INCOME TAX ACT, 1967

• (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into operation for all purposes on the 6th day of April, 1967, to the exclusion of the corresponding provisions of the repealed enactments: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.

• (a) tax was not chargeable in respect of the emoluments of the office or employment, or

• (b) the office or employment being an office or employment within Schedule E, tax under that Schedule was not chargeable in respect of the whole of the emoluments thereof, or

• (c) the office or employment being regarded as a possession in a place out of the State within the meaning of Case III of Schedule D, tax in respect of the income arising therefrom did not fall to be computed in accordance with section 76 (1).

SCHEDULE 4 Provisions as to Certain Claims for Allowances, Deductions and Reliefs

1.—(1) The claimant shall within the time limited by this Act for the delivery of lists, declarations, and statements, or within such further time as the Special Commissioners may for any special reason allow, deliver to the inspector a notice of his claim, together with a declaration and statement in the prescribed form, signed by him, setting forth—

• (a) all the particular sources from which his income arises, and the particular amount arising from each source;

• (b) all particulars of any yearly interest or other annual payments, reserved or charged thereon, whereby his income is or may be diminished; and

• (c) all particulars of sums which he has charged or may be entitled to charge on account of tax against any other person, or which he has deducted, or may be entitled to deduct, out of any payment to which he is or may be liable.

• (2) Any inspector may examine every such declaration and statement and take copies of or extracts from the same.

• (3) If the inspector objects in writing to such a claim stating that he has reason to believe that the income of the claimant, or any other particulars in the declaration or statement of the claimant, are not truly or fully set forth in any specified particular, the claim shall be heard and determined by way of appeal by the Special Commissioners, in like manner as other appeals under this Act and with the like liability to penalties, and if the claim is allowed the Special Commissioners shall grant and issue all necessary certificates accordingly.

2.—(1) The claim shall be made and proved to the inspector, pursuant to the powers and provisions under which tax under Schedule D is ascertained and charged.

• (2) If the whole income of the claimant arises from an office or employment of profit or from a pension or stipend under the jurisdiction of commissioners, the claim may be made to and allowed by those commissioners.

• (3) If a claimant is not within the State, an affidavit stating the particulars required by this Act, and taken before any person who has authority to administer, in the place where the claimant resides, an oath with regard to any matter relating to the public revenue of the State, may be received by the inspector or the said commissioners.

• (4) If satisfactory proof is given that a claimant is unable to attend in person, a claim on his behalf may be made by any guardian, trustee, attorney, agent or factor acting for him.

• (5) Where a person is assessable on behalf of any other person, he may make a claim as aforesaid on behalf of that other person.

3.—(1) If it is proved to the satisfaction of the inspector that any person whose claim has been allowed, has paid any tax, by deduction or otherwise, the inspector may, in the form prescribed, certify the facts proved before him to the Special Commissioners.

• (2) The certificate of the inspector shall state the particulars of the different sources of income in respect of which tax has been paid, the relief to which the claimant is entitled, the amount repayable in respect thereof, and the name and place of abode of the claimant.

• (3) On receipt of the certificate, the Special Commissioners shall issue an order for repayment.

SCHEDULE 5 Retirement Annuities (Adjustments of Limit on Qualifying Premiums)

Part I

Holders of Pensionable Office or Employment

• (a) paragraph 1 shall not apply if the condition in section 235 (1) (a) is not satisfied at any time during that part of the year; but

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

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

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

PART II

Persons born in or before 1917

TABLE

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

5.—(1) This Part shall not apply in relation to any year of assessment in which the individual, in respect of his past services in any office or employment formerly held by him (not being one in which he served part-time only), either—

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

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

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

SCHEDULE 6 Agreements, Etc., for Avoidance of Double Taxation in the Case of the United Kingdom

PART I

Text of Agreements

[Note.—Article 2 of the first Agreement, which was superseded by Article 2 of the second Agreement, is omitted.]

1.—AGREEMENT DATED 14th APRIL, 1926.

AGREEMENT BETWEEN THE BRITISH GOVERNMENT AND THE GOVERNMENT OF THE IRISH FREE STATE IN RESPECT OF DOUBLE INCOME TAX.

The British Government and the Government of the Irish Free State, being desirous of concluding an Agreement for the reciprocal exemption from income tax and super-tax of persons who are resident in Great Britain (including Northern Ireland) or in the Irish Free State but are not resident in both countries and for the reciprocal granting of relief from double taxation in respect of income tax (including super-tax) to persons who are resident in both countries, and being desirous of making such supplemental, consequential and incidental provisions as appear necessary or proper for the purposes of such Agreement, have agreed as follows:—

• (b) Any person who proves to the satisfaction of the Revenue Commissioners that for any year he is resident in Great Britain or Northern Ireland and is not resident in the Irish Free State shall be entitled to exemption from Irish Free State income tax for that year in respect of all property situate and all profits or gains arising in the Irish Free State, and to exemption from Irish Free State super-tax for that year.

• (c) Exemption under this Article may be given either by discharge or by repayment of tax, or otherwise, as the case may require.

• (b) Any person who is entitled to exemption from Irish Free State income tax by virtue of Article 1 (b) of this Agreement in respect of property situate and profits or gains arising in the Irish Free State shall, if and so far as the British Parliament so provides, and subject to any exemption or relief to which he may be entitled under the laws in force in Great Britain and Northern Ireland, be chargeable to British income tax in respect of such property, profits or gains.

• (c) Any person who is entitled to relief by virtue of Article 2 of this Agreement shall, subject to such relief, be chargeable, if and so far as the British Parliament so provides, to British income tax in respect of property situate and profits or gains arising in the Irish Free State in like manner in all respects as if he were resident in Great Britain or Northern Ireland but not resident in the Irish Free State and shall, subject to such relief as aforesaid, be chargeable, if and so far as the Oireachtas of the Irish Free State so provides, to Irish Free State income tax in respect of property situate and profits or gains arising in Great Britain or Northern Ireland in like manner in all respects as if he were resident in the Irish Free State but not resident in Great Britain or Northern Ireland.

Dated this 14th day of April, 1926.

(Signed) WINSTON S. CHURCHILL, Chancellor of the Exchequer.	(Signed) EARNAN DE BLAGHD, Minister for Finance, Saorstát Éireann.

2.—AGREEMENT DATED 25th APRIL, 1928.

AGREEMENT MADE THE 25th DAY OF APRIL, 1928, BETWEEN THE BRITISH GOVERNMENT AND THE GOVERNMENT OF THE IRISH FREE STATE, AMENDING THE AGREEMENT MADE ON THE 14th DAY OF APRIL, 1926, BETWEEN THE SAID GOVERNMENTS IN RESPECT OF DOUBLE INCOME TAX.

With a view to making such alterations in the Agreement made the 14th April, 1926, between the British Government and the Government of the Irish Free State in respect of Double Income Tax as may be necessary in consequence of the alterations in the British Income Tax Acts effected by the British Finance Act, 1927, and of the alterations contemplated in the Irish Free State Income Tax Acts, it is hereby agreed between the said Governments that the said Agreement shall be amended as follows:—

• (b) In Article 1 (b) of the said Agreement the expression “Irish Free State super-tax” shall for the year 1928-29 include Irish Free State sur-tax and shall for subsequent years mean Irish Free State sur-tax.

2.—(1) Relief from double taxation in respect of income tax (including sur-tax) in the case of any person who is resident both in Great Britain or Northern Ireland and in the Irish Free State shall be allowed from British income tax and Irish Free State tax respectively in accordance with and under the provisions of Section 27 of the Finance Act, 1920, provided that—

• (a) the rate of relief to be allowed from British income tax shall be one-half of that person's appropriate rate of British income tax or one-half of his appropriate rate of Irish Free State tax, whichever is the lower;

• (b) the rate of relief to be allowed from Irish. Free State tax shall be one-half of that person's appropriate rate of British income tax or one-half of his appropriate rate of Irish Free State tax, whichever is the lower;

• (c) the appropriate rate of British income tax for any year shall in the case of a person whose income is chargeable to British income tax at the standard rate only be a rate ascertained by dividing the amount of tax payable by him for that year in respect of his total income (before deduction of any relief granted in respect of life assurance premiums or any relief granted under the provisions of Section 27 of the Finance Act, 1920, as amended by this Article) by the amount of his total income, and shall in the case of a person part of whose total income is chargeable to British income tax at a rate or rates in excess of the standard rate be the sum of the following rates:—

• (i) the rate which would have been the appropriate rate in the case of that person if his income had been chargeable at the standard rate only, and

• (ii) the rate ascertained by dividing the amount of the British sur-tax payable by that person for that year by the amount of his total income for that year;

• (d) the appropriate rate of Irish Free State tax for any year shall in the case of a person whose income is chargeable in the Irish Free State to income tax only be a rate ascertained by dividing the amount of tax payable by him for that year in respect of his total income (before deduction of any relief granted in respect of life assurance premiums or any relief granted under the provisions of Section 27 of the Finance Act, 1920, as amended by this Article) by the amount of his total income, and shall in the case of a person whose income is chargeable to Irish Free State sur-tax be the sum of the following rates:—

• (i) the rate which would have been the appropriate rate in the case of that person if his income had been chargeable to income tax only, and

• (ii) the rate ascertained by dividing the amount of the Irish Free State sur-tax payable by that person for that year by the amount of his total income for that year;

• (e) relief under this Article from British income tax allowable to any person for any year shall be given as to such an amount as would be due if his income for the year were chargeable to British income tax at the standard rate only and to Irish Free State income tax only by repayment of or set off against the tax at the standard rate payable by him for that year, and as to any balance by repayment of or set off against any British sur-tax payable by him for that year;

• (f) relief under this Article from Irish Free State tax allowable to any person for any year shall be given as to such an amount as would be due if his income for the year were chargeable to British income tax at the standard rate only and to Irish Free State income tax only by repayment of or set off against the income tax payable by him for that year, and as to any balance by repayment of or set off against any Irish Free State sur-tax payable by him for that year.

• (2) Relief from double taxation to super-tax for the year 1928-29 in the case of any person who is resident both in Great Britain or Northern Ireland and in the Irish Free State shall be allowed, in accordance with and under the provisions of Section 27 of the Finance Act, 1920, so far as applicable, from British super-tax for that year and Irish Free State super-tax for that year respectively at one-half of the lower of the two following rates:—

• (a) that person's rate of British super-tax for the year 1928-29 ascertained by dividing the amount of the super-tax payable by him for that year by the amount of his total income from all sources for that year as estimated for super-tax purposes,

• (b) that person's rate of Irish Free State super-tax for the year 1928-29 ascertained by dividing the amount of the super-tax payable by him for that year by the amount of his total income from all sources for that year as estimated for super-tax purposes.

• (3) For the purposes of this Article references to Section 27 of the Finance Act, 1920, shall in relation to British taxation be construed as references to that section subject to the amendments thereof effected by the British Finance Act, 1927, other than the amendment of the said section numbered (iv) in Part II of the Fifth Schedule to the said Act of 1927.

Dated this 25th day of April, Nineteen Hundred and Twenty-eight.

(Signed) WINSTON S. CHURCHILL, Chancellor of the Exchequer.	(Signed) EARNAN DE BLAGHD, Minister for Finance, Saorstát Éireann.

3.—AGREEMENT DATED 21st JULY, 1947.

AGREEMENT BETWEEN THE IRISH GOVERNMENT AND THE UNITED KINGDOM GOVERNMENT AMENDING THE AGREEMENT OF 1926 (AS AMENDED BY THE AGREEMENT OF 1928) IN RESPECT OF DOUBLE INCOME TAX.

With a view to making such alterations in the Agreement dated the 14th April, 1926 (as amended by the Agreement dated the 25th April, 1928), made between the Government of the Irish Free State and the British Government in respect of Double Income Tax as may be necessary in consequence of the alterations in the British Income Tax Acts effected by section 52 of the British Finance (No. 2) Act, 1945, it is hereby agreed between the Irish Government and the United Kingdom Government that the said Agreement (as amended as aforesaid) shall be further amended as follows:—

• (i) the said net United Kingdom rate, and

• (ii) the rate ascertained by dividing the amount of the British sur-tax payable by that person for that year by the amount of his total income for that year.

Done in duplicate the 21st day of July, 1947.

(Signed) For the Irish Government, PROINSIAS MAC AOGÁIN, Minister for Finance.	(Signed) For the United Kingdom Government, HUGH DALTON, Chancellor of the Exchequer.

4.—AGREEMENT DATED 4th APRIL, 1959.

AGREEMENT BETWEEN THE GOVERNMENT OF IRELAND AND THE GOVERNMENT OF THE UNITED KINGDOM WITH RESPECT TO CERTAIN EXEMPTIONS FROM TAX.

The Government of Ireland and the Government of the United Kingdom, Considering the Agreement of the 14th April, 1926, between the Government of the Irish Free State and the British Government, in pursuance of which exemptions from tax are conferred on persons resident in one only of the countries from tax under the law of the other,

Considering that doubts have arisen as to the effect on the said exemptions of the provisions of subsection (2) of Section four of the United Kingdom Finance (No. 2) Act, 1955 (hereinafter called “the Act of 1955”) and subsection (2) of section fifty-one of the Irish Finance Act, 1958 (hereinafter called “the Act of 1958”) (which relate to purchases of shares by persons exempted from tax),

Desiring to remove these doubts for the year 1959-60 and subsequent years,

Have agreed as follows:—

Article 1.

• (1) The said exemptions fall within, and are subject to, the said provisions of the Act of 1955 and the Act of 1958.

• (2) Subject as aforesaid the said Agreement of 1926 as amended by Agreements made on the 25th April, 1928, and the 21st July, 1947, continues in force.

• (3) Paragraph (1) of this Article does not relate to cases where the dividend in respect of which exemption is claimed is one on a holding of shares or stock acquired by the person claiming exemption, or regarded as having been acquired by him, before the eighth day of April, nineteen hundred and fifty-nine except in so far as that dividend is one falling within subsection (2) of the said Section four or subsection (2) of the said Section fifty-one by reason (directly or indirectly) that in respect of another dividend, received by a body corporate other than the person claiming exemption from a holding of shares or stock acquired, or regarded as acquired, by the body corporate on or after the said eighth day of April, a deduction is to be made in determining the income of that body corporate arising after a given date; but this paragraph is without prejudice to any question as to the application of the said provisions of the Act of 1955 and the Act of 1958 in circumstances to which paragraph (1) of this Article does not relate.

Article 2.

This Agreement shall become effective on the exchange of notes confirming that the necessary steps have been taken to give it the force of law in Ireland and the United Kingdom, and thereafter shall remain effective only so long as it has the force of law in both countries.

Dated this fourth day of April, 1959.

For the Government of Ireland, SÉAMAS Ó RIAIN.	For the Government of the United Kingdom, D. HEATHCOAT AMORY.

5.—AGREEMENT DATED 23rd JUNE, 1960.

AGREEMENT BETWEEN THE GOVERNMENT OF IRELAND AND THE GOVERNMENT OF THE UNITED KINGDOM WITH RESPECT TO CERTAIN EXEMPTIONS FROM TAX.

The Government of Ireland and the Government of the United Kingdom,

Considering the Agreement of the 14th April, 1926, between the Government of the Irish Free State and the British Government in pursuance of which exemptions from tax are conferred on persons resident in one only of the countries from tax under the law of the other,

Considering that legislation may be enacted in either country to maintain the proper incidence of liability to income tax and to prevent the obtaining of undue tax advantages,

Considering that such legislation may be insufficiently effective unless, as well as applying to persons resident in the country where it is enacted, it applies also to persons not so resident but resident in the other of the two countries and accordingly affects exemptions from tax conferred in pursuance of the said Agreement of 1926,

Recognising that the legislation which was the subject of the Agreement of the 4th April, 1959, made between the two Governments affected the said exemptions in particular ways, and desiring to supplement that Agreement by a more general Agreement,

Desiring to declare that save as provided by this Agreement the continuance in force of the said Agreement of 1926 shall not be affected by the enactment of such legislation,

Have agreed as follows:—

Article 1.

Legislation enacted in either country at any time after the date of this Agreement and affecting in any way exemptions from income tax of that country of persons resident in that country shall, except as otherwise provided by the legislation and subject to the next following Article of this Agreement, have the like effect on exemptions from that tax which persons enjoy as not resident in that country but resident in the other of the two countries, and the enactment of such legislation shall not affect the continuance in force of the said Agreement of 1926, as amended by Agreements of the 25th April, 1928, the 21st July, 1947, and the 4th April, 1959, and this Agreement.

Article 2.

If the Government of either country represents that any provisions of legislation enacted in the other country, being provisions falling within Article 1 of this Agreement, are nevertheless not within the intention of the Agreement, the two Governments shall consult and if they agree that Article 1 ought not to apply the Government of the country in which the legislation was enacted shall take the necessary steps to secure that the said provisions shall not affect, or be deemed to have affected, exemptions from the income tax of that country which persons enjoy as not resident therein but resident in the other country.

Article 3.

This Agreement shall become effective on the exchange of notes confirming that the necessary steps have been taken to give it the force of law in Ireland and the United Kingdom, and thereafter shall remain effective only so long as it has the force of law in both countries.

Dated this 23rd day of June, 1960.

For the Government of Ireland, SÉAMAS Ó RIAIN.	For the Government of the United Kingdom, D. HEATHCOAT AMORY.

PART II

Provisions of Section 27 of the Finance Act, 1920, re-enacted as they apply in relation to British Income Tax.

Section 355.

• (1) If any person who has paid, by deduction or otherwise, or is liable to pay, Irish income tax (including sur-tax) for any year of assessment on any part of his income proves to the satisfaction of the Special Commissioners that he has paid British income tax for that year in respect of the same part of his income, he shall be entitled to relief from Irish income tax (including sur-tax) paid or payable by him on that part of his income at a rate thereon to be determined in accordance with the provisions in that behalf of Article 2 of the Agreement dated the 25th day of April, 1928, which Agreement is set out in Part I of this Schedule.

• (2) Where a person has not established his claim to relief under this section for any year of assessment before the first day of January in that year, the relief shall be granted by way of repayment of tax.

• (3) Notwithstanding anything in the provisions applicable to Case III of Schedule D or in any other provision of this Act, no deduction shall be made on account of the payment of British income tax in estimating income for the purposes of Irish income tax, and where income tax has been paid or is payable in Great Britain and Northern Ireland either on the income out of which income subject to Irish income tax arises or is received, or as a direct charge in respect of that income, the income so subject to Irish income tax shall be deemed to be income arising or received after deduction of British income tax and an addition shall, in estimating income for the purposes of Irish income tax, be made to that income of the proportionate part of the income tax paid or payable in Great Britain and Northern Ireland in respect of the income out of which that income arises or is received together with the full amount of any British income tax directly charged or chargeable in Great Britain and Northern Ireland in respect of that income:

Provided that where any income arising or received as aforesaid consists of dividends which are entrusted to any person in Ireland for payment and the Special Commissioners are satisfied that the person so entrusted is not in a position to ascertain the amount of the addition to be made under this subsection, the assessment and charge may be made on the amount of the dividends as received by the person so entrusted, but in any such case the amount of the addition shall be chargeable on the recipient of the dividends under Case IV of Schedule D.

In the foregoing proviso the expression “dividends” includes any interest, annuities, dividends, shares of annuities, or other annual payments in respect of which tax is charged under the provisions of Part III of this Act or under Part XXXI.

• (4) The Revenue Commissioners may from time to time make regulations generally for carrying out the provisions of this Part of this Schedule, and may, in particular, by those regulations provide:—

• (a) For making such arrangements with the British Government as may be necessary to enable the appropriate relief to be granted;

• (b) For prescribing the year which, in relation to any British income tax, is, for the purposes of relief under this Part of this Schedule, to be taken as corresponding to the year of assessment for the purposes of Irish income tax.

PART III