Finance Act , 1971

PART I Income Tax

1 Income tax and sur-tax for the year 1971-72.

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1971, at the rate of 35 per cent.

(2) Sur-tax for the year beginning on the 6th day of April, 1971, shall be charged in respect of the income of any individual the total of which from all sources exceeds the aggregate of—

(a) £2,500, and

(b) the amount of any deductions to which the individual is entitled for that year under section 523 of the Income Tax Act, 1967,

and shall be so charged in respect of the excess at the following rates, that is to say:

for every pound of the first £2,000 of the excess	15 per cent.
for every pound of the next £2,000 of the excess	30 per cent.
for every pound of the remainder of the excess	45 per cent.

2 Cesser of section 2 of Finance Act, 1970.

2.—Section 2 of the Finance Act, 1970, shall not apply or have effect in relation to the year 1971-72 or any subsequent year of assessment.

3 Amendment of section 58 of Income Tax Act, 1967.

3.—In relation to a trade or profession which is permanently discontinued in the year 1972-73 or any subsequent year of assessment, section 58 of the Income Tax Act, 1967, shall have effect as if the following subparagraphs were substituted for subparagraph (ii) of subsection (5) (a) of the said section 58:

“(ii) if the aggregate of the profits or gains (if any) of the years ending on the 5th day of April in each of the two years preceding the year of assessment in which the discontinuance occurs exceeds the aggregate of the amounts on which the person has been charged for each of the said two preceding years, or the aggregate of the amounts on which he would have been so charged if no such deduction or set-off as aforesaid had been allowed, he shall be charged instead, for each of the two said preceding years, but subject to any such deduction or set-off, on the amount of the profits or gains of the year ending on the 5th day of April in that year;

(iii) where a person has been charged with tax otherwise than in accordance with subparagraph (ii), any tax overpaid shall be repaid, or an additional assessment may be made upon him, as the case may require.”.

4 Charge of tax on sums applied outside the State in repaying certain loans.

4.— (1) For the purposes of section 76 (3) of the Income Tax Act, 1967, any income arising from securities and possessions in any place outside the State which is applied outside the State by a person ordinarily resident in the State in or towards satisfaction of—

(a) any debt for money lent to him in the State or for interest on money so lent, or

(b) any debt for money lent to him outside the State and received in or brought to the State, or

(c) any debt incurred for satisfying in whole or in part a debt falling within paragraph (a) or (b),

shall be treated as received by him in the State and as so received from remittances payable in the State.

(2) Where a person ordinarily resident in the State receives in or brings to the State money lent to him outside the State, but the debt for that money is wholly or partly satisfied before he does so, subsection (1) shall apply as if the money had been received in or brought to the State before the debt was so satisfied, except that any sums treated by virtue of that subsection as received in the State shall be treated as so received at the time when the money so lent is actually received in or brought to the State.

(3) Where a person is indebted for money lent to him, income applied by him in such a way that the money or property representing the income is held by the lender on behalf of or to the account of the said person in such circumstances as to be available to the lender for the purpose of satisfying or reducing the debt by set-off or otherwise shall be treated as applied by the said person in or towards its satisfaction if, under any arrangement between the said person and the lender, the amount for the time being of the said person's indebtedness to the lender, or the time at which it is to be repaid in whole or in part, depends in any respect directly or indirectly on the amount or value held by the lender as aforesaid.

(4) For the purposes of this section—

(a) a debt for money lent shall, to the extent to which that money is applied in or towards satisfying another debt, be deemed to be a debt incurred for satisfying that other debt, and a debt incurred for satisfying in whole or in part a debt falling within paragraph (c) of subsection (1) shall itself be treated as falling within that paragraph, and

(b) “lender” includes, in relation to any money lent, any person for the time being entitled to repayment.

(5) This section shall not have effect in relation to income applied in or towards satisfaction of a debt for money lent before the 28th day of April, 1971, or of a debt incurred for satisfying in whole or in part any such debt, unless it is so applied after the end of the year 1971-72.

5 Allowance of cost of registration of trade marks as a deduction.

5.—Notwithstanding anything in section 61 of the Income Tax Act, 1967, in computing the amount of the profits or gains of any trade, there shall be allowed to be deducted as expenses any feespaid or expenses incurred in obtaining, for the purposes of the trade, the registration of a trade mark or the renewal of registration of a trade mark.

6 Amendment of section 134 of Income Tax Act, 1967.

6.—Section 134 of the Income Tax Act, 1967, is hereby amended—

(a) by the substitution in paragraph (a) of the proviso (inserted by the Finance Act, 1970) of “£250” for “£225”, and

(b) by the substitution in paragraph (b) of the said proviso of “£150” for “£125”.

7 Amendment of section 135 of Income Tax Act, 1967.

7.—Section 135 of the Income Tax Act, 1967, is hereby amended—

(a) by the substitution in paragraph (d) of the proviso (inserted by the Finance Act, 1970) to subsection (1) of “£600” for “£500”, in both places where it occurs, and of “£150” for “£125”; and

(b) by the substitution in paragraph (e) of the said proviso of “£1,000” for “£900”, in both places where it occurs, and of “£250” for “£225”, in both places where it occurs.

8 Amendment of section 136 of Income Tax Act, 1967.

8.—Section 136 of the Income Tax Act, 1967, is hereby amended—

(a) by the substitution of “£600” for “£500” (inserted by the Finance Act, 1970) in each place where it occurs, and

(b) by the substitution in the proviso (inserted by the said Finance Act, 1970) to subsection (2) of “£150” for “£125”.

9 Amendment of section 139 of Income Tax Act, 1967.

9.—Section 139 of the Income Tax Act, 1967, is hereby amended by the insertion after subsection (5) (inserted by the Finance Act, 1967) of the following new subsection:

“(6) This section shall also apply to a claimant being an unmarried woman who throughout the year of assessment is in full-time employment or engaged full-time in some trade or profession as it applies to a claimant being a widower, save that ‘or of his deceased wife’ shall be omitted in both places where the expression occurs in subsection (1).”.

10 Amendment of section 142 of Income Tax Act, 1967.

10.—Section 142 (1) of the Income Tax Act, 1967, is hereby amended by the substitution of “£303” for “£282” in both places where it occurs and by the substitution of “£243” for “£222”.

11 Relief for blind persons.

11.—(1) In this section “blind person” means a person whose central visual acuity does not exceed 6/60 in the better eye with correcting lenses, or whose central visual acuity exceeds 6/60 in the better eye or in both eyes but is accompanied by a limitation in the fields of vision that is such that the widest diameter of the visual field subtends an angle no greater than 20 degrees.

(2) Subject to the provisions of this section, an individual who, in the manner prescribed by the Income Tax Acts, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves—

(a) that he is a married man who for the year of assessment has his wife living with him and that one of them was, for the whole or any part of the year, and the other was, at no time during the year, a blind person, or

(b) that, not being such a married man, he was for the whole or any part of the year, a blind person,

shall, in computing the amount of his taxable income, be entitled to have a deduction of £100 made from his assessable income.

(3) Subject to the provisions of this section, an individual who, in the manner prescribed by the Income Tax Acts, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves—

(a) that he is a married man who for the year of assessment has his wife living with him, and

(b) that each of them was, for the whole or any part of the year, a blind person,

shall, in computing the amount of his taxable income, be entitled to have a deduction of £200 made from his assessable income.

(4) All such provisions of the Income Tax Acts as apply in relation to every deduction specified in sections 138 to 143 of the Income Tax Act, 1967, shall apply in relation to a deduction under this section.

(5) Section 153 (1) (d) of the Income Tax Act, 1967, is hereby amended by the insertion after “1969,” of “and section 11 of the Finance Act, 1971”.

(6) Section 193 of the Income Tax Act, 1967, is hereby amended by the addition at the end of subsection (6) of “or under section 11 of the Finance Act, 1971”.

(7) Section 497 of the Income Tax Act, 1967, is hereby amended by the insertion after “1969,” of “or under section 11 of the Finance Act, 1971,”.

(8) Section 523 of the Income Tax Act, 1967, is hereby amended by the substitution in subsection (1) (a) of “and 142, section 3 of the Finance Act, 1969, and section 11 of the Finance Act, 1971” for “, 142 and section 3 of the Finance Act, 1969”.

12 Amendment of section 224 of Income Tax Act, 1967.

12.—Section 224 of the Income Tax Act, 1967, is hereby amended—

(a) by the substitution in subsection (2) of “, retirement pension, old age (contributory) pension and death grant” for “and old age (contributory) pension”,

(b) by the insertion after paragraph (b) of the proviso to subsection (3) of the following paragraph—

“(bb) 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 retirement pension occurred after he had attained the age of fifty-five as was paid in respect of retirement pension;”, and

(c) by the insertion in subsection (4) before “shall” of “, other than death grant,”.

13 Amendment of section 251 of Income Tax Act, 1967.

13.—Section 251 of the Income Tax Act, 1967, is hereby amended by the substitution in subsection (4) (c) (inserted by the Finance Act, 1968) of “the 1st day of April, 1973” for “the 1st day of April, 1971.”

14 Amendment of section 254 of Income Tax Act, 1967.

14.—Section 254 (2) of the Income Tax Act, 1967, is hereby amended by the substitution of “the 1st day of April, 1973” for “the 1st day of April, 1971” (inserted by the Finance Act, 1968).

15 Amendment of section 336 of Income Tax Act, 1967.

15.—Section 336 of the Income Tax Act, 1967, is hereby amended by the substitution of “£350” for “£250.”

16 Amendment of sections 443 and 444 of Income Tax Act, 1967.

16.—(1) In relation to a payment to which this section applies—

(a) subsection (1) of section 443 of the Income Tax Act, 1967, is hereby amended—

(i) by the deletion of “or payable or accumulated”,

(ii) by the substitution of “at the time of payment” for “at the beginning of such year”, and

(iii) by the addition of the following proviso:

“Provided that—d

(a) for the purposes of this Chapter, but subject to section 444, income which, by virtue or in consequence of a settlement to which this Chapter applies, is so dealt with that it, or assets representing it, will or may become payable or applicable to or for the benefit of a child of the settlor in the future (whether on the fulfilment of a condition, or on the happening of a contingency, or as the result of the exercise of a power or discretion conferred on any person, or otherwise) shall be deemed to be paid to or for the benefit of that child, and

(b) any income dealt with as aforesaid which is not required by the settlement to be allocated, at the time when it is so dealt with, to any particular child or children of the settlor shall be deemed to be paid in equal shares to or for the benefit of each of the children to or for the benefit of whom or any of whom the income or assets representing it will or may become payable or applicable”;

(b) subsection (4) of the said section 443 is hereby amended—

(i) by the deletion of “or payable or accumulated”, and

(ii) by the deletion in paragraph (a) of “, payable, or accumulated”;

(c) section 444 of the Income Tax Act, 1967, is hereby amended—

(i) by the deletion in paragraph (a) of “(being a child who, at the beginning of such year, is under the age of twenty-one years and is unmarried)”, and

(ii) by the substitution in paragraph (b) of “at the time of payment” for “at the beginning of such year”.

(2) The reference in paragraph (b) of the said section 444 to another sum paid to or for the benefit of a child who, at the beginning of the year of assessment in which it was paid, was under the age of twenty-one years and unmarried, shall be construed, in relation to a payment to which this section applies of any such sum, as a reference to a sum so paid to or for the benefit of a child who at the time of payment was under the age of twenty-one years and unmarried.

(3) This section applies to any payment made after the year 1970-71, except a payment made in the year 1971-72, to or for the benefit of a child born after the 6th day of April, 1971, and so made by virtue or in consequence of a settlement made before the 28th day of April, 1971.

17 Amendment of section 550 of Income Tax Act, 1967.

17.—(1) In relation to interest chargeable for any month commencing on or after the date of the passing of this Act or any part of such a month on tax due and payable whether before, on or after such date, section 550 (1) of the Income Tax Act, 1967, is hereby amended by the substitution of “.75 per cent.” for “one half per cent.”.

(2) (a) Section 550 of the Income Tax Act, 1967, is hereby further amended—

(i) by the addition to subsection (1) of the following proviso:

“Provided that any tax charged by any assessment to income tax or to sur-tax shall, notwithstanding any appeal against such assessment, carry interest at the rate of .75 per cent. for each month or part of a month from the date when, if there were no appeal against the assessment, the tax would become due and payable under section 477 or section 522 (2) of the Income Tax Act, 1967, as the case may be, until payment”;

(ii) by the substitution in subsection (2) of “two months” for “three months”; and

(iii) by the insertion after subsection (2) of the following subsection:

“(2A) (a) Where notice of appeal has been given against an assessment and an agreement as to the amount of tax which should be paid notwithstanding the appeal has been reached between the appellant and the inspector or other officer of the R Commissioners concerned under section 419 (1) and the amount so agreed has been paid within the period referred to in subsection (2), subsection (1) shall not apply to any balance of tax chargeable in accordance with the determination of the appeal if such balance is paid within two months from the date of determination of the appeal.

(b) Where notice of appeal has been given against an assessment and, in the absence of such an agreement as is referred to in paragraph (a), an appellant pays within the period referred to in subsection (2) a sum on account of the tax charged by the assessment under appeal and such sum is not less than 80 per cent. of the amount of tax found to be chargeable by the assessment on the determination of the appeal, subsection (1) shall not apply to any balance of tax chargeable in accordance with the determination if such balance is paid within two months from the date of the determination of the appeal.

(c) In this subsection ‘determination of the appeal’ means a determination by the Appeal Commissioners under section 416 (4) and includes an agreement referred to in section 416 (3) and an assessment becoming final and conclusive by virtue of section 416 (6).”.

(b) Paragraph (a) of this subsection shall not apply in relation to assessments to income tax or sur-tax charged by any assessment made before the date of the passing of this Act.

(3) Sections 418 and 529 of the Income Tax Act, 1967, shall not apply in relation to assessments to income tax or sur-tax, as the case may be, made on or after the date of the passing of this Act.

18 Amendment of section 419 of Income Tax Act, 1967.

18.—In relation to assessments made on or after the date of the passing of this Act, section 419 of the Income Tax Act, 1967, is hereby amended—

(a) by the insertion in subsection (1) after “repaid” of “with interest at the rate provided by section 550 (1) from the date or dates of payment of the amount or amounts giving rise to the overpayment to the date on which the repayment is made”, and

(b) by the addition to subsection (1) of the following proviso:

“Provided that—

(a) interest shall not be payable under this subsection if it amounts to less than £1, and

(b) income tax shall not be deductible on payment of interest under this section and such interest shall not be reckoned in computing income for the purposes of the Income Tax Acts”, and

(c) by the insertion after subsection (1) of the following subsection:

“(1A) Where, in a case in which notice of appeal has been given against an assessment to income tax or sur-tax and in which there is no agreement of the kind referred to in subsection (1), the appellant pays an amount of tax on account of the tax charged by the assessment under appeal which is in excess of the tax found to be chargeable by the assessment on the determination of the appeal, the provisions of subsection (1) shall apply as if the overpayment of tax had arisen by reason of a payment made in accordance with an agreement of the kind aforesaid.”.

19 Amendment of sections 428 and 429 of Income Tax Act, 1967.