CORPORATION TAX ACT, 1976

“299.—(1) The provisions of this section shall have effect in relation to sales of any property where either—

• (a) the buyer is a body of persons over whom the seller has control, or the seller is a body of persons over whom the buyer has control, or both the seller and the buyer are bodies of persons and some other person has control over both of them, or

• (b) it appears with respect to the sale or with respect to transactions of which the sale is one, that the sole or main benefit which, apart from the provisions of this section, might have been expected to accrue to the parties or any of them was the obtaining of an allowance under section 241 or 243, under Chapter I of Part XV or under any of the provisions of this Part.

References in this subsection to a body of persons include references to a partnership.

• (2) Where the property is sold at a price other than that which it would have fetched if sold in the open market, then, subject to the provisions of subsections (3) and (4), the like consequences shall ensue for the purposes of the enactments mentioned in subsection (1), in their application to the tax of all persons concerned, as would have ensued if the property had been sold for the price which it would have fetched if sold in the open market.

• (3) Where the sale is a sale of machinery or plant—

  • (a) no initial allowance shall be made to the buyer, and

  • (b) subject to the provisions of subsection (4), if the price which the property would have fetched if sold in the open market is greater than the amount which, for the purpose of determining whether any, and if so, what, balancing charge should be made on the seller in respect of the property under Chapter II of this Part, would be taken to be the amount of the capital expenditure incurred by the seller on the provision of the property, subsection (2) shall have effect as if for each of the references to the price which the property would have fetched if sold in the open market there were substituted a reference to the said amount:

  Provided that this subsection shall not apply in relation to a sale of machinery or plant which was never used if the business or part of the business of the seller was the manufacture or supply of machinery or plant of that class and the sale was effected in the ordinary course of the seller's business.

• (4)

  • (a) Subject to subsection (5), where the sale is one to which subsection (1) (a) applies and subsection (1) (b) does not apply, and the parties to the sale by notice in writing to the inspector so elect, the following provisions shall have effect:

    • (i) subsection (2) shall have effect as if, for each of the references to the price which the property would have fetched if sold in the open market, there were substituted a reference to that price or to the sum hereinafter mentioned, whichever is the lower,

    • (ii) subsection (3) (b) shall not apply, and

    • (iii) notwithstanding anything in the preceding provisions of this section, such balancing charge, if any, shall be made on the buyer on any event occurring after the date of the sale as would have fallen to be made on the seller if the seller had continued to own the property and had done all such things and been allowed all such allowances or deductions in connection therewith as were done by or allowed to the buyer.

  • (b) The sum referred to in paragraph (a) (i) is—

    • (i) in the case of an industrial building or structure, the residue of the expenditure on the construction of that building or structure immediately before the sale, computed in accordance with the provisions of section 266,

    • (ii) in the case of machinery or plant, the amount of the expenditure on the provision thereof still unallowed immediately before the sale, computed in accordance with the provisions of section 274,

    • (iii) in the case of patent rights, the amount of the capital expenditure on the acquisition thereof remaining unallowed, computed in accordance with the provisions of section 286.

• (5) An election under subsection (4) (a) may not be made if—

  • (a) any of the parties to the sale is not resident in the State at the time of the sale, and

  • (b) the circumstances are not at that time such that an allowance or charge under this Part falls or might fall to be made to or on that party in consequence of the sale, but, except as aforesaid, this section shall have effect in relation to a sale notwithstanding that it is not fully applicable by reason of the non-residence of a party to the sale or otherwise.

• (6) In this section ‘control’, in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership.”.

“301.—(1) Where, under or by virtue of any provisions of this Part, any sum falls to be apportioned and, at the time of the apportionment, it appears that it is material as respects the liability to tax (for whatever chargeable period) of two or more persons, any question which arises as to the manner in which the sum is to be apportioned shall be determined, for the purposes of the tax of all those persons, by the Appeal Commissioners, in like manner as if it were an appeal against an assessment to income tax under Schedule D, and the provisions of this Act relating to such an appeal shall apply accordingly with any necessary modifications:

Provided that all the said persons shall be entitled to appear and be heard by the Appeal Commissioners or to make representations to them in writing.

• (2) This section applies in relation to any determination for the purposes of this Part of the price which property would have fetched if sold in the open market as it applies in relation to apportionments.”.

“302.—(1) Where an event occurs which gives rise, or would, but for this section, give rise to a balancing allowance or balancing charge in respect of any property to or on a company in relation to which a certificate under section 70 (2) of the Corporation Tax Act, 1976, or section 374 (2) has been given then whether the certificate is still in force or not, the following provisions of this section shall apply.

• (2) If the property has been used by the company exclusively for the purposes of its exempted trading operations within the meaning of Part V of the Corporation Tax Act, 1976, or Chapter I of Part XXV no balancing allowance or balancing charge shall be made.

• (3) If the property has been used partly for the purposes of the company's exempted trading operations and partly for the purposes of its other trading operations, regard shall be had to all the relevant circumstances of the case and there shall be made to or on the company an allowance of such an amount, or, as the case may be, a charge on such an amount, as may be just and reasonable.”.

“303.—(1) References in this Part to capital expenditure and capital sums—

• (a) in relation to the person incurring the expenditure or paying the sums, do not include any expenditure or sum which is allowed to be deducted in computing, for the purposes of tax, the profits or gains of a trade, profession, office or employment carried on or held by him, and

• (b) in relation to the person receiving the amounts expended or the sums in question, do not include references to any amounts or sums which fall to be taken into account as receipts in computing the profits or gains of any trade, profession, office or employment carried on or held by him,

and do not include, in relation to any such person as aforesaid, any expenditure or sum in the case of which a deduction of tax falls or may fall to be made, otherwise than by virtue of the provisions of Chapter III of this Part relating to charges on capital sums received for patent rights, under section 433 or 434.

• (2) Any reference in this Part to the date on which expenditure is incurred shall be construed as a reference to the date when the sums in question become payable.

• (3) Expenditure shall not be regarded for any of the purposes of this Part as having been incurred by any person in so far as it has been or is to be met directly or indirectly by the State, by any board established by statute or by any public or local authority:

Provided that in considering whether any and, if so, what, balancing charge is to be made on a person under Chapter II of this Part in respect of any machinery or plant provided before the 15th day of April, 1959, this subsection shall not apply.”.

“304.—(1) In this Part, except where the context otherwise requires—

‘income’ includes any amount on which a charge to tax is authorised to be made under any of the provisions of this Part;

‘lease’ includes an agreement for a lease where the term to be covered by the lease has begun, and any tenancy, but does not include a mortgage, and ‘lessee’, ‘lessor’ and ‘leasehold interest’ shall be construed accordingly;

‘sale, insurance, salvage or compensation moneys’ mean, in relation to an event which gives rise or might give rise to a balancing allowance or a balancing charge to or on any person—

• (a) where the event is a sale of any property, the net proceeds to that person of the sale,

• (b) where the event is the demolition or destruction of any property, the net amount received by him for the remains of the property, together with any insurance moneys received by him in respect of the demolition or destruction and any other compensation of any description received by him in respect thereof, in so far as that compensation consists of capital sums,

• (c) as respects machinery or plant, where the event is the permanent loss thereof otherwise than in consequence of its demolition or destruction, any insurance moneys received by him in respect of the loss and any other compensation of any description received by him in respect thereof, in so far as that compensation consists of capital sums, and

• (d) where the event is that a building or structure ceases altogether to be used, any compensation of any description received by him in respect of that event, in so far as that compensation consists of capital sums.

• (2) Any reference in this Part to any building, structure, machinery or plant shall be construed as including a reference to a part of any building, structure, machinery or plant.

• (3) The provisions of this Part shall apply in relation to a share in machinery or plant as they apply in relation to a part of machinery or plant, and for the purposes of those provisions a share in machinery or plant shall be deemed to be used for the purposes of a trade so long as, and only so long as, the machinery or plant is used for the purposes thereof.

• (4) Any reference in this Part to the time of any sale shall be construed as a reference to the time of completion or the time when possession is given, whichever is the earlier.

• (5) Any reference in this Part to the setting up or permanent discontinuance of a trade includes, except where the contrary is expressly provided, a reference to the occurring of any event which, under any of the provisions of this Act, is to be treated as equivalent to the setting up or permanent discontinuance of a trade.

• (6) Any reference in this Part to an allowance made includes a reference to an allowance which would be made but for an insufficiency of profits or gains, or other income, against which to make it.”.

“305.—(1) Where, before the day of the setting up or commencement of a trade consisting of the production for sale of manufactured goods, a person who is about to carry on the trade incurs or has incurred expenditure on the recruitment and training, with a view to their employment in the trade, of persons all or a majority of whom are Irish citizens—

• (a) there shall be made to him allowances (in this Part referred to as ‘writing-down allowances’) in respect of that expenditure during a writing-down period of three years beginning on that day and such allowances shall be made in taxing the trade,

• (b) section 241 (3) shall apply in relation to an allowance under paragraph (a) as it applies in relation to an allowance in respect of wear and tear of machinery or plant.

• (2) For the purposes of this section—

  • (a) expenditure shall not include any expenditure incurred by a person in respect of which no deduction would have been allowable to him, in computing the profits or gains of the trade under the provisions of this Act applicable to Case I of Schedule D, if it had been incurred on or after the day of the setting up or commencement of the trade,

  • (b) expenditure shall not be regarded as having been incurred by a person in so far as it has been or is to be met directly or indirectly by the State, by any board established by statute or by any public or local authority.

• (3) For the purposes of this section, the date on which any expenditure is incurred shall be taken to be the date on which the sum in question becomes payable.

• (4) Any claim by a person for an allowance under this section shall be included in the annual statement required to be delivered under this Act of the profits or gains of his trade and shall be accompanied by a certificate signed by the claimant, which shall be deemed to form part of the claim, stating that the expenditure was incurred on the recruitment and training, with a view to their employment in the trade, of persons all or a majority of whom are Irish citizens and giving such particulars as show that the allowance falls to be made.”.

“306.—(1) This section relates only to commodities which were not produced commercially in the State in the twelve months ended on the 31st day of August, 1939, and the production of which in the State (whether for home consumption or for export) would not have been commercially profitable at any time during those twelve months, and ‘commodity to which this section relates’ shall in this section be construed accordingly.

• (2) In this section references to abnormal economic conditions in respect of a commodity to which this section relates shall be construed as meaning that, owing to circumstances created by or arising from the national emergency to which the resolution passed by each House of the Oireachtas on the 2nd day of September, 1939, related (including circumstances continuing after the termination of that emergency),—

  • (a) the said commodity is urgently required in the State to meet an essential need of the people and either cannot be imported in sufficient quantities to meet that need or cannot be imported at all, and

  • (b) the production of the said commodity in the State for home consumption is, while the said circumstances exist, commercially profitable, but will cease to be commercially profitable after the cesser of those circumstances.

• (3) Where—

  • (a) a person applies, in accordance with this section, to the Revenue Commissioners for a special allowance under this section in respect of any chargeable period, and

  • (b) shows, to the satisfaction of the Revenue Commissioners, that during that chargeable period he used buildings erected or acquired or machinery or plant installed by him after the 31st day of August, 1939, solely for the production by way of trade or business of a commodity to which this section relates, and that such commodity was so produced solely for consumption within the State, and

  • (c) also shows to the satisfaction aforesaid that during the said chargeable period abnormal economic conditions existed in respect of the said commodity,

  the Revenue Commissioners may cause such special allowance as they consider just to be made in respect of the said buildings, machinery or plant for the said chargeable period and such allowance shall be made in taxing the trade of so producing the said commodity.

• (4) Application to the Revenue Commissioners for a special allowance under this section in relation to any chargeable period may be made within twelve months after the end of such period.

• (5) Where a special allowance is made under the foregoing provisions of this section, effect shall be given to such allowance by repayment or otherwise.

• (6) Where special allowances under this section have been made to a person and the Revenue Commissioners are satisfied that abnormal economic conditions have ceased to exist in respect of the commodity in relation to the production of which the said allowances were made, the Revenue Commissioners may review the said allowances.

• (7) The following provisions shall have effect in relation to or in consequence of a review under subsection (6) of the special allowances under this section made to any person, that is to say:—

  • (a) for the purpose of such review the Revenue Commissioners may compare the following amounts that is to say:—

    • (i) the net cost (as hereinafter defined) to the said person of the buildings, machinery or plant in respect of which the said special allowances were made, and

    • (ii) the total allowances as hereinafter defined made to the said person;

  • (b) for the purposes of the said comparison, the said net cost shall be taken to be the amount by which the actual cost to the said person of the erection or acquisition of the said buildings or the installation of the said machinery or plant exceeds the aggregate of—

    • (i) the sum or sums (if any) provided by way of subsidy or grant out of public funds towards the said erection, acquisition, or installation, and

    • (ii) the amount for which, in the opinion of the Revenue Commissioners, the said buildings, machinery or plant are worth to be sold at or within twelve months after the cesser of abnormal economic conditions in respect of the commodity for the production of which the said buildings, machinery or plant were or was used;

  • (c) the said total allowances shall be taken to be the aggregate of all special allowances made to the said person under the foregoing provisions of this section and all allowances made to such person in respect of the said buildings, machinery or plant under or by reason of section 65 (4) (a), 241 or 243 for the chargeable period in which occurred the cesser of abnormal economic conditions in respect of the commodity for the production of which the said buildings, machinery or plant was or were used and for any previous chargeable period during which the said buildings, machinery or plant were or was so used;

  • (d) if the said net cost exceeds the said total allowances, the Revenue Commissioners may make, by repayment or otherwise, such further special allowance as is in their opinion just;

  • (e) if the said total allowances exceed the said net cost, the special allowances under this section made to the said person may be revised and such additional assessments as the Revenue Commissioners consider to be necessary may be made on the said person for any chargeable period in respect of which any such special allowance was granted to him.”.

“11.—(1) In this section—

‘qualifying machinery or plant’ means machinery or plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) which on or after the 1st day of April, 1967, is provided for use in any designated area for the purposes of a trade or profession and which, at the time it is so provided, is unused and not secondhand;

‘designated area’ has the same meaning as in the Industrial Development Act, 1969.

• (2) Subject to the provisions of this section, where for any chargeable period an allowance falls to be made under section 241 of the Income Tax Act, 1967, for wear and tear of any qualifying machinery or plant, the allowance shall, subject to subsection (6) of that section, be increased by such amount as is specified by the person to whom the allowance is to be made; and, in relation to a case in which this subsection has had effect, any reference in the Income Tax Acts to an allowance made under the said section 241 shall be construed as a reference to that allowance as increased under this subsection.

• (3) Subsection (2) shall not apply to qualifying machinery or plant which is let to a person on the terms mentioned in section 241 (2) of the Income Tax Act, 1967, unless the contract of letting provides that the person shall or may become the owner of the machinery or plant on the performance of the contract; and where the contract so provides, but without becoming the owner of the machinery or plant he ceases to be entitled (otherwise than on his death) to the benefit of the contract so far as it relates to the machinery or plant, subsection (2) shall be deemed not to have applied in relation to the machinery or plant and there shall be made accordingly all such additional assessments and adjustments of assessments as may be appropriate.

• (4) Where for any chargeable period the allowance under section 241 of the Income Tax Act, 1967, for wear and tear of any machinery or plant is increased under this section, no allowance under Chapter I of Part XV of the said Act shall be made in relation to the machinery or plant for that or any subsequent chargeable period.”.

“4.—(1) In this section—

‘qualifying machinery or plant’ means machinery or plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) which on or after the 1st day of April, 1968, is provided for use for the purposes of a trade, profession, employment or office and which, at the time it is so provided, is unused and not secondhand, and includes any such machinery or plant notwithstanding any sale of it or other change of circumstances, but does not include ships and machinery or plant in respect of which an election has been made under the first proviso to section 241 (1) of the Income Tax Act, 1967;

‘value at the commencement of the chargeable period of machinery or plant’ has the same meaning as in section 241 (7) of the Income Tax Act, 1967.

• (2) Subject to the provisions of this subsection, where for any chargeable period of one year an allowance falls to be made under section 241 of the Income Tax Act, 1967, on account of wear and tear of any qualifying machinery or plant, the amount considered by the Appeal Commissioners to be just and reasonable under that section as representing the diminished value by reason of wear and tear during the chargeable period of that machinery or plant shall—

  • (a) where it is an amount which does not exceed 8·75 per cent. of the value at the commencement of the chargeable period of such machinery or plant, be taken to be 10 per cent. of that value;

  • (b) where it is an amount which exceeds 8·75 per cent. but is less than 15 per cent. of the value at the commencement of the chargeable period of such machinery or plant, be taken to be 12·5 per cent. of that value;

  • (c) where it is an amount which is 15 per cent. or more of the value at the commencement of the chargeable period of such machinery or plant, be taken to be 25 per cent. of that value.

• (3) Section 241 (1) of the Income Tax Act, 1967, is hereby amended, in respect of qualifying machinery or plant, by the substitution for ‘a sum equal to five-fourths of the amount’ of ‘a sum equal to the amount’.

• (4) In relation to a case in which subsection (2) has had effect any reference in the Income Tax Acts to an allowance made under the said section 241 shall be construed as a reference to that allowance as determined pursuant to that section, as amended by this section, and subsection (2).”.

“4.—(1) In this section—

‘conversion’, in relation to machinery or plant, means any conversion or adaptation of the machinery or plant which is made because of the introduction in the State of a system of decimal currency;

‘decimalised machinery or plant’ means machinery or plant—

• (a) which before the 6th day of April, 1971, is provided for use in any area other than a designated area for the purposes of a trade or profession and which, at the time it is so provided, is unused and not secondhand,

• (b) which is of a kind which is so provided because of the introduction in the State of a system of decimal currency, and

• (c) which is not so provided for use in the manufacture of machinery or plant;

‘designated area’ has the same meaning as in the Industrial Development Act, 1969.

• (2) Subject to the provisions of this section, where for any chargeable period an allowance falls to be made under section 241 of the Income Tax Act, 1967, for wear and tear of any decimalised machinery or plant, the allowance shall, subject to subsection (6) of that section, be increased by such amount as is specified by the person to whom the allowance is to be made; and, in relation to a case in which this subsection has had effect, any reference in the Income Tax Acts to an allowance made under the said section 241 shall be construed as a reference to that allowance as increased under this subsection.

• (3) Subsection (2) shall not apply to decimalised machinery or plant which is let to a person on the terms mentioned in section 241 (2) of the Income Tax Act, 1967, unless the contract of letting provides that the person shall or may become the owner of the machinery or plant on the performance of the contract; and where the contract so provides, if the person ceases to be entitled (otherwise than on his death) to the benefit of the contract so far as it relates to the machinery or plant, but without having become the owner of the machinery or plant, subsection (2) shall be deemed not to have applied in relation to the machinery or plant, and, accordingly, there shall be made all such additional assessments and adjustments of assessments as may be appropriate.

• (4) Where for any chargeable period the allowance under section 241 of the Income Tax Act, 1967, for wear and tear of any machinery or plant is increased under this section, no allowance under Chapter I of Part XV of the said Act shall be made in relation to the machinery or plant for that or any subsequent chargeable period.

• (5) Where before the 6th day of April, 1971, a person carrying on a trade or profession incurs expenditure on the conversion of machinery or plant which is in use for the purposes of the trade or profession and is not in use for the purpose of manufacturing machinery or plant, the amount of the said expenditure shall (if not otherwise so allowable) be allowable as a deduction in computing for the purposes of income tax the profits or gains or losses of the trade or profession, and, where it is so allowed, shall not be regarded as capital expenditure for any of the purposes of the Income Tax Acts.”.

“14.—(1) In this section—

‘wear and tear allowance’ means an allowance made under section 241 of the Income Tax Act, 1967, otherwise than by virtue of section 11 of the Finance Act, 1967, or section 4 of the Finance Act, 1969, or section 26 of the Finance Act, 1971;

‘normal wear and tear allowance’ means such wear and tear allowance or greater wear and tear allowance, if any, as would have fallen to be made to a person in respect of any machinery or plant used by him during any chargeable period if all the conditions specified in subsection (3) had been fulfilled in relation to that chargeable period.

• (2) Where for any chargeable period (including a year of assessment before the year 1970-71) during which any machinery or plant has been used by a person, no wear and tear allowance or a wear and tear allowance less than the normal wear and tear allowance is made to that person in respect of the machinery or plant, the normal wear and tear allowance shall be deemed, for the purposes of subsections (6) and (7) of the said section 241, to have been made to him in respect of the machinery or plant for that chargeable period.

• (3) The conditions referred to in subsection (1) are:

  • (a) that the trade had been carried on by the person in question ever since the date on which he acquired the machinery or plant and had been so carried on by him in such circumstances that the full amount of the profits or gains thereof was liable to be charged to tax,

  • (b) that the trade had at no time consisted wholly or partly of exempted trading operations within the meaning of Chapter I of Part XXV of the Income Tax Act, 1967, or Part V of the Corporation Tax Act, 1976,

  • (c) that the machinery or plant had been used by him solely for the purposes of the trade ever since that date,

  • (d) that a proper claim had been duly made by him for wear and tear allowance in respect of the machinery or plant for every relevant chargeable period, and

  • (e) that no question arose in connection with any chargeable period as to there being payable to him, directly or indirectly, any sums in respect of, or taking account of, the wear and tear of the machinery or plant.

  In the case of a company paragraph (a) shall not alter the periods which are to be taken as chargeable periods, but if during any time after the year 1975-76, and after the company acquired the machinery or plant, the company has not been within the charge to corporation tax, any year of assessment or part of a year of assessment falling within that time shall be taken as a chargeable period as if it had been an accounting period of the company.

• (4) The preceding provisions of this section shall, with any necessary modifications, apply in relation to professions, employments and offices as they apply in relation to trades.”.

“22.—(1) In this section and in sections 24 and 25 ‘qualifying machinery or plant’ means machinery or plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) which is provided for use in any designated area and which, at the time it is so provided, is unused and not secondhand;

‘designated area’ has the same meaning as in the Industrial Development Act, 1969.

• (2) Where a person carrying on a trade incurs, on or after the 1st day of April, 1971, and before the 1st day of April, 1977, capital expenditure on the provision of qualifying machinery or plant for the purposes of the trade, there shall be made to him, for the chargeable period related to the incurring of the expenditure, an allowance (in this section and in the next three following sections referred to as an investment allowance) equal to one-fifth of the expenditure, and such allowance shall be made in taxing the trade.

• (3) For the purposes of this section—

  • (a) the day on which any expenditure is incurred shall be taken to be the day when the sum in question becomes payable,

  • (b) expenditure shall not be regarded as having been incurred by a person in so far as it has been or is to be met directly or indirectly by the State, by any board established by statute or by any public or local authority,

  • (c) any expenditure incurred for the purposes of a trade by a person about to carry it on shall be treated as if it had been incurred by that person on the first day on which he does carry it on, and

  • (d) capital expenditure shall not include any expenditure which is allowed to be deducted in computing, for the purposes of tax, the profits or gains of a trade carried on by the person incurring the expenditure.

• (4) Any claim by a person for an allowance under this section in taxing his trade shall be included in the annual statement required to be delivered under the Income Tax Acts, of the profits or gains thereof and shall be accompanied by a certificate signed by the claimant, which shall be deemed to form part of the claim, stating that the expenditure was incurred on the provision of qualifying machinery or plant and giving such particulars as show that the allowance falls to be made.

• (5) The provisions of this section shall, with any necessary modifications, apply in relation to professions as they apply in relation to trades.”.

“23.—(1) In section 22, as it applies for income tax purposes, ‘basis period’ has the meaning assigned to it by the following provisions of this section.

• (2) In the case of a person to whom an investment allowance falls to be made under the said section 22, his basis period for any year of assessment shall be the period on the profits or gains of which income tax for that year falls to be finally computed under Case I or II of Schedule D in respect of the trade or profession in question or, where, by virtue of any provision of the Income Tax Acts, 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:

Provided that, in the case of any trade or profession—

- (*a*) where two basis periods overlap, the period common to both shall be deemed for the purposes of this subsection to fall in the first basis period only,

- (*b*) where there is an interval between the end of the basis period for one year of assessment and the basis period for the next year of assessment, then, unless the second-mentioned year of assessment is the year of the permanent discontinuance of the trade or profession, the interval shall be deemed to be part of the second basis period, and

- (*c*) where there is an interval between the end of the basis period for the year of assessment preceding that in which the trade or profession is permanently discontinued and the basis period for the year in which it is permanently discontinued, the interval shall be deemed to form part of the first basis period.

• (3)

  • (a) Any reference in the proviso to subsection (2) to the permanent discontinuance of a trade or profession shall be construed as including a reference to the occurring of any event which, under any of the provisions of the Income Tax Acts, is to be treated as equivalent to the permanent discontinuance of a trade or profession.

  • (b) Any reference in the said proviso to the overlapping of two periods shall be construed as including a reference to the coincidence of two periods or to the inclusion of one period in another, and references to the period common to both of two periods shall be construed accordingly.”.

“24.—(1) For the purposes of ascertaining the amount of any allowance to be made to any person under section 241 (1) of the Income Tax Act, 1967, as representing the diminished value by reason of wear and tear during the chargeable period of any qualifying machinery or plant, no account shall be taken of an investment allowance in determining the value of the qualifying machinery or plant at the commencement of the chargeable period.

• (2) In section 241 (6) of the Income Tax Act, 1967, ‘the allowances on that account, and’, and the expression ‘the allowances’ where that expression occurs before ‘exceed’, shall each be construed as not including a reference to any investment allowance made to the person by whom the trade or profession is carried on.

• (3) Section 241 (3) of the Income Tax Act, 1967, shall apply in relation to an investment allowance as it applies in relation to allowances in respect of wear and tear of machinery or plant.”.

“26.—(1) In this section—

‘qualifying machinery or plant’ means machinery or plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) which is provided for use on or after the 1st day of April, 1971, and before the 1st day of April, 1977, in any area other than a designated area for the purposes of a trade or profession and which, at the time it is so provided, is unused and not secondhand;

‘designated area’ has the same meaning as in the Industrial Development Act, 1969.

• (2) Subject to the provisions of this section, where for any chargeable period an allowance falls to be made under section 241 of the Income Tax Act, 1967, for wear and tear of any qualifying machinery or plant, the allowance shall, subject to subsection (6) of that section, be increased by such amount as is specified by the person to whom the allowance is to be made and, in relation to a case in which this subsection has had effect any reference in the Income Tax Acts to an allowance made under the said section 241 shall be construed as a reference to that allowance as increased under this subsection.

• (3) Subsection (2) shall not apply to qualifying machinery or plant which is let to a person on the terms mentioned in section 241 (2) of the Income Tax Act, 1967, unless the contract of letting provides that the person shall or may become the owner of the machinery or plant on the performance of the contract; and where the contract so provides, but without becoming the owner of the machinery or plant, he ceases to be entitled (otherwise than on his death) to the benefit of the contract so far as it relates to the machinery or plant, subsection (2) shall be deemed not to have applied in relation to the machinery or plant and there shall be made accordingly all such additional assessments and adjustments of assessments as may be appropriate.

• (4) Where for any chargeable period the allowance under section 241 of the Income Tax Act, 1967, for wear and tear of any machinery or plant is increased under this section, no allowance under Chapter I of Part XV of the said Act shall be made in relation to the machinery or plant for that or any subsequent chargeable period.”.

• “(2) Any initial allowance under section 251 of the Income Tax Act, 1967, made to a person for any chargeable period in respect of machinery or plant, shall not exceed such sum as will, when added to—

  • (a) the amount of any allowance in respect of the machinery or plant made to the person under section 241 of the said Act for that chargeable period, and

  • (b) the aggregate amount of any allowances made to the person in respect of the machinery or plant under the said sections 241 and 251 for earlier chargeable periods,

  equal the actual amount of the expenditure incurred by him on the provision of the said machinery or plant:

  Provided that this subsection shall not apply to an initial allowance in respect of which a claim is made before the 3rd day of July, 1973.”.

“25.—(1) In relation to a vehicle to which this section applies, section 241 of the Income Tax Act, 1967, shall have effect as if, for the purposes of subsection (7) of that section, the actual cost of the vehicle were taken to be £2,500 where the expenditure incurred on the provision of the vehicle exceeded that amount and, where an allowance which, apart from this subsection, would be made under the said section 241 falls to be reduced by virtue of this subsection, any reference in the Income Tax Acts to an allowance made under the said section 241 shall be construed as a reference to that allowance as reduced under this subsection.

• (2) In relation to a vehicle to which this section applies, the allowances under the said section 241 to be taken into account for the purposes of Chapters II and V of Part XVI of the Income Tax Act, 1967, in computing the amount of expenditure still unallowed at any time, shall be limited to those computed in accordance with the provisions of subsection (1) and the expenditure incurred on the provision of the vehicle to be taken into account for the said purposes shall be limited to £2,500.

• (3) Where the expenditure incurred on the provision of a vehicle to which this section applies exceeds £2,500, any balancing allowance or balancing charge shall be computed, in a case where there are sale, insurance, salvage or compensation moneys, as if the amount of those moneys (or, where in consequence of any provision of the Income Tax Acts other than this subsection some other amount is to be treated as the amount of those moneys, that other amount) were reduced in the proportion which £2,500 bears to the actual amount of the said expenditure.

• (4) If, where the expenditure incurred on the provision of a vehicle to which this section applies exceeds £2,500—

  • (a) the person providing the vehicle (hereinafter referred to as the prior owner) sells the vehicle and the sale is a sale to which section 299 of the Income Tax Act, 1967, applies, or

  • (b) the prior owner sells the vehicle or gives it away so that subsection (4) of section 277 of the Income Tax Act, 1967, or that subsection as applied by subsection (5) of that section, has effect in relation to the purchaser or donee, or

  • (c) in consequence of a succession to the trade or profession of the prior owner, section 300 (1) of the Income Tax, Act, 1967, has effect,

  then, in relation to the purchaser, donee or successor, the price which the vehicle would have fetched if sold in the open market or the expenditure incurred by the prior owner on the provision of the vehicle shall be treated for the purposes of the said section 277, 299 or 300 as reduced in the proportion which £2,500 bears to the actual amount of the said expenditure; and, in the application of subsection (3) to the purchaser, donee or successor, references to the expenditure incurred on the provision of the vehicle shall be construed as references to the expenditure so incurred by the prior owner :

  Provided that where this subsection has had effect on any occasion in relation to the vehicle, and no sale or gift of the vehicle has since occurred other than one to which either of the said sections 277 and 299 applies, then, in relation to all persons concerned, the like consequences under this subsection shall ensue as respects a sale, gift or succession falling within paragraphs (a) to (c) which occurs on any subsequent occasion as if the person who in relation to that sale, gift or succession is the prior owner had incurred expenditure on the provision of the vehicle of an amount equal to the expenditure so incurred by the person who was the prior owner on the first-mentioned occasion.

• (5) In the application of section 273 (1) of the Income Tax Act, 1967, to a case where the vehicle is the new plant referred to in that subsection, the expenditure shall be disregarded in so far as it exceeds £2,500, but this provision is without prejudice to the application of the foregoing subsections to the vehicle.

• (6) Where the expenditure incurred on the provision of a vehicle exceeds £2,500 but under section 303 (3) of the Income Tax Act, 1967, any part of it is to be treated as not having been incurred by a person, the amount which (subject to the foregoing provisions of this section) is to be treated for the purposes of Part XVI of the Income Tax Act, 1967, as having been incurred by that person, shall be reduced in the proportion which £2,500 bears to the said capital expenditure incurred on the provision of the vehicle.”.

“1.—(1) In this Act, except so far as is otherwise provided or the context otherwise requires—

‘development expenditure’ means capital expenditure—

• (a) on the development of a qualifying mine, or

• (b) on the construction of any works in connection with a qualifying mine which are of such a nature that, when the mine ceases to be operated, they are likely to have so diminished in value that their value will be little or nothing,

and includes interest on money borrowed to meet such capital expenditure, but does not include—

• (c) expenditure on the acquisition of the site of the mine or the site of any such works or of rights in or over any such site, or

• (d) expenditure on the acquisition of a scheduled mineral asset, or

• (e) expenditure on works constructed wholly or mainly for subjecting the raw product of the mine to any process except a process designed for preparing the raw product for use as such;

‘exploration expenditure’ means capital expenditure on searching in the State for deposits of scheduled minerals or on testing such deposits or winning access thereto and includes capital expenditure on systematic searching for areas containing scheduled minerals and searching by drilling or other means for scheduled minerals within those areas, but does not include expenditure on operations in the course of working a qualifying mine or expenditure which is development expenditure;

‘mine development allowance’ has the same meaning as in section 245 of the Income Tax Act, 1967;

‘qualifying mine’ means a mine that is being worked for the purpose of obtaining scheduled minerals;

‘scheduled mineral asset’ means a deposit of scheduled minerals or land comprising such a deposit or an interest in or right over such deposit or land;

‘scheduled minerals’ has the same meaning as in section 1 of the Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956;

‘tax’ means income tax or corporation tax, as may be appropriate.

• (2) Save as provided for in sections 3, 4 and 5, expenditure shall not be regarded, for the purposes of this Act, as having been incurred by a person carrying on the trade of working a qualifying mine in so far as it has been or is to be met directly or indirectly out of moneys provided by the Oireachtas or by any other person (not being a person who has carried on the trade of working that mine).

• (3) References in this Act to any enactment shall, unless the context otherwise requires, be construed as references to that enactment as amended or extended by any subsequent enactment.

• (4) In this Act a reference to a section is to a section of this Act unless it is indicated that reference to some other enactment is intended.

• (5) In this Act a reference to a subsection or paragraph is to the subsection or paragraph of the provision in which the reference occurs unless it is indicated that reference to some other provision is intended.”.

“2.—(1) Where a person who is carrying on the trade of working a qualifying mine incurs, on or after the 6th day of April, 1974, any development expenditure or exploration expenditure and makes application under section 245 of the Income Tax Act, 1967, for a mine development allowance for a chargeable period in respect of such expenditure—

• (a) that expenditure shall be deemed to be expenditure in respect of which that allowance may be granted, whether or not, in the case of exploration expenditure, a deposit of scheduled minerals is found as a result of the expenditure,

• (b) the amount of such allowance for that chargeable period shall be equal to the total amount of—

  • (i) the exploration expenditure, and

  • (ii) in the case of development expenditure the amount of the difference between that expenditure and the amount which, in the opinion of the inspector, the assets representing that expenditure are likely to be worth at the end of the estimated life of the aforesaid mine, and

• (c) in relation to a case in which this section has had effect, any reference in the Income Tax Acts to an allowance made under the said section 245 shall be construed as including a reference to an allowance made under that section by virtue of this section:

Provided that no account shall be taken, for the purposes of this section, of exploration expenditure as a result of which a deposit of scheduled minerals is not found if the expenditure was incurred more than ten years prior to the date on which the person aforesaid commences to carry on the trade of working a qualifying mine.

• (2) Where a person who is carrying on the trade of working a qualifying mine incurred before the 6th day of April, 1974, capital expenditure in respect of which he was entitled under section 245 of the Income Tax Act, 1967, to apply for a mine development allowance and there is an amount of that expenditure still unallowed on the said date, the person may elect to have the amount of mine development allowance for the year of assessment 1974-75 in respect of that expenditure increased to an amount equal to the amount of the expenditure so unallowed.

• (3) In this section the amount of expenditure still unallowed on the 6th day of April, 1974, shall be taken to be the amount of the estimated difference, within the meaning of section 245 (5) (b) of the Income Tax Act, 1967, less any mine development allowance granted, or deemed under section 245 (13) of the said Act to have been granted, for any year of assessment before the year of assessment 1974-75.

• (4) No allowance shall be made under subsection (1) in respect of expenditure incurred before the 6th day of April, 1974, whether or not such expenditure is, by virtue of any provision of this Act, the Finance Act, 1946, or the Income Tax Act, 1967, deemed to have been incurred on or after the said date.”.

“3.—(1) Where a person who is, on the 6th day of April, 1974, carrying on the trade of working a qualifying mine incurred exploration expenditure, on or after the 6th day of April, 1967, but before the said 6th day of April, 1974, and that expenditure was not incurred in connection with the said qualifying mine, then, in charging to tax the profits or gains of the said trade for the year of assessment 1974-75, there shall be allowed a deduction of an amount equal to the amount of that expenditure.

• (2) Where a person who commences to carry on the trade of working a qualifying mine after the 6th day of April, 1974, incurred exploration expenditure on or after the 6th day of April, 1967, and that expenditure was not incurred in connection with the said qualifying mine but was incurred within a period of ten years prior to the date on which he commences to carry on the said trade, then in taxing the said trade for the chargeable period in which he commenced to carry on the said trade, there shall be made an allowance of an amount equal to the amount of that expenditure.

• (3) Where in a case referred to in subsection (1) or (2) the person concerned is a body corporate and there was or is, after all or part of the expenditure referred to therein had been incurred by it, a change in ownership, within the meaning of the Fifth Schedule to the Finance Act, 1973, of the body corporate or of a body corporate that is a parent body or a wholly-owned subsidiary, within the meaning of section 4, of the first-mentioned body corporate, no allowance shall be made or deduction allowed under this section in respect of any part of the said expenditure incurred prior to the date of the change in ownership:

Provided that in any case where part of the ordinary share capital of any body corporate is acquired by a Minister of State, such acquisition shall be disregarded in determining whether or not there was or is such a change in ownership as aforesaid.

• (4) Where, on or after the 6th day of April, 1974, a person commences to carry on the trade of working a qualifying mine but has not incurred the exploration expenditure incurred in connection with that mine, no allowance shall be made or deduction allowed under this section or by virtue of section 2 in respect of exploration expenditure incurred by that person prior to the date on which he commences to carry on the said trade.

• (5) Subject to sections 182 (relief in respect of unrelieved losses and capital allowances carried forward from the year 1975-76) and 184 (relief in respect of corporation profits tax losses) of the Corporation Tax Act, 1976, a person shall not be entitled to a deduction or allowance in respect of the same expenditure both under this section and under some other provision of the Income Tax Acts or the Corporation Tax Acts.”.

“4.—(1) Where exploration expenditure, in respect of which an allowance may be claimed by virtue of section 2 or 3, is or has been incurred by a body corporate (hereinafter in this section referred to as the exploration company) and—

• (a) another body corporate is, or is deemed to be, a wholly-owned subsidiary of the exploration company, or

• (b) the exploration company is, or is deemed to be, a wholly-owned subsidiary of another body corporate,

the expenditure or so much of it as the exploration company specifies—

- (i) in the case referred to in paragraph (*a*) may, at the election of the exploration company, be deemed to have been incurred by such other body corporate (being a body corporate which is, or is deemed to be, a wholly-owned subsidiary of the exploration company) as the exploration company specifies,

- (ii) in the case referred to in paragraph (*b*) may, at the election of the exploration company, be deemed to have been incurred by the body corporate (hereinafter referred to as the parent body) of which the exploration company was, at the time the expenditure was incurred, a wholly-owned subsidiary or by such other body corporate (being a body corporate which is, or is deemed to be, a wholly-owned subsidiary of the parent body) as the exploration company specifies,

  and in a case where the said expenditure was incurred on a date prior to the incorporation of the body corporate so specified, the provisions of this Act shall apply, in relation to the granting of any allowance in respect of such expenditure, as if the said body corporate had been in existence at the time the expenditure was incurred and had incurred the expenditure at that time:

  Provided that—

- (i) the same expenditure shall not be taken into account in relation to more than one trade by virtue of this section, and

- (ii) subject to sections 182 and 184 of the Corporation Tax Act, 1976, a deduction or allowance shall not be granted in respect of the same expenditure both by virtue of this section and under some other provision of the Income Tax Acts or the Corporation Tax Acts.

• (2) A body corporate shall, for the purposes of subsection (1), be deemed to be a wholly-owned subsidiary of another body corporate if and so long as all of its ordinary share capital is owned by that other body corporate whether directly or through another body corporate or other bodies corporate, or partly directly and partly through another body corporate or other bodies corporate:

Provided that where part of the ordinary share capital of any body corporate is held by a Minister of State and the remainder of the ordinary share capital of that body corporate is held by another body corporate, the first-mentioned body corporate shall be deemed, for purposes of subsection (1), to be a wholly-owned subsidiary of the last-mentioned body corporate.

• (3) Notwithstanding the repeal by this Act of section 39 of the Finance Act, 1973, the provisions of Part II of the Fifth Schedule to that Act shall have effect, as if enacted in this Act, for the purpose of determining the amount of ordinary share capital held in a body corporate through other bodies corporate.”.

“5.—(1) Where, whether before, on or after the 6th day of April, 1974, a person incurs or incurred exploration expenditure which resulted in the finding of a deposit of scheduled minerals and, without having carried on any trade which consists of or includes the working of that deposit and without any allowance or deduction under or by virtue of this Act having been made to him in respect of that expenditure, he sells any assets representing that expenditure to another person, then, if that other person carries on such a trade as aforesaid in connection with that deposit, that other person shall, for the purposes of this Act, be deemed to have incurred for the purposes of the trade and in connection with the deposit, exploration expenditure equal to the amount of the exploration expenditure which is represented by the assets or the price paid by him for the assets whichever is the smaller, and that expenditure shall be deemed to have been incurred by him on the date on which he commences to carry on the trade aforesaid.

• (2) A person who by virtue of subsection (1) is deemed to have incurred an amount of exploration expenditure shall be deemed not to have incurred that amount of expenditure unless the working of the aforesaid deposit results in the production of scheduled minerals in reasonable commercial quantities.

• (3) Subject to sections 182 and 184 of the Corporation Tax Act, 1976, a deduction or allowance in respect of the same expenditure shall not be made both under this section and under some other provision of the Income Tax Acts or the Corporation Tax Acts.

• (4) Section 6 shall not apply to expenditure in respect of which an allowance is made by virtue of this section.”.

“6.—(1) Where a person who is carrying on the trade of working a qualifying mine incurs, on or after the 6th day of April, 1974, exploration expenditure in relation to which section 2 has effect, there shall, in addition to any mine development allowance made in respect of such expenditure, be made to him in taxing the trade, for the chargeable period for which such mine development allowance is made, an allowance (which shall be known as an exploration investment allowance) equal to one-fifth of such expenditure and section 245 (6) of the Income Tax Act, 1967, shall apply to an exploration investment allowance as it applies to a mine development allowance.

• (2) No allowance shall be made under this section in respect of exploration expenditure—

  • (a) incurred before the 6th day of April, 1974, whether or not such expenditure is, by virtue of any provision of this Act, the Finance Act, 1946, or the Income Tax Act, 1967, deemed to have been incurred on or after the said date, or

  • (b) which is deemed to be incurred by a person other than the person who incurred the expenditure:

  Provided that this paragraph shall not apply in respect of expenditure deemed, under section 4, to have been incurred by a body corporate other than the body corporate which incurred the expenditure.”.

“7.—(1) Where, on or after the 6th day of April, 1974, new machinery or new plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) is provided for use for the purposes of the trade of working a qualifying mine, the said machinery or plant shall, if it is not qualifying machinery or plant, be deemed, for the purpose of section 11 of the Finance Act, 1967, to be qualifying machinery or plant.

• (2) Where a person who is carrying on the trade of working a qualifying mine incurred before the 6th day of April, 1974, capital expenditure on the provision of machinery or plant for the purposes of that trade, the amount of that expenditure still unallowed on the said date, within the meaning of section 274 of the Income Tax Act, 1967, may, at the election of the person, be allowed as a deduction in charging the profits of the said trade to tax for the year of assessment 1974-75.

• (3) Where, on or after the 6th day of April, 1974, a person carrying on the trade of working a qualifying mine incurs capital expenditure on the provision of new machinery or new plant (other than vehicles suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles) for the purposes of that trade, there shall be made to him, for the chargeable period related to the expenditure an allowance equal to one-fifth of the expenditure, and such allowance shall be made in taxing the said trade and shall be in lieu of any allowance in respect of such machinery or plant under section 22 (2) of the Finance Act, 1971.

• (4) Subsections (3), (4) and (5) of section 22 and sections 23, 24 and 25 of the Finance Act, 1971, shall apply as if for subsections (1) and (2) of the said section 22, insofar as they apply to a person carrying on the trade of working a qualifying mine, there were substituted subsection (3) of this section.”.

“22.—(1) This section applies to any person carrying on farming, the profits or gains of which are chargeable to tax in accordance with the provisions of section 15 (1).

• (2) Where a person to whom this section applies incurs, for the purpose of a trade of farming land occupied by him, any capital expenditure on the construction of farmhouses, farm buildings, cottages, fences or other works, there shall be made to him—

  • (a) for the chargeable period related to the expenditure, an initial allowance equal to one-fifth of that expenditure, and such allowance shall be made in taxing the trade, and

  • (b) during a writing-down period of ten years beginning with the chargeable period related to that expenditure, writing-down allowances (in this section referred to as farm buildings allowances) in respect of that expenditure and such allowances shall be made in taxing the trade:

  Provided that paragraph (a) shall not apply in respect of expenditure incurred before the 6th day of April, 1974, and paragraph (b) shall not apply in respect of expenditure incurred before the 6th day of April, 1971.

• (2A)

  • (a) Where any capital expenditure as aforesaid was incurred by a person on or after the 6th day of April, 1971, and before the 6th day of April, 1974, a farm buildings allowance shall, for the purposes of this section, be deemed—

    • (i) to have been made to that person, and

    • (ii) to have been made in charging the profits or gains of the trade for the first relevant year of assessment and for each subsequent year of assessment prior to the year 1974-75 :

    Provided that where the said expenditure was incurred in the year 1973-74, a farm buildings allowance shall, for the purposes of this section, be deemed to have been made in charging the profits or gains of the trade for that year of assessment.

  • (b) For the purposes of this subsection the first relevant year of assessment in relation to expenditure incurred by any person is—

    • (i) the year of assessment in his basis period for which he incurs the expenditure, or

    • (ii) the year of assessment in his basis period for which (if his profits or gains from farming for that year of assessment had been chargeable to tax under Case I of Schedule D) he incurred the expenditure.

  • (c) For the purpose of this subsection ‘basis period’ has the meaning assigned to it by section 297 of the Income Tax Act, 1967.

• (2B) Where, for any year of assessment, an individual—

  • (a) elects to be charged to tax, in respect of his profits or gains from farming, by reference to the provisions of section 21, or

  • (b) is not, by virtue of section 15 (3), chargeable to tax in respect of such profits or gains,

  and that year is a year of assessment in respect of which he could, otherwise, have claimed farm buildings allowance under this section, that allowance shall, for the purposes of this section, be deemed to have been made for that year of assessment and shall not be carried forward and set off against profits or gains chargeable for any subsequent year of assessment.

• (3) Any capital expenditure as aforesaid incurred on or after the 6th day of April, 1971, by a person about to carry on farming but before commencing farming shall, for the purposes of this section, be treated as if it had been incurred on the first day on which he commences farming.

• (4) Where capital expenditure as aforesaid is incurred on a farmhouse, one-third only of that expenditure shall be taken into account, or, if the accommodation and amenities of the farmhouse are out of due relation to the nature and extent of the farm, such proportion thereof not greater than one-third as may be just.

• (5) Any claim by a person for an allowance falling to be made to him under the provisions of this section shall be included in the annual statement required to be delivered under the Income Tax Acts of the profits or gains from farming, and section 241 (3) of the Income Tax Act, 1967, shall apply in relation to the allowance as it applies in relation to allowances in respect of wear and tear of machinery or plant.

• (6) Any claim for an allowance under the provisions of this section shall be made to and determined by the inspector, but any person aggrieved by any decision of the inspector on any such claim may, on giving notice in writing to the inspector within twenty-one days after the notification to him of the decision, appeal to the Appeal Commissioners.

• (7) The Appeal Commissioners shall hear and determine an appeal to them made under subsection (6) 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.

• (8) Where a person who is entitled to an allowance under subsection (2) in respect of capital expenditure incurred for the purpose of farming farm land transfers his interest in that farm land or any part of that farm land to another person, that other person shall, to the exclusion of the first-mentioned person be entitled to the allowances under this section for the chargeable periods following the chargeable period in which the transfer of interest took place :

Provided that where the transfer of interest took place in relation to part only of the farm land, this subsection shall apply to so much of the allowance as is properly referable to that part of the land as if it were a separate allowance.

• (9) Where expenditure is incurred partly for the purposes of farming and partly for other purposes, subsection (2) shall apply to so much only of that expenditure as on a just apportionment ought fairly to be treated as incurred for the purposes of farming.

• (10) No allowance shall be made by virtue of this section in respect of any expenditure if for the same or any other chargeable period an allowance is or has been made in respect of it under Chapter II of Part XV or Chapter I of Part XVI of the Income Tax Act, 1967.

• (11) Expenditure shall not be regarded for any of the purposes of this section as having been incurred by any person in so far as it has been met directly or indirectly by the State, by any board established by statute, or by any public or local authority.”.