, arising to any person are reduced by virtue of this paragraph shall not exceed two hundred pounds.

(3) (a) This subsection applies to any premises which, in the year of assessment—

(i) is not a premises to which the immediately preceding subsection applies, and

(ii) is not occupied for the purposes of any trade, profession or vocation.

For the purposes of this paragraph premises shall not be deemed to be occupied for the purposes of a trade, profession or vocation where the premises are mainly occupied for residential purposes and no part thereof is occupied for the purposes of a trade but a part thereof is occupied for the purposes of a profession or vocation.

(b) Where, for any of the years of assessment 1963-64, 1964-65 and 1965-66, a person is chargeable under Case VI of Schedule D in respect of profits or gains arising from any rent in respect of any premises to which this subsection applies under a short lease, the amount on which he would, apart from this subsection, be so chargeable shall be reduced by an amount equal to one-fifth of the profit rent:

Provided that, for any year of assessment, the aggregate of all amounts by which profits or gains arising to any person are reduced by virtue of this paragraph shall not exceed one hundred pounds.

(4) Where in any year of assessment both subsection (2) and subsection (3) of this section have effect in relation to profits or gains arising to any person, the aggregate of all amounts by which such profits or gains, other than excepted profits or gains, are reduced, whether by virtue of the said subsection (2) or by virtue of the said subsection (3), shall not exceed two hundred pounds.

(5) Each of the references, in the provisos to paragraph (b) of subsection (2) and paragraph (b) of subsection (3) and in subsection (4) of this section, to profits or gains arising to any person shall be deemed to include, in the case of an individual, references to profits or gains arising to the wife or husband of the individual.

In this and the following subsection “wife” means a married woman who under subsection (1) of section 12 of the Finance Act, 1958, is to be treated as living with her husband, and “husband” has a corresponding meaning.

(6) (a) Where in any year of assessment profits or gains arise to both a husband and a wife from rents in respect of premises to which either subsection (2) or subsection (3) of this section applies and the aggregate (hereafter in this subsection referred to as the gross aggregate) of all amounts by which the said profits or gains would have fallen to be reduced under this section, if the provisos to paragraph (b) of subsection (2) and to paragraph (b) of subsection (3) and subsection (4) (hereafter in this subsection referred to as the limiting provisions) had been omitted from this section, exceeds what, in consequence of the operation of any one or more of the limiting provisions is the aggregate (hereafter in this subsection referred to as the net aggregate) of all amounts by which the said profits or gains may be reduced, the aggregate of all amounts by which the profits or gains arising to either spouse are reduced shall not exceed the sum which bears to the net aggregate the same proportion as the aggregate of all amounts by which, but for the limiting provisions, the profits or gains arising to that spouse would have fallen to be reduced bears to the gross aggregate.

(b) The foregoing paragraph shall not apply where, in a year of assessment, profits or gains arise to one only of the spouses from rent in respect of premises to which subsection (3) of this section applies and subsection (4) thereof does not operate.

(c) Any reference in this subsection to profits or gains does not include a reference to excepted profits or gains.

86 Treatment of premiums, etc., as rent.

86.—(1) Where the payment of any premium is required under a lease, or otherwise under the terms subject to which a lease is granted, and the lease is a short lease, the lessor shall be treated for the purposes of section 84 of this Act as becoming entitled, when the lease is granted, to an amount by way of rent (in addition to any actual rent) equal to the amount of the premium reduced by one-fiftieth of that amount for each complete period of twelve months, other than the first, comprised in the term of the lease.

(2) Where the terms subject to which a lease of any premises is granted impose on the lessee an obligation to carry out any work on the premises, the lease shall be deemed for the purposes of this section to have required the payment of a premium to the lessor (in addition to any other premium) of an amount equal to the amount by which the value of the lessor's estate or interest, immediately after the commencement of the lease, falls short of what its then value would have been if the work had been carried out, but otherwise than at the expense of the lessee, and the rent were increased accordingly:

Provided that this subsection shall not apply in so far as the obligation requires the carrying out of work payment for which would, if the lessor and not the lessee were obliged to carry it out, be deductible from the rent under subsection (4) of section 84 of this Act.

(3) Where a payment such as is mentioned in subsection (1) of this section is due to a person other than the lessor, the said subsection (1) shall not apply in relation to that payment, but any amount which would have fallen to be treated as rent if the payment had been due to the lessor shall be treated as an annual profit or gain of that other person and chargeable to tax under Case VI of Schedule D.

(4) (a) If an amount of premium by reference to which a person is chargeable to tax by virtue of subsection (1) or subsection (3) of this section is payable by instalments, the following provisions shall, where this subsection applies, have effect in lieu of the said subsection (1) or, as as the case may be, the said subsection (3):

(i) each such instalment payable to the lessor for the time being shall be treated for the purposes of section 84 of this Act as if it were rent payable under the lease, and

(ii) each such instalment payable to a person who is not a lessor shall be treated as an annual profit or gain of that person and chargeable to tax under Case VI of Schedule D.

(b) This subsection applies where the person chargeable by virtue of subsection (1) or subsection (3) of this section by notice in writing, given to the inspector of taxes before the expiration of the year of assessment following that in which he becomes entitled to the first instalment of premium, elects that it shall apply and where such notice of election is given all such additional assessments, alterations of assessments and repayments of tax shall be made as may be necessary.

(5) For the purposes of this section any sum, other than rent, paid on or in connection with the granting of a lease shall be presumed to have been paid by way of premium except in so far as other sufficient consideration for the payment is shown to have been given.

(6) Where the duration of a lease falls to be ascertained for the purposes of this section after a date on which the lease has for any reason come to an end, the duration shall, notwithstanding anything in subsection (2) of section 83 of this Act, be taken to have extended from its commencement to that date; and where the duration falls to be ascertained for the said purposes at a time when the lease is subsisting, the provisions of the said subsection (2) shall be applied in accordance with the circumstances obtaining at that time.

87 Exclusion of certain lettings.

87.—Neither section 84 nor section 90 of this Act shall have effect in relation to a case in which the rent reserved under a lease (including, where the lease was granted on or after the 6th day of April, 1963, an appropriate sum in respect of any premium payable under the lease) is insufficient, taking one year with another, to defray the cost to the lessor of fulfilling his obligations under the lease and of meeting any expense of maintenance, repairs, insurance and management of the premises subject to the lease which fall to be borne by him, and for this purpose the lessor shall be deemed to bear annually an expense of management (in addition to any actual expense) equal to the amount on which he is liable to bear tax under Schedule A in respect of the premises.

88 Taxation of certain payments in respect of easements.

88.—Where, in any year of assessment, any person is entitled to any payment, other than a payment to which section 94 of this Act applies, in respect of any easement in relation to any premises, not being premises of the whole of which he is, throughout the period in respect of which the payment is due, the sole occupier for the purposes of Schedule A, the payment shall be treated for the purposes of section 84 of this Act as if it were rent payable in respect of premises under a short lease, and the provisions of that section shall with the necessary adaptations apply accordingly.

89 Provisions as to assessment.

89.—(1) Where for any year of assessment profits or gains chargeable to tax under Case VI of Schedule D by virtue of the foregoing provisions of this Part of this Act arise to any person from two or more sources, the several amounts of profits or gains so chargeable may be assessed in one assessment.

(2) Where an assessment, in respect of profits or gains chargeable as aforesaid for any year of assessment, is made in that year, whether pursuant to the immediately preceding subsection or otherwise—

(a) it shall be made on the basis that all sources of profits or gains and all facts relevant to the computation of profits or gains are the same as for the last preceding year of assessment, and

(b) tax shall be leviable accordingly, but any necessary adjustments shall be made after the end of the year, whether by way of additional assessment, repayment of tax or otherwise, to secure that tax is charged on the profits or gains of the year of assessment.

(3) For the purposes of paragraph (a) of the foregoing subsection, any amounts which but for section 86 of this Act would not be taken into account in the computation of profits or gains shall be disregarded.

90 Relief in respect of losses.

90.—Where for any year of assessment the aggregate amount of the deductions authorised, in relation to any short lease, by subsection (4) of section 84 of this Act exceeds the amount of rent to which the lessor becomes entitled in the year, the excess shall be deemed to be such a loss as is mentioned in section 2 of the Finance Act, 1945, and the provisions of that section shall apply accordingly.

91 Relief for amount not received.

91.—(1) Where on a claim in that behalf a lessor proves that he has not received an amount which he was entitled to receive in relation to a short lease and—

(a) if the non-receipt of the said amount was attributable to the default of the person by whom it was payable, that the said amount is irrecoverable, or

(b) if he has waived payment of the said amount, that the waiver was made without consideration and was reasonably made in order to avoid hardship,

the lessor shall be treated for the purposes of this Part of this Act as if he had not been entitled to receive the said amount and his liability to tax for the year of assessment in which he became entitled to receive the said amount and for any subsequent year shall be adjusted, by repayment or otherwise, as the circumstances of the case may require; but if all or any of the said amount is subsequently received, the lessor's liability to tax for all relevant years of assessment shall be appropriately re-adjusted by additional assessment or otherwise.

(2) Any claim to repayment under this section shall be made to, and determined by, the inspector of taxes; but any person aggrieved by any determination of the inspector of taxes on any such claim may, on giving notice in writing to the said inspector within twenty-one days after notification to him of the determination, appeal to the Special Commissioners.

(3) The Special Commissioners shall hear and determine an appeal to them under subsection (2) of this section as if it were an appeal 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.

92 Deduction by reference to premium paid in the computation of profits for purposes of Cases I and II of Schedule D.

92.—Where—

(a) in any period (hereafter in this section referred to as the said period) a person carrying on a trade, profession or vocation is the lessee of premises wholly or partly occupied by him for the purposes thereof, and

(b) any amount has become chargeable to tax under subsection (1), (2) or (3) of section 86 of this Act, or would have become so chargeable but for subsection (4) of that section, in respect of a premium paid, or deemed to have been paid, to the lessor (whether the lessee concerned was the person carrying on the trade, profession or vocation or his predecessor in title),

the computation, for the purpose of assessment under Case I or Case II of Schedule D, of the profits or gains of the trade, profession or vocation for the said period shall be made as if the person by whom it is carried on had paid in respect of the premises an amount of rent (in addition to any rent actually paid) equal to the amount chargeable as aforesaid (or where the said person is lessee under the lease for a part only of the said period, a proportionate part of that amount) multiplied by the fraction of which the numerator is the number of days in the said period and the denominator is the number of days in the duration of the lease as determined for the purposes of the relevant subsection of the said section 86.

93 Deductions by reference to premiums paid in computation of profits for purposes of Part IX.

93.—(1) Where any amount has become chargeable under subsection (1), (2) or (3) of section 86 of this Act, or would have become so chargeable but for subsection (4) of that section, in respect of a premium paid or deemed to have been paid under the terms subject to which a lease is granted, then, subject to the provisions of the following subsections of this section, the lessee, whether or not he is the original lessee, shall be deemed for the purposes of subsection (4) of section 84 of this Act to have paid by way of rent under the lease (in addition to any rent actually paid) in each year of assessment during which he is the lessee a payment which bears to the said amount (hereafter in this section referred to as the amount chargeable on the superior lease) the same proportion as the length of the period within that year during which he was the lessee bears to the length of the term of the lease.

(2) Where—

(a) any amount has, or would have, become chargeable as mentioned in the immediately preceding subsection, and

(b) the lessee would, apart from this subsection, have been chargeable to tax under the said section 86 on any amount in respect of premium paid, or deemed to have been paid, to him on a sub-lease of all or any part of the premises comprised in the lease, with or without other premises,

the amount on which he is so chargeable shall, where no claim is made by him under subsection (4) of the said section 86, be the excess (if any) of the amount on which he would have been chargeable as aforesaid over the appropriate fraction of the amount chargeable on the superior lease, or, if the premises comprised in the lease and sub-lease respectively are not co-extensive, the appropriate fraction of that amount proportionately adjusted.

(3) Where subsection (2) of this section has effect, subsection (1) shall apply for the year of assessment for which the lessee would have been chargeable as aforesaid and subsequent years only if the said appropriate fraction exceeds the amount on which the lessee would have been so chargeable, and shall then apply as if the amount chargeable on the superior lease had been equal to the excess:

Provided that where part only of the premises comprised in the lease is comprised in the sub-lease, the said subsection (1) and this subsection shall be applied separately in relation to that part of the premises and to the remainder of those premises, but as if for any reference to the amount chargeable on the superior lease there were substituted a reference to that amount proportionately adjusted.

(4) For the purposes of this section the appropriate fraction of the amount chargeable on the superior lease is the sum which bears to that amount the same proportion as the term of the sub-lease bears to the term of the lease.

(5) Any proportionate adjustment referred to in this section shall be made by the inspector of taxes according to the best of his knowledge and judgment, and any such adjustment so made may be amended by the Special Commissioners, or by the Circuit Judge, on the hearing, or the re-hearing, of an appeal against an assessment made on the basis of the adjustment.

94 Taxation of rents under long leases and certain other payments.

94.—(1) This section applies to the following payments:

(a) any rent payable in respect of any premises the property in which is not separately assessed and charged under Schedule A, or in respect of any easement, where the premises or easement is used, occupied or enjoyed in connection with any of the concerns the profits of which are chargeable to tax under Case I of Schedule D by virtue of section 8 of the Finance Act, 1929,

(b) any rent payable in respect of any premises, other than premises used, occupied or enjoyed as aforesaid, under a long lease, and

(c) any yearly interest, annuity, rentcharge, fee farm rent or other annual payment reserved in respect of, or charged on or issuing out of, any premises, not being a rent payable under a lease or in respect of premises used, occupied or enjoyed as mentioned in paragraph (a) of this subsection or such a rentcharge as is mentioned in Rule 6 of No. VIII of Schedule A,

being a payment falling due on or after the 6th day of April, 1963.

In paragraph (a) of this subsection the reference to rent shall be deemed to include a reference to a toll, duty, royalty or annual or periodical payment in the nature of rent, whether payable in money or money's worth or otherwise.

(2) Neither Rule 1 nor Rule 4 of No. VIII of Schedule A shall have effect in relation to any payment to which this section applies.

(3) Any payment to which this section applies shall—

(a) so far as it does not fall within any other Case of Schedule D, be charged with tax under Case VI of that Schedule, and

(b) be treated, for the purposes of paragraph (m) of Rule 3 of the Rules applicable to Cases I and II of Schedule D and of Rules 19 and 21 of the General Rules, as if it were a royalty paid in respect of the user of a patent:

Provided that where such a rent as is mentioned in paragraph (a) of subsection (1) of this section is rendered in produce of the concern, this subsection shall have effect as if paragraph (b) of this subsection were omitted; and the value of the produce so rendered shall be taken to be the amount of profits or income arising therefrom.

(4) (a) A deduction from a payment to which this section applies, made on account of income tax at any time after the 5th day of April, 1963, and before the passing of this Act, which would have been a legal deduction if the foregoing provisions of this section had been in force at that time, shall be deemed for all purposes to have been a legal deduction to which all the provisions of Rule 19 or Rule 21 of the General Rules, as the case may be, were applicable.

(b) Subsection (2) of section 211 of the Income Tax Act, 1918, shall have effect as if this section had come into operation on the 6th day of April, 1963, and “other annual payment”, in both places where occurring in that subsection, shall be construed as including a reference to any payment to which this section applies not being a payment of rent, interest or annuity.

95 Returns, etc., for purposes of Part IX.

95.—For the purpose of obtaining particulars of profits or gains chargeable to tax under Case VI of Schedule D by virtue of this Part of this Act, the inspector of taxes may by notice in writing require—

(a) any lessor, or former lessor, of premises to give, within the time limited by the notice, such information as may be specified in the notice as to the provisions of the lease and the terms subject to which the lease was granted and as to payments made to or by him in relation to the premises;

(b) any lessee, occupier, or former lessee or occupier of premises (including any person having, or having had, the use of premises) to give such information as may be specified in the notice as to the terms applying to the lease, occupation or use of the premises, and where any of those terms are established by any written instrument, to produce the instrument to the inspector of taxes for inspection;

(c) any lessee or former lessee of premises to give such information as may be specified in the notice as to any consideration given for the grant to him of the lease;

(d) any person who as agent manages premises or is in receipt of rent or other payments arising from premises to furnish the inspector of taxes with such particulars relating to payments arising therefrom as may be specified in the notice.

96 Cesser, etc.

96.—(1) Section 6 of the Finance Act, 1932, and the Rule added to the Rules applicable to Case III of Schedule D by that section shall not have effect for the year 1963-64 or any subsequent year of assessment.

(2) Notwithstanding anything in this Part of this Act, section 37 of the Income Tax Act, 1918, shall be construed and have effect as if any tax chargeable under Schedule D by virtue of the provisions of this Part of this Act were chargeable under Schedule A.

(3) Where for any year of assessment a deduction may be made under subsection (4) of section 84 of this Act in respect of the cost of maintenance, repairs, insurance or management of any premises, no relief from income tax under Schedule A in respect of the premises shall be allowed under Rule 8 of No. V of that Schedule.

PART X. Miscellaneous.

97 Capital Services Redemption Account.

97.—(1) In this section—

“the principal section” means section 22 of the Finance Act, 1950;

“the 1962 amending section” means section 19 of the Finance Act, 1962;

“the thirteenth 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 1962 amending section shall, in relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of March, 1964, have effect with the substitution of “£1,309,854” for “£1,334,935”.

(3) Subsection (6) of the 1962 amending section shall have effect with the substitution of “£830,974” for “£863,530”.

(4) A sum of £1,431,786 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, 1964.

(5) The thirteenth 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 thirteenth additional annuity, not exceeding £926,179 in any financial year, may be applied towards defraying the interest on the public debt.

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

98 Exemption from income tax and corporation profits tax of profits of lotteries.

98.—(1) This section applies to any lottery to which a licence under Part IV of the Gaming and Lotteries Act, 1956, applies and shall be deemed to come into force and shall take effect as on and from the 1st day of March, 1956.

(2) (a) Exemption shall be granted from corporation profits tax and, subject to the next paragraph, from income tax in respect of profits from any lottery to which this section applies.

(b) In relation to income tax the profits from a lottery for the year 1963-64 or a previous year of assessment shall, for the purposes of this section, be taken to be the full amount thereof on which the person by whom it was carried on would, but for this section, have been chargeable to tax for that year under Schedule D reduced by—

(i) a sum equal to the aggregate of all payments made in that year from which, if the profits had been chargeable as aforesaid, tax would have been deductible under Rule 19 of the General Rules on the ground that they were payments made out of those profits, and

(ii) where the lottery was carried on by a body of persons, a sum equal to so much of the profits which would have been chargeable as aforesaid as was, before the passing of this Act, applied in payment of dividends.

(c) All such discharges of assessments, amendments of assessments and repayments of tax shall be made in relation to the year 1963-64 and previous years of assessment as may be appropriate having regard to the foregoing paragraphs of this subsection.

(3) Nothing in this section shall render improper any deduction of income tax made before the passing of this Act which would have been a proper deduction if this section had not been enacted.

99 Partial cesser of section 38 (2) of Finance Act, 1924.

99.—Subsection (2) of section 38 of the Finance Act, 1924, shall cease to have effect in so far as it provides that moneys due or payable to or for the benefit of the Central Fund are to be paid in priority to other debts.

100 Form of execution order in certain Revenue cases.

100.—(1) This section applies to any proceedings instituted in the High Court or the Circuit Court for the recovery of any tax or duty under the care and management of the Revenue Commissioners, or for any fine, penalty or forfeiture in connection with any such tax or duty or incurred under or imposed by any Act relating to customs or excise.

(2) Notwithstanding anything to the contrary provided by or under any enactment or by any rule of court—

(a) where judgment against the defendant for any amount is given by the High Court in proceedings to which this section applies, the form of execution order to be issued in relation to the amount shall be in the form set out in Part I of the Fifth Schedule to this Act, and the sum recoverable for the costs of the execution order shall be the sum of £1 10s. 0d.,

(b) where such judgment is given by the Circuit Court, the form of execution order to be so issued shall be in the form set out in Part II of the Fifth Schedule to this Act, and the sum recoverable for the costs of the execution order shall be the sum of 16s. 6d.

101 Levying of fees and expenses under certain certificates.

101.—(1) In this section—

“section 7 certificate” means a certificate issued under section 7 of the Finance Act, 1923, or that section as extended by section 55 of the Finance Act, 1958;

“execution order” means an execution order within the meaning of the Enforcement of Court Orders Act, 1926.

(2) A county registrar or sheriff executing a section 7 certificate shall be entitled—

(a) if the sum certified in the certificate to be in default exceeds six hundred pounds, to charge and (where appropriate) to add to that sum and (in any case) to levy under the certificate such fees and expenses, calculated according to the scales appointed by the Minister for Justice under paragraph (a) of subsection (1) of section 14 of the Enforcement of Court Orders Act, 1926, and for the time being in force, as he would be entitled so to charge or add and to levy if the certificate were an execution order of the High Court,

(b) if the sum certified in the certificate to be in default exceeds fifty pounds but does not exceed six hundred pounds, to charge and (where appropriate) to add to that sum and (in any case) to levy under the certificate such fees and expenses, calculated according to the said scales, as he would be entitled so to charge or add and to levy if the certificate were an execution order of the Circuit Court, and

(c) if the sum certified in the certificate to be in default does not exceed fifty pounds, to charge and (where appropriate) to add to that sum and (in any case) to levy under the certificate such fees and expenses, calculated according to the said scales, as he would be entitled so to charge or add and to levy if the certificate were an execution order of the District Court.

(3) (a) The foregoing subsections of this section shall have and be deemed always to have had effect as on and from the 1st day of October, 1926, and accordingly no section 7 certificate issued during the period which began on that day and ended on the passing of this Act shall be or ever have been made void or in any way prejudiced by the addition to the sum thereby certified to be in default of any fees or expenses which might lawfully have been so added if those subsections had been in force during that period, and no levy during that period of any such fees or expenses so added which would have been a lawful levy if those subsections had been in force during that period shall be or ever have been unlawful.

(b) For the purposes of this subsection, the reference in subsection (2) of this section to a sheriff shall be construed as including a reference to an undersheriff and, in relation to section 7 certificates issued before the 8th day of December, 1953, the references therein to six hundred pounds shall be construed as references to three hundred pounds and the references therein to fifty pounds shall be construed as references to twenty-five pounds.

(4) No section 7 certificate issued before the 1st day of October, 1926, shall be or ever have been made void or in any way prejudiced by the addition to the sum thereby certified to be in default of any fees which might lawfully have been so added if the certificate had been an execution order, and no levy before the passing of this Act of any such fees so added which would have been a lawful levy if the section 7 certificate had been an execution order shall be or ever have been unlawful.