Finance Act , 1980

Type Act

Publication 1980-06-25

State In force

Source Irish Statute Book

articles 96

(3) Subject to subsection (4), the provisions of subsection (1) shall not apply to a company, in relation to a trade carried on by it to which subsection (2) does not apply, if, in respect of the trade, an assurance in writing has been given by a person duly authorised by the Minister for Finance to be his agent for that purpose that the provisions of the Tax Acts, including Part IV of the Corporation Tax Act, 1976, would apply to the trade as if subsection (1) had not been enacted:

Provided that—

(a) no such assurance shall be given unless the Minister for Finance, or his agent duly authorised as aforesaid, is satisfied that the trade carried on or to be carried on by the company contributes, or would contribute, significantly to regional or national development,

(b) any such assurance shall be given in such form and manner and subject to such conditions as the Minister for Finance may direct,

(d) where an assurance in writing has been given on a date not later than the 31st day of December, 1980, by a person duly authorised by the Government to be their agent for that purpose and that assurance is to the like effect as the assurance first mentioned in this subsection, this subsection shall have effect as if the assurance so given were the assurance so first mentioned and as if the provisions of this subsection relating to the giving of assurances were complied with in all respects.

(4) A company which claims relief under this Chapter in relation to a trade as respects a relevant accounting period shall not be entitled by virtue of subsection (2) or (3) to claim relief in relation to the trade under Part IV of the Corporation Tax Act, 1976, as respects any accounting period or part of an accounting period falling after the day immediately prior to the date of the commencement of that relevant accounting period.

(5) (a) Section 58 of the Corporation Tax Act, 1976, is hereby amended, as respects accounting periods which end on or after the 1st day of January, 1981, by the substitution for subsection (10) of the following subsection:

“(10) For the purposes of this section ‘relevant corporation tax’ means the corporation tax which, apart from this section, 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) and section 41 of the Finance Act, 1980, would be chargeable for the relevant accounting period exclusive of the corporation tax chargeable on the part of the company's profits attributable to chargeable gains for that period; and that part shall be taken to be the amount brought into the company's profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description.”.

(b) Paragraph (a) shall apply in relation to any claim made on or after the 6th day of May, 1980, for relief from corporation tax under Part IV of the Corporation Tax Act, 1976, as respects any relevant accounting period within the meaning of that Part which ends before the 1st day of January, 1981, as it applies as respects accounting periods ending on or after that date, with the modification that, in relation to cases where section 186 of that Act has effect for the relevant accounting period in respect of which the claim is made, subsection (10) (inserted by paragraph (a)) of section 58 of that Act shall have effect as if the references therein to sections 182 and 184 of that Act included a reference to the said section 186.

(6) Section 64 of the Corporation Tax Act, 1976, is hereby amended, as respects accounting periods which end on or after the 1st day of January, 1981—

(a) in subsection (2), in the definition of A, after “liability to corporation tax on its income”, by inserting “(other than its income from the sale of goods within the meaning of section 41 of the Finance Act, 1980)”, and the said definition, as so amended, is set out in the Table to this paragraph.

TABLE

A is an amount arrived at by applying to the amount of the company's distributable income for the accounting period, excluding distributions received by the company in that period, the fraction where D is the standard rate per cent. for the year of assessment in which the relevant distribution is made reduced in the same proportion as the company's liability to corporation tax on its income (other than its income from the sale of goods within the meaning of section 41 of the Finance Act, 1980) for the accounting period is reduced under section 58, subject to paragraph (c) of the proviso to section 182 (3) (transitional relief for income tax losses, etc.) and paragraph (iii) of the proviso to section 184 (3) (relief in respect of corporation profits tax losses),

and

(b) by the insertion after subsection (4) of the following subsection:

“(4A) Where the distributable income of a company for an accounting period falls to be determined for the purposes of this section in relation to a distribution made by the company for that accounting period (hereafter in this subsection referred to as ‘the first-mentioned distribution’), there shall be deducted from the aggregate mentioned in subsection (4) the aggregate of the following amounts—

(a) the amount of the company's income which, in relation to the first-mentioned distribution, falls to be taken into account in the definition of A in section 45 (1) of the Finance Act, 1980 (before any reduction under section 47 (2) (i) or 48 (2) (i) of that Act), as income of the company for the relevant accounting period (within the meaning of Chapter VI of Part I of that Act) which coincides with or is included in the said accounting period less the amount of corporation tax which falls to be taken into account in the definition of B in the said section 45 (1) in respect of that amount of the company's income, and

(b) an amount equal to the distributions received by the company in the accounting period which are relevant distributions within the meaning of section 45 of the Finance Act, 1980, and which fall to be included within the definition of E in subsection (1) of that section in relation to the first-mentioned distribution.”.

43 Provisions relating to exempted trading operations under Part V (profits from trading within Shannon Airport) of Corporation Tax Act, 1976.

43.—(1) Save as is provided for in subsections (2) and (3), no trading operation of any company carried on on or after the 1st day of January, 1981, shall be an exempted trading operation for the purposes of Part V of the Corporation Tax Act, 1976.

(2) Subject to subsection (4), where, by virtue of a certificate given under section 70 (2) of the Corporation Tax Act, 1976, or of a certificate having effect as if it were so given, any trading operations of a company are, on the 31st day of December, 1980, exempted trading operations within the meaning of that section, then the provisions of subsection (1) shall not prevent the application of Part V of that Act to those trading operations.

(3) Where any trading operations of a company commence on or after the 1st day of January, 1981, and, but for the provisions of subsection (1), a certificate would be given under section 70 (2) of the Corporation Tax Act, 1976, certifying that those trading operations were exempted trading operations for the purposes of Part V of that Act, then the Minister for Finance may give such a certificate as is provided for in that section in relation to those trading operations if, in respect of those trading operations, an assurance in writing has been given by a person duly authorised by the Minister for Finance to be his agent for that purpose that the provisions of the Tax Acts, including Part V of the Corporation Tax Act, 1976, would apply to those trading operations as if subsection (1) had not been enacted; and, subject to subsection (4), where such a certificate is given the provisions of subsection (1) shall not prevent the application of the said Part V to those trading operations:

Provided that—

(a) no such assurance shall be given unless the Minister for Finance, or his agent duly authorised as aforesaid, is satisfied that the trading operations contribute, or would contribute, significantly to regional or national development,

(b) any such assurance shall be given in such form and manner and subject to such conditions as the Minister for Finance may direct, and

(4) Where a company claims relief under this Chapter in relation to a trade as respects a relevant accounting period during which the trade consisted of exempted trading operations specified in a certificate mentioned in subsection (2) or (3), then those trading operations shall cease to be exempted trading operations for the purposes of Part V of the Corporation Tax Act, 1976, to the extent that they are carried on on or after the first day of that relevant accounting period.

44 Transactions between associated persons.

44.—(1) Where a company making a claim for relief under this Chapter (hereafter in this subsection referred to as “the buyer”) buys from another person (hereafter in this subsection referred to as “the seller”), and

(a) the seller has control over the buyer or, the seller being a body corporate or partnership, the buyer has control over the seller or some other person has control over both the seller and the buyer, and

(b) the price in the transaction is less than that which might have been expected to obtain if the parties to the transaction had been independent parties dealing at arm's length,

then the income or losses of the buyer and the seller shall be computed, for any purpose of the Tax Acts, as if the price in the transaction had been that which would have obtained if the transaction had been a transaction between independent persons dealing as aforesaid.

(2) Where a company making a claim for relief under this Chapter (hereafter in this subsection referred to as “the seller”) sells goods to another person (hereafter in this subsection referred to as “the buyer”) and

(a) the buyer has control over the seller or, the buyer being a body corporate or partnership, the seller has control over the buyer or some other person has control over both the seller and the buyer, and

(b) the goods are sold at a price greater than the price which they might have been expected to fetch if the parties to the transaction had been independent parties dealing at arm's length,

then the income or losses of the buyer and the seller shall be computed, for any purpose of the Tax Acts, as if the goods had been sold by the seller to the buyer for the price which they would have fetched if the transaction had been a transaction between independent persons dealing as aforesaid.

(3) For the purposes of subsection (2) a company shall be deemed to sell goods where and to the extent that, for the purposes of this Chapter, any amount receivable by it in payment for any trading activity is regarded as an amount receivable from the sale of goods and “seller” and “buyer” shall be construed accordingly.

(4) In this section “control” has the meaning assigned to it by section 158 of the Corporation Tax Act, 1976.

(5) The inspector may by notice in writing require a company making a claim for relief under this Chapter to furnish him with such information or particulars as may be necessary for the purposes of this section, and section 41 (2) shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this section.

45 Distributions.

45.—(1) For the purposes of this section a distribution made by a company shall be a relevant distribution if it is made on a day (hereafter in this section referred to as “the relevant day”) falling on or after the 1st day of January, 1981, and if the total amount of the distributions made by the company on that day does not exceed an amount (hereafter in this section referred to as “the amount of the primary fund”) determined by the formula

(AB) (CD) EF

where, subject to sections 46 to 49—

A is the amount of the company's income the corporation tax in respect of which is reduced under section 41 for the last relevant accounting period of the company which ended before the relevant day:

Provided that where the distribution is not a distribution declared by the company in a general meeting held as an annual general meeting this definition shall have effect as if the reference therein to the last relevant accounting period which ended before the relevant day were a reference to the relevant accounting period of the company in which the distribution is made,

B is the amount of the corporation tax, as reduced under section 41, in respect of the amount of income mentioned in the definition of A,

C is the aggregate of the amounts of the company's income the corporation tax in respect of which is reduced under section 41 for all relevant accounting periods of the company preceding the relevant accounting period which falls to be taken into account in the definition of A,

D is the aggregate of the amounts of the corporation tax, as reduced under section 41, in respect of the amounts of income comprised in the aggregate amount calculated in accordance with the definition of C,

E is the aggregate amount of the relevant distributions received by the company at any time prior to the relevant day:

Provided that a relevant distribution shall not be included within this definition if the distribution, together with the tax credit to which the company is entitled in respect of it, is franked investment income against which relief is given under section 15 (4), 25 or 26 of the Corporation Tax Act, 1976, and which relief was not subsequently withdrawn under the provisions of those sections, and

F is the aggregate amount of the relevant distributions made by the company on any day earlier than the relevant day.

(2) Where in relation to a company the amount of the primary fund is greater than zero but is less than the total amount of the distributions made by the company on the relevant day, a distribution made by the company on that day shall be treated as if it consisted of two distributions being, respectively—

(a) a relevant distribution equal to such an amount as bears to the whole of the distribution the same proportion as the amount of the primary fund bears to the total amount of the distributions so made on that day, and

(b) a separate distribution which is not a relevant distribution and which consists of the balance of the distribution.

(3) The tax credit to which a recipient of a relevant distribution is entitled in respect of it shall, notwithstanding section 88 (2) of the Corporation Tax Act, 1976, be an amount equal to one-eighteenth of the amount of the relevant distribution.

(4) In relation to a relevant distribution, section 83 (4) (a) of the Corporation Tax, Act, 1976, shall have effect as if for “income tax at the standard rate for that year on” there were substituted “one-nineteenth of”.

(5) The tax credit (if any) to which the recipient of a distribution to which subsection (2) (b) applies is entitled in respect of the distribution shall be calculated in accordance with the provisions of the Corporation Tax Acts other than subsection (3).

(6) In relation to a relevant distribution (including part of a distribution which is treated under subsection (2) as a relevant distribution) made by a company, sections 5 and 83 (5) of the Corporation Tax Act, 1976, shall apply to the company so that the statements provided for by those sections shall show, as respects each such distribution, in addition to the particulars required to be given apart from this subsection, that the distribution is a relevant distribution within the meaning of this section.

(7) Where, on a claim being made by a company for relief under this Chapter in relation to a trade for any relevant accounting period, it appears to the inspector, or, on appeal, to the Appeal Commissioners, that, when account is taken of that relief, the amount of the primary fund in relation to any distribution (including part of a distribution to which subsection (2) (b) applies) made by the company on a relevant day is such that the amount of the tax credit to which the recipient of the distribution was shown to be entitled on the statement annexed to or accompanying any warrant or cheque or other order mentioned in section 5 of the Corporation Tax Act, 1976, or in any statement mentioned in section 83 (5) of that Act, is greater than the amount of the tax credit to which the said recipient is entitled under the provisions of this section, then any relief under this Chapter to which the company would otherwise be entitled in respect of the trade for the relevant accounting period shall be reduced by the excess of the amount of the tax credit to which the recipient was so shown to be entitled over the amount to which he is entitled under the provisions of this section, and there shall be made such additional assessments or adjustments of assessments as may in any case be required in order to give effect to this subsection:

Provided that—

(a) no account shall be taken of the reduction of relief under this Chapter by virtue of this subsection in determining any amount which falls to be taken into account—

(i) in the definition of B or D in subsection (1),

(ii) in paragraph (bb) of the proviso to subsection (3) of section 182 of the Corporation Tax Act, 1976, or

(iii) in paragraph (iiA) of the proviso to subsection (3) (b) of section 184 of that Act, and

(b) the provisions of this subsection shall not apply if the inspector, or, on appeal, the Appeal Commissioners, is or are satisfied that, either by reason of a correction by the company of the statement annexed to or accompanying the relevant warrant or cheque or other order mentioned in section 5 of the Corporation Tax Act, 1976, or of the statement mentioned in section 83 (5) of that Act, or for any other good and sufficient reason, it would be just and reasonable that they should not apply.

(8) The inspector may by notice in writing require a company to furnish him with such information or particulars as may be necessary for the purposes of this section and if the company does not comply with the requirements of the notice it shall be liable to a penalty of £100.

46 Treatment of certain deductions in relation to relevant distributions.

46.—(1) In this section “relevant deduction”, in relation to a relevant accounting period of a company, means any amount allowed as a deduction against the total profits of the company in that period in respect of—

(a) charges on income,

(b) group relief,

(c) any allowance in respect of capital expenditure to which effect is given for that period under section 14 (6) of the Corporation Tax Act, 1976,

(d) any loss in respect of which the profits of that period are treated as reduced under section 16 (2) of that Act, or

(e) other amounts which, under the Corporation Tax Acts, can be deducted from or set against or treated as reducing profits of more than one description.

(2) Where, for any relevant accounting period of a company—

(a) the corporation tax referable to the income of the company from the sale of goods falls to be reduced under section 41, and

(b) a relevant deduction has been allowed against the total profits in computing the corporation tax chargeable,

then, the amount of the company's income which falls to be taken into account in the definition of A or C in section 45 (1) in respect of that relevant accounting period shall be reduced by an amount equal to such part of the relevant deduction as bears to the whole the same proportion as the amount of the income of the company from the sale of goods bears to the total income brought into charge to corporation tax for the relevant accounting period.

47 Provisions relating to relief for certain losses and capital allowances carried forward from 1975-76.

47.—(1) Section 182 of the Corporation Tax Act, 1976, is hereby amended—

(a) in subsection (1), by the substitution for the definition of “relevant corporation tax” of the following definition:

“‘relevant corporation tax’ has, in relation to an accounting period, the meaning assigned to it in subsection (10) (inserted by the Finance Act, 1980) of section 58 with the substitution of ‘the accounting period’ for ‘the relevant accounting period’.”,

and

(b) in the proviso to subsection (3), by the insertion after paragraph (b) of the following paragraph:

“(bb) where the corporation tax payable by the company for an accounting period is reduced by virtue of a claim under section 41 (2) (basis of relief from corporation tax: manufacturing companies) of the Finance Act, 1980, the relief to be given under this section for the accounting period shall be reduced in the same proportion as the corporation tax payable by the company for the accounting period so far as it is attributable to the income from the trade is so reduced; and the corporation tax attributable to the income from the trade shall be the amount mentioned in paragraph (b);”.

(2) Where, for any accounting period of a company which coincides with or includes a relevant accounting period—

(a) the corporation tax which is referable to the income of the company from the sale in the course of a trade of goods for the relevant accounting period falls to be reduced under section 41, and

(b) a reduced relief under section 182 of the Corporation Tax Act, 1976, is allowed as respects the accounting period in accordance with the provisions of paragraph (bb) of the proviso to subsection (3) of the said section 182,

then—

(i) the amount of the company's income which, apart from this paragraph, falls to be taken into account in the definition of A or C in section 45 (1) in respect of the relevant accounting period shall be reduced by an amount determined by the formula

	G	9 __ 7		H __ J

where—

G is the amount of the reduction in the relief in respect of the trade for the accounting period under the provisions of the said paragraph (bb) of the said proviso,

H is the income of the accounting period within the meaning of section 28 (8) of the Corporation Tax Act, 1976, and

J is the relevant corporation tax for the accounting period within the meaning of the said section 182,

and

(ii) the amount of the corporation tax (as reduced under section 41) which, apart from this paragraph, falls to be taken into account in the definition of B or D in section 45 (1) in respect of the relevant accounting period shall be reduced by an amount determined by the formula

	G	2 __ 7

where G has the same meaning as in paragraph (i).

48 Provisions relating to relief for certain corporation profits tax losses.

48.—(1) Subsection (3) of section 184 of the Corporation Tax Act, 1976, is hereby amended—

(a) in paragraph (b), by the substitution for the definitions of A and B of the following definitions:

“A is the excess of the amount of corporation tax which, apart from sections 58 (basis of relief from corporation tax for export profits), 182, this section and section 41 of the Finance Act, 1980, is chargeable for the accounting period over an amount calculated by applying a rate equal to the standard rate for the year of assessment in which the accounting period ends to the amount of the company's income for the accounting period, and

B is the excess of the amount of corporation tax which, apart from sections 58, 182, this section and section 41 of the Finance Act, 1980, would be chargeable for the accounting period if the amount of the company's income for the accounting period were reduced by the appropriate amount over an amount calculated by applying a rate equal to the standard rate for the year of assessment in which the accounting period ends to the amount of the company's income for the accounting period as reduced by the appropriate amount:”,

and

(b) in the proviso to paragraph (b), by the deletion of “and” in paragraph (ii) and by the substitution for paragraph (iii) and the paragraph immediately following it of the following:

“(iiA) where the corporation tax payable by a company for an accounting period is reduced by virtue of a claim under section 41 (2) of the Finance Act, 1980, the amount of relief to be allowed under the foregoing provisions of this section shall be reduced in the same proportion which the amount by which the corporation tax referable to the income from the sale of goods (within the meaning of the said section 41) for that accounting period is so reduced bears to the relevant corporation tax; and

(iii) the amount of a reduction made for an accounting period under paragraph (i) or (ii) of this proviso shall, for the purposes of section 64, be deemed to be a reduction of the amount of relief allowed under section 58, and for the purposes of this proviso—

(I) ‘corporation tax referable to the income attributable to the excess’ and ‘corporation tax referable to the income from the sale of goods exported’ have the meanings assigned to them in section 58, and

(II) ‘relevant corporation tax’ has the meaning assigned to it in section 182.”.

(2) Where, for any accounting period of a company which coincides with or includes a relevant accounting period—

(a) the corporation tax which is referable to the income of the company from the sale in the course of the trade of goods for the relevant accounting period falls to be reduced under section 41, and

(b) a reduced relief under section 184 of the Corporation Tax Act, 1976, is allowed as respects the accounting period in accordance with the provisions of paragraph (iiA) of the proviso to subsection (3) (b) of the said section 184,

then—

	K	L __ M		N __ P

where—

K is the amount of the relief for the accounting period under the said section 184 before any reduction in that relief under the provisions of the proviso to subsection (3) (b) of that section,

L is the income of the accounting period within the meaning of section 28 (8) of the Corporation Tax Act, 1976,

M is the relevant corporation tax within the meaning of section 182 of the Corporation Tax Act, 1976, in relation to the accounting period,

N is the income from the sale of goods, within the meaning of section 41, for the relevant accounting period, and

P is the total income brought into charge to corporation tax for the accounting period,

and

	Q	2 __ 7

where Q is the amount of the reduction in the relief for the accounting period under the provisions of the said paragraph (iiA) of the said proviso.

49 Dividends and other distributions at gross rate or of gross amount.

49.—(1) Where a company makes a relevant distribution within the meaning of section 45, including part of a distribution treated under section 45 (2) as a relevant distribution, in respect of any right or obligation to which section 178 of the Corporation Tax Act, 1976, applies, the company shall make a supplementary distribution of an amount equal to the excess of the amount of the tax credit which would have applied in respect of the relevant distribution if section 45 (3) had not been enacted over the amount of the tax credit which in accordance with the said section 45 (3) applies to the relevant distribution.

(2) Where the whole or part of a supplementary distribution under subsection (1) is a relevant distribution within the meaning of subsection (1) or (2) (a) of section 45 and the recipient of that relevant distribution is a company, then, for the purposes of determining whether and to what extent a distribution made by that company is a relevant distribution, the whole or part (as the case may be) of the supplementary distribution shall be an amount to be taken into account under the definition of E in the formula in the said section in relation to that distribution made by that company.

(3) Notwithstanding the provisions of section 88 of the Corporation Tax Act, 1976, the recipient of a supplementary distribution under subsection (1) shall not be entitled to a tax credit in respect of it.

(4) In relation to any supplementary distribution within the meaning of subsection (1), section 5 of the Corporation Tax Act, 1976, shall apply to the company so that the statement required by that section shall show, in addition to the particulars required to be given apart from this section, the separate amount of such supplementary distribution.

50 Exclusion of mining and construction operations.

50.—(1) For the purposes of relief under this Chapter income from the sale of goods shall not include income from—

(a) any mining operations for the purpose of obtaining, whether by underground or surface working, any scheduled mineral, mineral compound or mineral substance, within the meaning of section 2 of the Minerals Development Act, 1940, or

(b) any construction operations within the meaning of section 17 of the Finance Act, 1970 (inserted by the Finance Act, 1976).

(2) Where a company carries on a trade which consists of or includes the manufacture of goods and, in the course of the trade, carries on any mining operations within the meaning of subsection (1) (a) from which it obtains any scheduled mineral, mineral compound or mineral substance of the kind referred to in that subsection and any such mineral, compound or substance is not sold by the company in the course of the trade but forms the whole or part of the materials used in the manufacture of such goods or is to any extent incorporated in the goods in the course of their manufacture, then, part of the income which, apart from this subsection, would be income from the sale of goods for the purposes of section 41 shall be deemed, for the purposes of subsection (1), to be income from such mining operations and that part shall, for the purposes of that subsection, be such amount as appears to the inspector or, on appeal, to the Appeal Commissioners, to be just and reasonable.

(3) Where the amount receivable from a sale of goods includes consideration for the carrying out, in relation to those goods, of any construction operations as defined in subsection (1) (b), then, part of the income which, apart from this subsection, would be income from the sale of goods for the purposes of section 41, shall be deemed, for the purposes of subsection (1), to be income from such construction operations and that part shall, for the purposes of that subsection, be such amount as appears to the inspector or, on appeal, to the Appeal Commissioners, to be just and reasonable.

51 Appeals.

51.—An appeal to the Appeal Commissioners shall lie on any question arising under this Chapter in like manner as an appeal would lie against an assessment to corporation tax and the provisions of the Tax Acts relating to appeals shall apply and have effect accordingly.

Chapter VII Income Tax and Corporation Tax

52 Amendment of section 40 (application of section 31 (building societies) of Corporation Tax Act, 1976, for certain years of assessment) of Finance Act, 1977.

52.—Section 40 of the Finance Act, 1977, is hereby amended by the substitution of “six” for “four” (inserted by the Finance Act, 1978) in each place where it occurs in subsection (1), and the said subsection (1), as so amended, is set out in the Table to this section.

TABLE

(1) Notwithstanding the proviso to section 31 (1) of the Corporation Tax Act, 1976, any arrangements entered into by the Revenue Commissioners and any building society as respects the year of assessment 1975-76, in so far as they provide for payment of an amount representing income tax calculated in part at the standard rate and in part at a reduced rate, may, with any necessary modifications, be continued for the six years of assessment immediately following for the purpose of determining, in relation to that building society, the amount representing income tax which is referred to in paragraph (a) of the said section 31 (1) and that section shall have effect in relation to any arrangements so continued for the said six years.

53 Amendment of provisions relating to relief in respect of increase in stock values.

53.—(1) Section 31A (inserted by the Finance Act, 1976) of the Finance Act, 1975, is hereby amended by the substitution of “1980” for “1979”—

(a) in paragraph (iv) (inserted by the Finance Act, 1979) of the proviso (inserted by the Finance Act, 1977) to subsection (4) (a),

(b) in subsection (7) (inserted by the Finance Act, 1977), and

and the said paragraph, the said subsection (7) (other than the proviso) and the said subsection (9) (other than the proviso), as so amended, are set out in the Table to this subsection.

TABLE

(iv) a deduction shall not be allowed under the provisions of this section in computing a company's trading income for any accounting period which ends on or after the 6th day of April, 1980.

(7) Where in relation to an accounting period a company's opening stock value exceeds its closing stock value, the amount of the excess (in this section referred to as the company's “decrease in stock value”) shall, if the accounting period ends on a date before the 6th day of April, 1980, be treated in the computation of the company's trading income for the purposes of corporation tax, as a trading receipt of the company's trade for that accounting period:

(9) In the computation of a company's trading income for the purposes of corporation tax for any accounting period which ends on or after the 6th day of April, 1980, in which there is a decrease in stock value, there shall be treated as a trading receipt of the company's trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C

where—

A is the aggregate amount of the company's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1980,

B is the aggregate amount of the company's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1980, and

C is the aggregate of the amounts which under this subsection are treated as trading receipts of the company's trade for preceding accounting periods:

(2) Section 12 of the Finance Act, 1976, is hereby amended—

(a) by the insertion, in paragraph (c) (inserted by the Finance Act, 1979) of subsection (2), after “1979-80” of “or 1980-81”,

(b) by the substitution in subsection (3) of “1980-81” for “1979-80” (inserted by the Finance Act, 1979), and

(c) by the substitution of “1980” for “1979” in each place where it occurs in subsection (5) (inserted by the Finance Act, 1978) and subsection (6) (inserted by the Finance Act, 1977),

and the said paragraph, the said subsection (3), the said subsection (5) (other than the proviso) and the said subsection (6) (other than the proviso), as so amended, are set out in the Table to this subsection.

TABLE

(c) Where a deduction allowed by virtue of this section in computing a person's trading profits of a trade for an accounting period has effect for the year 1979-80 or 1980-81, the amount of the deduction shall, notwithstanding any provision to the contrary, be three-fourths of the amount which, apart from this paragraph, would be the amount of the deduction for that accounting period.

(3) Any deduction allowed by virtue of this section in computing a person's trading profits for an accounting period shall not have effect for any purpose of the Income Tax Acts for any year of assessment prior to the year 1974-75 or later than the year 1980-81.

(5) In the computation of a person's trading income for an accounting period in which there is a decrease in stock value and which ends on a date in the period from the 6th day of April, 1976, to the 5th day of April, 1980, the amount of that decrease shall be treated as a trading receipt of the trade for that accounting period:

(6) In the computation of a person's trading income for any accounting period in which there is a decrease in stock value and which ends on or after the 6th day of April, 1980, there shall be treated as a trading receipt of the trade for that accounting period the amount (if any) by which A exceeds the aggregate of B and C

where—

A is the aggregate amount of the person's decreases in stock value in all accounting periods which ended on or after the 6th day of April, 1980,

B is the aggregate amount of the person's increases in stock value in all accounting periods which ended on or after the 6th day of April, 1980, and

C is the aggregate of the amounts which are treated as trading receipts of the person's trade for preceding accounting periods which ended on or after the 6th day of April, 1980:

54 Amendment of provisions relating to appeals.

54.—(1) Section 416 (5) of the Income Tax Act, 1967, shall have effect as if “this Part” were substituted for “subsections (7) and (8)”.

(2) Section 421 of the Income Tax Act, 1967, shall have effect, and, as respects paragraph (b), shall be deemed always to have had effect, as if—

(a) the following proviso were added to subsection (2):

“Provided that the Commissioners may permit any other person representing the appellant to plead before them where they are satisfied that such permission should be given.”,

(b) the following subsections were added:

“(5) Unless the circumstances of the case otherwise require—

(a) where on an appeal against an assessment which assesses an amount which is chargeable to tax it appears to the Commissioners that the appellant is overcharged by the assessment they may, in determining the appeal, reduce only the amount which is chargeable to tax,

(b) where, on such an appeal as aforesaid, it appears to the Commissioners that the appellant is correctly charged by the assessment they may, in determining the appeal, order that the amount which is chargeable to tax shall stand good, and

(c) where, on such an appeal as aforesaid, it appears to the Commissioners that the appellant ought to be charged in an amount exceeding the amount contained in the assessment, they may charge the excess by increasing only the amount which is chargeable to tax.

(6) Where an appeal is determined by the Commissioners, the inspector or other officer shall give effect to the Commissioners' determination and thereupon, if the determination 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.”.

55 Amendment of provisions relating to charge of income tax under Schedules.

55.—The following section shall be substituted for section 4 of the Income Tax Act, 1967:

“4.—Where any Act enacts that income tax shall be charged for any year at any rate or rates, tax at that rate or at those rates, as may be appropriate, shall, subject to the provisions of this Act and the Corporation Tax Act, 1976, be charged for that year in respect of all property, profits or gains respectively described or comprised in the Schedules contained in the sections enumerated below, that is to say—

Schedule C — Section 47;

Schedule D — Section 52;

Schedule E — Section 109; and

Schedule F — Section 83 of the Corporation Tax Act, 1976,

and in accordance with the provisions of this Act and of the Corporation Tax Act, 1976, respectively applicable to those Schedules.”.

56 Amendment of section 24 (business entertainment expenses) of Finance Act, 1973.

56.—Section 24 of the Finance Act, 1973, is hereby amended—

(a) by the insertion after subsection (1) of the following subsection—

“(1A) In respect of any expenses incurred on or after the 27th day of February, 1980, in providing business entertainment, no sum shall be—

(a) deducted in computing the amount of profits or gains chargeable to tax under Schedule D, or

(b) included in computing any expenses of management in respect of which a deduction may be claimed under section 15 or 33 of the Corporation Tax Act, 1976,

in excess of 50 per cent. of the sum which, but for this subsection, would have been so deducted or so included.”,

(b) as respects the year 1980-81 and subsequent years of assessment and as respects any accounting period of a company which ends on or after the 6th day of April, 1980, by the substitution for subsection (3) of the following subsection—

“(3) (a) Where any asset is used or is provided for use, wholly or partly, for the purpose of providing business entertainment—

(i) if the expenses incurred or to be incurred in respect of the provision of the said business entertainment are not or will not be wholly, exclusively and necessarily laid out or expended for the purposes of a trade, no allowance under the specified provisions shall be allowed in respect of the use of the asset or the expenditure incurred in the provision of the asset to the extent that it is used or is to be used for the purposes of the said business entertainment,

(ii) if the expenses incurred or to be incurred in respect of the provision of the business entertainment are or will be wholly, exclusively and necessarily incurred for the purposes of a trade, no allowance under the specified provisions shall be allowed in respect of the use of the asset or the expenditure incurred in the provision of the asset to the extent that it is used or is to be used for the purpose of the said business entertainment save to the extent of 50 per cent. of the allowance which, apart from this subparagraph, would have been allowed.

(b) In this subsection ‘specified provisions’ means section 241, Chapter III of Part XIV, Chapters I and III of Part XV and Chapters II and V of Part XVI of the Income Tax Act, 1967, and section 22 of the Finance Act, 1971.”,

and

57 Use of certificates in proceedings for recovery of tax or penalties.

57.—(1) Section 488 (5) of the Income Tax Act, 1967, is hereby amended by the insertion in paragraph (a) after subparagraph (i) of the following subparagraph:

“(ia) under the provisions of section 429 (4) (inserted by section 19 of the Finance Act, 1971), or”.

(2) Section 500 of the Income Tax Act, 1967, is hereby amended by the insertion after subsection (3) of the following subsection:

“(4) In proceedings for recovery of a penalty incurred under this section or under section 501—

(i) a certificate signed by an officer of the Revenue Commissioners which certifies that he has examined his relevant records and that it appears from them that a stated notice or precept was duly given to the defendant on a stated day shall be evidence until the contrary is proved that that person received that notice or precept in the ordinary course,

(ii) a certificate signed by an officer of the Revenue Commissioners which certifies that he has examined his relevant records and that it appears from them that, during a stated period, a stated notice or precept has not been complied with by the defendant shall be evidence until the contrary is proved that the defendant did not, during that period, comply with that notice or precept,

(iii) a certificate signed by an officer of the Revenue Commissioners which certifies that he has examined his relevant records and that it appears from them that, during a stated period, the defendant has failed to do a stated act, furnish stated particulars or deliver a stated account in accordance with any of the provisions specified in column 3 of Schedule 15 shall be evidence until the contrary is proved that the defendant did so fail,

(iv) a certificate certifying as provided for in subparagraph (i), (ii) or (iii) and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by such officer.”.

58 Amendment of section 265 (balancing allowances and balancing charges) of Income Tax Act, 1967.

58.—Section 265 (4) of the Income Tax Act, 1967, is hereby amended by the substitution for “whole of the relevant period.” of “whole of the relevant period:

Provided that where, but for section 264 (4) or the proviso to paragraph 1 (5) of the First Schedule to the Corporation Tax Act, 1976, a writing-down allowance would have been made to a person for any chargeable period, the part of the relevant period comprised in the said chargeable period or its basis period shall be deemed for the purposes of this subsection to be comprised in a chargeable period for which a writing-down allowance was made to the person.”.

Chapter VIII Anti-evasion

59 Amendment of section 516 (penalty for false statement made to obtain allowance) of Income Tax Act, 1967.

59.—In relation to offences committed after the passing of this Act, the following section shall be substituted for section 516 of the Income Tax Act, 1967:

“516.—A person who—

(a) knowingly makes any false statement or false representation—

(i) in any return or statement made with reference to tax, or

(ii) for the purpose of obtaining any allowance, reduction, rebate or repayment of tax either for himself or for any other person,

(b) knowingly and wilfully aids, abets, assists, incites or induces another person—

(i) to make or deliver a false or fraudulent account, return, list, declaration or statement with reference to property, profits or gains or to tax, or

(ii) unlawfully to avoid liability to tax by failing to disclose the full amount of his income from all sources,

shall be guilty of an offence and shall be liable, on summary conviction, to imprisonment for a term not exceeding six months.”.

60 Amendment of section 34 (inspection of documents and records) of Finance Act, 1976.

60.—Section 34 of the Finance Act, 1976, is hereby amended by the substitution for subsection (2) of the following subsection:

“(2) (a) An authorised officer may at all reasonable times enter any premises or place where any trade or profession is carried on or anything is done in connection with the trade or profession and—

(i) may require the person carrying on the trade or profession, or any person on those premises or in that place who is employed by the person carrying on the trade or profession, to produce any books, records, accounts or other documents relating to the trade or profession and may remove and retain any such books, records, accounts or other documents relating to the trade or profession for such period as may be reasonable for their examination,

(ii) may examine any such books, records, accounts or other documents and may take copies of or extracts from the books, records, accounts or other documents,

(iii) may examine any property listed in any balance sheets, stock sheets or other such statements,

(iv) may require the person carrying on the trade or profession, or any person on those premises or in that place, who is employed by the person carrying on the trade or profession, to give the authorised officer all reasonable assistance.

(b) Nothing in this subsection shall be construed as requiring any person carrying on a profession, or any person employed by any person carrying on a profession, to produce to an authorised officer any documents relating to a client, other than such documents—

(i) as pertain to the payment of fees to the person carrying on the profession or to other financial transactions of the person carrying on the profession, or

(ii) as are otherwise material to the tax liability of the person carrying on the profession,

and, in particular, he shall not be required to disclose any information or professional advice of a confidential nature given to a client.”.

Chapter IX Capital Gains Tax

61 Amendment of provisions relating to married person in Capital Gains Tax Act, 1975.

61.—The Capital Gains Tax Act, 1975, is hereby amended, as respects the year 1980-81 and subsequent years of assessment—

(a) in section 2, by the substitution for subsection (3) of the following subsection:

“(3) (a) References in this Act to a married woman living with her husband shall be construed in accordance with subsection (1) of section 192 (inserted by the Finance Act, 1980) of the Income Tax Act, 1967.

(b) For the purposes of paragraph (a) the reference in the aforementioned subsection (1) to a wife shall be construed as a reference to a married woman.”,

(b) in section 13, by the substitution for subsection (4) of the following subsection:

“(4) Where, apart from subsection (1), the amount on which an individual is chargeable to capital gains tax under section 5 (1) for a year of assessment (hereafter in this subsection referred to as “the first-mentioned amount”) is less than £500 and the spouse of the individual (being, at any time during that year of assessment, a married woman living with her husband, or that husband) is, apart from subsection (1), chargeable to capital gains tax on any amount for that year, section 16 (1) shall have effect in relation to the spouse as if the sum of £500 mentioned therein were increased by an amount equal to the difference between the first-mentioned amount and £500.”,

(c) in section 25 (9A) (inserted by the Finance Act, 1979), by the substitution for the proviso to paragraph (b) of the following proviso:

“Provided that not more than one dwelling-house (or part of a dwelling-house) may qualify for relief as being the residence of a dependent relative of the claimant at any one time.”, and

(d) in paragraph 10 of Schedule 4, by the substitution for subparagraph (2) of the following subparagraph:

“(2) Section 196 (special provisions relating to tax on wife's income) (inserted by the Finance Act, 1980) of the Income Tax Act, 1967, shall apply with any necessary modifications in relation to capital gains tax as it applies in relation to income tax.”.

62 Deletion of references to sterling in Capital Gains Tax Act, 1975.

62.—The Capital Gains Tax Act, 1975, is hereby amended, as respects the year 1980-81 and subsequent years of assessment—

(a) in section 7 (1), by the deletion in paragraph (b) of “and sterling”, and

(b) in section 46, by the deletion in subsection (6) of “or in sterling”,

and the said paragraph (b) and the said subsection (6), as so amended, are set out in the Table to this section.

TABLE

(b) any currency, other than Irish currency, and

(6) This section shall not apply to a debt owed by a bank which is not in Irish currency and which is represented by a sum standing to the credit of a person in an account in the bank unless it represents currency acquired by the holder for the personal expenditure outside the State of himself or his family or dependants (including expenditure on the maintenance of any residence outside the State).

PART II Customs and Excise

63 Interpretation (Part II).

63.—In this Part “the Order of 1975” means the Imposition of Duties (No. 221) (Excise Duties) Order, 1975 (S.I. No. 307 of 1975).

64 Beer.

64.—(1) The duty of excise on beer imposed by paragraph 7 (1) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of £90.121 for, in the case of all beer brewed within the State, every 36 gallons of worts of a specific gravity of 1,055 degrees, and, in the case of all imported beer, every 36 gallons of beer of which the worts were before fermentation of a specific gravity of 1,055 degrees, in lieu of the rate mentioned in section 39 (1) of the Finance Act, 1979.

(2) Subject to paragraph 4 of the Imposition of Duties (No. 246) (Beer) Order, 1980 (S.I. No. 49 of 1980), the drawback on beer provided for in paragraph 7 (3) of the Order of 1975 shall, as respects beer on which it is shown, to the satisfaction of the Revenue Commissioners, that duty at the rate mentioned in subsection (1) of this section has been paid, be calculated, according to the original specific gravity of the beer, at the rate of £90.121 on every 36 gallons of beer of which the original specific gravity was 1,055 degrees in lieu of the rate mentioned in section 39 (2) of the Finance Act, 1979.

65 Spirits.

65.—(1) The duty of excise on spirits imposed by paragraph 4 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in the Second Schedule to this Act in lieu of the several rates specified in the second column of the First Schedule to the Imposition of Duties (No. 244) (Excise Duties on Spirits, Beer and Hydrocarbon Oils) Order, 1979 (S.I. No. 415 of 1979).

(2) Nothing in this section shall operate to relieve from or to prejudice or affect the additional duty of excise in respect of immature spirits imposed by paragraph 4 (2) of the Order of 1975 and charged, levied and paid at the several rates specified in the third column of the First Schedule to the Imposition of Duties (No. 244) (Excise Duties on Spirits, Beer and Hydrocarbon Oils) Order, 1979.

(3) Paragraph 4 (3) of the Order of 1975 is hereby amended, as on and from the 28th day of February, 1980, by the substitution for clauses (b) and (c) thereof of the following clauses:

“(b) Where spirits to which this subparagraph applies are delivered from a bonded warehouse, the Revenue Commissioners may, subject to compliance with such conditions for securing payment of the duty as they may think fit to impose, permit payment of the said duties to be deferred to a day not later than—

(i) in case the spirits are so delivered on a day in the month of December in any year up to and including the 20th day of that month, the last day of that month in the same year, or

(ii) in any other case, the last day of the month succeeding the month in which the spirits are so delivered.

(c) Where spirits to which this subparagraph applies are delivered from a bonded warehouse on or after the 21st day in the month of December in any year, no deferment of payment of duty as provided for in this subparagraph shall be allowed in respect of the spirits.”

(4) In the Second Schedule to this Act “alcohol” means pure ethyl alcohol.

66 Tobacco products.

66.—(1) In this section and in the Third Schedule to this Act—

“the Act of 1977” means the Finance (Excise Duties on Tobacco Products) Act, 1977;

“cigarettes”, “cigars”, “cavendish or negrohead”, “hard pressed tobacco”, “other pipe tobacco”, “smoking tobacco”, “chewing tobacco” and “tobacco products” have the same meanings as they have in the Act of 1977 as amended by the Order of 1979;

“the Order of 1979” means the Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979 (S.I. No. 296 of 1979).

(2) The duty of excise on tobacco products imposed by section 2 of the Act of 1977 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in the Third Schedule to this Act in lieu of the several rates specified in the Fourth Schedule to the Finance Act, 1979 and the Order of 1979.

67 Wine and made wine.

67.—(1) The duty of excise on wine imposed by paragraph 5 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in Part I of the Fourth Schedule to this Act in lieu of the several rates specified in the First Schedule to the Imposition of Duties (No. 245) (Excise Duties on Wine and Made Wine) Order, 1979 (S.I. No. 416 of 1979).

(2) The duty of excise on made wine imposed by paragraph 6 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in Part II of the Fourth Schedule to this Act in lieu of the several rates specified in the Second Schedule to the Imposition of Duties (No. 245) (Excise Duties on Wine and Made Wine) Order, 1979.

(3) In the Fourth Schedule to this Act—

“actual alcoholic strength by volume” means the number of volumes of pure alcohol contained at a temperature of 20C in 100 volumes of the product at that temperature;

“ vol” means alcoholic strength by volume.

68 Cider and perry.

68.—(1) The duty of excise on cider and perry imposed by paragraph 8 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in the Fifth Schedule to this Act in lieu of the rates specified in the Sixth Schedule to the Finance Act, 1979.

(2) In the Fifth Schedule to this Act—

“actual alcoholic strength by volume” means the number of volumes of pure alcohol contained at a temperature of 20C in 100 volumes of the product at that temperature;

“ vol” means alcoholic strength by volume.

69 Table waters.

69.—(1) The duty of excise on table waters imposed by paragraph 9 (2) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of £0.372 per gallon in lieu of the rate specified in the said paragraph 9 (2).

(2) The rebate of excise duty provided for by section 15 of the Finance Act, 1960, shall not be allowed to any manufacturer of table waters in respect of table waters manufactured by him on or after the 1st day of March, 1980.

(3) (a) Subject to the subsequent paragraphs of this subsection, every manufacturer of table waters on which the duty of excise imposed by paragraph 9 (2) of the Order of 1975 is paid by him shall, on and after the 1st day of March, 1980, be allowed a rebate of the duty as follows in relation to each premises in which he manufactures the table waters:

	Rate of Rebate
Where the quantity manufactured by him therein on which the duty has been paid by him in any year commencing on the 1st day of March does not exceed 20,000 gallons	£0.124 per gallon for each gallon thereof.
exceeds 20,000 gallons and is less than 100,000 gallons	£0.124 per gallon for each of the first 20,000 gallons and £0.062 per gallon for each other gallon.
is 100,000 gallons or more	£0.124 per gallon for each of the first 20,000 gallons and £0.062 per gallon for each of the next 80,000 gallons.

(b) Where, apart from this paragraph, rebate under paragraph (a) of this subsection would fall to be allowed to a manufacturer in respect of two or more premises situate in the same county or other borough, urban district or town, the rebate shall be allowed in respect of one only of the premises.

(c) Where two or more persons successively manufacture table waters in any premises in any year commencing on the 1st day of March, then, as respects each of those persons other than the first—

(i) in case the amount of rebate which would be allowable under paragraph (a) of this subsection on the aggregate quantity of the table waters manufactured in the premises in that year by him and his predecessor or predecessors in the business in that year, assuming that those table waters had been manufactured by one person only, exceeds the aggregate amount of rebate allowable to such predecessor or predecessors in respect of table waters manufactured in the premises in that year, he shall not be allowed, by way of rebate under paragraph (a) of this subsection in respect of table waters manufactured by him in the premises in that year, an amount greater than the excess, and

(ii) in any other case, he shall not be allowed any such rebate.

(d) (i) In paragraph (b) of this subsection “town” means a town having commissioners under the Towns Improvement (Ireland) Act, 1854, or any place which is designated as a town in the census of population which is for the time being the latest published such census.

(ii) If any question arises as to the census of population applicable at any time for the purposes of this paragraph, the Minister for Finance may certify accordingly and the certificate shall be conclusive.

(e) In a case in which, apart from this paragraph, paragraph (c) of this subsection would not apply merely because periods of manufacture of table waters are separated by an intervening period, that paragraph shall apply.

70 Hydrocarbons.

70.—(1) In this section—

“the Act of 1976” means the Finance Act, 1976;

“the Order of 1978” means the Imposition of Duties (No. 234) (Excise Duties on Hydrocarbon Oils and Beer) Order, 1978 (S.I. No. 2 of 1978).

(2) The duty of excise on mineral hydrocarbon light oil imposed by paragraph 11 (1) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of £13.54 per hectolitre in lieu of the rate specified in paragraph 3 of the Order of 1978.

(3) The duty of excise on hydrocarbon oil imposed by paragraph 12 (1) of the Order of 1975 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of £7.89 per hectolitre in lieu of the rate specified in paragraph 5 of the Order of 1978.

(4) Notwithstanding clause (b) or (c) of paragraph 11 (5) of the Order of 1975, the duty of excise imposed by the said paragraph 11 (1) shall be charged, levied and paid at the rate of £1.53 per hectolitre, as on and from the 28th day of February, 1980, on mineral hydrocarbon light oil to which the said clause (b) or (c) applies, in lieu of the rate specified in section 40 (2) (a) of the Act of 1976, as amended by paragraph 4 of the Order of 1978.

(5) Notwithstanding subparagraph (6) of paragraph 12 of the Order of 1975, the duty of excise imposed by subparagraph (1) of the said paragraph 12 shall be charged, levied and paid at the rate of £1.53 per hectolitre, as on and from the 28th day of February, 1980, on hydrocarbon oil to which the said subparagraph (6) applies, in lieu of the rate specified in section 40 (2) (b) of the Act of 1976 as amended by paragraph 4 of the Order of 1978.

(6) Paragraph 11 (7) of the Order of 1975, as amended by section 40 (3) of the Act of 1976 and by paragraph 4 of the Order of 1978, shall be amended, as on and from the 28th day of February, 1980, by the substitution for “£0.44” of “£1.53”.

(7) Any authorisation issued before the 28th day of February, 1980, under the provisions of paragraph 11 (7) of the Order of 1975 in relation to the importation or the delivery from the premises of a refiner of hydrocarbon oil or from a bonded warehouse of articles chargeable with the duty imposed by paragraph 11 (1) of the Order of 1975, upon payment of a duty of excise at the rate of £0.44 per hectolitre payable under section 40 (4) of the Act of 1976, as amended by paragraph 4 of the Order of 1978, shall, so far as it affects articles imported or delivered on or after that date, be deemed to authorise the importation or delivery of such articles on payment of a duty of excise at the rate of £1.53 per hectolitre in lieu of payment of the duty of excise aforesaid.

(8) The repayments of excise duty provided for in paragraphs 11 (10) and 12 (10) of the Order of 1975 shall, where the duty is chargeable and paid after the 27th day of February, 1980, be at the rate of duty paid less an amount of £1.53 per hectolitre in lieu of the rate specified in section 40 (5) of the Act of 1976, as amended by paragraph 4 of the Order of 1978.

(9) Paragraph 12 (1) of the Order of 1975, as amended by section 40 (7) of the Act of 1976 and by paragraph 5 of the Order of 1978, shall be amended, as on and from the 28th day of February, 1980, by the substitution for the proviso thereto of the following proviso:

“Provided, however, that the said excise duty shall be charged, levied and paid at the rate of £1.53 per hectolitre on mineral hydrocarbon heavy oil within the meaning of section 7 (6) of the Finance Act, 1933, so sent out or imported on or after the 28th day of February, 1980, in lieu of the rate chargeable under this subparagraph”.

(10) The amount of any rebate allowed under paragraph 12 (3) of the Order of 1975 shall, in respect of any hydrocarbon oil imported or delivered on or after the 28th day of February, 1980, be the amount of excise duty chargeable less an amount calculated at the rate of £1.53 per hectolitre in lieu of the rate specified in section 40 (8) of the Act of 1976 as amended by paragraph 4 of the Order of 1978.

(11) The amount of any repayment allowed under paragraph 4 of the Imposition of Duties (No. 232) (Hydrocarbon Oils) Order, 1977 (S.I. No. 279 of 1977), shall, in respect of any hydrocarbon oil imported or delivered from the premises of a refiner of hydrocarbon oil or from a bonded warehouse on or after the 28th day of February, 1980, be the amount of excise duty paid less an amount calculated at the rate of £0.44 per hectolitre.

(12) Paragraphs 11 (1) and 12 (1) of the Order of 1975 and section 41 (1) of the Act of 1976 shall be amended by the substitution of “produced or manufactured in the State” for “made in the State”, where the latter expression occurs in those paragraphs and that section and in the said paragraphs and section “manufacturer” shall be construed as including producer.

(13) As on and from the 28th day of February, 1980, the rate of any repayment allowed under paragraph 12 (11) of the Order of 1975, as amended by paragraph 6 of the Order of 1978, in respect of hydrocarbon oil on which such repayment is allowable and on which the excise duty mentioned in subsection (3) of this section was paid at the rate of £7.89 per hectolitre shall be £6.10 per hectolitre in lieu of the rate allowable immediately before the 28th day of February, 1980.

(14) The duty of excise on gaseous hydrocarbons in liquid form imposed by section 41 (1) of the Act of 1976 shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of £0.30 per gallon in lieu of the rate specified in subsection (b) of the said section 41 (1).

(15) Section 42 (2) of the Act of 1976 shall be amended, as on and from the 28th day of February, 1980, by the substitution for “£0.02” of “£0.07”.

71 Motor vehicles.

71.—The duty of excise imposed by paragraph 4 (1) of the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 (S.I. No. 57 of 1979), on category A motor vehicles, within the meaning of paragraph 3 (a) of the said Order, shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of an amount equal to 40 per cent. of the chargeable value, in lieu of the rate specified in subparagraph 4 (3) (a) of the said Order.

72 Televisions.

72.—The duty of excise on televisions imposed by paragraph 5 (1) of the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 (S.I. No. 57 of 1979), shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the several rates specified in the Sixth Schedule to this Act in lieu of the several rates specified in the Table in paragraph 5 (2) of the said Order.

73 Gramophone records.

73.—The duty of excise on gramophone records imposed by paragraph 5 (1) of the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 (S.I. No. 57 of 1979), shall be charged, levied and paid, as on and from the 28th day of February, 1980, at the rate of an amount equal to 40 per cent. of the chargeable value in lieu of the rate specified in paragraph 5 (2) (b) of the said Order.

74 Gaming machine licences.

74.—(1) In lieu of the duty of excise imposed by section 43 (6) of the Finance Act, 1975, there shall be charged, levied and paid, as on and from the 28th day of February, 1980, on the grant of a gaming machine licence a duty of excise at whichever of the following rates is appropriate having regard to the period for which the licence is to remain in force, that is to say, where the period for which the licence is to remain in force—

(a) does not exceed three months, £25 for each gaming machine to which the licence relates,

(b) exceeds three months but does not exceed six months, £50 for each gaming machine to which the licence relates,

(d) exceeds nine months, £100 for each gaming machine to which the licence relates.

(2) Section 43 of the said Finance Act. 1975, shall be amended by the insertion of the following paragraphs after paragraph (a) of subsection (7):

“(aa) A gaming machine licence granted on or after the 28th day of February, 1980, may, pursuant to a request contained in the application therefor, be expressed to relate only to Saturdays, Sundays and holidays in the period specified in the licence for which it is to remain in force and, where a licence is so expressed—

(i) the duty of excise imposed by the subsection (6) of this section shall, as on and from the 28th day of February, 1980, be charged, levied and paid on the grant of the licence at whichever of the following rates is appropriate having regard to the period for which the licence is to remain in force, that is to say, where the period for which the licence is to remain in force—

(A) does not exceed three months, £16.50 for each gaming machine to which the licence relates,

(B) exceeds three months but does not exceed six months, £33 for each gaming machine to which the licence relates,

(D) exceeds nine months, £66 for each gaming machine to which the licence relates,

(ii) the licence shall be deemed, for the purposes of subsections (3) and (10) (b) of this section, not to be in force on days in the period aforesaid other than Saturdays, Sundays and holidays.

(aaa) Paragraph (a) of this subsection shall not apply or have effect in relation to gaming machine licences granted on or after the 28th day of February, 1980.”.

75 Mechanical lighters.

75.—(1) In this section—

“mechanical lighter” means any mechanical, chemical, electrical or similar article of a portable nature which is complete or substantially complete and is intended to provide a means of ignition whether by spark, flame or otherwise;

“licensed manufacturer” means a manufacturer who is the holder of a licence for the time being in force under subsection (5) (a) of this section;

“manufacture” means the making or assembling in the State of mechanical lighters and “manufacturer” shall be construed accordingly.

(2) (a) There shall be charged, levied and paid on mechanical lighters which are manufactured in the State and sent out from the premises of a manufacturer, and on mechanical lighters which are imported into the State, on and from the 28th day of February, 1980, a duty of excise at the rate of £0.20 for each lighter.

(b) The duty of excise imposed by paragraph (a) of this subsection shall not be charged, levied or paid on any mechanical lighter which is shown to the satisfaction of the Revenue Commissioners to be constructed solely for the purposes of igniting gas for domestic use.

(3) The Revenue Commissioners may, subject to compliance with such conditions for securing payment of the duty as they may think fit to impose, permit payment of the duty imposed by this section to be deferred to a day not later than the fifteenth day of the month following that in which the said duty is charged.

(4) The Revenue Commissioners may, subject to compliance with such conditions as they may think fit to impose—

(a) repay or remit the duty imposed by this section on mechanical lighters that are shown to their satisfaction—

(i) to have been destroyed or become unfit for use by unavoidable accident before removal from a licensed manufacturer's premises, or

(ii) to have been received back, prior to use, at the place of manufacture as being defective, or to have been received back, after use, at the place of manufacture for repair and are, in either case, subsequently redelivered, exported or destroyed under arrangements approved of by them,

(b) authorise the removal from the premises of a licensed manufacturer without payment of excise duty of mechanical lighters for exportation or shipment as stores or for warehousing for exportation or shipment as stores.

(5) (a) A person shall not manufacture mechanical lighters unless he is the holder of a licence issued under this subsection and has entered the premises to which the licence relates under paragraph (b) of this subsection.

(b) A licensed manufacturer shall make proper entry with the proper officer of Customs and Excise in accordance with the provisions of regulations under subsection (6) of this section of all premises intended to be used by him in the carrying on of his business as a manufacturer.

(c) An officer of Customs and Excise may, at all reasonable times, enter premises on which the manufacture of mechanical lighters is reasonably believed by the officer to be carried on and may there make such search and investigation and take such samples of mechanical lighters and partially manufactured mechanical lighters as the officer shall think proper, and may inspect and take copies of or extracts from any books or other documents there found reasonably believed by the officer to relate to the manufacture of mechanical lighters.

(d) Any person who resists, obstructs or impedes an officer of Customs and Excise in the exercise of any power conferred on him by this subsection shall be guilty of an offence and shall be liable on conviction to an excise penalty of £500.

(6) (a) The Revenue Commissioners may make regulations for the purpose of giving full effect to the provisions of this section.

(b) In particular, but without prejudice to the generality of paragraph (a) of this subsection, regulations under this subsection may—

(i) govern the importation, manufacture, storage and removal from storage of mechanical lighters,

(ii) prescribe the method of charging, securing and collecting the duty imposed by this section,

(iii) make provision in relation to the form, grant, duration and revocation of licences under subsection (5) of this section,

(iv) provide for the method of entry with the proper officer of Customs and Excise under subsection (5) (b) of this section,

(v) require a licensed manufacturer to keep in a specified manner, and to preserve for a specified period, such accounts and records relating to the purchase, receipt, sale, disposal or manufacture by him of mechanical lighters or parts thereof as may be specified and to keep for a specified period any other books or documents relating to any of the matters aforesaid and to allow an officer of Customs and Excise to inspect and take copies of such accounts and records and of any other books or documents kept by him relating to any of the matters aforesaid,

(vi) require a licensed manufacturer to furnish, at such times and in such form as may be specified, returns in relation to such matters as may be specified,

(vii) provide for the removal to and receipt by licensed manufacturers of mechanical lighters imported into or manufactured in the State without payment of the excise duty chargeable thereon.

(7) Where an officer of Customs and Excise finds that the number of mechanical lighters in the stock or possession of a licensed manufacturer is less than the recorded number which, according to records or other documents required to be kept by him in pursuance of regulations under subsection (6) of this section, ought to be in his stock or possession, then, except insofar as the deficiency is explained to the satisfaction of the Revenue Commissioners, mechanical lighters to the number of the deficiency shall be deemed to have been sent out for home use from the premises of the licensed manufacturer on the day on which the deficiency first came to the notice of the officer.

(8) Any person who contravenes or fails to comply with any of the provisions of this section or of regulations under subsection (6) of this section shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £500 and any articles in respect of which the offence was committed shall be liable to forfeiture.

(9) (a) The provisions of the Customs Acts and of any instrument relating to duties of customs made under statute shall, with any necessary modifications, apply in relation to the duty imposed by this section on mechanical lighters imported into the State as they apply in relation to duties of customs.

(b) The provisions of the statutes which relate to the duties of excise and the management thereof and of any instrument relating to duties of excise made under statute shall, with any necessary modifications, apply in relation to the duty imposed by this section on mechanical lighters manufactured in the State as they apply to duties of excise.

(c) Where in relation to the duty of excise imposed by this section there is a provision in this section corresponding to provision of the Customs Acts or of any instrument relating to duties of customs made under statute (insofar as imported goods are concerned) or to a provision of the statutes which relate to the duties of excise or of any instrument relating to the duties of excise made under statute (insofar as goods manufactured in the State are concerned), the latter provisions shall not apply in relation to the duty of excise imposed by this section.

(10) The duty of excise imposed by this section is hereby placed under the care and management of the Revenue Commissioners.

(11) This section, so far as it relates to the duty of excise imposed by this section on dutiable goods imported into the State, shall be construed together with the Customs Acts and, so far as it relates to the duty of excise imposed by this section on dutiable goods manufactured in the State, shall be construed together with the statutes which relate to the duties of excise and the management of those duties.

76 Increase of duties on certain intoxicating liquor licences.

76.—(1) The duties of excise imposed by section 43 of the Finance (1909-10) Act, 1910, on the licences for the manufacture or sale of intoxicating liquor specified in the First Schedule to that Act and the duty of excise imposed by section 10 (3) of the Finance Act, 1940, on a licence to be taken out annually by every person who makes cider or perry for sale shall, as respects any such licence granted on or after the 1st day of July, 1980, in respect of periods expiring on days subsequent to the 30th day of September, 1980, be charged, levied and paid on each such licence at the rate specified in column (4) of Part I of the Seventh Schedule to this Act at the reference number at which that licence is mentioned in column (2) of that Schedule in lieu of the rate specified in the enactment mentioned in column (3) of the said Part I at that reference number; and no reduction, remission, abatement or repayment shall be allowed or made in respect of any such licence but any duty paid in error on any such licence may be repaid.

(2) Section 48 of the Finance (1909-10) Act, 1910, is hereby amended by the substitution of the following provisos for the provisos to subsection (1) (inserted by section 17 (5) of the Finance Act, 1960):

“Provided that the duty payable in pursuance of this subsection shall not exceed £50 as respects any statement of purchases during the calendar year 1980, or any subsequent calendar year, or, in the case of a club which is discontinued on or after the date of the passing of this Act, as respects the statement of purchases up to the day of discontinuance, and

Provided also that the secretary of a club shall be deemed to have complied with the provisions of this section with regard to any particular period as aforesaid if he pays the sum of £50 to the proper officer of Customs and Excise in respect of that period”.

(3) Section 10 of the Intoxicating Liquor Act, 1927, is hereby repealed as respects licences referred to in that section taken out or granted after the passing of this Act in respect of periods expiring on days subsequent to the 30th day of September, 1980.

77 Increase of duties on certain other licences.

77.—(1) In this section and in Part IV of the Seventh Schedule to this Act “licence” shall be construed as including permit and certificate.

(2) The duty of excise on a firearm certificate imposed by section 18 (2) of the Finance Act, 1964, shall, in the case of any such certificate coming into force, whether by way of grant or renewal, on or after the 1st day of August, 1980, be charged, levied and paid at the rates specified in Part II of the Seventh Schedule to this Act in lieu of the rates specified in the Fifth Schedule to the Finance Act, 1966, as amended by the Imposition of Duties (No. 199) (Excise Duties) (Firearms Certificates) Order, 1972 (S.I. No. 162 of 1972).

(3) The duty of excise imposed by section 17 of the Finance Act, 1956, on gaming licences issued under section 19 of the Gaming and Lotteries Act, 1956, shall be charged, levied and paid on such licences issued on or after the date of the passing of this Act at the rates specified in Part III of the Seventh Schedule to this Act in lieu of the rates specified in section 42 (2) of the Finance Act, 1975.

(4) The duty of excise in respect of a licence mentioned in column (2) of Part IV of the Seventh Schedule to this Act at any reference number imposed by the enactment specified in column (3) of the said Part IV at that reference number shall be charged, levied and paid, as on and from the date specified in column (4) of the said Part IV at that reference number at the rate specified in column (5) of the said Part IV at that reference number in lieu of the rate specified in the said enactment.

(5) The duty of excise on Refreshment House licences, imposed by section 1 of the Refreshment Houses (Ireland) Act, 1860, shall be charged, levied and paid, as on and from the 1st day of April, 1981, at the rate of £50 in lieu of the several rates specified in section 9 of the Revenue (No. 2) Act, 1861.

(6) No reduction, remission, abatement or repayment of duty shall be allowed or made in respect of any licence to which this section or section 74 of this Act relates provided that any duty which has been paid in error may be repaid.

78 Excise duty on public dancing license, occasional licence, special exemption order and authorisation to a club.

78.—(1) In this section “licence” includes order and authorisation.

(2) There shall be charged, levied and paid on every public dancing licence granted under section 2 of the Public Dance Halls Act, 1935, a duty of excise of—

in case the licence is for a defined period not exceeding one month	£15
in any other case	£100

(3) There shall be charged, levied and paid on every occasional licence granted under section 11 or 13 of the Intoxicating Liquor Act, 1962, a duty of excise of £25.

(4) There shall be charged, levied and paid on every special exemption order granted under section 5 of the Intoxicating Liquor Act, 1927, or section 13 of the Intoxicating Liquor Act, 1962, a duty of excise of £25.

(5) There shall be charged, levied and paid on every authorisation granted to a club under section 21 of the Intoxicating Liquor (General) Act, 1924, or section 14 of the Intoxicating Liquor Act, 1962, a duty of excise of £25.

(6) The duty imposed by this section on a licence shall be paid and collected by means of stamps equal in value to the amount of such duty impressed on or affixed to the notice in writing of the application for the licence given to the appropriate District Court Clerk and the Stamp Duties Management Act, 1891, shall apply to such duty and stamps.

(7) Notwithstanding anything to the contrary contained in any Act, a licence which is liable to a duty imposed by this section shall not be granted unless the notice in writing referred to in subsection (6) of this section in relation to the application for the licence has been duly stamped in accordance with that subsection.

(8) Any amount paid in respect of a duty of excise under this section in relation to a licence may be repaid by the Revenue Commissioners—

(a) if the application for the licence is withdrawn before the determination of the court proceedings in relation to it,

(b) if the licence is not granted, or

(9) This section shall have effect in relation to licences granted on or after the date of the passing of this Act in respect of dates subsequent to the 30th day of September, 1980.

79 Confirmation of Orders.

79.—The Orders mentioned in the Table to this section are hereby confirmed—

TABLE

S.I. No. 57 of 1979	Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979.
S.I. No. 67 of 1979	Imposition of Duties (No. 237) (Beer) Order, 1979.
S.I. No. 152 of 1979	Imposition of Duties (No. 239) (Agricultural Produce) (Cattle and Milk) Order, 1979.
S.I. No. 153 of 1979	Imposition of Duties (No. 240) (Agricultural Produce) (Cereals and Sugar Beet) Order, 1979.
S.I. No. 250 of 1979	Imposition of Duties (No. 242) (Agricultural Produce) (Amendment) Order, 1979.
S.I. No. 296 of 1979	Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979.
S.I. No. 415 of 1979	Imposition of Duties (No. 244) (Excise Duties on Spirits, Beer and Hydrocarbon Oils) Order, 1979.
S.I. No. 416 of 1979	Imposition of Duties (No. 245) (Excise Duties on Wine and Made Wine) Order, 1979.

PART III Value-Added Tax

80 Increase of rate of tax on certain goods and services.

80.—As respects goods supplied or imported, or services supplied, on or after the 1st day of May, 1980—

(a) section 11 (1) (inserted by the Value-Added Tax (Amendment) Act, 1978) of the Value-Added Tax Act, 1972, shall have effect as if the following paragraph were substituted for paragraph (c):

“(c) 25 per cent. of the amount on which tax is chargeable in relation to the supply of any goods or services, other than goods or services on which tax is chargeable at either of the rates specified in paragraphs (a) and (b) or which are mentioned in the First Schedule, but including radio receiving sets that are of the domestic or portable type or that are of a type suitable for use in road vehicles, and gramophones, radio-gramophones and record players.”, and

(b) section 49 of the Finance Act, 1979, shall have effect as if “the rate of value-added tax on radio receiving sets that are of the domestic or portable type or that are of a type suitable for use in road vehicles, and on gramophones, radio-gramophones and record players, shall be increased from 10 per cent. of the amount or value, as the case may be, in respect of which tax is chargeable on those goods to 20 per cent. of that amount or value and, accordingly,” were deleted.

81 Amendment of section 8 of Value-Added Tax Act, 1972.

81.—With effect as on and from the 1st day of May, 1980, section 8 of the Value-Added Tax Act, 1972 (inserted by the Value-Added Tax (Amendment) Act, 1978), is hereby amended—

(a) by the substitution of the following paragraph for paragraph (e) of subsection (3):

“(e) a person, other than a person to whom paragraph (a), (b), (c) or (d) applies, for whose supply of taxable goods and services the total consideration has not exceeded and is not likely to exceed £3,000 in any period consisting of 6 consecutive taxable periods”, and

(b) by the insertion in subsection (4), after “(3) (b) (iii)” of “, (3) (e)” and the substitution of “any one” for “either” where it occurs in that subsection and the subsection as so amended is set out in the Table to this section.

TABLE

(4) Where, by virtue of subsection (3) or (6), a person has not been a taxable person and a change of circumstances occurs which continues beyond the end of the taxable period next after the taxable period or the period referred to in subsection (3) (b) (iii), (3) (e) or (9), as the case may be, during which such change occurs whereby he can no longer be deemed, for the purposes of this Act, not to be a taxable person by virtue of any one of those subsections, he shall be deemed, for those purposes, to be a taxable person immediately after the end of the first mentioned taxable period.

82 Amendment First Schedule to Value-Added Tax Act, 1972.

82.—With effect as on and from the 1st day of July, 1980, the First Schedule to the Value-Added Tax Act, 1972 (inserted by the Value-Added Tax (Amendment) Act, 1978) is hereby amended by the substitution of the following paragraph for paragraph (xv):

“(xv) the acceptance of bets subject to the duty of excise imposed by section 24 of the Finance Act, 1926, and of bets where the event which is the subject of the bet is either a horse race or a greyhound race and the bet is entered into during the meeting at which such race takes place and at the place at which such meeting is held;”.

PART IV Capital Acquisitions Tax

83 Amendment of section 19 of Capital Acquisitions Tax Act, 1976.

83.—Section 19 of the Capital Acquisitions Tax Act, 1976, shall, as respects a gift or inheritance taken on or after the 1st day of April, 1980, have effect as if “£150,000” were substituted for “£100,000” in each place where it occurs.

84 Amendment of section 35 of Capital Acquisitions Tax Act, 1976.

84.—Section 35 of the Capital Acquisitions Tax Act, 1976, shall, as respects a gift taken on or after the 28th day of February, 1974, or an inheritance taken on or after the 1st day of April, 1975, have effect as if after “therefor” in subsection (7) there were inserted “unless—

(a) the latter person is the donee or successor referred to in paragraph (a) of subsection (1) and the interest taken by him is a limited interest, or

(b) in the case referred to in paragraph (b) of the said subsection (1), the latter person is the transferee and the interest taken by the remainderman is a limited interest”.

PART V Stamp Duties

85 Conveyance or transfer on sale limit on stamp duty in respect of certain transactions between bodies corporate.

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