Finance Act , 1965

PART I. Income Tax.

1 Income tax and sur-tax for the year 1965-66.

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1965, at the rate of six shillings and four pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1965, shall be charged in respect of the income of any individual the total of which from all sources exceeds two thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1964.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1965, in relation to income tax and sur-tax and any such provisions which came into operation on the 6th day of April, 1965, in relation thereto shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1965.

2 Amendment of section 5 of Finance Act, 1946.

2.—In relation to capital expenditure on scientific research incurred on or after the 6th day of April, 1965—

(a) section 5 of the Finance Act, 1946, shall have effect—

(i) as if in subsection (3) thereof the words “and for each of the four following years of assessment,” and “one-fifth of” were omitted,

(ii) as if paragraphs (a), (b) and (e) of subsection (4) were omitted and the following paragraph were substituted for paragraph (c)—

“(c) an amount equal to the allowance made under this section in respect of that expenditure, or, if the value of the asset immediately before the cessation is less than that allowance, equal to that value, shall be treated as a trading receipt of the trade accruing immediately before the cessation;”,

(iii) as if “the amount of the allowance effectively granted” were substituted for “the total of the allowances granted” in paragraph (d) of subsection (4);

(b) section 33 of the Finance Act, 1959, shall have effect as if the following definition were substituted for the definition of “scientific research allowance”:

“‘scientific research allowance’ means, in relation to any expenditure, the amount of any allowance made in respect of that expenditure under subsection (3) of section 5 of the Finance Act, 1946, reduced by any amount treated as a trading receipt pursuant to paragraph (c) of subsection (4) of the said section as it applies to expenditure incurred on or after the 6th day of April, 1965;”.

3 Separate assessments under Schedule A or Schedule B in certain cases.

3.—(1) Where a person—

(a) during any part of a year of assessment, whether alone or jointly with another person or persons in the circumstances set out in subsection (2) of this section, or

(b) during the whole of any year of assessment, jointly as aforesaid,

is entitled to any estate or interest in property in respect of which he would be assessable separately or with the other person or persons under Schedule A or Schedule B, if he, or he and the other person or persons, were entitled to that estate or interest for the whole of the year, he shall be separately assessed under Schedule A or under Schedule B, as the case may be, in respect of his estate or interest, or his part of the estate or interest, in the property for the part or whole of the year on the appropriate proportion of the annual or assessable value.

(2) The circumstances in which subsection (1) of this section is to apply to a person being entitled to an estate or interest in property jointly with another person or persons are that he has that estate or interest as a coparcener, joint tenant, tenant in common or tenant of lands or tenements in partnership.

(3) Where a person to whom this section applies is liable to bear part of an annual payment reserved out of or charged on the relevant property, that part shall, for the purposes of Rule 19 of the General Rules, be regarded as being payable as a reservation out of or charge on the estate or interest, or the part of the estate or interest, in respect of which he is assessed under this section.

(4) Subsection (1) of section 162 of the Income Tax Act, 1918, is hereby amended by the addition thereto of the following proviso:

“Provided that no distraint shall be made on the lands, tenements and premises in respect of which the tax is charged if such lands, tenements and premises have been sold for valuable consideration and the person on whom the tax is charged is no longer the occupier thereof.”

(5) Subsection (1) of section 199 of the Income Tax Act, 1918, is hereby amended by the addition thereto of the following proviso:

“Provided that no distress may be levied on the occupier of the property charged or upon the premises in respect of which the assessment is made if such property or premises has or have been sold for valuable consideration and the tax is in respect of a period prior to the sale.”

(6) In this section—

“annual payment” means any payment from which, apart from any insufficiency of profits or gains of the person making it, tax is deductible under Rule 19 of the General Rules;

“property” means lands, tenements and hereditaments.

4 Making of claims, etc., and appeals and rehearings.

4.—(1) Notwithstanding any other provision of the Income Tax Acts—

(a) all claims of exemption or for any allowance or deduction under those Acts,

(b) all claims for repayment of tax under those Acts, and

(c) (i) all claims to relief under those Acts where the relief is measured in the provision under which it is given, and

(ii) all matters and questions relating to any relief so measured,

in relation to which a right of appeal from a decision of the Special Commissioners is, otherwise than by this section, not specifically provided,

shall be stated in such manner and form as the Revenue Commissioners may prescribe and shall be submitted to and determined by the Revenue Commissioners or such officer of the Revenue Commissioners (including an inspector of taxes) as they may authorise in that behalf, but any person aggrieved by any determination on any such claim, matter or question may, on giving notice in writing to the Revenue Commissioners or the officer within twenty-one days after notification to the person aggrieved of the determination, appeal to the Special Commissioners.

(2) The Special Commissioners shall hear and determine an appeal to them under subsection (1) of this section as if it were an appeal against an assessment to income tax, and the provisions of the Income Tax Acts relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

(3) Where—

(a) a right of appeal to the Special Commissioners is given by any provision (other than Rule 8 or 9 of the General Rules or paragraph 2 of the First Schedule to the Finance Act, 1922) of the Income Tax Acts, and

(b) such provision, while applying the provisions of the Income Tax Acts relating to appeals against assessments, does not apply the provisions of those Acts relating to rehearing of appeals,

such provision shall be deemed to apply the said provisions relating to rehearing of appeals.

(4) In a case in which—

(a) a notice of appeal is not given within the time limited by subsection (1) of this section, or

(b) a person who has given notice of appeal does not attend before the Special Commissioners at the time and place appointed for the hearing of his appeal,

the provisions of subsections (5), (7), (8) and (8A) of section 5 of the Finance Act, 1929, shall apply, with any necessary modifications.

(5) Subparagraph (d) of paragraph (2C) of Rule 21 of the General Rules is hereby amended by the insertion of “the rehearing of appeals and to” before “cases”.

(6) Subsection (5) of section 8 of the Finance Act, 1924, subsection (2) of section 12 of the Finance Act, 1925, and subparagraph (3) of paragraph 4 of Part II of the First Schedule to the Finance Act, 1926, are each hereby amended by the insertion of “rehearing of an appeal and to the” before “statement of a case” and the deletion of “but excluding the provisions of section 196 of the Income Tax Act, 1918”.

(7) Subsection (5) of section 10 of the Finance Act, 1953, is hereby amended by the substitution of “as if it were an appeal against an assessment, and the provisions of the Income Tax Acts relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications” for “, whose decision shall be final”.

(8) Where a claim which was made before the passing of this Act and to which section 202 of the Income Tax Act, 1918, applied has not been finally determined at such passing, it shall be treated as having been made in accordance with this section.

(9) This section shall come into operation on the passing of this Act.

5 Amendment of section 5 of Finance Act, 1929.

5.—Section 5 of the Finance Act, 1929, is hereby amended by—

(a) the addition at the end of subsection (5) of “and the powers conferred on the Special Commissioners by subsections (7) and (8) of this section may be exercised by one Special Commissioner”;

(b) the substitution for subsections (7) and (8) of the following subsections—

“(7) (a) A notice of appeal not given within the time limited by subsection (1) of this section shall be regarded as having been so given where, on an application in writing having been made to him in that behalf, the inspector of taxes or such other officer as aforesaid, being satisfied that, owing to absence, sickness or other reasonable cause, the applicant was prevented from giving notice of appeal within the time limited and that the application was made thereafter without unreasonable delay, notifies the applicant in writing that his application has been allowed.

(b) If on an application under paragraph (a) of this subsection the inspector or other officer is not satisfied as aforesaid, he shall by notice in writing inform the applicant that his application has been refused.

(c) Within fifteen days after the date of a notice under paragraph (b) of this subsection the applicant may by notice in writing require the inspector or other officer to refer his application to the Special Commissioners and, in relation to any application so referred, paragraphs (a) and (b) of this subsection shall have effect as if for every reference therein to the inspector or other officer there was substituted a reference to the Special Commissioners.

(8) In a case in which a person who has given notice of appeal does not attend before the Special Commissioners at the time and place appointed for the hearing of his appeal, subsection (6) of this section shall not have effect if—

(a) at the said time and place another person attends on behalf of the appellant and the Special Commissioners consent to hear that person, or

(b) on an application in that behalf having been made to them in writing or otherwise at or before the said time, the Special Commissioners, postpone the hearing, or

(c) on an application in writing having been made to them after the said time the Special Commissioners, being satisfied that, owing to absence, sickness or other reasonable cause, the appellant was prevented from appearing before them at the said time and place and that the application was made without unreasonable delay, direct that the appeal be treated as one the time for the hearing of which has not yet been appointed.

(8A) (a) Where action for the recovery of tax charged by an assessment, being action by way of the institution of proceedings in any court or the issue of a certificate under section 7 of the Finance Act, 1923, has been taken, neither subsection (7) nor subsection (8) of this section shall, unless the Revenue Commissioners otherwise direct, apply in relation to that assessment until the said action has been completed.

(b) Where, in a case coming within the foregoing paragraph, an application under paragraph (a) of the said subsection (7) is allowed or, on an application under paragraph (c) of the said subsection (8), the Special Commissioners direct as therein provided, the applicant shall in no case be entitled to repayment of any sum paid or borne by him in respect of costs of any such court proceedings as aforesaid or, as the case may be, of any fees or expenses charged by the county registrar or sheriff executing a certificate under the said section 7 of the Finance Act, 1923.”

6 Exports relief.

6.—(1) In this section “the Act” means the Finance (Miscellaneous Provisions) Act, 1956.

(2) In subparagraph (i) of paragraph (b) of subsection (2) of section 56 of the Finance Act, 1958 (as substituted in subsection (1) of section 28 of the Finance Act, 1960) “1980-81” shall be substituted for “1975-76”.

(3) Where, apart from the provisions of this section, a company is entitled to claim relief under Part III of the Act, by virtue of subsection (1) of section 29 of the Finance Act, 1960, in respect of the year 1974-75 or any earlier year of assessment, the company may, in lieu of such relief, claim relief under subsection (1) or subsection (3) of section 12 of the Act as if that year of assessment were a year of claim within the meaning of section 10 of the Act.

(4) Where a company has obtained relief under Part III of the Act by virtue of subsection (3) of this section and is subsequently entitled to relief under subsection (1) of section 29 of the Finance Act, 1960, the last-mentioned relief shall be granted as if the last year of assessment in respect of which relief is due by virtue of subsection (3) of this section was the company's last year of claim within the meaning of section 10 of the Act:

Provided that no relief shall be given in respect of any year of assessment after the fourteenth year of assessment after the first year of claim or in respect of any year of assessment after the year 1979-80.

7 Amendment of Rule 7 (1) of Miscellaneous Rules applicable to Schedule D.

7.—(1) Paragraph (1) of Rule 7 of the Miscellaneous Rules applicable to Schedule D is hereby amended—

(i) by the substitution in subparagraph (a) of “body of persons not resident in the State” for “foreign or colonial company, society, adventure, or concern; or”, and

(ii) by the deletion of subparagraph (b).

(2) The said paragraph (1) shall not extend to any payment to which Rule 19 or Rule 21 of the General Rules applies.

(3) Any reference in any provision of the Income Tax Acts to the said Rule 7 shall be construed as a reference to the said Rule 7 as amended by the foregoing subsections of this section.

(4) Subsection (1) of section 10 of the Finance Act, 1923, is hereby amended by the substitution therein of “body of persons not resident in the State” for “foreign company, society, adventure or concern”.

(5) Subsection (1) of section 6 of the Finance Act, 1924, is hereby amended by the substitution therein of “body of persons not resident in the State” for “foreign company, society, adventure, or concern”.

(6) This, section shall have effect as on and from the 11th day of May, 1965.

8 Amendment of section 2 (3) of Finance Act, 1924.

8.—Subsection (3) of section 2 of the Finance Act, 1924, is hereby amended by the substitution therein of “every person by whom” for “every person to whom”.

9 Amendment of Rule (2) of Part II of First Schedule, Finance Act, 1929.

9.—Rule (2) of Part II of the First Schedule to the Finance Act, 1929, is hereby amended by the insertion in paragraph (b) of “and possessions” after “securities”.

10 Amendment of section 3 (1) (2) of Finance Act, 1956.

10.—Subsections (1) and (2) of section 3 of the Finance Act, 1956, are each hereby amended by the substitution of “fifty pounds” for “twenty-five pounds”.

11 Amendment of paragraph (a) of proviso to section 17 of Finance Act, 1963.

11.—Paragraph (a) of the proviso to subsection (1) of section 17 of the Finance Act, 1963, shall have effect, where the return is of interest paid or credited during a year beginning on or after the 6th day of April, 1965, as if the reference to £15 were a reference to £50.

PART II. Customs and Excise.

12 Beer.

12.—(1) In lieu of the duty of excise imposed by subsection (1) of section 13 of the Finance Act, 1964, there shall be charged, levied and paid on all beer brewed within the State on or after the 12th day of May, 1965, a duty of excise at the rate of fourteen pounds, seventeen shillings for every thirty-six gallons of worts of a specific gravity of one thousand and fifty-five degrees.

(2) In lieu of the duties of customs imposed by subsections (2) and (3) of section 13 of the Finance Act, 1964, there shall, as on and from the 12th day of May, 1965, be charged, levied and paid on all beer of any description imported into the State, a duty of customs at the rate of fourteen pounds, seventeen shillings and sixpence for every thirty-six gallons of beer of which the worts were before fermentation of a specific gravity of one thousand and fifty-five degrees.

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

(4) Where, in the case of beer which is chargeable with the duty imposed by subsection (1) or subsection (2) of this section or in the case of beer on which drawback under subsection (3) of this section is payable, the specific gravity of the beer is not one thousand and fifty-five degrees, the duty or drawback shall be varied proportionately.

(5) Section 24 of the Finance Act, 1933, shall not apply or have effect in relation to the duty of customs imposed by this section.

13 Spirits.

13.—(1) The Finance Act, 1920, shall, as on and from the 12th day of May, 1965, be amended by the substitution in Part I of the First Schedule thereto of the matter set out in the First Schedule to this Act for the matter inserted in that Part by section 14 of the Finance Act, 1964, and subsection (1) of section 3 of the said Finance Act, 1920, shall have effect accordingly.

(2) (a) This subsection applies to spirits known as whiskey which at importation are shown to the satisfaction of the Revenue Commissioners to have been wholly manufactured in Northern Ireland and to have been bottled and consigned by the distiller.

(b) The duty of customs to which subsection (1) of this section relates shall, as on and from the 12th day of May, 1965, be charged, levied and paid on spirits to which this subsection applies at the rate of ten pounds, six shillings and fourpence the gallon (computed at proof) in lieu of the rate chargeable under subsection (1) of this section.

(3) The duty of excise imposed by subsection (2) of section 3 of the Finance Act, 1920, shall, as on and from the 12th day of May, 1965, be charged, levied and paid at the rate of ten pounds, five shillings and eleven pence the gallon (computed at proof) in lieu of the rate specified in subsection (2) of section 4 of the Finance Act, 1962.

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

14 Hydrocarbon oils.

14.—(1) In this section—

“the Act of 1935” means the Finance Act, 1935;

“the Act of 1964” means the Finance Act, 1964.

(2) The duty of customs imposed by section 1 of the Finance (Customs Duties) (No. 4) Act, 1931, shall, in respect of mineral hydrocarbon light oil chargeable with that duty, be charged, levied and paid as on and from the 12th day of May, 1965, at the rate of 3s. 4 1/12d. the gallon in lieu of the rate specified in subsection (2) of section 16 of the Act of 1964.

(3) The duty of excise imposed by section 1 of the Finance (Miscellaneous Provisions) Act, 1935, shall, in respect of mineral hydrocarbon light oil chargeable with that duty which is sent out, on or for sale or otherwise, from the premises of the manufacturer thereof on or after the 12th day of May, 1965, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of mineral hydrocarbon oil, be charged, levied and paid at the rate of 3s. 3 1/12 d. the gallon in lieu of the rate specified in subsection (3) of section 16 of the Act of 1964.

(4) The duty of customs imposed by section 21 of the Act of 1935 shall, in respect of hydrocarbon oil chargeable with that duty, be charged, levied and paid as on and from the 12th day of May, 1965, at the rate of 2s. 8d. the gallon in lieu of the rate specified in subsection (4) of section 16 of the Act of 1964.

(5) As on and from the 12th day of May, 1965, the rate of any rebate allowed under subsection (2) of section 21 of the Act of 1935 shall—

(a) in respect of hydrocarbon oil on which such rebate is allowable and on which the duty of customs mentioned in subsection (4) of this section was paid at the rate of 2s. 8d. the gallon, be 2s. 8d. the gallon, and

(b) in respect of hydrocarbon oil on which such rebate is allowable and on which the duty of customs mentioned in subsection (4) of this section was, by virtue of paragraph 6 of the Imposition of Duties (No. 84) (Hydrocarbon Oils) (Customs Duties) Order, 1959, paid at the rate of 2s. 7d. the gallon, be 2s. 7d. the gallon,

in lieu of the rate allowable immediately before the 12th day of May, 1965, by virtue of subsection (5) of section 16 of the Act of 1964.

(6) The duty of excise imposed by section 21 of the Act of 1935 shall, in respect of hydrocarbon oil chargeable with that duty which is sent out, on or for sale or otherwise, from the premises of the manufacturer thereof on or after the 12th day of May, 1965, or is used by such manufacturer on or after that date for any purpose other than the manufacture or production of hydrocarbon oil, be charged, levied and paid at the rate of 2s. 7d. the gallon in lieu of the rate specified in subsection (6) of section 16 of the Act of 1964.

(7) As on and from the 12th day of May, 1965, the rate of any rebate allowed under subsection (4) of section 21 of the Act of 1935, in respect of hydrocarbon oil on which such rebate is allowable and on which the excise duty mentioned in subsection (6) of this section was paid at the rate of 2s. 7d. the gallon, shall be 2s. 7d. the gallon in lieu of the rate allowable immediately before the 12th day of May, 1965, by virtue of subsection (7) of section 16 of the Act of 1964.

(8) As on and from the 12th day of May, 1965, the rate of any repayment allowed under subsection (8) of section 10 of the Finance Act, 1957, in respect of hydrocarbon oil on which such repayment is allowable and on which either—

(a) the excise duty mentioned in subsection (6) of this section was paid at the rate of 2s. 7d. the gallon, or

(b) the customs duty mentioned in subsection (4) of this section was paid at the rate of 2s. 7d. the gallon or 2s. 8d. the gallon,

shall be 1s. 0d. the gallon in lieu of the rate allowable immediately before the 12th day of May, 1965.

15 Tobacco.

15.—(1) The duty of customs on tobacco imposed by section 20 of the Finance Act, 1932, shall, as on and from the 12th day of May, 1965, be charged, levied and paid at the several rates specified in Part I of the Second Schedule to this Act in lieu of the several rates specified in Part I of the Third Schedule to the Finance Act, 1964.

(2) The duty of excise on tobacco imposed by section 19 of the Finance Act, 1934, shall, as on and from the 12th day of May, 1965, be charged, levied and paid at the several rates specified in Part II of the Second Schedule to this Act in lieu of the several rates specified in Part II of the Third Schedule to the Finance Act, 1964.

(3) The rebate on hard pressed tobacco mentioned in subsection (2) of section 17 of the Finance Act, 1940, shall, in respect of any such tobacco sold and sent out for use within the State by any licensed manufacturer on or after the 12th day of May, 1965, be at the rate of one pound three shillings and nine pence per pound.

16 Wine.

16.—(1) There shall be charged, levied and paid as on and from the 12th day of May, 1965, a duty of customs at the rate of five shillings and ten pence per gallon on all wine imported into the State in addition to the duty chargeable under section 5 of the Finance Act, 1948, and section 14 of the Finance Act, 1949.

(2) Section 24 of the Finance Act, 1933, shall not apply or have effect in relation to the duty of customs imposed by this section.

17 Amendment of section 38 of Finance Act, 1932.

17.—Section 38 of the Finance Act, 1932, is hereby amended by the insertion of “then, provided that the Minister for Industry and Commerce so consents,” before “the Revenue Commissioners may”.

18 Pawnbrokers' licences.

18.—On and after the 1st day of August, 1965, excise duty, at the rates specified in the Table annexed to this section, shall be charged, levied and paid for and upon every licence granted under section 8 of the Pawnbrokers Act, 1964, to carry on the business of a pawnbroker.

TABLE	Rate of duty.
In the case of a licence granted to carry on the business of a pawnbroker at a particular premises in the County Borough of Dublin or in the Borough of Dún Laoghaire	£50.
In the case of a licence granted to carry on the business of a pawnbroker at a particular premises in any other part of the State	£10.

19 Amendment of section 1 (2) (b) of Finance (Excise Duties) (Vehicles) Act, 1952.

19.—(1) Paragraph (b) of subsection (2) of section 1 of the Finance (Excise Duties) (Vehicles) Act, 1952, is hereby amended by the substitution of “three pounds or less” for “five shillings”.

(2) Subsection (1) of this section shall come into operation on the 1st day of March, 1966.

PART III. Death Duties.

20 Dispositions in favour of certain companies, etc.

20.—(1) In this section—

“company” means a body corporate (wherever incorporated)—

(a) in which the number of shareholders (excluding employees who are not directors of the company and any shareholder who is such as nominee of a beneficial owner of shares) is not more than fifty,

(b) which has not issued any of its shares as a result of a public invitation to subscribe for shares, and

(c) which is under the control of not more than five persons;

“company controlled by the deceased” means a company which was under the control of any one or more of the deceased, the relatives of the deceased, nominees of the deceased, or nominees of the relatives of the deceased—

(a) in a case in which the deceased died two years or more after the passing of this Act, within the period of five years before the death;

(b) in any other case, within the period commencing three years before the passing of this Act and ending at the death;

“control” means, in relation to a body corporate, the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person;

“deceased” means a person who dies after the passing of this Act;

“disposition” has the same meaning as in section 27 and section 32 of the Finance Act, 1941, and also includes a payment of money;

“income” in relation to a company includes profits arising from trade;

“nominee” means a person (including a trustee) who may be required to exercise his voting power on the directions of, or holds shares directly or indirectly on behalf of, another person;

“non-trading company” means a company the income whereof in the twelve months preceding the death of the deceased consisted mainly of income which, if the company were an individual, would not be earned income as defined in subsection (3) of section 14 of the Income Tax Act, 1918;

“relative” means a husband or wife, ancestor, lineal descendant, or brother or sister or descendant of a brother or sister.

(2) For the purposes of this section—

(a) a company shall be deemed to be under the control of not more than five persons if any five or fewer persons together exercise, or are able to exercise, or are entitled to acquire, control, whether direct or indirect, of the company and for this purpose persons who are relatives of one another, persons who are nominees of any other person together with that other person, persons in partnership and persons interested in any shares or obligations of the company which are subject to any trust or are part of the estate of a deceased person shall respectively be treated as a single person, and

(b) a company which is controlled by any one or more of the deceased and relatives of the deceased shall be regarded as being itself a relative of the deceased.

(3) (a) Where the deceased has, either before or after the passing of this Act, made a disposition of property in favour of a company controlled by the deceased, the property shall, for all purposes of estate duty, be deemed to be property taken by the company under a disposition operating as an immediate gift inter vivos within the meaning of paragraph (c) of subsection (1) of section 2 of the Finance Act, 1894, and any consideration received by the deceased in relation thereto shall not be treated as consideration for the purpose either of section 3 of the Finance Act, 1894, or of subsection (1) of section 7 of that Act.

(b) Where the consideration received by the deceased for a disposition to which paragraph (a) of this subsection applies and which was made within five years of his death, or property representing such consideration, is liable to estate duty in connection with his death, the following provision shall have effect: In determining the value for estate duty purposes of the property taken under the disposition there shall be deducted, from the value which would be liable to duty if this paragraph had not been enacted, the value on which estate duty is payable of the consideration or of the property representing the consideration.

(4) (a) Where—

(i) the deceased had at any time, whether before or after the passing of this Act, made a disposition of property in favour of a company controlled by the deceased, and

(ii) he was at any time within five years of his death in receipt or enjoyment of income or benefits from the company other than dividends or interest on stock, shares, or debentures of the company,

he shall be deemed to have had an interest ceasing on his death in the net assets of the company within the meaning of paragraph (b) of subsection (1) of section 2 of the Finance Act, 1894, with the exclusion from that paragraph of the words “holder of an office, or”.

(b) The interest to which paragraph (a) of this subsection refers shall be deemed to be an annuity equivalent to the average annual amount received or enjoyed by way of income or benefits in the relevant period, that is to say, the period of five years immediately preceding the death of the deceased and in relation to the said interest the following provisions shall apply:

(i) where the benefits enjoyed consist of or include the occupation or possession of lands or chattels, the value of the occupation or possession shall be determined in the same manner as the value of similar benefits is determined under the provisions of subsection (5) of section 21 of this Act;

(ii) where the income or benefits purport to be or to include remuneration for services rendered by the deceased to the company, the Revenue Commissioners shall deduct from the said average annual amount such sum as appears to them to be reasonable remuneration in all the circumstances of the case.

(c) In the application of subsection (7) of section 7 of the Finance Act, 1894, to the cesser of an interest to which paragraph (a) of this subsection refers—

(i) the annual net income of the company shall be deemed to be the average of the total net income received in all accounting years or parts of accounting years falling within the relevant period referred to in paragraph (b) of this subsection;

(ii) the net value of the assets of the company shall be computed by deducting, from the principal value of the gross assets of the company at the date of death of the deceased, the liabilities of the company other than debts or liabilities due to a relative of the deceased which were not bona fide incurred for full consideration in money or money's worth given by the relative to the company.

(5) Where there pass on a death securities, whether stock or shares or debentures, in a non-trading company which is a company controlled by the deceased, the value, for all purposes of death duties, of the securities shall be such sum as would have been payable in respect of them to their owner if the company had been voluntarily wound up and all the assets realised on the date in relation to which the value is to be determined.

Where the assets of the company include securities of a second non-trading company, the value shall be ascertained on the basis that the second company is also voluntarily wound up and its assets realised on the relevant date, and if the assets of the second company include securities of a third non-trading company, the value shall be ascertained on the basis that the third company is also voluntarily wound up and its assets realised on the relevant date, and so on.

In determining such sum, no allowance shall be made for the costs of winding up any company or of realising its assets.

(6) Where any one or more of the deceased and relatives of the deceased had, directly or indirectly, control of a company by reason of the ownership of shares—

(a) in a case in which the deceased died two years or more after the passing of this Act, within the period of five years before the death,

(b) in any other case, within the period commencing three years before the passing of this Act and ending at the death,

the value of each such share passing or deemed to pass on the death of the deceased under his will or intestacy or by reason of a disposition made by him shall, for all purposes of death duties, be determined as if it formed part of a group of shares sufficient in number to give to the owner of the group control of the company.

(7) Where amongst the property passing on a death there is included a debt due to the deceased by a company controlled by the deceased, the value of the debt for all purposes of death duties shall be determined on the basis that the debt was immediately payable on the date in relation to which the value is to be ascertained.

(8) A disposition to or for the benefit of a relative of the deceased made by a company controlled by the deceased, where at the time of the disposition or at any time within a period of one year prior thereto the deceased alone had control of the company, shall, for all purposes of death duties, be deemed to be a disposition made by the deceased to or for the benefit of the relative, and any consideration for the disposition given to the company shall be deemed to be consideration given to the deceased in relation to the disposition so deemed to be made by him.

21 Discretionary trusts.

21.—(1) In this section—

“beneficiary” means a person who is an object of the trust referred to in subsection (2) of this section;

“market value” means the price which, in the opinion of the Revenue Commissioners, the property to which subsection (5) of this section relates would fetch if sold in the open market;

“payment” includes any disposition of property in favour of a beneficiary;

“relevant period” means, in relation to a deceased person, the period of five years prior to the date of his death or the period from the date of the commencement of the discretionary trust up to the date of his death, whichever is the shorter.

(2) Where property is vested in a trustee upon trusts under which the income or capital of the property may be paid to one or more of a number or of a class of persons as the trustee or any other person may, at his discretion, select and one or more of those persons dies or die during the continuance of the discretionary trust and after the passing of this Act, any person so dying shall, for all purposes of estate duty, be deemed to have had an interest limited to cease on his death in the property.

(3) The interest to which subsection (2) of this section refers shall be deemed to have been an annuity equivalent to the average annual amount of the aggregate of all payments made out of the capital or income of the property to the deceased person or received or enjoyed by him during the relevant period or made to or received or disposed of by any other person on his behalf during that period, subject however to the following subsections of this section.

(4) A payment out of the capital of the trust property shall not be treated as a payment for the purpose of subsection (3) of this section save where there is a trust or power to accumulate income as an addition to the capital of the trust property and then only to the extent to which the payment does not exceed the amount of income accumulated to the date of such payment.

(5) If at any time during the relevant period the deceased person had been in occupation or possession of land or chattels subject to the discretionary trust otherwise than for full consideration in money or money's worth given by him and, after the termination of the occupation or possession, the land or chattels, or property representing the land or chattels, continues to be subject to the discretionary trust, the following provision shall have effect for the purpose of determining the amount of the annuity referred to in subsection (3) of this section:

For each year or part of a year during which the deceased person was the only beneficiary in occupation or possession, the occupation or possession shall be deemed to have been a payment of income at the annual rate of six per cent. of the market value of the land or chattels (as the case may be) at the date of the termination of the occupation or possession. For each year or part of a year during which a number of beneficiaries including the deceased person was in occupation or possession, the deceased person's occupation or possession shall be deemed to have been a payment of income at an annual rate of six (divided by the number of beneficiaries including the deceased person) per cent. of such market value.

(6) In relation to property in which an interest is by this section deemed to have subsisted, paragraph (b) of subsection (1) of section 2 of the Finance Act, 1894, shall have effect as if the words “holder of an office, or” were omitted.

22 Amendment of section 2 (2) of Finance Act, 1894.

22.—(1) In this section “the Principal Act” means the Finance Act, 1894.

(2) The exemption from estate duty applicable by virtue of subsection (2) of section 2 of the Principal Act shall not apply to property other than land situate out of the State which, by the law of the country in which it is situate, is or is deemed to be immovable property and which passes or is deemed to pass on a death occurring after the passing of this Act where either—

(a) the death is that of a person dying domiciled in the State and the property passes under his will or intestacy or by survivorship or is deemed to pass by reference to being the subject matter of a gift inter vivos made, whether before or after the passing of this Act, by him, or

(b) the property passes or is deemed to pass under or by virtue of a disposition made, whether before or after the passing of this Act, by a person who, at the date when the disposition took effect, was domiciled in the State or in the area now comprised in the State or under a disposition made, whether before or after the passing of this Act, directly or indirectly, on behalf of or at the expense of or out of funds provided by a person who at the said date was domiciled as aforesaid.

(3) Paragraph (b) of subsection (2) of this section shall not apply in relation to the death of the disponer where—

(a) the disponer dies domiciled outside the State, and

(b) the disposition constitutes an immediate gift inter vivos made, whether before or after the passing of this Act, by him.

(4) As respects property to which subsection (2) of this section applies, the following provisions shall have effect:

(a) the proviso to subsection (5) of section 7 of the Principal Act and subsection (3) of section 60 of the Finance (1909-10) Act, 1910, shall not apply;

(b) where the deceased was competent to dispose of such property within the meaning of the Principal Act, his executor (as defined by paragraph (d) of subsection (1) of section 22 of that Act) shall, in addition to any other person, be accountable for the duty and subsection (4) of section 8 of the Principal Act shall have effect as if the words referring to the executor not being accountable were omitted;

(c) the charge for duty thereon by virtue of subsection (1) of section 9 of the Principal Act shall extend to assets which form the proceeds of any disposition of the property or otherwise for the time being directly or indirectly represent it and the proviso to that subsection and any other enactment relating to the charge imposed under that section shall have effect accordingly.

23 Extension of section 30 of Finance Act, 1941, etc.

23.—(1) Where, after the passing of this Act, a person who has an interest in property limited to cease on a death as defined by section 27 of the Finance Act, 1941, acquires the property or all or any other interests therein, the acquisition shall be deemed to be a determination of the interest so limited to cease as aforesaid, within the meaning of section 30 of that Act.

(2) Where an acquisition to which subsection (1) of this section relates has, by way of purchase within five years of the death whereon the interest was limited to cease, been made either by the deceased or out of or by means of any property which would have passed or have been deemed to pass on his death if he had died immediately before the said purchase, then, a sum of money equivalent to the consideration given for the purchase shall be deemed for all purposes of estate duty to be property taken under a disposition made by the deceased within five years of his death purporting to operate as a gift inter vivos to the person from whom the purchase was made.

(3) Where—

(a) at any time after the passing of this Act and within five years before a death, being a time when there was in any property an interest limited to cease on the death as defined in section 27 of the Finance Act, 1941, a purchase of another interest in that property expectant on or subject to the interest so limited has been made either by the deceased or out of or by means of any property which would have passed for the purposes of estate duty on his death if he had died immediately before the purchase,

(b) the other interest passes or is deemed to pass or would, but for the provisions of this subsection, so pass or be deemed to pass on the death for the purposes of estate duty, and

(c) subsection (1) of this section does not apply to the purchase of the other interest,

there shall be deemed to be included in the property passing on the death in lieu of and substitution for the said other interest a sum of money equivalent to the consideration given for the purchase and the said other interest shall be excluded from the property so passing.

(4) Where the interest limited to cease on a death to which subsection (1) or paragraph (a) of subsection (3) of this section applies is such that on the cesser of that interest the property in which it subsisted is to be treated for the purposes of estate duty as passing to a particular or limited extent only then the consideration for the purchase to which subsection (2) of this section or the said paragraph (a), as the case may be, refers shall be treated for the purpose of this section as reduced to a corresponding extent.

(5) A sum of money which under this section is deemed to pass on a death shall, for the purposes of subsection (10) of section 7 of the Finance Act, 1894, be treated as distinct from any other property passing or deemed to pass on the death.

(6) Any property or any interest therein which was the subject matter of an acquisition to which the foregoing subsections apply shall not, in relation to any other property passing or deemed to pass on the death, be regarded as consideration within the meaning of section 3 of the Finance Act, 1894.

24 Benefits accruing pursuant to superannuation schemes.

24.—(1) (a) The provisions of this subsection shall have effect in relation to a death benefit payable under a non-contributory superannuation scheme.

(b) A death benefit shall be deemed—

(i) for all purposes of estate duty to be an interest purchased or provided by the deceased and to pass by reason of a disposition made by him,

(ii) for all purposes of succession duty to be a succession derived from the deceased as predecessor and from no other person.

(c) Where a death benefit is payable to all or any one or more of a class of persons, each such person shall be deemed to have become entitled on the death to all payments made to him notwithstanding that a power of appointment, selection or nomination in respect of the payments was vested in any person.

(d) (i) Where the aggregate value of all death benefits payable on a death does not exceed £5,000, the benefits shall, to the extent to which they become payable to or for the benefit of the widow or the dependent children of the deceased, be exempt from estate duty.

(ii) Where the aggregate value of death benefits payable on a death to or for the benefit of the widow or dependent children of the deceased exceeds £5,000, the estate duty chargeable in respect of such benefits shall not exceed the sum by which such value exceeds £5,000, but no reduction under this paragraph of the duty chargeable on a death benefit shall effect any reduction of the estate duty on other property under subsection (1) of section 13 of the Finance Act, 1914, or paragraph (b) of subsection (2) or subsection (3) of section 13 of the Finance Act, 1955.

(e) In a case in which a death benefit consists of property other than money, any references in this section to a benefit being payable or to payments shall be construed accordingly.

(f) In this subsection—

“death benefit” means any benefit which accrues pursuant to a superannuation scheme on or in connection with a death, occurring after the passing of this Act, during service or after retirement;

“the deceased” means the person on or in connection with whose death a death benefit accrues;

“dependent child” means a child (including a child adopted under the provisions of the Adoption Acts, 1952 and 1964) who had not attained the age of sixteen years at the date of the death of the deceased or who was then receiving full time instruction at any university college, school or other educational establishment;

“non-contributory”, in relation to a superannuation scheme, means that no monetary contribution has been made to the scheme by the deceased;

“superannuation scheme” includes any arrangement connected with employment;

“employment” includes employment as a director of a body corporate.

(2) (a) The provisions of paragraph (d) of subsection (1) of this section shall apply to death benefits payable under a superannuation scheme other than a non-contributory superannuation scheme, to or for the benefit of the widow or dependent children of the deceased.

(b) In this subsection “death benefits”, “superannuation scheme”, “non-contributory”, “dependent children” and “the deceased” have the same meanings as in subsection (1) of this section.

25 Cesser of proviso to section 4 of Finance Act, 1894, except with respect to certain property.

25.—(1) The proviso to section 4 of the Finance Act, 1894, shall cease to have effect as regards property which passes or is deemed to pass on a death occurring after the passing of this Act.

(2) Subsection (1) of this section shall not apply to property as to which it is proved to the satisfaction of the Revenue Commissioners that it did not pass and is not deemed, by this or any other Act, to pass under or as a consequence, direct or indirect, of a disposition made by the deceased.

(3) For the purposes of this section “disposition” includes a payment of money.

26 Provisions relating to certain policies of assurance.

26.—In relation to a policy of assurance to which subsection (1) of section 11 of the Customs and Inland Revenue Act, 1889, applies and which was indefeasibly vested in a donee before the commencement of the period (in this section referred to as the revelant period) of five years ending at the death of the assured, the following provisions shall have effect if the assured dies after the passing of this Act:

(a) a part of the money received under the policy shall be excluded from the property passing or deemed to pass on the death of the assured and that part shall consist of:

(i) so much of that money as is equal to the price which, in the opinion of the Revenue Commissioners, the policy would have fetched if sold in the open market on the commencement of the relevant period, and

(ii) if any of the premiums paid on the policy during the relevant period were premiums not paid by the assured, so much of the balance of that money as bears to the whole of that balance the same proportion as the total of those premiums bears to the total of all the premiums paid on the policy during the relevant period;

(b) such part of the money received under the policy as remains after the exclusion under the foregoing paragraph shall be treated for all purposes of estate duty as made up of or including the gifts deemed under the next paragraph to have been made by the assured to the donee,

(c) the assured shall be deemed to have made, on each date during the relevant period on which he paid a premium on the policy, a gift to the donee of so much of the part referred to in the foregoing paragraph of the money received under the policy as bears to the whole of that part the same proportion as the premium bears to the total of all the premiums paid by the assured on the policy during the relevant period.

27 Amendment of section 59 of Finance (1909-10) Act, 1910, and certain other enactments.

27.—(1) In subsection (1) of section 59 of the Finance (1909-10) Act, 1910, “five years” is hereby substituted for “three years” in both places where the latter words occur.

(2) In subsection (2) of section 59 of the Finance (1909-10) Act, 1910 “five hundred pounds” is hereby substituted for “one hundred pounds”.

(3) In—

(i) paragraph (e) of subsection (1) of section 2 of the Finance Act, 1894,

(ii) paragraph (b) of subsection (3) of section 24 of the Finance Act, 1940,

(iii) subsection (4) of section 25 of that Act,

(iv) subsection (2) of section 30 of the Finance Act, 1941,

(v) subsection (1) of section 24 of the Finance Act, 1961, and

(vi) paragraph (b) of subsection (3) of that section, “five years” is hereby substituted for “three years”.

(4) In determining, for estate duty purposes, the value of any property which is deemed to pass on a death—

(a) as property taken under a disposition purporting to operate as an immediate gift inter vivos within the meaning of paragraph (c) or paragraph (e) of subsection (1) of section 2 of the Finance Act, 1894, or

(b) under the provisions of subsection (1) of section 30 of the Finance Act, 1941,

being a death taking place in the third, fourth or last year of the five-year period, the principal value of the property shall be reduced—

(i) by fifteen per cent. thereof, if the death takes place in the third year,

(ii) by thirty per cent., if the death takes place in the fourth year,

(iii) by sixty per cent., if the death takes place in the fifth year.

In this subsection “the five-year period” means the period of five years beginning with the relevant disposition of property or the relevant disposition or determination of the limited interest, as the case may be.

(5) Where, for estate duty purposes, the aggregate value or amount of gifts made to a donee within five years prior to the death of the donor exceeds £500, the estate duty chargeable in respect of the gifts shall not exceed the sum by which such value or amount exceeds £500, but no reduction under this subsection of the duty chargeable on a gift shall affect any reduction of the estate duty on other property under subsection (1) of section 13 of the Finance Act, 1914, or paragraph (b) of subsection (2) or subsection (3) of section 13 of the Finance Act, 1955.

(6) This section shall have effect only in cases in which the deceased dies after the passing of this Act and the relevant disposition, surrender, assurance, divesting, determination or other transaction was made or effected after or within three years before such passing.

28 Amendment of section 59 (2) of Finance (1909-10) Act, 1910, section 27 (a) of Finance Act, 1938, and section 24 (3) (a) of Finance Act, 1961.

28.—In relation to a disposition or gift made, whether before or after the passing of this Act, by a person dying after such passing—

(i) subsection (2) of section 59 of the Finance (1909-10) Act, 1910,

(ii) paragraph (a) of section 27 of the Finance Act, 1938, and

(iii) paragraph (c) of subsection (3) of section 24 of the Finance Act, 1961,

shall be read as if there were inserted in each immediately after the word “marriage” the words “to or for the benefit of a party to the marriage or of issue of the marriage”.

29 Abatement of estate duty.

29.—(1) In this section—

“benefit” means all property and all interests in property passing or accruing to a dependant on the death of the deceased in respect of which estate duty is payable;

“child” means a child (including a child adopted under the provisions of the Adoption Acts, 1952 and 1964) of the deceased who was living at his death and who had not then attained the age of sixteen years or who was then receiving full time instruction at any university college, school or other educational establishment;

“deceased” means a person dying after the passing of this Act domiciled in the State;

“dependant” means the widow or child;

“widow” except in subsection (4), means the widow of the deceased,

(2) Where the widow is the only dependant entitled to a benefit on the death of the deceased, any estate duty payable in respect of such benefit shall be abated by the sum of £250 together with a sum of £150 in respect of each child.

(3) Where more than one dependant, including the widow, are entitled to benefits, any estate duty payable in respect of such benefits shall be abated by the following amounts:

(a) in relation to the widow's benefit, by a sum of £250 together with a sum of £150 for each child not entitled to a benefit;

(b) in relation to a child's benefit, by the sum of £150.

(4) In a case where the deceased is a widow, any estate duty payable in respect of a benefit shall be abated by the sum of £150.

(5) Subsections (2) to (4) of this section shall have effect subject to the proviso that—

(a) in a case in which the amount of a benefit is not affected by a liability to estate duty arising in connection with the death of the deceased, no abatement shall be made under those subsections in respect of that benefit;

(b) in a case in which the amount of a benefit is affected by such a liability and the extent to which it is so affected is of an amount which is less than such abatement under those subsections in respect of the benefit as would be appropriate apart from this paragraph, the abatement under those subsections in respect of the benefit shall be reduced to that amount.

(6) Subsections (2) to (5) of this section shall have effect subject to the proviso that they shall not apply where the net value of all property passing or deemed to pass on the death of the deceased in respect of which estate duty is payable exceeds £15,000.

30 Abolition of legacy and succession duty in certain cases.

30.—(1) The legacy and succession duty payable at the rate of one per cent. and the additional succession duty at the rate of ten shillings per cent. shall not be chargeable on a legacy derived from a testator or intestate dying after the passing of this Act or on a succession conferred after such passing.

(2) For the purposes of this section “legacy” includes residue and share of residue.

(3) The foregoing provisions of this section shall not operate to prevent the grant of an exemption which would be lawful if this section had not been enacted.

PART IV. Stamp Duties.

31 Relief from capital and transfer stamp duty in case of reconstructions or amalgamations of companies.

31.—(1) Where it is shown to the satisfaction of the Revenue Commissioners that there exists a scheme for the bona fide reconstruction of any company or companies or the amalgamation of any companies and that, in connection with the scheme, there exist the following conditions, that is to say—

(a) a company with limited liability is to be registered, or since the passing of this Act a company has been established by Act of the Oireachtas, or the nominal share capital of a company has been increased;

(b) the company (in this section referred to as the transferee company) is to be registered or has been established or has increased its capital with a view to the acquisition either of the undertaking of, or of not less than ninety per cent. of the issued share capital of, a particular existing company;

(c) the consideration for the acquisition (except such part thereof as consists in the transfer to or discharge by the transferee company of liabilities of the existing company) consists as to not less than ninety per cent. thereof—

(i) where an undertaking is to be acquired, in the issue of shares in the transferee company to the existing company or to holders of shares in the existing company; or

(ii) where shares are to be acquired, in the issue of shares in the transferee company to the holders of shares in the existing company in exchange for the shares held by them in the existing company;

then, subject to the provisions of this section,—

(A) the nominal share capital of the transferee company, or the amount by which the capital of the transferee company has been increased, as the case may be, shall, for the purpose of computing the stamp duty chargeable in respect of that capital, be treated as being reduced by either—

(I) an amount equal to the amount of the share capital of the existing company or, in the case of the acquisition of a part of an undertaking, equal to such proportion of the said share capital as the value of that part of the undertaking bears to the whole value of the undertaking; or

(II) the amount to be credited as paid up on the shares to be issued as such consideration as aforesaid and on the shares, if any, to be issued to creditors of the existing company in consideration of the release of debts (whether secured or unsecured) due or accruing due to them from the existing company or of the assignment of such debts to the transferee company,

whichever amount is the less; and

(B) stamp duty under the heading “Conveyance or Transfer on Sale” in the First Schedule to the Stamp Act, 1891, shall not be chargeable on any instrument made for the purposes of or in connection with the transfer of the undertaking or shares, or on any instrument made for the purposes of or in connection with the assignment to the transferee company of any debts, secured or unsecured, of the existing company, nor shall any such duty be chargeable under section 12 of the Finance Act, 1895, on a copy of any Act of the Oireachtas, or on any instrument vesting, or relating to the vesting of, the undertaking or shares in the transferee company:

Provided that—

(a) no such instrument shall be deemed to be duly stamped unless either it is stamped with the duty to which it would but for this section be liable or it has in accordance with, the provisions of section 12 of the Stamp Act, 1891, been stamped with a particular stamp denoting either that it is not charge able with any duty or that it is duly stamped; and

(b) in the case of an instrument made for the purposes of or in connection with a transfer to a company within the meaning of the Companies Act, 1963, the provisions of paragraph (B) of this subsection shall not apply unless the instrument is either—

(i) executed within a period of twelve months from the date of the registration of the transferee company or the date of the resolution for the increase of the nominal share capital of the transferee company, as the case may be; or

(ii) made for the purpose of effecting a conveyance or transfer in pursuance of an agreement which has been filed, or particulars of which have been filed, with the registrar of companies within the said period of twelve months; and

(c) the foregoing provision with respect to the release and assignment of debts of the existing company shall not, except in the case of debts due to banks or to trade creditors, apply to debts which are incurred less than two years before the proper time for making a claim for exemption under this section.

(2) For the purposes of a claim for exemption under paragraph (B) of subsection (1) of this section, a company which has, in connection with a scheme of reconstruction or amalgamation, issued any unissued share capital shall be treated as if it had increased its nominal share capital.

(3) A company shall not be deemed to be a particular existing company within the meaning of this section unless it is provided by the memorandum of association of, or Act establishing, the transferee company that one of the objects for which the company is formed is the acquisition of the undertaking of, or shares in, the existing company, or unless it appears from the resolution, Act or other authority for the increase of the capital of the transferee company that the increase is authorised for the purpose of acquiring the undertaking of, or shares in, the existing company.

(4) In a case where the undertakings of or shares in two or more companies are to be acquired, the amount of the reduction to be allowed under this section in respect of the stamp duty chargeable in respect of the nominal share capital or the increase of the capital of a company shall be computed separately in relation to each of those companies.

(5) (a) Where a claim is made for exemption under this section, the Revenue Commissioners may require the delivery to them of a statutory declaration in such form as they may direct, made by a solicitor of the Courts of Justice, and of such further evidence, if any, as they may require.

(b) The powers conferred on the Revenue Commissioners by paragraph (a) of this subsection shall be in addition to and not in substitution for the powers conferred on them by section 12 of the Stamp Act, 1891.

(6) If—

(a) where any claim for exemption from duty under this section has been allowed, it is subsequently found that any declaration or other evidence furnished in support of the claim was untrue in any material particular, or that the conditions specified in subsection (1) of this section are not fulfilled in the reconstruction or amalgamation as actually carried out; or

(b) where shares in the transferee company have been issued to the existing company in consideration of the acquisition, the existing company within a period of two years from the date, as the case may be, of the registration or establishment, or of the authority for the increase of the capital, of the transferee company ceases, otherwise than in consequence of reconstruction, amalgamation or liquidation, to be the beneficial owner of the shares so issued to it; or

(c) where any such exemption has been allowed in connection with the acquisition by the transferee company of shares in another company, the transferee company within a period of two years from the date of its registration or establishment or of the authority for the increase of its capital, as the case may be, ceases, otherwise than in consequence of reconstruction, amalgamation or liquidation, to be the beneficial owner of the shares so acquired;

the exemption shall be deemed not to have been allowed, and an amount equal to the duty remitted shall forthwith be a debt due from the transferee company to the Minister for Finance for the benefit of the Central Fund and be payable to the Revenue Commissioners, and the said amount (together with interest thereon at the rate of five per cent. per annum in the case of duty remitted under paragraph (A) of subsection (1) of this section from the date of the registration or establishment of the transferee company or the increase of its capital, as the case may be, and in the case of duty remitted under paragraph (B) of the said subsection from the date on which it would have become chargeable if this Act had not passed) shall be recoverable at the suit of the Attorney-General in any court of competent jurisdiction.

(7) If in the case of any scheme of reconstruction or amalgamation the Revenue Commissioners are satisfied that at the proper time for making a claim for exemption from duty under subsection (1) of this section there were in existence all the necessary conditions for such exemption other than the condition that not less than ninety per cent. of the issued share capital of the existing company would be acquired by the transferee company, the Commissioners may, if it is proved to their satisfaction that not less than ninety per cent. of the issued capital of the existing company has under the scheme been acquired within a period of six months from the earlier of the two following dates, that is to say—

(a) the last day of the period of one month after the first allotment of shares made for the purposes of the acquisition; or

(b) the date on which an invitation was issued to the shareholders of the existing company to accept shares in the transferee company;

and on production of the instruments on which the duty paid has been impressed, repay such an amount of duty as would have been remitted if the said condition had been originally fulfilled.

(8) In this section, unless the context otherwise requires—

references to the undertaking of an existing company include references to a part of the undertaking of an existing company;

“shares” includes stock.

PART V. Corporation Profits Tax.

32 Continuance of certain exemptions from corporation profits tax.

32.—The exemptions from corporation profits tax specified in subsection (1) of section 33 of the Finance Act, 1929, shall be given in respect of the period beginning on the 1st day of January, 1965, and ending on the 31st day of December, 1967.

33 Exports relief.

33.—(1) In this section “the Act” means the Finance (Miscellaneous Provisions) Act, 1956.

(2) In subparagraph (b) of the definition of “accounting period” substituted in subsection (2) of section 28 of the Finance Act, 1960, “the 6th day of April, 1970” shall be substituted for “the 6th day of April, 1965”.

(3) Where, apart from the provisions of this section, a company is entitled to claim relief under Part III of the Act, by virtue of subsection (2) of section 29 of the Finance Act, 1960, in respect of any accounting period or part of an accounting period ending before the 6th day of April, 1975, the company may, in lieu of such relief, claim relief under subsection (1) or subsection (3) of section 13 of the Act as if that accounting period or part of an accounting period were an accounting period within the meaning of section 10 of the Act.

(4) Where a company has obtained relief under Part III of the Act by virtue of subsection (3) of this section and is subsequently entitled to relief under subsection (2) of section 29 of the Finance Act, 1960, the last-mentioned relief shall be granted as if any accounting period or part of an accounting period in respect of which relief has been given by virtue of subsection (3) of this section was within the period comprising the company's accounting periods within the meaning of section 10 of the Act:

Provided that no relief shall be given in respect of any accounting period or part of an accounting period beginning later than fifteen years after the day as from which the company first was entitled to claim relief under Part III of the Act or in respect of any accounting period or part of an accounting period beginning after the 5th day of April, 1980.

34 Cesser of section 14 of Finance Act, 1944.

34.—Section 14 of the Finance Act, 1944, shall not apply or have effect in relation to any accounting period ending after the 31st day of December, 1964.

35 Provisions in connection with Part IX of Finance Act, 1963.

35.—(1) Where under any of the provisions of section 86, 86A or 86B of the Finance Act, 1963, any amount falls to be treated for the purposes of income tax as income of a company, the amount shall be treated for the purposes of corporation profits tax as if it had been received by the company, on the date by reference to which it falls to be treated as income for the purposes of income tax, as profits or gains arising from lands, tenements or hereditaments forming part of the assets of the company.

(2) Subsection (1) of this section shall have effect in respect of any accounting period ending on or after the 1st day of January, 1965.

PART VI. Turnover Tax.

36 Amendment of section 47 of Finance Act, 1963.

36.—The following subsection is hereby, with effect as on and from the 12th day of May, 1965, substituted for subsection (4) of section 47 of the Finance Act, 1963:

“(4) Where goods are supplied or services are provided by a club or other body of persons in respect of a payment of money by any of its members, then, for the purposes of this Part of this Act,—

(a) in the case of supply of goods, the supply shall be treated as being a sale of the goods in the course of business, the money as being money received in respect of the sale and the club or other body of persons as being the seller, and

(b) in the case of provision of services, the provision shall be treated as being in the course of business.”

37 Amendment of section 48 of Finance Act, 1963.

37.—(1) The following subsection is hereby, with effect as on and from the 12th day of May, 1965, inserted in section 48 of the Finance Act, 1963, after subsection (1):

“(1A) Where in any of the cases mentioned in subsection (1) of this section, the right to receive the whole or any part of the moneys payable in respect of the relevant activity is or becomes vested in a person other than the person specified in that subsection as the accountable person, the person in whom such right is or becomes vested shall be accountable for and liable to pay tax on such moneys as he may receive in respect of the activity.”

(2) In paragraph (c) and in paragraph (f) of subsection (3) of section 48 of the Finance Act, 1963, “£150” is hereby substituted for “£100”.

(3) The following paragraph is hereby inserted in subsection (3) of section 48 of the Finance Act, 1963, after paragraph (f):

“(g) Where a farmer or fisherman sells his own produce or any part thereof by retail, otherwise than in connection with the carrying on of the business of a shop or similar retail business, tax shall not be chargeable and he shall not be accountable for tax in respect of such retail sales unless or until the moneys received by him in respect thereof exceed £150 in each of two successive months and he shall then become accountable for tax immediately on the expiration of the second month; but in the meantime those moneys shall be disregarded for the purposes of paragraph (c) of this subsection.”

(4) The amendments specified in subsections (2) and (3) of this section shall come into operation—

(a) if this Act is passed before or in July, 1965—on the 1st day of August, 1965, and

(b) if it is passed in or after August, 1965—on the 1st day of the month next following that in which it is passed.

38 Amendment of First Schedule to Finance Act, 1963.

38.—(1) In the second paragraph of the First Schedule to the Finance Act, 1963, “other than retail sales” is hereby substituted for “otherwise than in connection with the carrying on of the business of a shop or similar retail business”.

(2) The amendment specified in subsection (1) of this section shall come into operation—

(a) if this Act is passed before or in July, 1965—on the 1st day of August, 1965, and

(b) if it is passed in or after August, 1965—on the 1st day of the month next following that in which it is passed.

39 Determination as to whether activity is exempted.

39.—(1) Where—

(a) it appears to the Revenue Commissioners (whether upon disclosure to them of information which in accordance with the relevant regulations has been furnished to them for the ascertainment of liability to tax of the person concerned or otherwise) that, in computing the taxable turnover of an accountable person in respect of any month, a deduction of moneys has been made on the basis that the activity in relation to which the moneys were received is an exempted activity within the meaning of subsection (2) of section 48 of the Finance Act, 1963, and

(b) the Revenue Commissioners are of opinion that that activity is not such an exempted activity,

the Revenue Commissioners may, at their discretion and without prejudice to any other action which may be taken, serve notice on the person specifying—

(i) the deduction which in their opinion should not have been made in computing taxable turnover for the month in question, and

(ii) the additional tax which would be payable if that deduction had not been made.

(2) Where a notice is served on an accountable person under subsection (1) of this section—

(a) the person may, if he claims that the deduction specified in the notice relates to an exempted activity within the meaning of subsection (2) of section 48 of the Finance Act, 1963, by notice in writing given to the Revenue Commissioners within the period of fourteen days from the service of the notice, require the claim to be referred for decision to the Special Commissioners of Income Tax,

(b) on the expiration of the said period, if no such claim is required to be so referred, or, if such claim is required to be so referred, on determination by the Special Commissioners of Income Tax against the claim, the additional tax specified in the notice shall be recoverable in the same manner and by the like proceedings as if the person had sent, in accordance with the relevant regulations, particulars showing such tax as due by him.

(3) A notice served under subsection (1) of this section may relate to two or more months and to two or more deductions in any month.

40 Procedure where claim is required to be referred to Special Commissioners of Income Tax.

40.—(1) The following provisions shall have effect in relation to claims required to be referred to the Special Commissioners of Income Tax under paragraph (a) of subsection (2) of section 54 of the Finance Act, 1963, or under paragraph (a) of subsection (2) of section 39 of this Act:

(a) the Special Commissioners of Income Tax shall from time to time appoint times and places for the hearing of claims and the Clerk to the Special Commissioners shall give notice of those times and places to the Revenue Commissioners;

(b) the Revenue Commissioners shall give notice in writing to each person (other than a person whose claim has been treated as determined in accordance with subsection (2) of this section) who has given notice of claim of the time and place appointed for the hearing of his claim;

(c) a claim may be heard and determined by one Special Commissioner;

(d) in the case of the neglect or refusal of a person who has given notice of claim to attend before the Special Commissioners at the time and place appointed for the purpose of hearing claims, the claim shall be treated as if the Special Commissioners of Income Tax had determined against it at the time so appointed;

(e) if it is shown by application in writing to the satisfaction of the Special Commissioners of Income Tax that, owing to absence, sickness or other reasonable cause, any person has been prevented from giving notice of claim in due time or from attending at the hearing of the claim on the day fixed for that purpose, they may extend the time for giving notice of claim or postpone the hearing of his claim for such reasonable time as they think necessary or may admit the claim to be made by any agent authorised on his behalf;

(f) an inspector of taxes or such other officer as the Revenue Commissioners shall appoint in that behalf may attend every hearing of claim and shall be entitled—

(i) to be present during all the time of the hearing and at the determination of the claim,

(ii) to produce any lawful evidence against the claim, and

(iii) to give reasons against the claim;

(g) the Special Commissioners of Income Tax shall permit any barrister or solicitor to plead before them on behalf of the claimant or the Revenue Commissioners, either viva voce or in writing, and shall hear any accountant, being any person who has been admitted a member of an incorporated society of accountants;

(h) if it appears to the Special Commissioners of Income Tax by whom the claim is heard, or to a majority of such Commissioners, by examination of the claimant on oath or affirmation, or by other lawful evidence that the claim is justified, they shall determine in favour of the claim but otherwise they shall determine against the claim;

(i) where the Special Commissioners of Income Tax have entertained a claim and, after hearing argument on the claim, have postponed giving their determination either for the purpose of considering the argument or for the purpose of affording to the claimant an opportunity of submitting in writing further evidence or argument, the Special Commissioners may, unless they consider a further hearing to be necessary, cause their determination to be sent by post to the claimant and to the Revenue Commissioners;

(j) where the Special Commissioners have determined a claim, their determination shall be final and conclusive, save that the provisions of the Income Tax Acts relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall, with the necessary modifications, apply in the same manner as in the case of an appeal against an assessment to income tax.

(2) If a person has made a claim under paragraph (a) of subsection (2) of section 39 of this Act and, at any time before the time fixed for hearing his claim by the Special Commissioners of Income Tax, he, or a person acting on his behalf in relation to the claim, notifies the Revenue Commissioners in writing that he desires not to proceed with his claim, the claim shall be treated as if the Special Commissioners of Income Tax had determined against it on the date upon which he so notifies the Revenue Commissioners.

PART VII. Profits or Gains from Dealing in or Developing Land: Income Tax and Sur-tax.

41 Interpretation (Part VII).

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

“control”, in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership;

“development” means, in relation to any land, the construction, demolition, extension, alteration or reconstruction of any building on the land or the carrying out of any engineering or other operation in, on, over or under the land to adapt it for materially altered use; and “develop”, “developing” and “developed” shall be construed correspondingly;

“land” includes any interest in land;

“market value” means, in relation to any property, the price which that property might reasonably be expected to fetch if sold in the open market;

“trading stock” has the same meaning as in Rule 19 of the Rules applicable to Cases I and II of Schedule D;

any reference to the disposal of an interest in land includes a reference to the creation of an interest and any reference to the acquisition of an interest in land includes a reference to the acquisition of an interest which ceases on the acquisition;

any reference to price or consideration in relation to the acquisition or disposal of an interest in land shall, in a case in which a lease is granted, be construed as a reference to the fine, premium or like sum payable for the grant of the lease.

(2) For the purposes of this Part of this Act—

(a) the conveyance or transfer by way of security of any interest in any land or the granting of a lease, for a rent which is the only money consideration, of any land shall not be regarded as involving an acquisition or disposal of an interest in the land, and

(b) an option or other right to acquire or dispose of any interest in any land shall be deemed to be an interest in the land.

(3) (a) Any question whether a person is connected with another shall for the purpose of this Part of this Act be determined in accordance with the following paragraphs of this subsection, any provision that one person is connected with another being taken to mean that they are connected with one another.

(b) A person is connected with an individual if that person is the individual's husband or wife, or is a relative, or the husband or wife of a relative, of the individual or of the individual's husband or wife.

(c) A person, in his capacity as trustee of a settlement, is connected with any individual who in relation to the settlement is a settlor, and with any person who is connected with such an individual.

(d) A person is connected with any person with whom he is in partnership, and with the husband or wife or a relative of any individual with whom he is in partner ship.

(e) A company is connected with another company—

(i) if the same person has control of both, or a person has control of one and persons connected with him, or he and persons connected with him have control of the other; or

(ii) if a group of two or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he is connected.

(f) A company is connected with another person, if that person has control of it or if that person and persons connected with him together have control of it.

(g) Any two or more persons acting together to secure or exercise control of a company shall be treated in relation to that company as connected with one another and with any person acting on the directions of any of them to secure or exercise control of the company.

(h) In this subsection—

“company” includes any body corporate;

“relative” means brother, sister, ancestor or lineal descendant;

“settlement” includes any disposition, trust, covenant, agreement, or arrangement, and any transfer of money or other property or of any right to money or other property;

“settlor”, in relation to a settlement, includes any person by whom the settlement was made or entered into directly or indirectly, and in particular (but without prejudice to the generality of the preceding words of this definition) includes any person who has provided or undertaken to provide funds directly or indirectly for the purpose of the settlement, or has made with any other person a reciprocal arrangement for that other person to make or enter into the settlement.

(4) The provisions of this Part of this Act shall have effect notwithstanding anything in Schedule A or the provisions applicable to that Schedule or in Part IX of the Finance Act, 1963.

42 Extension of Schedule D charge to certain profits from dealing in or developing land.

42.—(1) Without prejudice to any other provision of the Income Tax Acts under which tax is to be charged under Schedule D, tax under that Schedule shall, subject to and in accordance with the provisions of this and the succeeding sections of this Part of this Act, be charged in respect of all profits or gains arising or accruing from any business of dealing in or developing land.

(2) Without prejudice to the generality of the expression “dealing in or developing land”, a business of dealing in or developing land shall be deemed to be carried on where a person having an interest in any land—

(a) disposes of that interest, or of an interest which derives therefrom, after he or a person connected with him has developed the land or secured its development or has entered into any obligation to develop the land or to secure its development,

(b) disposes of that interest, or of an interest which derives therefrom, and the person to whom the disposition is made or a person connected with that person has at or before the time of the disposition entered into a contract (other than a contract with respect to which the Revenue Commissioners, or on appeal the Special Commissioners, are satisfied that the disponor had no knowledge of its existence and that he had no reason for thinking that it existed) for the development of the land, or the disposition is subject to any condition or stipulation as to the development of the land or is made in pursuance of any arrangement for the development of the land,

(c) disposes of an interest which derives from that interest in such circumstances that, apart from this section, the consideration for the disposal would have fallen to be taken into account as a trading receipt of a trade carried on by him if it had been the consideration for the disposal of the full interest acquired by him, or

(d) grants to any person for valuable consideration, other than a payment to which section 88 of the Finance Act, 1963, applies, any right in relation to the development of the land.

Every reference in this subsection to disposing of an interest in, or to the development of, any land includes a reference to disposing of an interest in, or to the development of, any part of that land.

(3) Where a person having acquired an interest in any land disposes of the whole of that interest after he has constructed, reconstructed extended or altered any building on the land, his activities in relation to the land shall, notwithstanding anything in paragraph (a) of subsection (2) of this section, be deemed not to have been carried out in the course of a business of dealing in or developing land where—

(a) the person would, if the said activities were disregarded, not fall to be treated as having carried on, at any time within three years prior to the said disposal, a business of dealing in or developing land, and

(b) either—

(i) in a case in which the building was constructed or reconstructed, the period from the time when the construction or reconstruction was completed to the time when the interest was disposed of was not less than six years and for the whole of that period the person was the sole occupier of the building, or

(ii) the person being an individual, the Revenue Commissioners, or on appeal the Special Commissioners, are satisfied that the building was constructed, reconstructed, extended or altered for exclusive occupation by him as his only or main residence and was in fact so occupied for substantially the whole of the period from the time when the construction, reconstruction, extension or alteration was completed to the time when the interest was disposed of, or

(iii) the Revenue Commissioners, or on appeal the Special Commissioners, are satisfied that the building was constructed or reconstructed for exclusive occupation by the person as a farmhouse or farm building for the purpose of farming the land and was in fact so occupied for substantially the whole of the period from the time when the construction or reconstruction was completed to the time when the interest was disposed of, or

(iv) in a case in which the building was reconstructed, extended or altered, for a period of not less than six years prior to the time when the reconstruction, extension or alteration was completed no part of the building was occupied otherwise than by the person or a parent or child of the person,

and, for the purposes of subparagraph (ii) of paragraph (b) of this subsection, a building shall be deemed to be in the exclusive occupation of an individual as his residence where it is mainly occupied by him or by a parent or child of his as a residence 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.

(4) (a) A business of dealing in or developing land shall be deemed to be a trade within Schedule D, or as the case may be, part of such a trade, and tax in respect of the profits or gains thereof shall be charged under Case I of the said Schedule D accordingly, both where, apart from this section, the business would fall to be regarded as such a trade or part of such a trade if every disposal of an interest in land effected in the course of the business was a disposal of the full interest in the land which the person carrying on the business had acquired and that interest had been acquired by him in the course of the business, as well as where, apart from this section, the business is such a trade or part of such a trade.

(b) In any other case tax in respect of the profits or gains of a business of dealing in or developing land shall be charged under Case VI of Schedule D.

43 Computation under Case I of Schedule D of profits or gains from dealing in or developing land.

43.—(1) Where a business of dealing in or developing land is, or is to be regarded as, a trade within Schedule D or a part of such a trade, the rules and provisions applicable to Case I of that Schedule shall, as respects the computation of the profits or gains of the business, have effect subject to the provisions of subsection (2) of this section.

(2) (a) Any consideration, other than rent or an amount treated as rent under section 86 of the Finance Act, 1963, for the disposal of an interest in any land, or in a part of any land, shall be treated as a consideration for the disposal of trading stock and shall accordingly be taken into account as a trading receipt.

(b) Any interest (hereafter in this subsection referred to as the superior interest) in any land held by the trader which has become trading stock of the trade shall thereafter continue at all times to be such trading stock and the value thereof at any time shall be taken to be an amount equal to the cost to the trader of its acquisition diminished by an amount equal to the cost to the trader of creating any interest (hereafter in this subsection referred to as an inferior interest) to which the superior interest has become subject.

(c) For the purposes of paragraph (b) of this subsection the cost of the acquisition of the superior interest shall, subject to paragraphs (e) and (f) of this subsection, be taken to be the aggregate of the following amounts, that is to say: