Income Tax Act , 1967

519.—(1) A commissioner, sheriff, county registrar, clerk, inspector, assessor, or Collector who acts, or is employed, in the execution of this Act, shall not be liable to any penalty in respect of such execution other than is by this Act provided.

(2) Where any civil or criminal proceeding, against any officer or person employed in relation to any duty of income tax on account of the seizure or detention of any goods, is brought to trial, and a verdict or judgment is given thereupon against the defendant, if the court or judge certifies that there was probable cause for the seizure, the plaintiff shall not be entitled to any damages, besides the goods seized, or the value thereof, nor to any costs, and the defendant shall not be liable to any punishment.

520 Refusal to allow deduction of tax.

520.—(1) A person who refuses to allow a deduction of tax authorised by this Act to be made out of any payment, shall forfeit the sum of £50.

(2) Every agreement for payment of interest, rent, or other annual payment in full without allowing any such deduction shall be void.

521 Admissibility of statements and documents in criminal and tax proceedings.

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

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

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

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

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

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

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

PART XXXVI Sur-Tax, Sur-Tax on Undistributed Income of Certain Companies and Deduction of Sur-Tax from Emoluments

Chapter I Sur-Tax

522 Charge to sur-tax.

522.—(1) In addition to the income tax charged at the rate prescribed for any year there shall be charged, levied, and paid for that year in respect of the income of any individual, the total of which from all sources exceeds the prescribed amount, an additional duty of income tax (in this Act referred to as sur-tax) at the rate or rates prescribed for that year.

In this subsection “prescribed” means prescribed by the Oireachtas.

(2) Sur-tax shall be due and payable on the 1st day of January in the year of assessment, except that sur-tax or any part of sur-tax included in an assessment which is made on or after the said 1st day of January shall be deemed to be due and payable on the day next after the day on which the assessment is made.

523 Deduction in charging sur-tax.

523.—(1) For the purpose of charging sur-tax for any year of assessment there shall be deducted from the total income of an individual an amount equal to the deductions which, in ascertaining the amount of the income on which he is to be charged to income tax for that year of assessment, he is entitled to be allowed under sections 138 (1) (2), 139, 140, 141 and 142.

(2) Where an individual not resident in the State is entitled to a deduction for any year under this section, the deduction shall be reduced in the proportion in which section 153 (2) reduces any relief given him for that year under the provisions specified in subsection (1).

(3) In the case of a husband and wife who are for any year of assessment separately assessed to tax by virtue of an application under section 197 or 198, the following provisions shall apply in relation to any deduction to be made under subsection (1) for that year:

(a) whether or not they are separately assessed to sur-tax, the deduction to be made from their total income shall be the same as if there were no separate assessment;

(b) where they are separately assessed to sur-tax, the resulting relief from sur-tax shall be divided between them by treating their respective incomes as reduced as follows:

(i) the amount (if any) included in the deduction in respect of relief under section 141 (2) or 142 shall be treated as reducing the income of the husband or the wife according as he or she maintains the child, relative, son or daughter, in respect of whom that relief is given,

(ii) subject to subparagraph (i), the deduction shall be treated as reducing their respective incomes rateably,

but so that, if the amount by which the income of either falls to be reduced under subparagraphs (i) and (ii) exceeds the amount of that income, the income of the other shall be treated as reduced by the amount of the excess.

524 Method of estimating income for sur-tax purposes.

524.—(1) For the purposes of sur-tax, the total income of any individual from all sources shall be taken to be the total income of that individual from all sources, estimated in the same manner as the total income from all sources is required to be estimated in a return made in connection with any claim for a deduction from assessable income, but subject to the provisions hereinafter contained.

(2) Where an assessment to income tax has become final and conclusive for the purposes of income tax, the assessment shall also be final and conclusive in estimating total income from all sources for the purposes of sur-tax, and no allowance or adjustment of liability on the ground of diminution of income or loss shall be taken into account in estimating the total income from all sources, unless that allowance or adjustment has been previously made in respect of income tax on an application under the special provisions of this Act relating thereto.

(3) In estimating the income for the purpose of sur-tax—

(a) there shall be deducted in respect of any land on which income tax is charged upon the annual value estimated otherwise than in relation to profits (in addition to any other deduction), any sum by which the assessment is reduced for the purposes of collection, or on which income tax has been repaid under the provisions of this Act in respect of the cost of maintenance, repairs, insurance, and management; and

(b) any income which is chargeable with income tax by way of deduction shall be deemed to be income of the year in which it is receivable, and any deductions allowable on account of any annual sums paid out of the property or profits of the individual, shall be allowed as deductions in respect of the year in which they are payable, notwithstanding that the income or the annual sums, as the case may be, accrued in whole or in part before that year.

(4) In estimating the total income of any individual for the purpose of sur-tax, the amount of any earned income shall be taken to be the full amount of that income without the deduction of any allowance under section 134.

525 Sur-tax to be charged on consideration for certain restrictive covenants, etc.

525.—(1) Where—

(a) an individual who holds, has held or is about to hold an office or employment gives, in connection with his holding thereof, an undertaking (whether absolute or qualified and whether legally valid or not) the tenor or effect of which is to restrict him as to his conduct or activities; and

(b) in respect of the giving of that undertaking by him, or of the total or partial fulfilment of that undertaking by him, any sum is paid, on or after the 14th day of April, 1964, either to him or to any other person; and

(c) apart from this section, the sum paid would neither fall to be treated as income of any person for the purposes of income tax for any year of assessment nor fall to be taken into account as a receipt in computing, for the purposes of income tax for any year of assessment, the amount of any income of, or loss incurred by, any person,

the same results shall follow in relation to sur-tax for the year of assessment in which the said sum is paid as would have followed if the said sum had been paid to the said individual (and not to any other person) as and for the net amount of an annual payment to which the said individual was entitled, being an annual payment chargeable to income tax from the gross amount of which tax had been duly deducted under section 434:

Provided that where the individual has died before the payment of the said sum, so much of the preceding provisions of this subsection as relates to the results which are to follow from the matters specified in paragraphs (a) to (c) shall have effect as if the said sum had been paid immediately before the death.

(2) Where valuable consideration otherwise than in the form of money is given in respect of the giving of, or of the total or partial fulfilment of, any undertaking, the preceding provisions of this section shall apply as if a sum had instead been paid equal to the value of that consideration.

(3) The preceding provisions of this section shall not apply to any sum paid or consideration given if the undertaking in question was given before the 14th day of April, 1964.

(4) Where any sum is paid or valuable consideration given to any person in any year of assessment in respect of the giving of, or of the total or partial fulfilment of, an undertaking given on or after the 14th day of April, 1964, and satisfying the conditions specified in subsection (1) (a) (not being a sum from which tax is duly deducted under any provision of this Act), it shall be the duty of the person paying over the sum or giving the consideration to deliver particulars thereof in writing to the inspector not later than one month after the end of that year, identifying the recipient of the payment or consideration, the undertaking in connection with which it was made or given and the individual who gave that undertaking.

(5) In this section, “office or employment” means any office or employment whatsoever such that the emoluments thereof, if any, are or would be chargeable to income tax under Schedule E, or under Case III of Schedule D in accordance with section 76 (1), for any year of assessment; and references in this section to the giving of valuable consideration do not include references to the mere assumption of an obligation to make over or provide valuable property, rights or advantages, but do include references to the doing of anything in or towards the discharge of such an obligation.

526 Assessment, collection and recovery of sur-tax.

526.—(1) Sur-tax shall be assessed and charged by an inspector.

(2) Every person upon whom a notice is served, in manner prescribed by regulations under this section, by an inspector, requiring him to make a return of his total income from all sources, or, in the case of a notice served upon any person representing an incapacitated, non-resident, or deceased person, of the total income from all sources of the incapacitated, non-resident, or deceased person, shall, whether he is or is not chargeable with sur-tax, make such a return in the form and within the time required by the notice.

(3) It shall be the duty of every person chargeable with sur-tax to give notice that he is chargeable to the Revenue Commissioners before the 30th day of September in the year following the year for which sur-tax is chargeable.

(4) If any person fails to make a return under this section, or if the inspector is not satisfied with any return made under this section, he may make an assessment of sur-tax according to the best of his judgment.

(5) All provisions of this Act relating to persons who are to be chargeable with income tax, and to income tax assessments, and to appeals against those assessments, and to the collection and recovery of income tax, and to cases to be stated for the opinion of the High Court shall, so far as they are applicable, apply to the charge, assessment, collection, and recovery of sur-tax under this section.

(6) An inspector may amend any assessment made under this section or make an assessment or an additional assessment at any time in respect of any year of assessment:

Provided that for the purposes of the charge of sur-tax on the executors or administrators of a deceased person in respect of the profits or gains or income which arose or accrued to him before his death, none of such acts or things shall be done later than the end of the third year after the year of assessment in which the deceased person died in a case in which the grant of probate or letters of administration was made in that year, and none of such acts and things may be done later than the end of the second year after the year of assessment in which such grant was made in any other case, but the foregoing provisions of this subsection shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year of assessment in which the deceased person died, any such act or thing may be done at any time before the expiration of two years after the end of the year of assessment in which the corrective affidavit was lodged.

(7) The Revenue Commissioners may make regulations for the purpose of carrying this section into effect.

527 Delivery of particulars.

527.—An inspector may, whether an assessment to sur-tax has been made or not, require any individual who has been required to make a return of his total income for the purposes of sur-tax to furnish to him within such time as he may prescribe, not being less than twenty-eight days, such particulars as to the several sources of his income and the amount arising from each source, and as to the nature and the amount of any deductions claimed to be allowed therefrom, as he considers necessary.

528 Estimation of certain amounts.

528.—(1) Where—

(a) the total income of an individual from all sources includes income from any source or sources which is to be computed on the basis of the actual amounts receivable in the year of assessment or where any deductions allowable on account of any annual sums paid out of the property or profits of an individual are to be allowed as deductions in respect of the year in which they are payable, and

(b) an assessment to sur-tax is being made before the end of the year of assessment to which such assessment to sur-tax relates,

the inspector in making the assessment shall, in computing the total amount of income assessable to sur-tax, estimate the amount of income from each such source or the amount of any such allowable deductions and, in making any such estimate he shall have due regard to any corresponding amount of income or allowable deductions in the year immediately preceding the year of assessment.

(2) Where—

(a) an estimate has been made under subsection (1),

(b) notice of an appeal against the assessment to sur-tax has not been given, and

(c) the person assessed gives to the inspector within a period of one year from the end of the year of assessment particulars of the correct amount of the income or deductions in respect of which the estimate was made,

the inspector shall adjust the assessment by reference to the difference between the correct amount of income assessable to sur-tax and the amount of the assessment, and any amount of sur-tax overpaid shall be repaid.

529 Payment of reduced amount of sur-tax pending determination of appeal.

529.—Where an appeal relating to sur-tax is taken and the Special Commissioners are of opinion that the amount of sur-tax charged in any assessment exceeds the amount of sur-tax which will be payable when the appeal is finally determined—

(a) the Special Commissioners shall order payment of such reduced amount of sur-tax as in their opinion is just, having regard to the information available,

(b) that reduced amount of sur-tax shall be collected and paid in all respects as if it was sur-tax charged in an assessment which had become final and conclusive,

(c) when the amount of sur-tax correctly chargeable has been finally determined, any balance of sur-tax chargeable in accordance with the determination shall be payable or any tax overpaid shall be repaid, as the case may require.

Chapter II Sur-Tax on Undistributed Income of Certain Companies

530 Undistributed income of companies.

530.—(1) With a view to preventing the avoidance of the payment of sur-tax through the withholding from distribution of income of a company which would otherwise be distributed, it is hereby enacted that where it appears to the Special Commissioners that any company to which this section applies has not, within a reasonable time after the end of any year or other period for which accounts have been made up, distributed to its members in such manner as to render the amount distributed liable to be included in the statements to be made by the members of the company of their total income for the purposes of sur-tax, a reasonable part of its actual income from all sources for the said year or other period, the Commissioners may, by notice in writing to the company, direct that for purposes of assessment to sur-tax, the said income of the company shall, for the year or other period specified in the notice, be deemed to be the income of the members, and the amount thereof shall be apportioned among the members:

Provided that, in determining whether any company has or has not distributed a reasonable part of its income as aforesaid, the Commissioners shall have regard not only to the current requirements of the company's business but also to such other requirements as may be necessary or advisable for the maintenance and development of that business.

(2) Any sur-tax chargeable under this section in respect of the amount of the income of the company apportioned to any member of the company, shall be assessed upon that member in the name of the company, and, subject as hereinafter provided, shall be payable by the company, and all the provisions of this Act and any regulations made thereunder relating to sur-tax assessments and the collection and recovery of sur-tax shall, with any necessary modification, apply to sur-tax assessments and to the collection and recovery of sur-tax charged under this section.

(3) A notice of charge to sur-tax under this section shall in the first instance be served on the member of the company on whom the tax is assessed, and if that member does not within twenty-eight days from the date of the notice elect to pay the tax a notice of charge shall be served on the company and the tax shall thereupon become payable by the company:

Provided that nothing in this subsection shall prejudice the right to recover from the company the sur-tax charged in respect of any member who has elected as aforesaid but who fails to pay the tax by the first day of January in the year of assessment or within twenty-eight days of the date on which he so elected, whichever is later.

(4) Any undistributed income which has been assessed and charged to sur-tax under this section shall, when subsequently distributed, be deemed not to form part of the total income from all sources for the purposes of sur-tax of any individual entitled thereto.

Where a member of the company has been assessed to and has paid sur-tax otherwise than under this section in respect of any income which has also been assessed and upon which sur-tax has been paid under this section, he shall, on proof to the satisfaction of the Special Commissioners of the double assessment, be entitled to repayment of so much of the sur-tax so paid by him as was attributable to the inclusion in his total income from all sources of the first-mentioned income.

(5) Where sur-tax is charged under this section in respect of the income of a company for any year or other period, the Revenue Commissioners shall, on a certificate from the Special Commissioners that the sur-tax has been accounted for, repay to the company the amount of any corporation profits tax paid by the company in respect of the corresponding accounting period or part thereof.

(6) This section shall apply to any company—

(a) which is a company within the meaning of the Companies Act, 1963; and

(b) in which the number of shareholders computed as hereinafter provided is not more than fifty; and

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

(d) which is under the control of not more than five persons.

For the purposes of this subsection—

(i) In computing the number of shareholders of a company there shall be excluded any shareholder who is a trustee or nominee for some person otherwise owning or beneficially interested in shares in the company, or who is an employee of the company, or is the wife or the unmarried infant child of a beneficial owner of shares in the company;

(ii) A company shall be deemed to be under the control of any persons where the majority of the voting power or shares is in the hands of those persons or relatives or nominees of those persons, or where the control is by any other means whatever in the hands of those persons;

(iii) “Relative” means a husband or wife, ancestor, or lineal descendant, brother, or sister;

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

(v) Persons in partnership and persons interested in the estate of a deceased person or in property held on a trust shall, respectively, be deemed to be a single person.

(7) In this section “member” includes any person having a share or interest in the capital or profits or income of a company, and “employee” does not include any governing director, managing director, or director.

(8) The provisions contained in Schedule 16 shall have effect as to the computation of the actual income from all sources of the company, the apportionment thereof amongst members of the company, and otherwise for the purpose of carrying into effect, and in connection with, this section.

531 Protection for companies which transmit accounts to the Special Commissioners.

531.—(1) Any company to which section 530 applies, may at any time after the general meeting at which the accounts of the company made up for any year or other period are adopted, forward to the Special Commissioners for their consideration a copy of the said accounts, together with a copy of the report, if any, of the directors for that year or period, and such further information, if any, as it may think fit, and the Special Commissioners shall, subject to the provisions of this section, on receiving the said accounts and other documents, if any, proceed to consider the position of the company in relation to the said section 530.

(2) The Special Commissioners may as soon as reasonably may be, but not later than twenty-eight days after the receipt of the said accounts and other documents, if any, call upon the company to furnish to them within twenty-eight days, or such extended period as they may subsequently allow, such further particulars as they may reasonably require:

Provided that, if the particulars so required are not furnished to the Commissioners within the period or extended period allowed for the purpose, they may proceed under this section upon the information before them.

(3) Where a company has under subsection (1) forwarded to the Special Commissioners the accounts of the company for any year or other period, whether with or without any other documents, the following provisions shall have effect:—

(a) unless within three months after the receipt of the said accounts and other documents, or, if further particulars have been required as aforesaid, within three months after the receipt of those particulars, or the expiration of the period within which those particulars are to be furnished, as the case may be, the Special Commissioners intimate to the company their intention to take further action in the case of the company under the said section 530 in respect of that year or other period, the power of the Commissioners to take any such further action in respect of that year or other period shall absolutely cease and determine; and

(b) notwithstanding that the Special Commissioners have given such an intimation as aforesaid, they shall not after the expiration of six months from the date of the intimation have power in relation to that company to issue a notice under Schedule 16, paragraph 4, with respect to that year or period, or, unless such a notice has been issued before the expiration of the said period of six months, to give a direction in relation to the company under section 530 (1).

Chapter III Deduction of Sur-Tax from Emoluments

532 Deduction of sur-tax from emoluments.

532.—(1) In this section, “emoluments”, “employee” and “employer” have the same meanings as in Chapter IV of Part V.

(2) An employee, on giving notice in writing to the inspector not later than three months before the beginning of a year of assessment that, under any provision applicable to Schedule E or under section 126, income tax will be deductible from emoluments paid to him in the year of assessment, may elect that the sur-tax estimated to be payable by him for the year of assessment shall be recovered by deduction from the emoluments paid to him in the year of assessment in addition to the income tax deductible therefrom as aforesaid.

(3) Where an election is made under this section for recovery of sur-tax by deduction from the emoluments paid in a year of assessment, the following provisions shall, subject to subsection (4), apply:

(a) unless the Revenue Commissioners otherwise direct, an assessment to sur-tax for the year of assessment shall not be made before the end of the year of assessment,

(b) the provisions of this Act under which income tax falls to be deducted from the emoluments and accounted for to the Revenue Commissioners shall, save as may be otherwise provided by any regulations under this section, have effect as if the sur-tax were income tax deductible from the emoluments,

(c) where—

(i) the inspector and the employee have come to an agreement in writing as to the amount of sur-tax payable by the employee for the year of assessment, and

(ii) that amount has been recovered by deduction from emoluments,

no assessment to sur-tax need be made for the year of assessment and section 133 (1) shall, in relation to the year of assessment, have effect as if section 133 (1) (c) were omitted.

(4) An election under this section shall have no effect if the inspector gives notice to the employee that it is not practicable to give effect to it.

(5) The Revenue Commissioners may make regulations for giving effect to this section and, without prejudice to the generality of the foregoing, may by such regulations—

(a) prescribe the form in which an election is to be made and the information to be given in connection with it;

(b) prescribe the time limit for the giving by the inspector of the notice referred to in subsection (4);

(c) provide for the estimation by the inspector of the amount of sur-tax payable and for the review of such an estimation where the employee is dissatisfied with it;

(d) provide for the determination of the proportions in which the total amount of tax paid to the Revenue Commissioners by an employer, being tax deducted from emoluments paid to an employee in any year of assessment, is to be allocated to income tax and sur-tax respectively and for the recovery, by deduction from emoluments paid in a later year or otherwise, of any balance of income tax or sur-tax due from the employee on the basis of such allocation;

(e) apply for the purposes of this section or the regulations any provisions of or made under this Act (with or without modification).

(6) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done there-under.

PART XXXVII Miscellaneous

533 Rules as to delivery of statements.

533.—Any person who, on his own behalf or on behalf of another person or body of persons, delivers a statement of the amount of the annual value or profits on which any tax is chargeable, shall, so far as the same are respectively applicable, observe the rules and directions contained in Schedule 18.

534 Income tax assessment to be conclusive in estimation of total income.

534.—Where an assessment has become final and conclusive for the purposes of income tax for any year of assessment, that assessment shall also be final and conclusive in estimating total income from all sources for the purposes of this Act, and no allowance or adjustment of liability, on the ground of diminution of income or loss, shall be taken into account in estimating such total income from all sources for such purposes unless that allowance or adjustment has been previously made on an application under the special provisions of this Act relating thereto.

535 Restriction on deductions in computing profits.

535.—(1) In arriving at the amount of profits or gains for the purpose of income tax—

(a) no other deductions shall be made than such as are expressly enumerated in this Act;

(b) no deduction shall be made on account of any annual interest, annuity or other annual payment to be paid out of such profits or gains in regard that a proportionate part of the tax is allowed to be deducted on making any such payment.

(2) In arriving at the amount of profits or gains from any property described in this Act, or from any office or employment of profit, no deduction shall be made on account of diminution of capital employed, or of loss sustained, in any trade or in any profession or employment.

536 Execution of warrants and precepts.

536.—(1) Warrants and precepts of the Special Commissioners shall be executed by the respective persons to whom they are directed.

(2) Members of the Garda Síochána shall aid in the execution of this Act, and obey and execute such precepts and warrants as are directed to them in that behalf under the authority of this Act.

537 Effect of want of form, error, etc., on assessments, charges, warrants and other proceedings.

537.—(1) An assessment, charge, warrant or other proceeding which purports to be made in pursuance of this Act shall not be quashed, or deemed to be void or voidable, for want of form, or be affected by reason of a mistake, defect, or omission therein, if the same is in substance and effect in conformity with or according to the intent and meaning of this Act, and if the person or property charged or intended to be charged or affected thereby is designated therein according to common intent and understanding.

(2) An assessment or a charge made upon an assessment shall not be impeached or affected—

(a) by reason of a mistake therein as to—

(i) the name or surname of a person liable; or

(ii) the description of any profits or property; or

(iii) the amount of the tax charged;

(b) by reason of any variance between the notice and the certificate of charge or assessment:

Provided that in cases of charge the notice of charge shall be duly served on the person intended to be charged, and the notice and certificate shall respectively contain, in substance and effect, the particulars on which the charge is made; and every such charge shall be heard and determined on its merits by the Special Commissioners.

538 Exemption of appraisements and valuations from stamp duty.

538.—No appraisement or valuation given or made in pursuance and for the purposes of this Act shall be liable to any stamp duty.

539 Delivery of books and papers relating to tax.

539.—(1) A person who has in his custody or possession any books or papers relating to income tax or sur-tax shall, within one month next after notice in writing from the Revenue Commissioners requiring him to do so, deliver them to the person named in the notice, and if he fails to do so, shall, for every such offence, incur a penalty of £50.

(2) The receipt of the person named in the notice shall be a sufficient discharge to the person delivering the books or papers.

540 Criminal proceedings against collector.

540.—A collector appointed under section 7 of the Finance Act, 1934, shall, for the purpose of any indictment or criminal proceedings for any felony or misdemeanour committed by him as such collector, be deemed to be a clerk, officer, or servant of the Revenue Commissioners.

541 Proof that person is a commissioner or officer.

541.—In any proceedings under or arising out of this Act before any court or person empowered to take evidence, prima facie proof of the fact that any person was a commissioner or officer may be given by proving that, at the time when any matter in controversy in any such proceedings arose, that person was reputed to be or had acted as a commissioner or officer.

542 Delivery, service and evidence of notices and forms.

542.—(1) Any directions which have been allowed by the Special Commisioners with reference to the time and manner of fixing, delivering or otherwise serving notices, and the persons on whom they are to be served, shall, when given by the inspector to the Collector, be observed by him.

(2) Any notice which under this Act is authorised or required to be given by the Revenue Commissioners or an inspector or other officer of the Revenue Commissioners may be served by post:

Provided that any other notice or document to be given, served, sent or delivered, under this Act or any Act relating to income tax, may be served by post in such cases as the Revenue Commissioners direct by regulations to be made by them for the purpose.

(3) A notice or form which is to be served on a person may be either delivered to him or left at his usual or last known place of abode:

Provided that any notice or other document to be given, served, sent or delivered to or on an employed person may be served by post at his place of employment.

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

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

(6) Notices to be given or delivered to, or served on, the Special Commissioners shall be valid and effectual if given or delivered to or served on their Clerk.

(7) This section shall have effect notwithstanding any other provision of this Act.

543 Laying of regulations before Oireachtas.

543.—All such regulations of the Revenue Commissioners as relate to—

(a) the assessment, charge, collection and recovery of sur-tax,

or

(b) service by post,

shall be laid before each House of the Oireachtas as soon as may be after they are made, and, if a resolution annulling any such regulation is passed by either House of the Oireachtas within the next twenty-one days, or in the case of a regulation relating to surtax within the next forty days, on which that House has sat next after any such regulation has been laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

544 Clergymen and ministers of religion: deduction.

544.—(1) In assessing the tax chargeable under any Schedule upon a clergyman or minister of any religious denomination, the following deductions may be made from any profits, fees or emoluments of his profession—

(a) any sums of money paid or expenses incurred by him wholly, exclusively, and necessarily in the performance of his duty as a clergyman or minister;

(b) such part of the rent (not exceeding one-eighth), as the commissioners or inspector by whom the assessment is made may allow, paid by him in respect of a dwelling-house any part of which is used mainly and substantially for the purposes of his duty as such clergyman or minister;

and where any such clergyman or minister is in the occupation of a dwelling-house, but pays no rent therefor, he shall for the purposes of the foregoing provision be deemed to pay a rent equal to the annual value of the dwelling-house as assessed to tax under Schedule A.

(2) If no such deduction has been made, a proportionate part of the tax paid by him shall be repaid to the clergyman or minister on proof to the Special Commissioners that any sum has been expended as aforesaid.

545 Assessment of Electricity Supply Board.

545.—(1) It is hereby declared and enacted that for the purpose of determining liability for assessment to and payment of income tax, the Electricity Supply Board is not and never was the State or a branch or department of the Government of the State.

(2) The annual value with reference to which tax is to be charged under Schedules A and B of this Act in respect of any tenement or hereditament in the exclusive possession or control or the occupation of the Electricity Supply Board and for the time being exempt from assessment to the county rate or the municipal rate shall be ascertained according to the surveys and valuations made under the Valuation Acts.

546 Charge of tax in relation to source not producing income.

546.—Whenever in any year of assessment a person would be entitled to income from a particular source which in fact does not produce income for or within that year, and the tax thereon would if the source had produced income be computed by reference to income from the same source in any preceding year or years, such person shall, in the year of assessment aforesaid, be chargeable with tax in the same manner and to the like amount as if the source had produced income in such year.

547 Relief for certain gifts.

547.—(1) This section applies to a gift of money which, on or after the 6th day of April, 1965, is made to the Minister for Finance for use for any purposes for or towards the cost of which public moneys are provided and which is accepted by that Minister.

In this subsection “public moneys” means moneys charged on or issued out of the Central Fund or provided by the Oireachtas.

(2) Where a person who has made a gift to which this section applies claims relief from tax by reference thereto, the following provisions of this section shall have effect.

(3) For the purposes of tax for the year of assessment in which the person makes the gift, the amount thereof shall be deducted from or set off against any income of the person chargeable to tax for that year and tax shall, where necessary, be discharged or repaid accordingly; and the total income of the person or, where the person is a married woman whose income is deemed to be the income of her husband, the total income of the husband shall be calculated accordingly.

In this subsection “total income” means total income from all sources estimated in accordance with the provisions of this Act.

548 Relief for houses occupied by clergymen and ministers of religion.

548.—Where a clergyman or minister of any religious denomination occupies a dwelling-house rent free by virtue of his office in such circumstances that the annual value of the house does not fall to be regarded as part of his income, he shall be entitled, on giving notice to the inspector not later than the 30th day of September in any year, or, where the occupation of such clergyman or minister commenced after the 30th day of June, before the expiration of three months after the date of the commencement of such occupation, to require that the annual value of the house, after deducting therefrom the amount of any annual sum payable in respect of such house, shall for all purposes of income tax for that year be treated as earned income of such clergyman or minister.

In this section “annual sum” has the same meaning as in section 18 (3).

549 Unremittable income.

549.—(1) In this section—

“tax” means income tax or sur-tax, as the case may be;

“particular income” means income arising outside the State, the amount of which is, or is included in, the amount (in this section referred to as the said amount) on which, in accordance with this Act, the tax is computed.

(2) Subject to subsections (3), (4) and (5), the provisions of this section shall have effect where—

(a) tax is charged by an assessment for any period, whether beginning before or after the passing of this Act, and whether the assessment has been made before or after such passing, and

(b) the tax has not been paid.

(3) In any case in which, on or after the date on which the tax has become payable, such proof is given to the Revenue Commissioners as renders them satisfied that particular income cannot, by reason of legislation in the country in which it arises or of executive action of the government of that country, be remitted to the State, the Revenue Commissioners may, for the purposes of collection, treat the assessment as if the said amount did not include the particular income, but such treatment shall terminate on the Revenue Commissioners ceasing to be satisfied as aforesaid.

(4) The Revenue Commissioners may, for the purposes of this section, call for such information as they consider necessary.

(5) Any person who is dissatisfied with a decision of the Revenue Commissioners under subsection (3) may, by giving notice in writing to the Revenue Commissioners within twenty-one days after the notification of the decision to him, apply to have the matter referred to the Special Commissioners, as if it were an appeal against an assessment, and the provisions of this Act 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.

550 Interest on overdue tax.

550.—(1) Subject to the provisions of this section and sections 551 and 552, any tax charged by any assessment to income tax or to sur-tax shall carry interest at the rate of one half per cent. for each month or part of a month from the date when the tax becomes due and payable until payment.

(2) Where any tax is paid not later than three months from the date on which it becomes due and payable, the interest thereon under this section shall be remitted.

(3) Interest shall not be payable under this section on the tax charged by any assessment unless the total amount of the interest is not less than £1.

(4) The interest payable under this section—

(a) shall be payable without any deduction of income tax and shall not be allowed as a deduction in computing any income, profits or losses for any of the purposes of this Act, and

(b) shall be deemed to be a debt due to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Revenue Commissioners,

and, subject to subsection (5), the provisions of every enactment relating to the recovery of any tax charged by an assessment and the provisions of every rule of court so relating shall apply to the recovery of any amount of interest payable on that tax as if the said amount of interest were a part of that tax.

(5) In proceedings instituted by virtue of subsection (4)—

(a) a certificate by the Collector certifying that a stated amount of interest is due and payable by the person against whom the proceedings were instituted shall be evidence until the contrary is proved that that amount is so due and payable, and

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

551 Effect on interest of reliefs given by discharge or repayment.

551.—(1) Subject to subsection (2)—

(a) where relief from tax charged by any such assessment as is referred to in section 550 (1) is given to any person by a discharge of any of that tax, such adjustment shall be made of the amount payable under this section in relation to the assessment, and such repayment shall be made of any amounts previously paid under this section in relation thereto, as are necessary to secure that the total sum, if any, paid or payable under this section in relation to the assessment is the same as it would have been if the tax discharged had never been charged, and

(b) where relief from tax paid for any year of assessment is given to any person by repayment, he shall be entitled to require that the amount repaid shall be treated for the purposes of this subsection, so far as it will go, as if it were a discharge of the tax charged on him (whether alone or together with other persons) by any assessment for the same year, so, however, that it shall n0t be applied to any assessment made after the relief was given and it shall not be applied to more than one assessment so as to reduce, without extinguishing, the amount of tax charged thereby.

(2) No relief, whether by way of discharge or repayment, shall be treated as—

(a) affecting tax charged by any assessment to income tax unless it is a relief from income tax, or

(b) affecting tax charged by any assessment to sur-tax unless it is a relief from sur-tax.

552 Commencement of sections 550 and 551.

552.—(1) Sections 550 and 551 extend to assessments notwithstanding that they were made before the commencement of this Act or were made for years of assessment before the year 1967-68, and, in relation to any assessments made before the commencement of this Act, shall be deemed always to have had effect:

Provided that interest shall not be deemed to have begun to run under the said sections from any date before the 1st day of January, 1963.

(2) Sections 550 and 551 and subsection (1) of this section shall, in relation to assessments to income tax or sur-tax have effect and be deemed always to have had effect instead of the provisions of section 14 of the Finance Act, 1962:

Provided that anything done under or by virtue of the said section 14 in relation to assessments to income tax or sur-tax shall be deemed to have been done under or by virtue of the corresponding provisions of sections 550 and 551, and references in any document to the said section 14 or any provision of that section shall, in relation to assessments to income tax or sur-tax be construed accordingly as references to the corresponding provisions of the said sections 550 and 551.

553 Allowance to owner of mineral rights for expenses.

553.—(1) Where for any year of assessment rights to work minerals in the State are let, the lessor shall be entitled on making a claim for the purpose to be repaid so much of the income tax paid by him by deduction or otherwise in respect of the rent or royalties for that year as is equal to the amount of the tax on any sums proved to the satisfaction of the Special Commissioners to have been wholly, exclusively, and necessarily disbursed by him as expenses of management or supervision of those minerals in that year:

Provided that no repayment of tax shall be made—

(a) except on proof to the satisfaction of the Special Commissioners of payment of tax on the aggregate amount of the rent or royalties; or

(b) if, or to such extent as, the said expenses have been otherwise allowed as a deduction in computing income for the purposes of income tax.

(2) Notice of any claim to the Special Commissioners under this section, together with the particulars thereof, shall be given in writing to the inspector within twelve months after the expiration of the year of assessment in respect of which the claim is made, and where the inspector objects to such claim the Special Commissioners shall hear and determine the same in like manner as in the case of an appeal to them against an assessment under Schedule D, and the provisions of this Act relating to the statement of a case for the opinion of the High Court on a point of law shall apply.

PART XXXVIII Commencement, Repeals, Savings, Temporary and Transitional Provisions and Short Title

554 Commencement and repeals.

554.—(1) Subject to the provisions of this Part, this Act shall come into force on the 6th day of April, 1967, and the enactments mentioned in Schedule 19, (which enactments are in this Act referred to as the repealed enactments) are hereby repealed to the extent mentioned in the third column of that Schedule as from that day:

Provided that, save as otherwise provided in this Part, the provisions of this Act shall not apply to income tax or sur-tax for the year 1966-67 or any previous year of assessment, and the provisions of the repealed enactments shall continue to apply to income tax and sur-tax for any such year to the same extent that they would have applied thereto if this Act had not been passed.

(2) The proviso to subsection (1) shall, in relation to the provisions as to corporation profits tax contained in the provisions of this Act which in terms extend to that tax, have effect as if the references to income tax and sur-tax for the year 1966-67 or any previous year of assessment were references to corporation profits tax for an accounting period ending before the 6th day of April, 1967.

(3) Income which but for subsection (1) would be treated as exempt from tax under section 16 of the Finance Act, 1919, or section 27 of the Finance Act, 1922, shall not be reckoned in computing income for any of the purposes of this Act.

(4) This section has effect subject to the provisions of section 552 (which relates to the commencement of certain provisions of this Act relating to interest on assessments to income tax and sur-tax).

555 Extent to which Act is to apply to years before 1967-68.

555.—(1) In the case of the following provisions of this Act, that is to say—

(a) Parts VII, VIII, XXXIII and XXXV, and Schedules 17 and 18;

(b) sections 536, 537, 539, 541 and 542;

(c) in relation to income chargeable to income tax or sur-tax for the year 1967-68 or any subsequent year of assessment, sections 358 (1), 360 (1) and 361 (2) and Schedule 10;

(d) so much of any other provision of this Act as authorises the making, variation or revocation of any order or regulation; and

(e) except where the tax concerned is all tax for years of assessment before the year 1967-68 or, in relation to corporation profits tax, accounting periods ending before the 6th day of April, 1967, so much of any other provision of this Act as confers any power or imposes any duty the exercise or performance of which operates in relation to tax for more than one year of assessment or accounting period,

the proviso to section 554 (1) shall not apply, and those provisions shall come into operation for all purposes on the 6th day of April, 1967, to the exclusion of the corresponding provisions of the repealed enactments:

Provided that any provision in the said enactments which imposes a punishment, penalty or forfeiture for any act or omission shall, in relation to any act or omission which took place or began before the said 6th day of April, continue to have effect to the exclusion of the provision of this Act to which it corresponds.

(2) If, and in so far as, by virtue of subsection (1), a provision of this Act operates, as from the 6th day of April, 1967, to the exclusion of a provision in the repealed enactments, any order or regulation made or having effect as if made, and any thing done or having effect as if done, under the excluded provision before that date shall be treated as from that date as if it were an order or regulation made or a thing done under that provision of this Act.

(3) Notwithstanding anything in the preceding provisions of this section—

(a) neither section 186 (2), 211 (1) nor 526 (6) shall apply to tax for any year before the year 1922-23, and

(b) the references in sections 124, 125, 126 and 127 to emoluments to which Chapter IV of Part V applies shall not be deemed to include references to any emoluments assessable to income tax under Schedule E which were payable before the 6th day of October, 1960, and any regulations made or deemed to be made under section 127 shall have effect accordingly.

556 Saving for enactments not repealed.

556.—The provisions of this Act (other than those of section 559 relating to the construction of references) shall have effect subject to so much of any Act which contains provisions relating to or affecting income tax, sur-tax or corporation profits tax as—

(a) is not repealed by this Act; and

(b) would have operated in relation to those taxes respectively if this Act had not been substituted for the repealed enactments.

557 Meaning of “Collector” in sections 187, 188, 478, 480 to 482, 484 to 489, 494, 519, 542 and 550 and Schedule 2, Rule 6.

557.—Every reference in any of the following provisions, namely, sections 187, 188, 478, 480 to 482, 484 to 489, 494, 519, 542 and 550 and Rule 6 of Schedule 2, to the Collector shall be construed as including a reference to a collector appointed under section 7 of the Finance Act, 1934.

558 Former employees of railway company.

558.—Where any person has ceased to hold an office or employment under a railway company, or has ceased to be entitled to any pension paid by a railway company, such part of any tax assessed and charged upon the company under Rule 7 of the Rules applicable to Schedule E of the Income Tax Act, 1918, in respect of that office, employment or pension as could not be deducted out of emoluments shall be collected and levied from that person or from his executors or administrators, as the case may be, as if he or they had been chargeable and charged with the said tax.

559 Construction of references.

559.—(1) The continuity of the operation of the law relating to income tax, sur-tax and corporation profits tax shall not be affected by the substitution of this Act for the repealed enactments and—

(a) so much of any enactment or document (including enactments contained in this Act) as refers, whether expressly or by implication, to, or to things done or falling to be done under or for the purposes of, any provision of this Act, shall, if and so far as the nature of the subject matter of the enactment or document permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision in the repealed enactments has or had effect, a reference to, or, as the case may be, to things done or falling to be done under or for the purposes of, that corresponding provision;

(b) so much of any enactment or document (including repealed enactments and enactments and documents passed or made after the passing of this Act) as refers, whether expressly or by implication, to, or to things done or falling to be done under or for the purposes of, any provision of the repealed enactments shall, if and so far as the nature of the subject matter of the enactment or document permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision of this Act has effect, a reference to, or as the case may be, to things done or deemed to be done or falling to be done under or for the purposes of, that corresponding provision.

(2) The references in subsection (1) to things done or falling to be done under any provision include in particular, and without prejudice to the generality of the references, references to charges to tax and reliefs from tax made or granted or falling to be made or granted under that provision:

Provided that the amounts which may, under sections 241, 244, 245, 248, 252, 254, 295, 305, 309 or 310, be carried forward from years of assessment before the year 1967-68 shall, in so far as the effect of the repealed enactments differs from that of the corresponding enactments in this Act, be determined according to the repealed enactments.

560 Continuance of officers; instruments and documents.

560.—(1) All officers appointed under the repealed enactments and holding office immediately before the commencement of this Act shall continue in office as if appointed under this Act.

(2) All instruments and documents made or issued under the repealed enactments and in force immediately before the commencement of this Act shall continue in force as if made or issued under this Act.

561 Short title.

561.—This Act may be cited as the Income Tax Act, 1967.

SCHEDULE 1 Machinery for Assessment, Charge and Payment of Tax Under Schedule C, and, in Certain Cases, Schedule D

PART I

Public revenue dividends, etc., payable to the Bank of Ireland, or entrusted for payment to the Bank of Ireland

(a) the amounts of the dividends and profits attached thereto payable to the Bank;

(b) all dividends entrusted to the Bank for payment to the persons entitled thereto; and

(c) the amount of tax chargeable thereon at the rate in force at the time of payment without any other deduction than is allowed by this Act.

6.—(1) In the case of dividends and profits attached thereto, payable to the Bank of Ireland out of the public revenue of the State, the Bank of Ireland shall set apart the tax in respect of the amount payable to them.

(2) In the case of dividends and profits attached thereto entrusted to the Bank of Ireland for payment and distribution—

(a) the Bank of Ireland shall, before any payment is made by them, retain the amount of the tax for the purposes of this Act; and

(b) the retaining of the amount shall be deemed to be a payment of the tax by the persons entitled to the dividends and shall be allowed by them on the receipt of the residue thereof; and

(c) the Bank of Ireland shall be acquitted and discharged of a sum equal to the amount retained as though that sum had been actually paid.

PART II

Provisions as to dividends, etc., payable out of the public revenue of Ireland through the National City Bank, Ltd.

(a) all dividends entrusted to it for payment to the persons entitled thereto;

(b) the amount of tax chargeable thereon at the rate in force at the time of payment without any other deduction than is allowed by this Act.

PART III

Public revenue dividends payable by public offices and departments

PART IV

Other public revenue dividends, dividends to which Part XXXI applies, proceeds of coupons and price paid on purchase of coupons

1.—(1) Every such person as is hereinafter mentioned, that is to say—

(a) every person (other than the Bank of Ireland) who is entrusted with the payment of any dividends which are payable to any persons in the State out of any public revenue other than that of the State; and

(b) every person in the State who is entrusted with the payment of any dividends to which Part XXXI applies; and

(c) every banker or other person in the State who obtains payment of any dividends in such circumstances that the dividends are chargeable to tax under Schedule C, or in the case of dividends to which Part XXXI applies, under Schedule D; and

(d) every banker in the State who sells or otherwise realises coupons in such manner that the proceeds of the sale or realisation are chargeable to tax under Schedule C, or in the case of dividends to which Part XXXI applies, under Schedule D; and

(e) every dealer in coupons in the State who purchases coupons in such manner that the price paid on the purchase is chargeable to tax under Schedule C, or in the case of dividends to which Part XXXI applies, under Schedule D,

shall within one month after being so required by notice published in Iris Oifigiúil, deliver to the Revenue Commissioners an account in writing, giving his name and residence, and a description of the said dividends, proceeds or price paid on purchase, and shall also, on demand by the inspector authorised for that purpose by the Revenue Commissioners, deliver to him, for the use of the Special Commissioners, true and perfect accounts of the amount of all such dividends, proceeds or price paid on purchase.

(2) The aforesaid accounts shall distinguish the separate accounts of each of the persons entitled to receive such dividends, proceeds or price paid on purchase, and state the name and address of each of such persons, and give particulars of the amounts payable and in the case of amounts payable out of any public revenue other than that of the State, of the public revenue out of which each separate amount is payable.

PART V

Relief from obligation to pay tax on certain interest, dividends and other annual payments in the case of persons entrusted with payment

PART VI

Interpretation of Parts I, II, III and IV

Section 51 (which defines, amongst other expressions, “dividends”, “public revenue”, “public revenue dividends”, “banker” and “coupons”) shall apply for the interpretation of Parts I to IV of this Schedule as it applies for the interpretation of Part III of this Act:

Provided that in Part IV of this Schedule “dividends” shall include all such interest, annuities or payments as are, within the meaning of section 459, dividends to which Part XXXI applies.

SCHEDULE 2 Rules Applicable to Schedule E

1.—(1) If at any time, either during the year of assessment or in respect of that year, a person becomes entitled to any additional salary, fees, or emoluments beyond the amount for which an assessment has been made upon him, or for which at the commencement of that year he was liable to be charged, an additional assessment shall, as often as the case may require, be made upon him in respect of any such additional salary, fees or emoluments, so that he may be charged in respect of the full amount of his salary, fees or emoluments for that year.

(2) If any person proves to the satisfaction of the inspector that the amount for which an assessment has been made in respect of his salary, fees or emoluments for any year of assessment exceeds the amount of the salary, fees or emoluments for that year, the assessment shall be adjusted and any amount overpaid by way of tax shall be repaid.

(3) This rule shall not apply as regards assessments in relation to which tax is, pursuant to section 110 (1) (c), computed on the amount of the salaries, fees, wages, perquisites or profits of the year preceding the year of assessment.

(a) offices belonging to either House of the Oireachtas;

(b) offices belonging to any court in the State;

(c) public offices under the State;

(d) officers of the Defence Forces;

(e) offices or employments of profit under any ecclesiastical body;

(f) offices or employments of profit under any company or society, whether corporate or not corporate;

(g) offices or employments of profit under any public institution, or on any public foundation of whatever nature, or for whatever purpose established;

(h) offices or employments of profit under any public corporation or local authority, or under any trustees or guardians of any public funds, tolls, or duties;

(i) all other public offices, or employments of profit which are of a public nature.

Provided that if any person would, but for the provisions of this rule, be entitled to deduct a larger amount than the sum so fixed, that sum may be deducted instead of the sum so fixed.

5.—(1) Where any official pay is payable at a public office, or by any agent employed in that behalf, the tax chargeable thereon shall be deducted out of the official pay, or out of any money which is payable on account of that official pay or any arrears thereof, and shall be applied in satisfaction of any such tax which has not been otherwise paid, and shall be paid to the Revenue Commissioners.

(2) If the tax payable is charged by an inspector he shall transmit an account of the amount of tax so charged to the office where the official pay is payable, in order that it may be there deducted.

(3) In this rule “official pay” means any salary, fees, wages, perquisites, or other profits, or any annuity, pension, or stipend.

(4) Where an annuity or pension is payable out of any particular branch of the public revenue at the office of that branch, the tax in respect of the same may be charged in like manner in all respects as if the annuity or pension were salary or wages payable thereout.

6.—(1) If either—

(i) the tax in respect of any office or employment of profit cannot be deducted in the hands of the appropriate officer or of an agent for payment of the emoluments thereof; or

(ii) the said emoluments have been paid over to the person entitled to them;

and the person charged neglects or refuses to pay the tax, the proper officer under section 158, or the commissioners for the offices concerned may, by writing under their hands and seals, certify the neglect or refusal, and the sum payable, to the Special Commissioners.

(2) The Special Commissioners on receipt of the certificate shall, by warrant under their hands and seals, empower the Collector to levy the tax in the same manner and with the like powers as other tax is leviable by him under this Act.

SCHEDULE 3 Reliefs in Respect of Tax Charged on Payments on Retirement, Etc.

Preliminary

Relief by reduction of sums chargeable

(a) there shall be ascertained the average for one year of the holder's emoluments of the office or employment for the last three years of his service before the relevant date (or for the whole period of his service if less than three years);

(b) one-twentieth of the amount ascertained at (a) shall be multiplied by the whole number of complete years of the service of the holder in the office or employment; and

(c) there shall be deducted from the product at (b) a sum equal to the amount, or, as the case may be, to the value at the relevant date, of any lump sum (not chargeable to tax) received or receivable by the holder in respect of the office or employment in pursuance of any such scheme or fund as is referred to in section 115(1) (d):

Provided that no account shall be taken for the purposes of this paragraph of the service of any person as an officer or employee of a body corporate at any time while he was a proprietary director or proprietary employee (as defined by section 226) of that body.

(a) paragraph 3 shall apply as if those payments were a single payment of an amount equal to their aggregate amount and, where they are made in respect of different offices or employments, as if the standard capital superannuation benefit were an amount equal to the sum of the standard capital superannuation benefits for those offices or employments;

(b) where the payments are treated as income of different years of assessment, the relief to be granted under that paragraph in respect of a payment chargeable for any year of assessment shall be the amount by which the relief computed in accordance with the foregoing provision in respect of that payment and any payments chargeable for previous years of assessment exceeds the relief in respect of the last-mentioned payments;

and where the standard capital superannuation benefit for an office or employment in respect of which two or more of the payments are made is not the same in relation to each of those payments, it shall be treated for the purposes of this paragraph as equal to the higher or highest of those benefits.

Relief by reduction of tax

(a) the amount of tax which would be chargeable apart from this paragraph in respect of the income of the holder or past holder of the office or employment for the year of assessment of which the payment is treated as income;

(b) the amount of tax which would be so chargeable if the payment had not been made;

(c) the difference between the respective amounts of tax which would be so chargeable on the assumptions—

(i) that the appropriate fraction only of the payment (after deducting any relief applicable thereto under the foregoing provisions of this Schedule) had been made; and

(ii) that no part of the payment had been made;

and disregarding, in each case, any other emoluments of the office or employment;

and the amount to be deducted shall be the difference between the amount ascertained at (a) and the sum of the amount ascertained at (b) and the appropriate multiple of the difference ascertained at (c).

(a) where the payment is not a payment of compensation for loss of office, one-sixth and six;

(b) where the payment is a payment of compensation for loss of office, one divided by the relevant number of years of unexpired service, and that number of years;

and for the purposes of this paragraph “the relevant number of years of unexpired service” means the number of complete years taken into account in calculating the amount of the payment, being years for which the holder of the office or employment would have been entitled (otherwise than by virtue of arrangements made in contemplation of his retirement or removal or of any relevant change in the functions or emoluments of the office or employment) to retain the office or employment or its full emoluments, and where the period taken into account as aforesaid is less than one complete year or exceeds an exact number of years, it shall be treated for the purposes of this paragraph as one complete year or as the next higher number of complete years, as the case may be.

Provided that where the appropriate fraction and appropriate multiple are not the same for each of the payments, the calculations of relief under paragraph 7 shall be made separately in relation to each payment or payments having a different appropriate fraction and multiple, and in any such calculation—

(a) any payment for which the appropriate multiple is lower shall be left out of account for all the purposes of paragraph 7; and

(b) in ascertaining the difference at (c) of that paragraph, it shall be assumed that the appropriate fraction only of any payment for which the appropriate multiple is higher has been made;

and the relief to be allowed shall be the sum of the reliefs so calculated in respect of the payments respectively.

Supplemental

(a) in pursuance of an order of a court in proceedings for wrongful dismissal or otherwise for breach of a contract of employment, or by way of settlement of such proceedings or of a claim in respect of which such proceedings could have been brought; or

(b) by way of compensation for the extinguishment of any right the infringement of which would be actionable in such proceedings;

and any question whether, and to what extent, a payment is or is not a payment of compensation for loss of office shall be determined according to all the circumstances and not (or not exclusively) by reference to the terms on which it is expressed to be made.

(a) there shall be included any balancing charge to which the holder of the office or employment is liable under section 272;

(b) there shall be deducted any allowances under section 241 or 272, and any allowance under section 222 or 233, or Schedule 2, Rule 3, to which he is entitled;

and any such charges or allowances as aforesaid for a year of assessment shall, for the purposes of ascertaining the amount of the emoluments for any year of service, be treated as accruing from day to day, and shall be apportioned in respect of time accordingly.