FINANCE ACT, 1974

• (4) If under the transaction a person assigns, surrenders or otherwise agrees to waive or forego income arising from any property (without a sale or transfer of the property) then, without prejudice to the liability of any other person, he shall be chargeable to tax under Case IV of Schedule D on a sum equal to the amount of income assigned, surrendered, waived or foregone.

• (5) If credit is given for the purchase price of any property, and the rights attaching to the property are such that, during the subsistence of the debt, the purchaser's rights to income from the property are suspended or restricted, he shall be treated for the purposes of subsection (4) as if he had surrendered a right to income of an amount equivalent to the income which he has in effect foregone by obtaining the credit.

• (6) The amount of any income payable subject to deduction of tax at the standard rate shall be taken for the purposes of subsection (4) as the amount before deduction of that tax.

• (7) References in this section to connected persons shall be construed in accordance with section 16 (2) of the Finance (Miscellaneous Provisions) Act, 1968.

42 Amendment of section 61 of Income Tax Act, 1967.

42.—(1) Section 61 (l) of the Income Tax Act, 1967, is hereby amended by the deletion of “any annual interest, or” and by the insertion after “payment” of “(other than interest)” and the said section 61 (l), as so amended, is set out in the Table to this section.

• (2) This section shall apply for the year 1974-75 and subsequent years of assessment to any payment of annual interest whenever made and for the year 1973-74 to any payment of annual interest in respect of any period beginning on or after the 10th day of January, 1974.

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• (l) any annuity, or other annual payment (other than interest) payable out of the profits or gains;

43 Amendment of section 75 of Income Tax Act. 1967.

43.—Section 75 of the Income Tax Act, 1967, is hereby amended by the addition of the following subsections—

• “(3) Interest on a debt which having been payable subject to deduction of tax ceases at any time to be so payable shall be deemed to arise from a separate source acquired by the creditor at that time and subsection (1) shall not apply to such interest.

• (4) Interest on a debt which having been payable in full begins at any time to be payable subject to deduction of tax shall be deemed to have arisen from a separate source which the creditor ceased to possess at that time and subsection (1) shall not apply to such interest.”.

44 Amendment of section 76 of Income Tax Act, 1967.

44.—In relation to annual interest in respect of any period beginning on or after the 10th day of January, 1974,section 76 (1) (c) of the Income Tax Act, 1967, shall not apply—

• (a) for the year of assessment 1973-74, to the excess of the interest over £500, or

• (b) for the year of assessment 1974-75, or for any subsequent year of assessment, to the excess of the interest over £2,000.

45 Amendment of section 77 of Income Tax Act, 1967.

45.—Section 77 (3) of the Income Tax Act, 1967, is hereby amended by the substitution for “subsection (2)” of “subsection (2) or (4)” and the said section 77 (3), as so amended, is set out in the Table to this section.

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• (3) If in any year of assessment any person charged or chargeable in respect of income or profits under Case III of Schedule D ceases to possess the whole of such single source of income or profits as is mentioned in section 75 (1) or any of the sources the income of which is directed to be separately computed under subsection (2) or (4) of that section, section 58 (5) shall, subject to the necessary modifications, apply in any such case as if the cesser of the possession of such single source or separate sources, as the case may be, were the discontinuance of a trade.

46 Application of section 81 of Income Tax Act, 1967, to certain income arising outside State.

46.—Notwithstanding the foregoing provisions of this Chapter, income arising outside the State which if it had arisen in the State would be chargeable under Case V of Schedule D shall be deemed to be income to which the provisions of section 81 of the Income Tax Act, 1967, so far as they relate to deductions to be made by reference to subsection (5) (e) of that section, apply.

47 Amendment of section 219 of Income Tax Act, 1967.

47.—Section 219 of the Income Tax Act, 1967, is hereby amended by the substitution for subsection (1) of the following subsection:

• “(1) It is hereby declared that in computing, for the purposes of Case I of Schedule D, 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 acount in the said computation, and 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;

  • (b) are share or loan interest paid by the society being interest wholly and exclusively laid out or expended for the purposes of the trade.”.

Paragraph (b) shall apply for the year 1974-75 and subsequent years of assessment to any payment of annual interest whenever made and for the year 1973-74 to any payment of annual interest in respect of any period beginning on or after the 10th day of January, 1974.

48 Amendment of section 221 of Income Tax Act, 1967.

48.—Section 221 (2) of the Income Tax Act, 1967, is hereby amended—

• (a) by the insertion after the first subparagraph of paragraph (c) of the following proviso:

“Provided that in a case to which section 220 does not apply no deduction shall be made in relation to interest in respect of any period beginning on or after the 10th day of January, 1974—

• (a) for the year of assessment 1973-74, on the excess of the interest over £500, or

• (b) for the year of assessment 1974-75, or for any subsequent year of assessment, on the excess of the interest over £2,000.”,

• (b) by the insertion after paragraph (e) of the following proviso:

“Provided that in relation to interest in respect of any period beginning on or after the 10th day of January, 1974, the aggregate of the appropriate proportions of that interest shall not exceed—

• (a) for the year of assessment 1973-74, the sum of £500, or

• (b) for the year of assessment 1974-75, or for any subsequent year of assessment, the sum of £2,000.”, and

• (c) by the addition to paragraph (g) of “or as a deduction authorised under section 81 (5) (e).”,

and the said paragraphs, as so amended, are set out in the Table to this section.

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• (2)
• (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.

Provided that in a case to which section 220 does not apply no deduction shall be made in relation to interest in respect of any period beginning on or after the 10th day of January, 1974—

• (a) for the year of assessment 1973-74, on the excess of the interest over £500, or

• (b) for the year of assessment 1974-75, or for any subsequent year of assessment, on the excess of the interest over £2,000.

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.

• (2)
• (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.

Provided that in relation to interest in respect of any period beginning on or after the 10th day of January, 1974, the aggregate of the appropriate proportions of that interest shall not exceed—

• (a) for the year of assessment 1973-74, the sum of £500, or

• (b) for the year of assessment 1974-75, or for any subsequent year of assessment, the sum of £2,000.

• (2)
• (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 or as a deduction authorised under section 81 (5) (e).

49 Amendment of sections 231, 232 and 233 of Income Tax Act, 1967.

49.—(1) Sections 231 (4) (a), 232 (2) and 233 (2) (a) of the Income Tax Act, 1967, are hereby amended by the substitution of “an annual payment” for “a payment of interest” in each place where it occurs and the said sections 231 (4) (a), 232 (2) and 233 (2) (a), as so amended, are set out in the Table to this section.

• (2) This section shall be deemed to have come into force and shall take effect as on and from the 6th day of April, 1973.

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• (4)
• (a) Section 434 shall apply to any payment made in respect, or on account, of the excess as if such payment were an annual payment charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recoverable from the person by or through whom the payment is made.

• (2) Where, under a retirement benefits scheme in relation to which this section applies, any benefit is provided, otherwise than by way of non-commutable pension or annuity, on the death during his service of a director or employee and the total value of all benefits so provided under that scheme and under all other schemes exempt from the operation of section 227, subsisting in connection with the body corporate, exceeds the amount which would have satisfied the condition specified in section 229 (1) (i) section 434 shall apply to any payment made in respect, or on account, of such excess as if the payment were an annual payment charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recoverable from the person by or through whom the payment is made.

• (2) Where any contributions made by a director or employee under an approved scheme within the meaning of subsection (1) are repaid to him during his lifetime—

• (a) section 434 shall apply to the amount of the contributions repaid as if it were an annual payment charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recovered from the person by or through whom the repayment is made,

50 Restriction of sections 433 and 434 of Income Tax Act, 1967.

50.—(1) Subject to the provisions of subsection (2) and sections 30 and 31, sections 433 and 434 of the Income Tax Act, 1967, so far as they relate to interest of money, shall not apply to any such interest in respect of any period beginning on or after the 10th day of January, 1974.

• (2) Subsection (1) shall not apply to interest on any loan secured by an instalment promissory note signed before the 6th day of April, 1974, under the terms of which the borrower promised to make periodic payments which include a sum representing interest after deduction of income tax therefrom at the rate for the time being in force.

• (3) In subsection (2) “interest” means—

• (a) in the case of a loan the terms of which provide for the payment of interest “less tax” or use words to that effect, the interest which would be payable if the words “less tax” or the equivalent words were not included, and

• (b) in the case of a loan the terms of which provide for the payment of interest at such a rate (subsequently referred to as the gross rate) as, after deduction of tax at the rate for the time being in force, is equal to a stated rate, interest at the gross rate.

• (4) Payments of such interest as is referred to in subsection (2) in respect of any period beginning on or after the 10th day of January, 1974, shall be deemed to be payments not made out of profits or gains brought into charge, whether or not they are such payments, and subsections (2) to (5) of section 434 of the Income Tax Act, 1967, shall apply to the said payments as they apply to payments specified in subsection (1) of that section.

51 Amendment of section 535 of Income Tax Act, 1967.

51.—(1) Section 535 (1) (b) of the Income Tax Act, 1967, is hereby amended by the deletion of “annual interest” and by the insertion after “annual payment” of “(other than interest)” and the said section 535 (1) (b), as so amended, is set out in the Table to this section.

• (2) This section shall apply for the year 1974-75 and subsequent years of assessment to any payment of annual interest whenever made and for the year 1973-74 to any payment of annual interest in respect of any period beginning on or after the 10th day of January, 1974.

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• (1)
• (b) no deduction shall be made on account of any annuity or other annual payment (other than interest) to be paid out of such profits or gains in regard that a proportionate part of the tax is allowed to be deducted on making any such payment.

52 Restriction of Schedule 6 to Income Tax Act, 1967.

52.—In relation to annual interest in respect of any period beginning on or after the 10th day of January, 1974, paragraph 1 (2) of Part III of Schedule 6 to the Income Tax Act, 1967, shall not apply—

• (a) for the year of assessment 1973-74, to the excess of the interest over £500, or

• (b) for the year of assessment 1974-75, or for any subsequent year of assessment, to the excess of the interest over £2,000.

53 Application to corporation profits tax.

53.—(1) The foregoing provisions of this Chapter shall, with any necessary modifications, apply for the purposes of corporation profits tax.

• (2) Section 53 (2) of the Finance Act, 1920, is hereby amended by the addition to the proviso of the following paragraph:

• “(l) subject to section 53 (1) of the Finance Act, 1974, any deduction allowed in respect of interest paid in respect of any period beginning on or after the 10th day of January, 1974, not being interest wholly and exclusively laid out or expended for the purposes of a trade or profession, or other business the income from which consists wholly or mainly of profits or gains chargeable under Case V of Schedule D, shall not exceed an amount calculated at the rate of £2,000 per annum.”.

Chapter IV Anti-avoidance

54 Charge to tax in respect of certain dividends received by directors and employees.

54.—(1) In this section—

“director” has the same meaning as in section 119 of the Income Tax Act, 1967;

“emoluments” has the same meaning as in section 111 (4) of the Income Tax Act, 1967;

“employee” means a person employed by any body of persons;

“tax-relieved company” means a body corporate which has claimed and is entitled to relief from tax under Part XXV of the Income Tax Act, 1967.

• (2) A person or body corporate shall, for the purposes of this section be regarded as connected with a tax-relieved company if that person or body corporate would be so regarded for the purposes of section 16 of the Finance (Miscellaneous Provisions) Act, 1968, and a person shall be regarded as connected with another person if that person would be so regarded for the purposes of the said section 16.

• (3) Where, for any year of assessment, a person—

• (a) who is a director or employee of a tax-relieved company or of a body corporate connected with that company, or

• (b) who is employed by a person connected with that company,

receives no emoluments in respect of services rendered by him to or for the benefit of the said company or to or for the benefit of any person connected with that company or receives emoluments in respect of such services which, in the opinion of the Revenue Commissioners, are not adequate as consideration for the services so rendered, and receives a dividend in respect of shares held by him in the said company, so much of that dividend (in this section referred to as the relevant part of the dividend) as is, in the opinion of the Revenue Commissioners, in consideration of the services so rendered shall be deemed to be emoluments of that person and shall be chargeable to tax under Schedule E as emoluments paid to him on the date on which the said dividend was payable, and the amount of the emoluments to be so charged shall be the amount which, after deduction of tax at the rate appropriate to the dividend, is equal to the net amount payable of the relevant part of the dividend.

• (4) Where tax has been deducted from a dividend referred to in subsection (3), so much of that tax as is appropriate to the relevant part of the dividend shall be allowed as a credit against any tax chargeable by virtue of the said subsection (3).

• (5) In considering for the purpose of this section whether emoluments paid to any person by a company are or are not adequate as consideration for services rendered, the Revenue Commissioners shall have regard to—

• (a) the nature of the services rendered by that person,

• (b) the emoluments received by that person from the company for services so rendered at a time when he did not hold shares in the company or did not hold the shares in respect of which the dividend is paid which is the subject of their consideration by virtue of this section,

• (c) the amount of emoluments which it would be reasonable to expect to be paid for such services, and

• (d) any evidence tendered by or on behalf of the said person as to the adequacy of the emoluments in question.

• (6) Where shares in respect of which a dividend is paid are held in a tax-relieved company by a person who is connected with another person (that other person being a person who if he held the shares and received the dividend would be a person to whom subsection (3) applies), then, for the purposes of the said subsection (3), the shares shall be regarded as being held by the second-mentioned person and the dividend shall be regarded as having been received by him in respect of the shares on the date on which the dividend was payable.

• (7) In considering for the purpose of this section whether a dividend or part of a dividend is in consideration of services rendered, the Revenue Commissioners shall have regard to—

• (a) all the classes of shares issued by the company concerned,

• (b) the class or classes of shares in the said company held by the person aforesaid, the number of shares so held, the nominal value of, and the amount subscribed by him in respect of, such shares,

• (c) the rate of dividend paid on the shares of each class,

• (d) whether shares of the class held by the person aforesaid are held by any other person and, if so, the number of shares so held, and

• (e) any other matter which appears to them relevant for the purpose of forming an opinion under this subsection.

• (8) An appeal shall lie to the Appeal Commissioners with respect to any opinion of the Revenue Commissioners under this section in like manner as an appeal would lie against an assessment to tax, and the provisions of the Income Tax Acts relating to appeals shall apply and have effect accordingly.

55 Transactions in certificates of deposit and assignable deposits.

55.—(1) Where, after the 3rd day of April, 1974, a person acquires a right to which this section applies, any gain arising to him from the disposal of that right or, except so far as it is a right to receive interest, from its exercise shall, if not falling to be taken into account as a trading receipt, be deemed to be annual profits or gains chargeable to tax under Case IV of Schedule D and shall be charged to tax accordingly.

• (2) Where, on or before the 3rd day of April, 1974, a person acquired a right to which this section applies and disposes or disposed of, or exercises or exercised, the right after the said date, so much of any gain arising to him from that disposal or, except so far as it is a right to receive interest, from that exercise, as bears to the total amount of the gain the same proportion as the number of days from the 3rd day of April, 1974, to the date of the disposal or exercise bears to the total number of days from the date of the acquisition to the date of the disposal or exercise, shall, if not falling to be taken into account as a trading receipt, be deemed to be annual profits or gains chargeable to tax under Case IV of Schedule D and shall be charged to tax accordingly.

• (3) Where a person sustains a loss in a transaction which, if profit had arisen from it, would be chargeable to tax by virtue of subsection (1) or (2), then, if he is chargeable to tax under Schedule C or D in respect of the interest payable on the amount of money the right to which has been disposed of, the amount of that interest shall be included in the amounts against which he may claim to set off the amount of his loss under section 310 of the Income Tax Act, 1967.

• (4) For the purposes of this section, profits or gains shall not be treated as falling to be taken into account as a trading receipt by reason only that they are included in the computation required by section 214 of the Income Tax Act, 1967.

• (5) This section applies to any right—

• (a) to receive from any person an amount of money (with or without interest) which is stated in a certificate of deposit issued to the person who has deposited the money or to any other person, or

• (b) to receive from any person an amount of money (with or without interest), being a right arising from an assignable deposit which may be assigned or transferred to another person by the person who has deposited the money or by any person who has acquired the right to do so.

• (6) In this section—

“assignable deposit” means a deposit of money, in any currency, which has been deposited with any person whether it is to be repaid with or without interest and which, at the direction of the depositor, may be assigned with or without interest to another person; and

“certificate of deposit” means a document relating to money, in any currency, which has been deposited with the issuer or some other person, being a document which recognises an obligation to pay a stated amount to bearer or to order, with or without interest, and being a document by the delivery of which, with or without endorsement, the right to receive that stated amount, with or without interest, is transferable.

56 Taxation of shares issued in lieu of cash dividends.

56.—(1) In this section—

“company” means any body corporate;

“share” means share in the share capital of a company and includes stock and any other interest in the company.

• (2) If any person, as a consequence of the exercise, whether before, on or after the declaration of a distribution of profits by a company, of an option to receive in respect of shares in the company either a sum in cash or additional share capital of the company, receives such additional share capital, he shall be deemed to have received from the company, instead of such share capital, income equal to the sum he would have received if he had received the distribution in cash instead.

• (3) Any income deemed under subsection (2) to have been received from a company by a person shall—

• (a) if the person's profits are chargeable to corporation profits tax, be treated as profits to which Part V of the Finance Act, 1920, applies and be charged to corporation profits tax accordingly;

• (b) if the company is resident outside the State, be treated as income from securities and possessions outside the State and be assessed and charged to tax under Case III of Schedule D;

• (c) if the company is resident in the State, be treated as profits or gains not falling under any other Case of Schedule D and not charged by virtue of any other Schedule and be assessed and charged to tax under Case IV of Schedule D.

• (4) For the purposes of this section an option to receive either a dividend in cash or additional share capital is conferred on a person not only where he is required to choose one or the other, but also where he is offered the one subject to a right, however expressed, to choose the other instead, and a person's abandonment of, or failure to exercise, such a right is to be treated for those purposes as an exercise of the option.

57 Transfer of assets abroad.

57.—For the purpose of preventing the avoiding by individuals ordinarily resident in the State of liability to tax by means of transfers of assets by virtue or in consequence whereof, either alone or in conjunction with associated operations, income becomes payable to persons resident or domiciled out of the State, it is hereby enacted as follows:—

• (1) Where by virtue or in consequence of any such transfer, either alone or in conjunction with associated operations, such an individual has, within the meaning of this section, power to enjoy, whether forthwith or in the future, any income of a person resident or domiciled out of the State which, if it were income of that individual received by him in the State, would be chargeable to tax by deduction or otherwise, that income shall, whether it would or would not have been chargeable to tax apart from the provisions of this section, be deemed to be income of that individual for all the purposes of the Income Tax Acts.

• (2) Where, whether before or after any such transfer, such an individual receives or is entitled to receive any capital sum the payment whereof is in any way connected with the transfer or any associated operation, any income which, by virtue or in consequence of the transfer, either alone or in conjunction with associated operations, has become the income of a person resident or domiciled out of the State shall, whether it would or would not have been chargeable to tax apart from the provisions of this section, be deemed to be the income of that individual for all the purposes of the Income Tax Acts.

In this subsection “capital sum” means—

• (a) any sum paid or payable by way of loan or repayment of a loan, and

• (b) any other sum paid or payable otherwise than as income, being a sum which is not paid or payable for full consideration in money or money's worth.

• (3) Subsections (1) and (2) shall not apply if the individual shows in writing or otherwise to the satisfaction of the Revenue Commissioners either—

• (a) that the purpose of avoiding liability to taxation was not the purpose or one of the purposes for which the transfer or associated operations or any of them was effected; or

• (b) that the transfer and any associated operations were bona fide commercial transactions and were not designed for the purpose of avoiding liability to taxation.

In any case where a person is aggrieved by a decision taken by the Revenue Commissioners in exercise of their functions under this subsection the person shall be entitled to appeal to the Appeal Commissioners against the decision of the Revenue Commissioners and the Appeal Commissioners shall hear and determine the appeal as if it were an appeal against an assessment to tax and the provisions of the Income Tax Acts relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

• (4) For the purposes of this section “an associated operation” means, in relation to any transfer, an operation of any kind effected by any person in relation to any of the assets transferred or any assets representing, whether directly or indirectly, any of the assets transferred, or to the income arising from any such assets, or to any assets representing, whether directly or indirectly, the accumulations of income arising from any such assets.

• (5) An individual shall, for the purposes of this section, be deemed to have power to enjoy income of a person resident or domiciled out of the State if—

• (a) the income is in fact so dealt with by any person as to be calculated, at some point of time, and whether in the form of income or not, to enure for the benefit of the individual, or

• (b) the receipt or accrual of the income operates to increase the value to the individual of any assets held by him or for his benefit, or

• (c) the individual receives or is entitled to receive, at any time, any benefit provided or to be provided out of that income or out of moneys which are or will be available for the purpose by reason of the effect or successive effects of the associated operations on that income and on any assets which directly or indirectly represent that income, or

• (d) the individual has power, by means of the exercise of any power of appointment or power of revocation or otherwise, to obtain for himself, whether with or without the consent of any other person, the beneficial enjoyment of the income, or may, in the event of the exercise of any power vested in any other person, become entitled to the beneficial enjoyment of the income, or

• (e) the individual is able in any manner whatsoever, and whether directly or indirectly, to control the application of the income.

• (6) In determining whether an individual has power to enjoy income within the meaning of this section, regard shall be had to the substantial result and effect of the transfer and any associated operations, and all benefits which may at any time accrue to the individual (whether or not he has rights at law or in equity in or to those benefits) as a result of the transfer and any associated operations shall be taken into account irrespective of the nature or form of the benefits.

• (7) For the purposes of this section, any body corporate incorporated outside the State shall be treated as if it were resident out of the State whether it is so resident or not.

• (8) For the purposes of this section—

• (a) a reference to an individual shall be deemed to include the wife or husband of the individual,

• (b) “assets” includes property or rights of any kind and “transfer”, in relation to rights, includes the creation of those rights,

• (c) “benefit” includes a payment of any kind,

• (d) references to income of a person resident or domiciled out of the State shall, where the amount of the income of a company for any year or period has been apportioned under section 530 of the Income Tax Act, 1967, include references to so much of the income of the company for that year or period as is equal to the amount so apportioned to that person,

• (e) references to assets representing any assets, income or accumulations of income include references to shares in or obligations of any company to which, or obligations of any other person to whom, those assets, that income or those accumulations are or have been transferred,

• (f) “company” means any body corporate or unincorporated association.

• (9) The provisions of this section shall apply for the purposes of assessment to tax for the year 1974-75 and subsequent years, and shall apply in relation to transfers of assets and associated operations whether carried out before or after the commencement of this Act.

58 Deductions and reliefs in relation to income chargeable to tax under section 57.

58.—(1) Tax chargeable by virtue of the preceding section shall be charged under Case IV of Schedule D.

• (2) In computing the liability to tax of an individual chargeable by virtue of the preceding section, the same deductions and reliefs shall be allowed as would have been allowed if the income deemed to be his by virtue of that section had actually been received by him.

• (3) Where an individual has been charged to tax on any income deemed to be his by virtue of the preceding section and that income is subsequently received by him, it shall be deemed not to form part of his income again for the purposes of the Income Tax Acts.

• (4) In any case where an individual has for the purposes of the preceding section power to enjoy income of a person abroad by reason of his receiving any such benefit as is referred to in section 57 (5) (c), the individual shall be chargeable to tax by virtue of the preceding section under Case IV of Schedule D for the year of assessment in which the benefit is received on the whole of the amount or value of that benefit except in so far as it is shown that the benefit derives directly or indirectly from income on which he has already been charged to tax for that or a previous year of assessment.

59 Power to obtain information.

59.—(1) The Revenue Commissioners or such officer as the Revenue Commissioners may appoint may by notice in writing require any person to furnish them within such time as they may direct (not being less than twenty-eight days) with such particulars as they think necessary for the purposes of sections 57, 58 and 60.

• (2) The particulars which a person must furnish under this section, if he is required by such a notice so to do, include particulars—

• (a) as to transactions with respect to which he is or was acting on behalf of others, and

• (b) as to transactions which in the opinion of the Revenue Commissioners or of such officer as the Revenue Commissioners may appoint it is proper that they should investigate for the purposes of sections 57, 58 and 60 notwithstanding that, in the opinion of the person to whom the notice is given, no liability to tax arises under the said sections.

• (c) as to whether the person to whom the notice is given has taken or is taking any, and if so what, part in any, and if so what, transactions of a description specified in the notice.

• (3) Notwithstanding anything in subsection (2), a solicitor shall not be deemed for the purposes of paragraph (c) thereof to have taken part in a transaction by reason only that he has given professional advice to a client in connection with that transaction, and shall not, in relation to anything done by him on behalf of a client, be compellable under this section, except with the consent of his client, to do more than state that he is or was acting on behalf of a client, and give the name and address of his client and also—

• (a) in the case of anything done by the solicitor in connection with the transfer of any asset by or to an individual ordinarily resident in the State to or by any such body corporate as is hereinafter mentioned, or in connection with any associated operation in relation to any such transfer, the names and addresses of the transferor and the transferee or of the persons concerned in the associated operations, as the case may be;

• (b) in the case of anything done by the solicitor in connection with the formation or management of any such body corporate as is hereinafter mentioned, the name and address of the body corporate;

• (c) in the case of anything done by the solicitor in connection with the creation, or with the execution of the trusts, of any settlement by virtue or in consequence whereof income becomes payable to a person resident or domiciled out of the State, the names and addresses of the settlor and of that person.

The bodies corporate mentioned in the preceding provisions of this section are bodies corporate resident or incorporated outside the State which are, or if incorporated in the State would be, companies within the meaning of section 530 (6) of the Income Tax Act, 1967.

• (4) Nothing in this section shall impose on any bank the obligation to furnish any particulars of any ordinary banking transactions between the bank and a customer carried out in the ordinary course of banking business, unless the bank has acted or is acting on behalf of the customer in connection with the formation or management of any such body corporate as is mentioned in subsection (3) (b) or in connection with the creation, or with the execution of the trusts, of any such settlement as is mentioned in subsection (3) (c).

• (5) In this section “settlement” and “settlor” have the meanings assigned to them by section 16 (3) (h) of the Finance (Miscellaneous Provisions) Act, 1968.

• (6) Schedule 15 to the Income Tax Act, 1967, is hereby amended by the insertion in column 2 thereof of “Finance Act, 1974, section 59”.

60 Saver.

60.—Where any income of any person is by virtue of any provisions of the Income Tax Acts, and in particular, but without prejudice to the generality of the foregoing, by virtue of section 57, to be deemed to be income of any other person, that income is not exempt from tax either—

• (a) as being derived from any stock or other security to which section 464, 468, 470 or 474 of the Income Tax Act, 1967, applies; or

• (b) by virtue of section 50 or 462 of the Income Tax Act, 1967,

by reason of the first-mentioned person not being resident, or not being ordinarily resident, or being neither domiciled nor ordinarily resident, in the State.

61 Application of provisions of Income Tax Acts.

61.—All the provisions of the Income Tax Acts relating to the charge, assessment, collection and recovery of tax, to appeals against assessments and to cases to be stated for the opinion of the High Court shall apply to tax chargeable by virtue of section 57 subject to any necessary modifications.

62 Taxation of rents: restriction in respect of certain rent and interest.

62.—(1) This section applies to—

• (a) rent in respect of premises, or

• (b) interest on borrowed money employed in the purchase, improvement or repair of premises,

payable by a person who is chargeable to tax in accordance with the provisions of section 81 of the Income Tax Act, 1967 (inserted by the Finance Act, 1969), on the profits or gains arising from rent in respect of those premises for a period prior to the date on which the premises are first occupied by a lessee for the purpose of a trade or undertaking or for use as a residence.

• (2) No deduction shall be allowed, for the year 1974-75 or any subsequent year of assessment, under subsection (5) of the said section 81 in respect of rent or interest to which this section applies.

• (3) Where, for the year 1973-74 or any earlier year of assessment—

• (a) a deduction such as is referred to in subsection (2) has been allowed under subsection (5) of the said section 81 and there is a deficiency within the meaning of subsection (4) of the said section 81, or

• (b) an amount falls to be treated as a loss under section 89A of the Income Tax Act, 1967, (inserted by the Finance (Miscellaneous Provisions) Act, 1968), by virtue of an interest payment, so much of any such deficiency as is attributable to the allowance of the deduction aforesaid or any such amount treated as a loss or any portion of such amount shall not be carried forward, or set against profits or gains for the year 1974-75 or any subsequent year of assessment under the provisions of section 89 or 310 of the Income Tax Act, 1967.

63 Amendment of section 20 of the Finance (Miscellaneous Provisions) Act, 1968.

63.—(1) Section 20 of the Finance (Miscellaneous Provisions) Act, 1968, is hereby amended by—

• (a) the substitution in subsection (1) of “development or the securing of the development of land and after the development” for “construction or the securing of the construction of a building and after the construction”,

• (b) the substitution of the following paragraph for paragraph (b) of subsection (2):

• “(b) at the time of the sale the company has (directly or indirectly) an interest in the development and the value of that interest and any interest which the company so has at that time in any other development (not being a development completed more than six years before that time nor a development in relation to which the condition specified in paragraph (c) is not satisfied) carried out or secured by the company amounts to one-fifth or more of the net assets of the company;”,

• (c) the substitution of “development” for “building” in each place where it occurs in subsections (4), (9), (10) and (13) (c),

• (d) the substitution of the following subsection for subsection (11):

• “(11) Where a development has been commenced or carried out by a company on land in which a company connected with that company has an interest and after the development has commenced and not later than six years after its completion a person acquires control of the first company, then, as respects sales to that person of shares in the company having the interest in the land (whether effected before or after that person acquires control of the first company), the foregoing subsections shall apply as they apply to such a company as is therein mentioned but with the substitution for references to an interest in the development of references to an interest in the land.”, and

• (e) the substitution of the following subsection for subsection (12):

• “(12) For the purposes of the foregoing subsections an uncompleted development shall be taken to include so much of any materials belonging to the company as are required for the development and a development whether completed or not shall be taken to include the land related to the development.”,

and the said subsections (1), (4), (9), (10) and (13) (c), as so amended are set out in the Table to this section.

• (2) Section 20 of the Finance (Miscellaneous Provisions) Act, 1968, as amended by subsection (1), shall not apply or have effect in any case where the shares of the relevant company were sold before the 3rd day of April, 1974.

TABLE

• (1) Where the activities of a company consist of or include the development or the securing of the development of land and after the development has begun and not later than six years after its completion shares in the company are sold to a person who has, or in consequence of the sale will have, control of the company, and apart from this section the consideration for the sale would not be a receipt of an income nature in the hands of the seller, the consideration shall, if the conditions specified in subsection (2) are satisfied, be deemed to be income of the seller up to the amount specified in subsection (5), and shall be chargeable under Case IV of Schedule D accordingly.

• (4) Where before the sale of shares mentioned in subsection (1) the company—

• (a) has disposed of its interest in the development, or of an interest which derives therefrom, to the person who is the purchaser of the shares, or to a company connected with the purchaser, or

• (b) has disposed of any interest in the development to or in favour of any person, and the purchaser of the shares, or a company connected with the purchaser, acquires the interest, either before the sale or after the sale in pursuance of arrangements made not later than the sale,

subsection (1) shall apply as if the interest disposed of were still vested in the first-mentioned company at the time of the sale of the shares, and as if any assets of the company representing the consideration for the disposal of the interest were not assets of the company.

• (9) Where, in consequence of a sale of shares, any amount would have, under subsection (1), been deemed to be income of the seller but for the circumstance that the condition specified in subsection (2) (c) was not satisfied, and on the sixth anniversary of the sale any interest in a development such as is mentioned in subsection (2) (b) is still held by the company, then, income of the like amount shall be deemed to have been received by the company on the said anniversary and shall be chargeable under Case IV of Schedule D accordingly.

• (10) If after the sale of the shares any receipts accrue to the company from the disposal, in the course of a trade of dealing in or developing land, of an interest in a development, being an interest which the company had at the time of the sale of the shares and with respect to which the profit which would have arisen on the disposal thereof was taken into account in arriving at the amount of income chargeable to tax by reference to the sale under the foregoing provisions of this section, the receipts shall be disregarded for income tax purposes if and to the extent that is just so to do having regard to any tax charged under the said provisions.

• (13)
• (c) there shall be disregarded any development provided for use, and brought into use, for the purposes of a bona fide trade carried on by the company, other than a trade of—

• (i) dealing in or developing land, or

• (ii) the provision of services for occupiers of land an interest in which is held by the company.

Chapter V Income Tax and Corporation Profits Tax

64 Proprietary directors and proprietary employees as members of approved retirement benefit schemes.

64.—(1) Section 15 (2) (f) of the Finance Act, 1972, and the proviso to paragraph 4 of Schedule 3 to the Income Tax Act, 1967, shall cease to have effect.

• (2) Part III of the First Schedule to the Finance Act, 1972, is hereby amended by the substitution for paragraph 4 of the following paragraph:

“4. The repeal of Chapter II of Part XII of the Income Tax Act, 1967, by the Finance Act, 1972, shall not affect section 235 (7) or section 316 (2) of the Income Tax Act, 1967, section 3 (1) (b) (ii) of the Finance Act, 1968, or any other enactment which contains reference to the said Chapter or to any part of it.”.

65 Amendment of section 235 of Income Tax Act, 1967.

65.—Section 235 of the Income Tax Act, 1967, is hereby amended—

• (a) by the insertion in paragraph (b) of subsection (1) after “in his old age” of “or under a contract for the time being approved under section 235A”,

• (b) by the substitution for the part of subsection (2) from the end of paragraph (e) to the end of the subsection of the following:

“and that it does include provision securing that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment:

Provided that the contract may provide for the payment to the individual at the time the annuity commences to be payable, but not before the 6th day of April, 1974, of a lump sum by way of commutation of part of the annuity not exceeding one-fourth of the value of the annuity if the individual elects, at or before the time when the annuity first becomes payable to him, to be paid the lump sum.”,

• (c) by the insertion in subsection (3) after paragraph (c) of the following paragraph:

• “(cc) if the individual's occupation is one in which persons customarily retire after attaining the age of seventy, for the annuity to commence after he attains that age (but not after he attains the age of eighty);”,

• (d) by the insertion in subsection (4)—

• (i) after “trust scheme” of “or part of a trust scheme”,

• (ii) after “the scheme” of “or the aforesaid part of the scheme”, and

• (iii) after “a scheme” of “or part of a scheme”,

and the said paragraph (b) and subsections (2), (3) and (4), as so amended, are set out in the Table to this section.

TABLE

• (b) pays a premium or other consideration under an annuity contract for the time being approved by the Revenue Commissioners as being a contract the main benefit secured by which is a life annuity for the individual in his old age or under a contract for the time being approved under section 235A (hereinafter in this Chapter referred to as a qualifying premium),

relief from tax may be given in respect of the qualifying premium under section 236.

• (2) Subject to subsection (3), the Revenue Commissioners shall not approve a contract unless it appears to them to satisfy the conditions that it is made by the individual with a person lawfully carrying on in the State the business of granting annuities on human life, and that it does not—

• (a) provide for the payment by that person during the life of the individual of any sum except sums payable by way of annuity to the individual,

• (b) provide for the annuity payable to the individual to commence before he attains the age of sixty or after he attains the age of seventy,

• (c) provide for the payment by that person of any other sums except sums payable by way of annuity to the individual's widow or widower and any sums which, in the event of no annuity becoming payable either to the individual or to a widow or widower, are payable to the individual's personal representatives by way of return of premiums, by way of reasonable interest on premiums or by way of bonuses out of profits,

• (d) provide for the annuity, if any, payable to a widow or widower of the individual to be of a greater annual amount than that paid or payable to the individual, or

• (e) provide for the payment of any annuity otherwise than for the life of the annuitant,

and that it does include provision securing that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment:

Provided that the contract may provide for the payment to the individual at the time the annuity commences to be payable, but not before the 6th day of April, 1974, of a lump sum by way of commutation of part of the annuity not exceeding one-fourth of the value of the annuity if the individual elects, at or before the time when the annuity first becomes payable to him, to be paid the lump sum.

• (3) The Revenue Commissioners may, if they think fit, and subject to any conditions they think proper to impose, approve a contract otherwise satisfying the foregoing conditions, notwithstanding that the contract provides for one or more of the following matters:

• (a) for the payment after the individual's death of an annuity to a dependant not the widow or widower of the individual;

• (b) for the payment to the individual of an annuity commencing before he attains the age of sixty, if the annuity is payable on his becoming permanently incapable through infirmity of mind or body of carrying on his own occupation or any occupation of a similar nature for which he is trained or fitted;

• (c) if the individual's occupation is one in which persons customarily retire before attaining the age of sixty, for the annuity to commence before he attains that age (but not before he attains the age of fifty);

• (cc) if the individual's occupation is one in which persons customarily retire after attaining the age of seventy for the annuity to commence after he attains that age (but not after he attains the age of eighty);

• (d) for the annuity payable to any person to continue for a term certain (not exceeding ten years) notwithstanding his death within that term, or for the annuity payable to any person to terminate, or be suspended, on marriage (or remarriage) or in other circumstances;

• (e) in the case of an annuity which is to continue for a term certain, for the annuity to be assignable by will, and in the event of any person dying entitled to it, for it to be assignable by his personal representatives in the distribution of the estate so as to give effect to a testamentary disposition, or to the rights of those entitled on intestacy or to an appropriation of it to a legacy or to a share or interest in the estate.

• (4) The foregoing provisions of this section shall apply in relation to a contribution under a trust scheme or part of a trust scheme approved by the Revenue Commissioners as they apply in relation to a premium under an annuity contract so approved, with the modification that, for the condition as to the person with whom the contract is made, there shall be substituted a condition that the scheme or the aforesaid part of the scheme—

• (a) is established under the law of, and administered in, the State,

• (b) is established for the benefit of individuals engaged in or connected with a particular occupation (or one or other of a group of occupations), and for the purpose of providing retirement annuities for them, with or without subsidiary benefits for their families or dependants, and

• (c) is so established under irrevocable trusts by a body of persons comprising or representing the majority of the individuals so engaged in the State,

and with the necessary adaptations of other references to the contract or the person with whom it is made; and exemption from income tax shall be allowed in respect of income derived from investments or deposits of any fund maintained for the purpose aforesaid under a scheme or part of a scheme for the time being approved under this subsection.

66 Approval of contracts for dependants or for life assurance.

66.—Chapter III of Part XII of the Income Tax Act, 1967, is hereby amended by the insertion after section 235 of the following section:

“235A.— (1) The Revenue Commissioners may approve for the purposes of this Chapter a contract made by an individual with a person lawfully carrying on in the State the business of granting annuities on human life if—

• (a) the main benefit secured by the contract is the provision of an annuity for the wife or husband of the individual or for any one or more dependants of the individual, or

• (b) the sole benefit secured by the contract is the provision of a lump sum, on the death of the individual before he attains the age of 70 (or any later age approved under section 235 (3) (cc)), being a lump sum payable to his personal representatives.

• (2) The Revenue Commissioners shall not approve a contract made by an individual with such a person as aforesaid under subsection (1) (a) unless it appears to them to satisfy the following conditions, that is to say—

  • (a) that any annuity payable to the wife or husband or dependant of the individual commences on the death of the individual,

  • (b) that any annuity payable under the contract to the individual commences at a time after the individual attains the age of 60, and, unless the individual's annuity is one to commence on the death of a person to whom an annuity would be payable under the contract if that person survived the individual, cannot commence after the time when the individual attains the age of 70, or any greater age approved under section 235 (3) (cc),

  • (c) that the contract does not provide for the payment by such person of any sum, other than any annuity payable to the individual's wife or husband or dependant or to the individual except, in the event of no annuity becoming payable under the contract, any sums payable to the individual's personal representatives by way of return of premiums, by way of reasonable interest on premiums or by way of bonuses out of profits,

  • (d) that the contract does not provide for the payment of any annuity otherwise than for the life of the annuitant,

  • (e) that the contract provides that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment.

• (3) The Revenue Commissioners may, if they think fit, and subject to any conditions that they think proper to impose, approve a contract under subsection (1) (a) notwithstanding that, in one or more respects, it does not appear to them to satisfy the conditions specified in subsection (2).

• (4) Subsections (2) and (3) of section 235 shall not apply to the approval of a contract under this section.

• (5) The Revenue Commissioners may approve a trust scheme, or part of a trust scheme, otherwise satisfying the conditions specified in paragraphs (a), (b) and (c) of section 235 (4) notwithstanding that its main purpose is to provide annuities for the wives, husbands and dependants of the individuals, or lump sums payable to the individuals' personal representatives on death and—

  • (a) the preceding provisions of this section shall apply, with any necessary modifications, in relation to such approval,

  • (b) the provisions of this Chapter shall apply to the scheme or part of the scheme when so approved as they apply to a contract approved under this section,

  • (c) the exemption from income tax provided in section 235 (4) shall apply to the scheme or part of the scheme when so approved.

• (6) Except as otherwise provided in this Chapter, any reference in the Income Tax Acts to a contract, scheme or part of a scheme approved under section 235 shall include a reference to a contract, scheme or part of a scheme approved under this section.

• (7) Approval under this section shall not affect relief for a year of assessment before the year 1974-75.”.

67 Amendment of section 236 of and Schedule 5 to Income Tax Act, 1967.

67.—(1) Section 236 of the Income Tax Act, 1967, is hereby amended by the substitution for subsections (1) and (2) of the following subsections:

• “(1) Where relief is to be given under this section in respect of any qualifying premium paid by an individual, the amount of that premium shall, subject to the provisions of this section, be deducted from or set off against his relevant earnings for the year of assessment in which the premium is paid.

• (1A) Subject to the provisions of this section and of Schedule 5, the amount which may be deducted or set off in any year of assessment (whether in respect of one or more qualifying premiums and whether or not including premiums in respect of a contract approved under section 235A)—

  • (a) shall not be more than the sum of £1,500, and

  • (b) shall not be more than 15 per cent. of the individual's net relevant earnings for that year,

  and the amount to be deducted shall to the greatest extent possible include qualifying premiums in respect of contracts approved under section 235A.

• (1B) Subject to the provisions of this section, the amount which may be deducted or set off in any year of assessment in respect of qualifying premiums paid under a contract approved under section 235A (whether in respect of one or more such premiums)—

  • (a) shall not be more than the sum of £500, and

  • (b) shall not be more than 5 per cent. of the individual's net relevant earnings for that year.

• (1C) Where the condition in section 235 (1) (a) is satisfied as respects part only of the year, then for the said sums of £1,500 and £500 mentioned in subsections (1A) and (1B) there shall be substituted sums which respectively bear to £1,500 and £500 the same proportion as that part bears to the whole year.

• (2) If in any year of assessment a reduction or a greater reduction would be made under this section in the relevant earnings of an individual but for either or both of the following reasons, that is—

  • (a) an insufficiency of net relevant earnings, or

  • (b) the operation of subsection (1B) (b) (as respects a qualifying premium paid under a contract approved under section 235A),

  the amount of the reduction which would be made but for those reasons less the amount of any reduction which is made in that year, shall be carried forward to the next following year, and shall be treated for the purposes of relief under this section as the amount of a qualifying premium paid in that following year.

• (2A) If and so far as an amount once carried forward under subsection (2) (and treated as the amount of a qualifying premium paid in the said following year) is not deducted from or set off against the individual's net relevant earnings for that year of assessment, it shall be carried forward again to the next following year (and treated as the amount of a qualifying premium paid in that year), and so on for succeeding years.

• (2B) The provisions of this subsection shall have effect for determining whether and how far an amount carried forward under subsection (2) is to be treated as paid under an individual's contract on the one hand or a contract approved under section 235A on the other.

Any part of the amount carried forward which is referable to a qualifying premium paid under a contract approved under section 235A shall, when carried forward on the first or any subsequent occasion, be treated for the purposes of this Chapter as the amount of a qualifying premium paid under a contract so approved. The balance (if any) of the amount shall when similarly carried forward be treated as a qualifying premium paid under an individual's contract.

In this subsection ‘individual's contract’ means an approved annuity contract other than one approved under section 235A.

• (2C) Subsections (2), (2A) and (2B) shall have effect as respects amounts carried forward from years before the year 1974-75 as well as respects later years.”.

• (2) Section 236 of the Income Tax Act, 1967, is hereby further amended by the insertion after subsection (10) of the following subsection:

• “(11) Where a relevant assessment to tax becomes final and conclusive on a date after the 5th day of October in the year of assessment to which it relates, a qualifying premium paid—

  • (a) after that year of assessment, and

  • (b) not more than six months after that date,

  may, if the individual so elects not more than six months after that date, be treated for the purposes of this section as paid in the year of assessment (and not in the year in which it is paid):

  Provided that where either—

  - (i) the amount of that premium, together with any qualifying premiums paid by him in the year to which the assessment relates (or treated as so paid by virtue of any previous election under this subsection), exceeds the maximum amount of the reduction which may be made under this section in his relevant earnings for that year, or
  
  - (ii) the amount of that premium itself exceeds the increase in that maximum amount which is due to taking into account the income on which the assessment is made,
  
    then the election shall have no effect as respects the excess.
  
    In this subsection ‘relevant assessment to tax’ means an assessment on the individual's relevant earnings.”.
  

• (3) Schedule 5 to the Income Tax Act, 1967, is hereby amended—

• (a) by the substitution for paragraph 1 of the following paragraph:

“1. Subject to the following paragraphs, in the case of an individual who is the holder of a pensionable office or employment, subsections (1A) and (1C) of section 236 shall have effect with the substitution for references to £1,500 of references to £1,500 less 15 per cent. of his pensionable emoluments for the year of assessment.”,

• (b) by the substitution for subparagraph (b) of paragraph 2 of the following subparagraph:

• “(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 15 per cent. there shall be substituted therein such less proportion as may be just.”, and

• (c) by the substitution for paragraph 4 of the following—

“4. Subject to paragraph 5, in the case of an individual born at a time specified in the first column of the Table set out below, section 236 (1A) and (1C) and Part I of this Schedule, shall have effect with the substitution for references to £1,500 and to 15 per cent. of references respectively to such sum and such percentage as are specified for his case in the second and third columns of the Table.

	Year of Birth	Sum	Percentage
		£
	1916 or 1917	1,600	16
	1914 or 1915	1,700	17
	1912 or 1913	1,800	18
	1910 or 1911	1,900	19
	1909 or any earlier year	2,000	20

68 Export of certain goods.

68.—(1) In this section—

“the Board” means An Bord Bainne Co-operative Limited;

“the Commission” means the Pigs and Bacon Commission;

“milk product” means butter, whey-butter, cream, cheese, condensed milk, dried or powdered milk, dried or powdered skim-milk, dried or powdered whey, chocolate crumb, casein, butter-oil, lactose, and any other product which is made wholly or mainly from milk or from a by-product of milk and which is approved for the purposes of this section by the Minister for Finance after consultation with the Minister for Agriculture and Fisheries;

“pigmeat product” means bacon and cuts thereof including ham, pork carcases and pork sides and cuts thereof, unrendered pig fat and canned pigmeat products;

“the relevant enactments” means Part III of the Finance (Miscellaneous Provisions) Act, 1956, and Chapter IV of Part XXV of the Income Tax Act, 1967.

• (2) Where, whether before or after the passing of this Act—

• (a) a body corporate produces a pigmeat product and sells it to the Commission, and

• (b) that product is exported out of the State by the Commission.

the relevant enactments shall apply as if the said product had been exported out of the State by the body corporate, and any amount receivable by the body corporate from the sale of the said product to the Commission shall be deemed for the purposes of the relevant enactments to be an amount receivable from the sale of goods so exported.

• (3) Where, whether before or after the passing of this Act—

• (a) a body corporate manufactures a milk product and sells it to the Board, and

• (b) that product is exported out of the State by the Board,

the relevant enactments shall apply as if the said product had been exported out of the State by the body corporate, and any amount receivable by the body corporate from the sale of the said product to the Board shall be deemed for the purposes of the relevant enactments to be an amount receivable from the sale of goods so exported.

69 Amendment of section 429 of Income Tax Act, 1967.

69.—Section 429 of the Income Tax Act, 1967, is hereby amended—

• (a) by the insertion in the proviso to subsection (4) (inserted by the Finance Act, 1971)—

• (i) after “of the judge” of “or by giving effect to an agreement under subsection (6)”, and

• (ii) after “by the judge” of “or the giving of effect to the agreement under subsection (6)”, and

• (b) by the addition of the following subsection:

• “(6) Where, following an application for the rehearing of an appeal by a judge of the Circuit Court in accordance with subsection (1), there is an agreement within the meaning of subparagraphs (b), (c) and (e) of section 416 (3), between the inspector and the appellant in relation to the assessment, the inspector shall give effect to the agreement and thereupon, if the agreement is that the assessment is to stand good or is to be amended, the assessment or the amended assessment, as the case may be, shall have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given.”

and the said proviso, as so amended, is set out in the Table to this section.

TABLE

Provided that if the amount of the assessment is altered by the determination of the judge or by giving effect to an agreement under subsection (6) then—

• (a) if too much tax has been paid, the amount or amounts overpaid shall, save where the interest amounts to less than £1, be repaid 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; or

• (b) if too little tax has been paid, any balance shall be payable but the provisions of section 550 (2A) shall apply as if the appeal were an appeal to the Appeal Commissioners and the determination of the appeal by the judge or the giving of effect to the agreement under subsection (6) were a determination of the appeal by the Appeal Commissioners.

70 Amendment of section 489 of Income Tax Act, 1967.

70.—Section 489 (1) of the Income Tax Act, 1967, is hereby amended by the deletion of “(including as regards the matters mentioned in paragraphs (c) and (d) of this subsection the Collector)” and the said section 489 (1), as so amended, is set out in the Table to this section.

TABLE

• (1) In any proceedings in the Circuit Court or the District Court for or in relation to the recovery of income tax or sur-tax, an affidavit duly made by an officer of the Revenue Commissioners deposing to any of the following matters—

• (a) that the assessment of tax was duly made,

• (b) that the assessment has become final and conclusive,

• (c) that the tax or any specified part thereof is due and outstanding,

• (d) that demand for the payment of the tax has been duly made,

shall be evidence, until the contrary is proved, of the matters so deposed to.

71 Abolition of payment of tax by means of stamps.

71.—The following enactments, that is to say—

• (a) section 130 of the Income Tax Act, 1967, and any regulations made thereunder;

• (b) so much of any regulations made under section 127 of the said Act as refers to stamp books;

• (c) sections 7 (3) and 8 (3) and the proviso to section 9 (a) of the Finance Act, 1968,

shall not apply or have effect in relation to tax for the year 1974-75 or any subsequent year of assessment.

72 Registration of certain persons as employers and requirement to send certain notifications.