INCOME TAX ACT, 1967

• (3) Where a notice is given under subsection (1), tax up to the amount required to be paid by the notice shall cease to be recoverable under the original assessment and, where the tax charged by the original assessment carried interest under section 550, such adjustment shall be made of the amount payable under that section in relation to that assessment and such repayment shall be made of any amounts previously paid under that section in relation thereto, as are necessary to secure that the total sum, if any, paid or payable under that section in relation to that assessment is the same as it would have been if the amount which ceases to be recoverable had never been charged.

• (4) Where the amount payable under a notice given under subsection (1) is reduced as the result of an appeal or of the stating of a case for the opinion of the High Court—

• (a) the Revenue Commissioners shall, if, in the light of that result, they are satisfied that the original assessment was excessive, cause such relief to be given by way of repayment or otherwise as appears to them to be just; but

• (b) subject to any relief so given, a sum equal to the reduction in the amount payable under the notice shall again become recoverable under the original assessment.

• (5) The Revenue Commissioners and the inspector or other proper officer shall have the like powers of obtaining information with a view to the giving of, and otherwise in connection with, a notice under subsection (1) as they would have had with a view to the making of, and otherwise in connection with, such an assessment as is referred to in subsection (1) (b) if the necessary conditions had been fulfilled for the making of such an assessment.

195 Right of husband to disclaim liability for tax on deceased wife's income.

195.—(1) Where a woman dies who, at any time before her death, was a married woman living with her husband, he or, if he is dead, his executors or administrators may, not later than two months from the date of the grant of probate or letters of administration in respect of her estate or, with the consent of her executors or administrators, at any later date, give to her executors or administrators and to the inspector a notice in writing declaring that, to the extent permitted by this section, he or they disclaims or disclaim responsibility for unpaid income tax or unpaid sur-tax in respect of all income of hers for any year of assessment or part of a year of assessment, being a year of assessment or part of a year of assessment which began on or after the 6th day of April, 1958, and during which he was her husband and she was living with him.

• (2) A notice given pursuant to this section to the inspector shall be deemed not to be a valid notice unless it specifies the names and addresses of the woman's executors or administrators.

• (3) Where a notice under this section has been given to a woman's executors or administrators and to the inspector—

• (a) it shall be the duty of the Revenue Commissioners and the Special Commissioners to exercise such powers as they may then or thereafter be entitled to exercise under section 194 in connection with any assessment made on or before the date when the giving of the said notice is completed, being an assessment in respect of any of the income to which the said notice relates, and

• (b) the assessments (if any), whether to income tax or to sur-tax, which may be made after that date shall, in all respects and in particular as respects the persons assessable and the tax payable, be the assessments which would have fallen to be made if—

• (i) an application for separate assessment under section 197 or under section 198, as the case may be, had been in force in respect of the year of assessment in question, and

• (ii) all assessments previously made had been made accordingly.

• (4) In this section “the inspector” means, in relation to a notice, any inspector who might reasonably be considered by the person giving the notice to be likely to be concerned with the subject-matter thereof or who declares himself ready to accept the notice.

• (5) Any notice under this section may be served by post.

196 Married woman living with husband.

196.—(1) A married woman shall be treated for income tax purposes as living with her husband unless either—

• (a) they are separated under an order of a court of competent jurisdiction or by deed of separation, or

• (b) they are in fact separated in such circumstances that the separation is likely to be permanent.

• (2) Where a married woman is living with her husband and either—

• (a) one of them is, and one of them is not, resident in the State for a year of assessment, or

• (b) both of them are resident in the State for a year of assessment but one of them is, and one of them is not, absent from the State throughout that year,

the same consequences shall follow for income tax (including sur-tax) purposes as would have followed if, throughout that year of assessment, they had been in fact separated in such circumstances that the separation was likely to be permanent.

• (3) Where subsection (2) applies and the net aggregate amount of income tax (including sur-tax) falling to be borne by the husband and the wife for the year is greater than it would have been but for the provisions of that subsection, the Revenue Commissioners shall cause such relief to be given (by the reduction of such assessments on the husband or the wife or the repayment of such tax paid (by deduction or otherwise) by the husband or the wife as the Revenue Commissioners may direct) as will reduce the said net aggregate amount by the amount of the excess.

197 Separate assessments to income tax.

197.—(1) If an application is made for the purpose in such manner and form as may be prescribed by the Revenue Commissioners, either by a husband or wife, within six months before the 6th day of July in any year of assessment, income tax for that year shall be assessed, charged and recovered on the income of the husband and on the income of the wife as if they were not married, and all the provisions of this Act with respect to the assessment, charge, and recovery of tax shall, save as otherwise provided by this Act, apply as if they were not married.

• (2) An application for the purposes of this section may in the case of persons marrying during the course of a year of assessment be made as regards that year at any time before the 6th day of July in the following year.

• (3) The Revenue Commissioners may require returns for the purposes of this section to be made at any time.

198 Separate assessments to sur-tax.

198.—(1) If an application is made for the purpose in such manner and form as may be prescribed by the Revenue Commissioners, either by a husband or wife, within six months before the 6th day of July in the year of assessment—

• (a) sur-tax for that year shall be assessed, charged, and recovered on the income of the husband and on the income of the wife as if they were not married, and all the provisions of this Act with respect to the assessment, charge, and recovery of sur-tax, shall apply as if they were not married; and

• (b) the income of the husband and wife shall be treated as one in estimating total income for the purpose of sur-tax, and the amount of sur-tax payable in respect of the total income shall be divided between the husband and wife in proportion to their respective incomes, and the total amount payable shall not be less than it would have been if an application had not been made under this section.

• (2) An application for the purposes of this section may in the case of persons marrying during the course of a year of assessment be made as regards that year at any time before the 6th day of July in the following year.

• (3) The Revenue Commissioners may require returns for the purposes of this section to be made at any time.

Chapter II Special Provisions as to Non-residents and Temporary Residents

199 Persons temporarily resident outside the State.

199.—Every person whose ordinary residence has been in the State shall be assessed and charged to tax, notwithstanding that at the time the assessment or charge is made he may have left the State if he has so left for the purpose only of occasional residence outside the State, and shall be charged as a person actually residing in the State upon the whole amount of his profits or gains, whether they arise from property in the State or elsewhere, or from any allowance, annuity, or stipend (save as herein is excepted), or from any trade, profession or employment in the State or elsewhere.

200 Non-residents: assessment.

200.—A person not resident in the State, whether a citizen of Ireland or not, shall be assessable and chargeable in the name of any trustee, guardian, or committee of such person, or of any factor, agent, receiver, branch, or manager, whether such factor, agent, receiver, branch, or manager has the receipt of the profits or gains or not, in like manner and to the like amount as such non-resident person would be assessed and charged if he were resident in the State and in the actual receipt of such profits or gains:

Provided that in the case of a partnership, the precedent partner (as defined in section 69) or if there is no precedent partner, the factor, agent, receiver, branch, or manager shall be deemed to be the agent of a non-resident partner.

201 Non-residents: profits from agencies, etc.

201.—A non-resident person shall be assessable and chargeable in respect of any profits or gains arising, whether directly or indirectly, through or from any factorship, agency, receivership, branch, or management, and shall be so assessable and chargeable in the name of the factor, agent, receiver, branch, or manager.

202 Non-residents: control over residents.

202.—Where a non-resident person, not being a citizen of Ireland or an Irish firm or company, or branch thereof, carries on business with a resident person, and it appears to the inspector that, owing to the close connection between the resident person and the non-resident person, and to the substantial control exercised by the non-resident person over the resident person, the course of business between those persons can be so arranged, and is so arranged, that the business done by the resident person in pursuance of his connection with the non-resident person produces to the resident person either no profits or less than the ordinary profits which might be expected to arise from that business, the non-resident person shall be assessable and chargeable to tax in the name of the resident person as if the resident person were an agent of the non-resident person.

203 Non-residents: charge on percentage of turnover.

203.—(1) Where it appears to the inspector or, on appeal, to the Special Commissioners, that the true amount of the profits or gains of any non-resident person chargeable with tax in the name of a resident person cannot in any case be readily ascertained, the non-resident person may, if it is thought fit by the inspector or Commissioners, be assessed and charged on a percentage of the turnover of the business done by the non-resident person through or with the resident person in whose name he is chargeable as aforesaid, and in such case the provisions of this Act relating to the delivery of statements by persons acting on behalf of others shall extend so as to require returns to be given by the resident person of the business so done by the non-resident person through or with the resident person, in the same manner as statements are to be delivered by persons acting for incapacitated or non-resident persons of profits or gains to be charged.

• (2) The amount of the percentage under subsection (1) shall in each case be determined, having regard to the nature of the business, by the inspector by whom the assessment on the percentage basis is made, subject to appeal to the Special Commissioners.

• (3) If either the resident person or the non-resident person is dissatisfied with the percentage determined either in the first instance or by the Special Commissioners on appeal, he may, within four months of that determination, require the inspector or the Special Commissioners, as the case may be, to refer the question of the percentage to a referee or board of referees to be appointed for the purpose by the Minister for Finance, and the decision of the referee or board shall be final and conclusive.

204 Non-residents: merchanting profit.

204.—Where a non-resident person is chargeable to income tax in the name of any branch, manager, agent, factor or receiver in respect of any profits or gains arising from the sale of goods or produce manufactured or produced outside the State by the non-resident person, the person in whose name the non-resident person is so chargeable may, if he thinks fit, apply to the inspector or, in case of an appeal, to the Special Commissioners, to have the assessment to income tax in respect of those profits or gains made or amended on the basis of the profits which might reasonably be expected to have been earned by a merchant or, where the goods are retailed by or on behalf of the manufacturer or producer, by a retailer of the goods sold, who had bought from the manufacturer or producer direct, and on proof to the satisfaction of the inspector or, as the case may be, the Special Commissioners of the amount of the profits on the basis aforesaid, the assessment shall be made or amended accordingly.

205 Non-residents: restrictions on chargeability.

205.—(1) Nothing in this Chapter shall render a non-resident person chargeable in the name of a broker or general commission agent, or in the name of an agent not being an authorised person carrying on the regular agency of the non-resident person or a person chargeable as if he were an agent in pursuance of the provisions of this Chapter in respect of profits or gains arising from sales or transactions carried out through such a broker or agent.

• (2) The fact that a non-resident person executes sales or carries out transactions with other non-residents in circumstances which would make him chargeable in pursuance of the provisions of this Chapter in the name of a resident person shall not of itself make him chargeable in respect of profits arising from those sales or transactions.

206 Temporary residents.

206.—A person shall not be charged to tax under Schedule D as a person residing in the State, in respect of profits or gains received in respect of possessions or securities outside the State, who is in the State for some temporary purpose only, and not with any view or intent of establishing his residence therein, and who has not actually resided in the State at one time or several times for a period equal in the whole to six months in any year of assessment, but if any such person resides in the State for the aforesaid period he shall be so chargeable for that year.

Chapter III Special Provisions as to Bodies of Persons, Incapacitated Persons, Trustees and Agents, Personal Representatives and Receivers

207 Bodies of persons.

207.—(1) Every body of persons shall be chargeable to tax in like manner as any person is chargeable under the provisions of this Act.

• (2) The treasurer or other officer acting as such, auditor or receiver for the time being of any body of persons chargeable to tax, shall be answerable for doing all such acts as are required to be done under this Act, for the purpose of the assessment of such body and for payment of the tax, and for the purpose of the assessment of the officers and persons in the employment of such body:

Provided that, in the case of a company, the person so answerable shall be the secretary of the company or other officer (by whatever name called) performing the duties of secretary.

• (3) Every such officer may from time to time retain out of any money coming into his hands, on behalf of the body, so much thereof as is sufficient to pay the tax charged upon the body, and shall be indemnified for all such payments made in pursuance of this Act.

208 Trustees, guardians and committees.

208.—The trustee, guardian or committee of any incapacitated person having the direction, control, or management of the property or concern of any such person, whether such person resides in the State or not, shall be assessable and chargeable to tax in like manner and to the like amount as that person would be assessed and charged if he were not an incapacitated person.

209 Liability of trustees, etc.

209.—(1) The person who is chargeable in respect of an incapacitated person, or in whose name a non-resident person is chargeable, shall be answerable for all matters required to be done under this Act for the purpose of assessment and payment of tax.

• (2) Any person who has been charged under this Act in respect of any incapacitated or non-resident person may retain, out of money coming into his hands on behalf of any such person, so much thereof from time to time as is sufficient to pay the tax charged, and shall be indemnified for all such payments made in pursuance of this Act.

210 Liability of parents, guardians and personal representatives.

210.—(1) If a person chargeable to tax is an infant, or dies—

• (a) the parent or guardian of the infant shall be liable for the tax in default of payment by the infant; and

• (b) the executor or administrator of the person deceased shall be liable for the tax charged on such deceased person,

and on neglect or refusal of payment any such person so liable as aforesaid may be proceeded against in like manner as any other defaulter.

• (2) A parent or guardian who makes such payment shall be allowed all sums so paid in his accounts, and an executor or administrator may deduct all such payments out of the assets and effects of the person deceased.

• (3) If the owner of any property occupied by him at the time an assessment for any year under Schedule A was made, dies before payment of the tax, the heirs, executors, administrators, or assigns, or other persons who become entitled on his death, to the rents and profits thereof, shall be liable to pay all arrears of tax due at the time of the death, or, if no arrears are due, the tax payable for the period up to the time of the death, without any new assessment.

211 Assessment of personal representatives.

211.—(1) Where a person dies, an assessment or an additional first assessment (as the case may be), may be made for the year of assessment in which such person dies or for any previous year in respect of the profits or gains which arose or accrued to such person before his death, and the amount of the tax on such profits or gains shall be a debt due from and payable out of the estate of such person, and the executor or administrator of such person shall be assessable and chargeable in respect of such tax.

• (2) No assessment under this section shall be made later than three years after the expiration of the year of assessment in which the deceased person died in a case in which the grant of probate or letters of administration was made in that year, and no such assessment shall be made later than two years after the expiration of the year of assessment in which such grant was made in any other case, but the foregoing provisions of this paragraph 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, such assessment may be made at any time before the expiration of two years after the end of the year of assessment in which the corrective affidavit was lodged.

• (3) The executor or administrator of any such deceased person shall, when required by a particular notice so to do, prepare and deliver to the inspector a statement in writing signed by such executor or administrator and containing particulars, to the best of his judgment and belief, of the profits or gains which arose or accrued to such deceased person before his death and in respect of which such executor or administrator is assessable under this section, and the provisions of this Act relating to statements to be delivered by any person shall apply, with any necessary modifications, to statements to be delivered under this section.

• (4) Nothing in this section shall apply to or affect statements to be delivered or assessments to be made in respect of a trade or profession carried on by two or more persons jointly.

212 Receivers appointed by the court.

212.—(1) A receiver appointed by any court in the State which has the direction and control of any property in respect of which tax is charged in accordance with the provisions of this Act shall be assessable and chargeable with tax in like manner and to the like amount as would be assessed and charged if the property were not under the direction and control of the court.

• (2) Every such receiver shall be answerable for doing all matters and things required to be done under this Act for the purpose of assessment and payment of tax.

213 Protection for trustees, agents and receivers.

213.—(1) A trustee who has authorised the receipt of profits arising from trust property by, or by the agent of, the person entitled thereto shall not, if—

• (a) that person or agent actually received the profits under that authority, and

• (b) the trustee returns a list, as required by section 176, of the name, address and profits of that person,

be required to do any other act for the purpose of the assessment of that person, unless the Revenue Commissioners require the testimony of the trustee pursuant to this Act.

• (2) An agent or receiver of any person resident in the State, other than an incapacitated person, shall not, if he returns a list, as required by section 176, of the name, address and profits of that person, be required to do any other act for the purpose of the assessment of that person, unless the Revenue Commissioners require the testimony of the agent or receiver pursuant to this Act.

PART X Special Provisions as to Assurance Companies and Investment Businesses

214 Relief for expenses of management.

214.—(1) Where an assurance company carrying on life assurance business, or any company whose business consists mainly in the making of investments, and the principal part of whose income is derived therefrom, or any savings bank or other bank for savings, claims and proves to the satisfaction of the Special Commissioners that, for any year of assessment, it has been charged to tax by deduction or otherwise, and has not been charged in respect of its profits in accordance with the provisions of this Act applicable to Case I of Schedule D, the company or bank shall be entitled to repayment of so much of the tax paid by it as is equal to the amount of the tax on any sums disbursed as expenses of management (including commissions) for that year:

Provided that—

• (a) relief shall not be given under this section so as to make the tax paid by the company or bank less than the tax which would have been paid if the profits had been charged in accordance with the provisions of this Act applicable to Case I of Schedule D; and

• (b) the amount of any fines, fees, or profits arising from reversions in the case of an assurance company, and, in the case of any other company or any such bank, the amount of any income or profits derived from sources not charged to tax, shall be deducted from the amount treated as expenses of management for the year; and

• (c) in calculating profits arising from reversions, the company may set off against those profits any loss arising from reversions for any previous year during which any enactment granting this relief was in operation.

• (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.

• (3) A company or bank shall not be entitled to any relief under this section in respect of any expenses as to which relief may be claimed or allowed under section 23 or 24.

• (4) Where an assurance company, not having its head office in the State, is charged under Case III of Schedule D, on a proportion of the income from the investments of its life assurance fund, or on a basis substituted therefor, the relief in respect of expenses of management shall be calculated by reference to a like proportion of its total expenses of management for the year, estimated according to the provisions of this Act.

• (5) Where income arising from the investments of the foreign life assurance fund of an assurance company has been relieved from tax in pursuance of the provisions of this Act, a corresponding reduction shall be made in the relief granted under this section in respect of the expenses of management.

215 Foreign assurance companies: investment income.

215.—(1) Where an assurance company not having its head office in the State carries on life assurance business through any branch or agency in the State, any income of the company from the investments of its life assurance fund (excluding the annuity fund, if any), wherever received, shall, to the extent provided in this section, be deemed to be profits comprised in Schedule D and shall be charged under Case III thereof.

• (2) Such portion only of the income from the investments of the life assurance fund for the year preceding the year of assessment shall be so charged as bears the same proportion to the total income from those investments as the amount of premiums received in that year from policy holders resident in the State and from policy holders resident outside the State whose proposals were made to the company at or through its office or agency in the State bears to the total amount of the premiums received by the company:

Provided that in the case of an assurance company having its head office in Northern Ireland, Great Britain or in any other country to which the repealed enactments corresponding to this section would apply but for their repeal, the Revenue Commissioners may, by regulation, substitute some basis other than that herein prescribed for the purpose of ascertaining the portion of the income from investments to be so charged as being income derived from business carried on in the State.

• (3) Where a company has already been charged to tax, by deduction or otherwise, in respect of its life assurance business, to an amount equal to or exceeding the charge under this section, no further charge shall be made under this section, and where a company has already been so charged, but to a less amount, the charge shall be proportionately reduced.

216 Companies carrying on life assurance business.

216.—(1) Where an assurance company carries on life assurance business in conjunction with assurance business of any other class, the life assurance business of the company shall for the purposes of this Act be treated as a separate business from any other class of business carried on by the company.

• (2) In ascertaining whether an assurance company has sustained a loss in respect of its life assurance business for the purpose of setting off such loss against the profits of any other business carried on by the company, or for the purpose of obtaining repayment of tax under section 307, any income of the company derived from the investments of its life assurance fund shall be treated as part of the profits of the company acquired in that business.

217 Liability of assurance companies.

217.—(1) Where the profits of an assurance company in respect of its life assurance business are, for the purposes of this Act, computed in accordance with the provisions thereof applicable to Case I of Schedule D, then, subject to subsection (3), the following provisions shall have effect:—

• (a) such part of those profits as belongs or is allocated to, or is expended on behalf of, policy-holders or annuitants shall be excluded in making the computation;

• (b) such part of those profits as is reserved for policy-holders or annuitants shall also be excluded in making the computation, but if any profits so excluded as being so reserved cease at any time to be so reserved and are not allocated to, or expended on behalf of, policy-holders or annuitants, then those profits shall be treated as profits of the company for the year in which they ceased to be so reserved.

• (2) Where an assurance company carries on both ordinary life assurance business and industrial life assurance business, then, subject to subsection (3), the business of each such class shall, for the purposes of this Act, be treated as though it were a separate business and section 214 shall apply separately to each such class of business.

• (3) Neither subsection (1) nor subsection (2) shall apply to an assurance company in respect of any year of assessment unless the company elects, by giving notice in writing to the inspector within twelve months after the end of that year, that the said subsections (1) and (2) shall both apply to it in respect of that year.

PART XI Industrial and Provident Societies

218 Interpretation.

218.—In this Part, save where the context otherwise requires—

“capital allowance” means any allowance, other than an allowance falling to be made in computing profits or gains, under section 241, Part XIV, XV, XVI or XVII;

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

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

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

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

219 Deduction as expenses of certain sums, etc.

219.—(1) It is hereby declared that in computing, for the purposes of Case I of Schedule D or of section 78, the profits or gains of a society there are to be deducted as expenses any sums which—

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

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

• (2) A society whose business consists mainly in the making of investments, and the principal part of whose income is derived therefrom, shall be entitled to relief under section 214, in the same manner and to the same extent as if the business of the society were the business of a company.

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

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

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

• (ii) no loss, or portion of a loss, which was sustained before the 6th day of April, 1963, shall be carried forward under section 309.

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

Provided that nothing in this paragraph shall affect the provisions of section 265 (5).

• (c) Where for the year 1962-63 or any previous year of assessment an annual allowance in respect of capital expenditure on the purchase of patent rights might have been made to or on a society under Part V of the Finance Act, 1959, but for the circumstance that the society was exempt from tax under Schedule D, the amount of the expenditure remaining unallowed (within the meaning of section 286) shall, in relation to any balancing allowance or balancing charge under Part XVI falling to be made to or on the society in respect of the expenditure for any year of assessment, be computed as if every annual allowance which might have been made as aforesaid had been made.

220 Disregard of profits or losses attributable to certain transactions.

220.—(1) In this section—

“agricultural society” means a society—

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

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

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

• (b) to which a certificate under subsection (2) (a) relates;

“fishery society” means a society—

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

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

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

• (b) to which a certificate under subsection (2) (b) relates;

“exempted transactions” means—

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

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

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

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

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

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

• (ii) the auctioning or transportation of fish,

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

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

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

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

• (ii) that persons such as are described in paragraph (a) (ii) of the definition of “agricultural society” contained in subsection (1) do not constitute a majority of the society's members.

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

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

• (ii) that persons such as are described in paragraph (a) (ii) of the definition of “fishery society” contained in subsection (1) do not constitute a majority of the society's members.

• (c) In the definition of “exempted transactions” contained in subsection (1) “specified” means specified in a certificate given by the Minister for Finance on the recommendation of the Minister for Agriculture and Fisheries.

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

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

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

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

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

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

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

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

In this subsection—

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

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

• (6) All amounts receivable by an agricultural society or a fishery society from the sale of goods, being amounts which are so receivable by virtue of exempted transactions, shall be disregarded for all the purposes of Chapter IV of Part XXV, and where, in a case in which relief from income tax is given to the society under that Chapter, any share interest is payable with deduction of tax, section 410 (2) shall not apply.

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

221 Payment of interest without deduction of tax.

221.—(1) Notwithstanding anything in this Act, any share interest or loan interest paid by a society shall be paid without deduction of tax and shall be charged under Schedule D, Case III:

Provided that this subsection shall not apply to any share interest or loan interest payable to a person whose usual place of abode is not within the State.

• (2)
• (a) Where, in a case in which section 220 applies, a society claims repayment of tax under section 496 in respect of interest paid by it in any year of assessment, the amount repayable shall be determined on the basis that so much of the interest as exceeds the appropriate proportion thereof was not paid out of profits or gains brought into charge to tax.

• (b) Where, in any year of assessment, a society, in a case in which section 220 applies, pays any share interest or loan interest, from which tax is deductible, or makes any other annual payment, so much of the aggregate of the gross amounts of all such payments as exceeds the appropriate proportion thereof shall be treated as not having been paid out of profits or gains brought into charge and section 434 shall apply accordingly.

In this paragraph “annual payment” means any payment from which, apart from any insufficiency of profit or gains of the person making it, tax is deductible under section 433.

• (c) Where in any year of assessment a society pays share interest or loan interest (other than loan interest in respect of which a claim such as is mentioned in paragraph (a) is made) without deduction of tax in accordance with subsection (1), it may claim, in a case in which section 220 applies, that the appropriate proportion of the total amount so paid, or, in any other case, that the total amount so paid, be deducted from its total income for that year and, where such a claim is made, any appropriate relief from tax shall be given by repayment or otherwise.

Section 307 (5) (6) shall apply to a claim under this paragraph as those subsections apply to a claim under section 307, except that it shall not be necessary to use a prescribed form.

• (d) Where for any year of assessment the amount of share interest and loan interest falling to be deducted from a society's total income under the immediately preceding paragraph exceeds the amount of the said total income, section 316 shall have effect as if the society had been assessed to tax under section 434 in respect of the payment of the excess and had paid tax under that assessment on the amount of such payment.

• (e) In this subsection “the appropriate proportion” of any amount of interest or annual payment paid by a society in a year of assessment means the portion of that amount which bears to the whole the same proportion as the amount of the society's total income for the year bears to what would, but for section 220, have been the amount of the society's total income for that year.

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

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

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

• (i) the name and place of residence of every person to whom share interest or loan interest amounting to the sum of £5 or more has been paid by the society in the year of assessment which ended next before the said 1st day of May, and

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

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

PART XII Special Provisions as to Pensions, Pension Schemes, Retirement Annuities and Purchased Life Annuities

Chapter I Superannuation

222 Exemption of superannuation funds.

222.—(1) Subject to the provisions of this section and to any regulations made thereunder, exemption from income tax shall be allowed in respect of income derived from investments or deposits of a superannuation fund, and, subject as aforesaid, any sum paid by an employer or employed person by way of contribution towards a superannuation fund shall, in computing profits or gains for the purpose of an assessment to income tax under Case I or Case II of Schedule D or under Schedule E, be allowed to be deducted as an expense incurred in the year in which the sum is paid:

Provided that no allowance shall be made under the foregoing provision in respect of any contribution by an employed person which is not an ordinary annual contribution, and, where a contribution by an employer is not an ordinary annual contribution, it shall, for the purpose of the foregoing provision, be treated as the Commissioners may direct, either as an expense incurred in the year in which the sum is paid or as an expense to be spread over such period of years as the Commissioners think proper.

• (2) Income tax chargeable in respect of an annuity paid out of a superannuation fund to a person residing in the State shall, if the Commissioners so direct, be assessed and charged on the annuitant under Schedule E instead of being deducted and accounted for under section 434 and tax shall be computed on the full amount of the annuity arising in the year of assessment.

• (3) For the purposes of this section, “superannuation fund” means, unless the context otherwise requires, a fund which is approved for those purposes, by the Commissioners, and, subject as hereinafter provided, the Commissioners shall not approve any fund unless it is shown to their satisfaction that—

• (a) the fund is a fund bona fide established under irrevocable trusts in connection with some trade or undertaking carried on in the State by a person residing therein;

• (b) the fund has for its sole purpose the provision of annuities for all or any of the following persons in the events respectively specified, that is to say, for persons employed in the trade or undertaking, either on retirement at a specified age, or on becoming incapacitated at some earlier age, or for the widows, children, or dependants of persons who are or have been so employed, on the death of those persons;

• (c) the employer in the trade or undertaking is a contributor to the fund;

• (d) the fund is recognised by the employer and employed persons in the trade or undertaking:

Provided that the Commissioners may, if they think fit, and subject to such conditions, if any, as they think proper to attach to the approval, approve a fund, or any part of a fund, as a superannuation fund for the purposes of this section—

• (i) notwithstanding that the rules of the fund provide for the return in certain contingencies of contributions paid to the fund; or

• (ii) if the main purpose of the fund is the provision of such annuities as aforesaid, notwithstanding that such provision is not its sole purpose; or

• (iii) notwithstanding that the trade or undertaking in connection with which the fund is established is carried on only partly in the State and by a person not residing therein.

• (4) The Commissioners may make regulations generally for the purpose of carrying this section into effect and, in particular, without prejudice to the generality of the foregoing provision, may by such regulations—

• (a) provide for the charging of and accounting for tax in respect of contributions (including interest) repaid to a contributor to a superannuation fund and on lump sums paid in commutation of or in lieu of annuities payable out of a superannuation fund as if any sums so repaid or paid were income of the year in which they are repaid or paid;

• (b) require the trustees or other persons having the management of a superannuation fund, or an employer whose employees contribute to a superannuation fund to deliver to the Commissioners such information and particulars as the Commissioners may reasonably require for the purposes of this section;

• (c) prescribe the manner in which claims for relief under this section are to be made and approved, and in which applications for the approval of a superannuation fund are to be made;

• (d) provide for the withdrawal of approval in the case of a fund which ceases to satisfy the requirements of this section;

• (e) provide for determining what contributions to a superannuation fund are to be treated as ordinary annual contributions for the purposes of this section.

• (5) In this section “the Commissioners” means the Revenue Commissioners.

223 Contributions towards expenses of superannuation benefits.

223.—(1) Where, in pursuance of any public statute, superannuation allowances or gratuities are payable to individuals holding an office or employment on their retirement or to their legal personal representatives on their death, and such individuals are by any such statute required to make contributions towards the expenses of providing the allowances and gratuities, the sums so contributed by any such individual for any year may be deducted from the amount of his emoluments to be assessed to income tax for that year:

Provided that, where any such sums are to be repaid to any individual under the authority of any such statute, the person by or through whom the sums are to be repaid shall deduct from those sums an amount equal to the total amount of the income tax which would have been paid in respect of those sums if they had not been allowed as deductions under the authority of this section, and if those sums are repaid with any interest thereon, shall also deduct therefrom an amount equal to the total amount of the income tax which would have been paid in respect of that interest if it had actually been paid to the individual in the several years in respect of which it is paid, and the provisions of section 434 (2) (3) (4) (5) shall apply in regard to the accounting for and recovery of the amounts so deducted.

• (2) Any person having the custody of the books containing the assessments to income tax on any individual for the several years in respect of which sums are repayable to him as aforesaid shall, notwithstanding anything contained in any declaration made by that person in pursuance of section 163, on application by the person by or through whom the sums are repayable, furnish to him such particulars as may be necessary to enable him to compute the appropriate amount of income tax to be deducted and paid over by him as aforesaid.

224 Contributions and benefits under Social Welfare Acts.

224.—(1) In this section “the Acts” means the Social Welfare Acts, 1952 to 1963, and any subsequent enactment together with which those Acts may be cited.

• (2) The benefits to which this section applies are widow's (contributory) pension, orphan's (contributory) allowance and old age (contributory) pension payable under the Acts.

• (3) So much of any contribution paid under the Acts by a person as an employed contributor or a voluntary contributor as is paid in respect of a benefit to which this section applies shall be deducted from or set off against the income of that person for the year of assessment in which the contribution is paid, and tax shall, where necessary, be discharged or repaid accordingly, and the total income of that person for that year of assessment shall be calculated accordingly for all the purposes of this Act, and no relief or deduction shall be given or allowed under any other provision of this Act in respect of any contribution in respect of which relief can be given under this subsection:

Provided that—

• (a) the amount to be deducted or set off shall be treated as reducing primarily earned income;

• (b) where the total amount to be deducted from or set off against the income of a married person whose wife is living with him or who is living with her husband exceeds the total income of that person, the excess shall be deemed to be an amount which, under the foregoing provisions of this subsection, may be deducted from or set off against the income of the wife or husband of that person;

• (c) no deduction or set-off shall be allowed in respect of so much of any contribution paid by a person whose entry into insurance for the purpose of old age (contributory) pension occurred after he had attained the age of sixty as was paid in respect of old age (contributory) pension.

• (4) Payments of benefits to which this section applies shall be deemed to be emoluments to which Chapter IV of Part V applies.

• (5) A person who, by virtue of any provision of the Acts, suffers a deduction from his remuneration in respect of any contribution shall be deemed, for the purposes of this section (but no other purpose), to have paid a contribution equal to the amount of the deduction.

• (6) For the purposes of this section, the part of any contribution which is paid in respect of any or all of the benefits to which this section applies shall be taken to be such part thereof as may be determined by the Minister for Social Welfare.

225 Liability of certain pensions, etc., to tax.

225.—Where a person has ceased to hold an office or employment and a pension, annuity, or other annual payment is paid to him or to his widow or his child or any of his relatives or dependants by the person or the heirs, executors, administrators, or successors of the person under whom he held such office or by whom he was so employed, then such pension, annuity, or other annual payment shall, notwithstanding that it is paid voluntarily or is capable of being discontinued, be deemed to be income for the purpose of assessment of income tax and shall be assessed and charged under Schedule D or under Schedule E as the case may require.

Chapter II Retirement and Other Benefits for Directors and Employees

226 Interpretation.

226.—(1) In this Chapter, except where the context otherwise requires—

“director” means—

• (a) in relation to a body corporate the affairs whereof are managed by a board of directors or similar body, a member of that board or similar body,

• (b) in relation to a body corporate the affairs whereof are managed by a single director or similar person, that director or person,

• (c) in relation to a body corporate the affairs whereof are managed by the members themselves, a member of the body corporate,

and includes any person who is to be or has been a director;

“employee”, in relation to a body corporate, includes any person taking part in the management of the affairs of the body corporate who is not a director, and includes a person who is to be or has been an employee;

“final remuneration” means, in relation to a director or employee of a body corporate, the average annual amount of his remuneration from the body corporate over the last three years of his service with the body corporate, and the amount of a person's remuneration for any year shall be taken to be the amount thereof on which he would be assessable under the provisions of this Act, if those provisions required the assessment to be based on the profits or gains of that year and not on those of any other year or period, reduced by any deduction (other than deductions under section 222 or under section 233) which would be allowable in computing profits or gains under this Act, and by any deductions which would be allowable in respect of wear and tear of any machinery or plant: Provided that, in the case of a director of a company, remuneration shall not include any director's fee or similar remuneration received by him in his capacity as such director;

“part-time director” means, in relation to a body corporate, a director who is not required to devote substantially the whole of his time to the service of the body corporate;

“part-time employee” means, in relation to a body corporate, an employee who is not required to devote substantially the whole of his time to the service of the body corporate;

“proprietary director” means a director of a company who is either the beneficial owner of, or able, either directly or through the medium of other companies or by any other indirect means, to control, more than 15 per cent. of the ordinary share capital of the company;

“proprietary employee” means, in relation to a company, an employee who is the beneficial owner of, or able, either directly or through the medium of other companies or by any other indirect means, to control, more than 15 per cent. of the ordinary share capital of the company;

“retirement or other benefit” means any pension, annuity, lump sum, gratuity or other like benefit to be given on retirement, or in anticipation of retirement, or, in connection with past service, after retirement, or on or in connection with death during service or after retirement, or to be given on or in anticipation of or in connection with any change in the nature of the service of the person in question, except that it does not include any pension, annuity, lump sum, gratuity, or other like benefit which is to be afforded solely by reason of the death or disability of a person resulting from an accident arising out of or in the course of his office or employment and for no other reason;

“service” means service as an employee or director of the body corporate in question and “retirement” shall be construed accordingly;

“statutory superannuation scheme” means a scheme set up by or under any enactment relating to superannuation.

• (2) For the purposes of the definitions in subsection (1) of “proprietary director” and “proprietary employee”—

• (a) ordinary share capital which is owned or controlled as referred to in the definitions by a person being a spouse or an infant child of a director or employee, or by the trustee of a trust for the benefit of a person or persons being or including any such person or such director or employee, shall be deemed to be owned or controlled by such director or employee and not by any other person, and

• (b) “ordinary share capital” means all the issued capital (by whatever name called) of the company, other than capital the holders whereof have a right to a dividend at a fixed rate or a rate fluctuating in accordance with the rate of income tax, but have no other right to share in the profits of the company.

• (3) Where an alteration has been made in a retirement benefits scheme at any time after the 23rd day of April, 1958, the scheme shall, for the purposes of this Chapter, be deemed to have become a new scheme coming into being on the date of the alteration, but this subsection shall not apply to an alteration approved by the Revenue Commissioners.

• (4) Any reference in this Chapter to the provision for a person of retirement or other benefits includes a reference to the provision of benefits payable to that person's spouse, children, dependants or legal personal representatives.

• (5) Any reference in this Chapter to the provision of retirement or other benefits, or of a pension or annuity, by a body corporate includes a reference to the provision thereof by means of a contract with a third person.

• (6) This Chapter shall apply in relation to unincorporated societies or other bodies as it applies in relation to bodies corporate, but the reference in this subsection to unincorporated societies or other bodies shall be deemed not to include a reference to individuals in partnership.

227 Charge to tax in respect of provision for retirement or other benefits to directors and employees of bodies corporate.

227.—(1) Subject to section 228, where, pursuant to a scheme for the provision of future retirement or other benefits for persons consisting of or including directors or employees of a body corporate (in this Chapter referred to as a retirement benefits scheme), the body corporate in any year of assessment pays a sum with a view to the provision of any such benefits for any director or employee thereof, then (whether or not the accrual of the benefits is dependent on any contingency)—

• (a) the sum paid, if not otherwise chargeable to income tax as income of the director or employee, shall be deemed for all the purposes of this Act to be income of that director or employee for that year of assessment and assessable to income tax under Case IV of Schedule D; and

• (b) where the payment is made under any such insurance or contract as is mentioned in section 143 or 151, relief, if not otherwise allowable, shall be given to the director or employee under section 143 or 151, as the case may be, in respect of the payment and shall be given to the extent, if any, to which such relief would have been allowable to him if the payment had been made by him and the insurance or contract under which the payment is made had been made with him.

• (2) Subject to section 228, where—

• (a) an agreement is in force between a body corporate and a director or employee thereof for the provision for him of any future retirement or other benefits afforded by a retirement benefits scheme, or a person is serving as a director or employee of a body corporate in connection wherewith there is a retirement benefits scheme, relating to persons of the class within which he falls, under which any such benefits will be provided for him,

• (b) the body corporate does not, or does not fully, secure the provision of the benefits by the payment of such sums as are mentioned in subsection (1), and

• (c) the circumstances in which the benefits are to accrue are not such as will render the benefits assessable to income tax as emoluments of his office as a director or of his employment,

then (whether or not the accrual of the benefits is dependent on any contingency), in each year of assessment in which the agreement is in force or the director or employee is serving as aforesaid, up to and including the year of assessment in which the benefits accrue or there ceases to be any possibility of the accrual thereof, a sum equal to the annual sum which the body corporate would have had to pay in that year under a contract with a third person which secured the provision by that third person of those benefits or, as the case may be, of those benefits so far as not already secured by the payment of such sums as are mentioned in subsection (1), shall be deemed for all the purposes of this Act to be income of the director or employee for that year and assessable to income tax under Case IV of Schedule D.

• (3) Where the body corporate pays any sum as mentioned in subsection (1) in relation to several directors or employees, the sum so paid shall, for the purpose of that subsection, be apportioned among them by reference to the separate sums which would have had to be paid to secure the separate benefits to be provided for them respectively, and the part of the sum apportioned to each of them shall be deemed for that purpose to have been paid separately in relation to that one of them.

228 Exemptions from charge under section 227.

228.—(1) The following payments shall be exempted from the operation of section 227 (1):

• (a) payments to a superannuation fund approved (whether in whole or in part) by the Revenue Commissioners for the purposes of section 222;

• (b) payments made by way of premium pursuant to a retirement benefits scheme, the benefits whereunder are secured by premiums payable by the body corporate, with or without contributions by the directors or employees affected, under life or endowment assurance or life annuity contracts, being a scheme which was in operation before the 24th day of April, 1958,

subject to the proviso that paragraph (b) shall not apply in relation to a payment made in respect of a director or employee admitted to membership of the scheme after the 5th day of April, 1959, or in respect of a person who at any time during the year of assessment is—

• (i) a proprietary director,

• (ii) a part-time director,

• (iii) a proprietary employee, or

• (iv) a part-time employee.

• (2)
• (a) Neither section 227 (1) nor 227 (2) shall apply so as to cause any sum to be treated as income as therein mentioned where the retirement benefits scheme in question is—

• (i) a statutory superannuation scheme,

• (ii) an excepted scheme, or

• (iii) a scheme which is for the time being approved by the Revenue Commissioners under section 229.

• (b) In this subsection “excepted scheme” means a retirement benefits scheme relating to persons, none of whom is a proprietary director, part-time director, proprietary employee or part-time employee, under the terms of which the aggregate value of all benefits which may be provided for any person cannot exceed £3,000 (where there are more retirement benefits schemes than one subsisting for the time being in connection with the body corporate and relating to persons of the same class, all such schemes taken together being deemed to constitute a single scheme for the purposes of this definition).

• (3) Where—

• (a) in respect of the provision for a director or employee of any future retirement or other benefits, a sum (in this subsection referred to as the charged sum) has been deemed to be income of his by virtue either of section 227 (1) or 227 (2),

• (b) subsequently the director or employee proves to the satisfaction of the Revenue Commissioners, or on appeal to the satisfaction of the Special Commissioners, that no payment in respect of, or in substitution for, the benefits has been made and that some event has occurred by reason whereof no such payment will be made, and

• (c) within three years from the time when that event occurred, the director or employee claims relief under this subsection,

the Revenue Commissioners shall give relief in respect of tax on the charged sum by repayment or otherwise as may be appropriate; and, if the director or employee satisfies the Revenue Commissioners, or on appeal the Special Commissioners, as aforesaid in relation to some particular part of the benefits but not the whole thereof, the Revenue Commissioners may give such relief as may seem to them just and reasonable.

• (4) Where, apart from this subsection, any sum would be deemed, by virtue of subsection (1) or subsection (2) of section 227, to be income of an employee for any year of assessment, but, for that year, the employee is, under the provisions of this Act, either not assessable to income tax in respect of the emoluments of his employment or is so assessable in respect thereof on the basis of the amount received in the State, that subsection shall not apply so as to cause that sum to be deemed to be income of his for that year.

229 Approval of retirement benefits schemes.

229.—(1) Subject to section 230, the Revenue Commissioners shall approve a retirement benefits scheme for the purposes of this Chapter if it is shown to their satisfaction that the scheme satisfies all the following conditions:

• (a) that the scheme is established in connection with a trade or undertaking carried on wholly or partly in the State by a body corporate resident for income tax purposes therein;

• (b) that the benefits afforded by the scheme may accrue only to—

• (i) directors or employees of the body corporate on retirement, either on reaching a specified age (not exceeding seventy years) or on becoming permanently incapacitated at an earlier age, or

• (ii) the widows, children or other dependants or the legal personal representatives of persons who are or have been directors or employees of the body corporate, on the death of such persons;

• (c) that each person to whom the scheme relates has, under it, a specified right to defined benefits and has been made aware of the terms of the scheme;

• (d) that the nature of the benefits afforded by the scheme is the same in relation to all the persons to whom the scheme relates;

• (e) that not less than one-third of the cost of providing the benefits payable under the scheme, to or in respect of each of the persons to whom the scheme relates, is borne by the body corporate;

• (f) that no sum paid by the body corporate for the purposes of providing benefits under the scheme may be applied to any other purpose or may be repaid to the body corporate;