Finance Act , 1984

“(6) In the computation of a person's trading profits for any accounting period in which there is a decrease in stock value and which ends on or after the 6th day of April, 1984, 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, 1984,

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, 1984, 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, 1984:

Provided that the amount which, by virtue of this subsection, is treated as a trading receipt of the person's trade, for any accounting period (hereafter in this proviso referred to as ‘the first-mentioned period’) shall not exceed an amount determined by the formula—

DE

where—

D is the aggregate amount of the deductions which, under the provisions of this section, the person was entitled to make in computing his trading profits for accounting periods which end in the period (hereafter in this proviso referred to as ‘the relevant period’) beginning on the 6th day of April, 1975, or, if later, ten years before the commencement of the first-mentioned period and ending on the day immediately preceding such commencement, and

E is the aggregate of the amounts which, under the provisions of this section, were treated as trading receipts of the person's trade for accounting periods which end in the relevant period.”,

and the said subsection (3), as so amended, is set out in the Table to this subsection.

TABLE

(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 1984-85.

(4) Section 13 of the Finance Act, 1982, is hereby amended by the substitution of the following proviso for the proviso to subsection (3):

“Provided that the amount by which a decrease in stock value for an accounting period (hereafter in this proviso referred to as ‘the first-mentioned period’) is to be increased under this subsection shall not exceed the amount determined by the formula—

(AB)(CD)

where—

A is the aggregate amount of the deductions, in respect of which either subsection (1) (c) or (2), as may be appropriate, had effect and as increased under that subsection, which were made in computing the profits of the trade of farming for accounting periods which end in the period (hereafter in this proviso referred to as ‘the relevant period’) beginning 10 years before the commencement of the first-mentioned period or, if later and in a case in which subsection (1) (c) had effect, the 6th day of April, 1975, and ending on the day immediately preceding such commencement,

B is the aggregate amount of the deductions included in A before they were increased under the provisions of either subsection (1) (c) or (2),

C is the aggregate amount of the decreases in trading stock, in respect of which this subsection has had effect and as increased under this subsection, which were treated as trading receipts of the trade of farming for accounting periods which end in the relevant period, and

D is the aggregate amount of the decreases included in C before they were increased under the provisions of this subsection.”.

(5) (a) Where a trade of farming (hereafter in this subsection referred to as “the relevant trade”) is carried on by a person, or by the personal representative of a person who has died and who carried on the relevant trade prior to his death, (hereafter in this subsection referred to as “the predecessor”) and that relevant trade ceases to be carried on by the predecessor and immediately thereafter commences to be carried on by a person (hereafter in this subsection referred to as “the successor”) who in relation to the predecessor is a qualifying person, the predecessor, or the personal representative of the predecessor where the predecessor is a person who has died, and the successor may jointly or, where the successor is the personal representative of a person who has died, the successor alone may, by notice in writing given to the inspector within two years of the end of the year of assessment in which the successor commenced to carry on the relevant trade, elect that the following provisions shall have effect:—

(i) section 62 of the Income Tax Act, 1967, shall not apply, and

(ii) notwithstanding anything in the Income Tax Acts—

(I) the successor shall be allowed such deductions under section 31 of the Finance Act, 1975, in computing the profits of the relevant trade carried on by him, and

(II) there shall be treated, under the provisions of subsections (5) and (6) of section 12 of the Finance Act, 1976 and section 13 of the Finance Act, 1982, as trading receipts of the relevant trade carried on by the successor such amounts,

as would have been so allowed or would have been so treated, as the case may be, if the predecessor had continued to carry on the relevant trade and had done all such things and been allowed all such allowances in connection therewith as were done by or allowed to the successor.

(b) For the purposes of paragraph (a), a person (hereafter in this paragraph referred to as “the first-mentioned person”) is a qualifying person in relation to the predecessor if—

(i) in the case where the predecessor is not the personal representative of a person who has died and who carried on the trade of farming prior to his death, the first-mentioned person—

(I) is resident in the State in the year of assessment in which he commences to carry on the relevant trade and is not resident elsewhere, and

(II) is—

(A) the personal representative of the predecessor, or

(B) the spouse or child of the predecessor,

and, if he is such spouse or child as aforesaid, does not, at the time he commences to carry on the relevant trade, have any trading stock of a trade of farming other than the trading stock of the relevant trade,

(ii) in the case where the predecessor is the personal representative of a person who has died and who carried on the relevant trade prior to his death, the first-mentioned person—

(I) is resident in the State in the year of assessment in which he commences to carry on the relevant trade and is not resident elsewhere, and

(II) is the spouse or child of the person who has died,

and, if he is such spouse or child as aforesaid, does not, at the time he commences to carry on the relevant trade, have any trading stock of a trade of farming other than the trading stock of the relevant trade.

(c) This subsection shall apply only where the relevant trade and the trading stock thereof pass in their entirety to the successor.

(d) This subsection shall, with any necessary modifications, apply in a case where the relevant trade ceases to be carried on by a predecessor and immediately thereafter commences to be carried on by two or more persons who, in relation to the predecessor, are qualifying persons and are carrying on the relevant trade in partnership.

(e) In this subsection—

“child” has the same meaning as in section 27 (inserted by the Capital Gains Tax (Amendment) Act, 1978) of the Capital Gains Tax Act, 1975;

“personal representative” has the meaning corresponding to that assigned to personal representatives in Part XXIX of the Income Tax Act, 1967.

34 Application of section 31 (building societies) of Corporation Tax Act, 1976, for 1984-85.

34.—Section 40 (1) of the Finance Act, 1977 (as extended by section 52 of the Finance Act, 1980) shall have effect in relation to the year 1984-85 as it has effect in relation to the years 1980-81 and 1981-82 with the modifications that—

(a) the reduced rate which, by virtue of the said section 40 (1) (as extended by this section) would, for the year 1984-85, be 70 per cent. of the standard rate shall, for that year, be 75 per cent. of the standard rate, and

(b) the amount representing income tax which, by virtue of the said section 40 (1) (as extended by this section) would, under an assessment made for 1984-85, be payable on the 1st day of January, 1985 (or, if it were later, on the day next after the day on which the assessment is made) shall be payable in two equal instalments as follows—

(i) the first instalment on the 1st day of October, 1984, or, if it is later, on the day next after the day on which the assessment is made, and

(ii) the second instalment on the 1st day of April, 1985, or, if it is later, on the day next after the day on which the assessment is made,

and the provisions of the Income Tax Acts as to the recovery of tax shall apply to each instalment of the tax in the same manner as they apply to the whole amount of the tax.

35 Continuation of certain capital allowances.

35.—Each of the provisions of the Income Tax Act, 1967, which are specified in the Table to this section and which were inserted by the Corporation Tax Act, 1976, shall have effect as if the reference therein to the 1st day of April, 1984 (as provided for in section 26 of the Finance Act, 1979) were a reference to the 1st day of April, 1985.

TABLE

Subsection (4) (d) of section 251 (initial allowances)

Subsection (2A) (a) of section 254 (industrial buildings allowance)

Paragraph (ii) of the proviso to subsection (1) and paragraph (ii) of the proviso to subsection (3) of section 264 (annual allowances)

Paragraph (iii) of the proviso to subsection (1) of section 265 (balancing allowances and balancing charges)

36 Allowances in respect of certain laboratories.

36.—Section 255 (1) of the Income Tax Act, 1967, shall have effect, as respects capital expenditure incurred on or after the 25th day of January, 1984, as if the reference in paragraph (a) to a mill, factory or other similar premises included a reference to a laboratory the sole or main function of which is the analysis of minerals (including oil and natural gas) in connection with the exploration for, or the extraction of, such minerals.

37 Application of section 23 (deduction for certain expenditure on construction of rented residential accommodation) of Finance Act, 1981.

37.—As respects any claim made after the passing of this Act under subsection (2) of section 23 of the Finance Act, 1981, in relation to expenditure incurred on the construction of a qualifying premises, the definition in subsection (1) (a) of that section of “qualifying premises” shall have effect as if the following paragraph were substituted for paragraph (iii):

“(iii) in respect of which, if it is not a new house (within the meaning of section 4 of the Housing (Miscellaneous Provisions) Act, 1979) provided for sale, there is in force a certificate of reasonable cost the amount specified in which in respect of the cost of construction of the house to which the certificate relates is not less than the expenditure actually incurred on such construction, and”.

38 Amendment of section 25 (allowance for certain expenditure on construction of multi-storey car-parks) of Finance Act, 1981.

38.—(1) Section 25 of the Finance Act, 1981, is hereby amended by the substitution in subsection (1), in the definition of “relevant expenditure”, of “1987” for “1984”, and the said definition, as so amended, is set out in the Table to this subsection.

TABLE

“relevant expenditure” means capital expenditure incurred on or after the 29th day of January, 1981, and before the 1st day of April, 1987, on the construction of a multi-storey car-park.

(2) The said section 25 is hereby further amended by the substitution of the following subsection for subsection (2):

“(2) All the provisions of the Tax Acts (other than section 25 of the Finance Act, 1978) relating to the making of allowances or charges in respect of capital expenditure on the construction of an industrial building or structure shall apply to relevant expenditure as if—

(a) it were expenditure incurred on the construction of a building or structure in respect of which an allowance falls to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter II of Part XV or under Chapter I of Part XVI of the Income Tax Act, 1967, by reason of its use for a purpose specified in section 255 (1) (a) of that Act, and

(b) the references to the 1st day of April, 1985 (as provided for by section 35 of the Finance Act, 1984) in the provisions of the Income Tax Act, 1967 (as inserted by the Corporation Tax Act, 1976) specified in the Table to this subsection, were references to the 1st day of April, 1987.

TABLE

Subsection (2A) (a) of section 254 (industrial buildings allowance)

Paragraph (ii) of the proviso to subsection (1) and paragraph (ii) of the proviso to subsection (3) of section 264 (annual allowances)

Paragraph (iii) of the proviso to subsection (1) of section 265 (balancing allowances and balancing charges)”.

39 Amendment of section 26 (allowance for certain capital expenditure on roads, bridges, etc.) of Finance Act, 1981.

39.—Section 26 of the Finance Act, 1981, is hereby amended by the substitution in subsection (1), in the definition of “qualifying period”, of “1989” for “1984”, and the said definition, as so amended, is set out in the Table to this section.

TABLE

“qualifying period” means the period commencing on the 29th day of January, 1981, and ending on the 31st day of March, 1989;

40 Capital allowances for certain leased assets.

40.—(1) (a) In this section—

“chargeable period or its basis period” has the meaning assigned to it by paragraph 1 (2) of the First Schedule to the Corporation Tax Act, 1976;

“the specified capital allowances” means capital allowances in respect of—

(i) expenditure incurred on machinery or plant provided on or after the 25th day of January, 1984, for leasing in the course of a trade of leasing, or

(ii) the diminished value of such machinery or plant by reason of wear and tear,

other than capital allowances in respect of machinery or plant to which subsection (6) applies;

“trade of leasing” means—

(i) a trade which consists wholly of the leasing of machinery or plant, or

(ii) any part of a trade treated as a separate trade by virtue of subsection (2).

(b) For the purposes of this section—

(i) letting on charter a ship or aircraft which has been provided for such letting, and

(ii) letting any item of machinery or plant on hire,

shall be regarded as leasing of machinery or plant if, apart from this paragraph, it would not be so regarded.

(c) Where a company carries on a trade of operating ships in the course of which a ship is let on charter, paragraph (b) shall not have effect so as to treat the letting on charter as the leasing of machinery or plant if, apart from this section, the letting would fall to be regarded for the purposes of Case I of Schedule D as part of the activities of the trade.

(2) Where in any chargeable period or its basis period which ends on or after the 25th day of January, 1984, a person carries on as part of a trade any leasing of machinery or plant, that leasing shall be treated for all the purposes of the Tax Acts, other than any provisions of those Acts relating to the commencement or cessation of a trade, as a separate trade, distinct from all other activities carried on by him as part of the trade, and any necessary apportionment shall be made of receipts or expenses.

(3) (a) Notwithstanding any of the provisions of section 307 of the Income Tax Act, 1967, where relief is claimed under that section in respect of a loss sustained in a trade of leasing, the amount of that loss in so far as, by virtue of section 318 of that Act, it is referable to the specified capital allowances shall be treated for the purposes of subsections (1) and (2) (a) of the said section 307 as reducing profits or gains of that trade of leasing only and shall not be treated as reducing any other income.

(b) Where paragraph (a) applies in the case of any claimant to relief under the said section 307—

(i) any limitation imposed by section 319 of the said Act on the amount of capital allowances which may be taken into account under section 318 of that Act shall be referred, as far as may be, to the specified capital allowances rather than to any other capital allowances, and

(ii) notwithstanding subsection (2) of the said section 318 (but without prejudice to paragraph (a) and to the order in which income is to be treated as reduced under subsection (2) (a) of the said section 307), the claimant may specify the extent to which any reduction of income treated as occurring by virtue of the said section 307 is to be referred to so much of the loss as is attributable to the loss, if any, actually sustained in the trade of leasing, the specified capital allowances or any other capital allowances, and, where the claimant so specifies, section 320 of the said Act shall apply in accordance with the claimant's specification and not in accordance with the said subsection (2) of the said section 318.

(4) (a) Where in an accounting period a company carrying on a trade of leasing incurs a loss in that trade and any specified capital allowances have been treated by virtue of section 14 of the Corporation Tax Act, 1976, as trading expenses in arriving at the amount of the loss, the relevant amount of the loss shall not be available—

(i) for relief under subsection (2) of section 16 of that Act, except to the extent that it can be set off under that subsection against the company's income from the trade of leasing only, or

(ii) to be surrendered by way of group relief.

(b) For the purposes of paragraph (a) “the relevant amount of the loss” shall be the full amount of the loss or, if it is less, an amount equal to—

(i) where no capital allowances other than the specified capital allowances have been treated by virtue of section 14 of the Corporation Tax Act, 1976, as trading expenses in arriving at the amount of the loss, the amount of the specified capital allowances,

or

(ii) where, in addition to the specified capital allowances, other capital allowances have been so treated by virtue of the said section 14, the lesser of—

(I) the amount of the specified capital allowances,

and

(II) the amount by which the loss exceeds the amount of the other capital allowances:

Provided that, where the amount of the loss does not exceed the amount of the other capital allowances, “the relevant amount of the loss” shall be nil.

(5) The proviso to subsection (1) of section 296 of the Income Tax Act, 1967, and sections 14 (6) and 116 (2) of the Corporation Tax Act, 1976, shall not have effect in relation to capital allowances—

(a) in respect of expenditure incurred on or after the 25th day of January, 1984, on the provision of machinery or plant, or

(b) in respect of the diminished value of machinery or plant by reason of wear and tear if that machinery or plant was first acquired on or after the 25th day of January 1984, by the person to whom the capital allowances are to be or have been made,

other than capital allowances in respect of machinery or plant to which subsection (6) applies.

(6) References in this section to machinery or plant to which this subsection applies are references to machinery or plant provided on or after the 25th day of January, 1984, for leasing where the expenditure incurred on the provision of the machinery or plant (or, for the purposes of paragraph (a) in the case of a film to which section 6 or 7 of the Irish Film Board Act, 1980, applies, the cost of the making of the film)—

(a) has been or is to be met directly or indirectly, wholly or partly, by the Industrial Development Authority, the Irish Film Board, the Shannon Free Airport Development Company Limited or Údarás na Gaeltachta, or

(b) was incurred under an obligation entered into by the person providing the machinery or plant (hereafter in this subsection referred to as “the lessor”) and the person to whom it is to be leased (hereafter in this subsection referred to as “the lessee”) and that obligation was entered into—

(i) before the 25th day of January, 1984, or

(ii) before the 1st day of March, 1984, pursuant to negotiations which were in progress between the lessor and the lessee before the 25th day of January, 1984:

Provided that—

(I) an obligation shall be treated for the purposes of subparagraphs (i) and (ii) as having been entered into before a particular date if, but only if, before that date, there was in existence a binding contract in writing under which that obligation arose, and

(II) negotiations pursuant to which an obligation was entered into shall not be regarded for the purposes of subparagraph (ii) as having been in progress before the 25th day of January, 1984, unless, on or before that date, preliminary commitments or agreements in relation to that obligation had been entered into between the lessor and the lessee.

Chapter VI Corporation Tax

41 Amendment of Part IX (Schedule F and Company Distributions) of Corporation Tax Act, 1976.

41.—Part IX of the Corporation Tax Act, 1976, is hereby amended by the insertion after section 84 of the following section:

“Limitation on meaning of ‘distribution’.

84A.—(1) Any interest or other distribution which—

(a) is paid on or after the 25th day of January, 1984, out of the assets of a company (hereafter in this section referred to as ‘the borrower’) to another company which is within the charge to corporation tax, and

(b) is so paid in respect of a security of the borrower falling within subparagraph (ii), (iii) (I) or (v) of section 84 (2) (d),

shall not be a distribution for the purposes of this Act unless the application of this subsection is excluded by subsection (2), (7) or (9).

(2) Subsection (1) shall not apply to any interest which is paid by the borrower, in an accounting period of the borrower, to another company the ordinary trading activities of which include the lending of money, where—

(a) in that accounting period, the borrower carries on in the State a specified trade, and

(b) the interest, if it were not a distribution, would be treated as a trading expense of that trade for that accounting period.

(3) Subject to subsection (4), in subsection (2) ‘specified trade’ means a trade which consists wholly or mainly of—

(a) the manufacture of goods (including activities which would, if the borrower were to make a claim for relief in respect of the trade under Chapter VI of Part I of the Finance Act, 1980, fall to be regarded for the purposes of that Chapter as the manufacture of goods), or

(b) exempted trading operations within the meaning of Part V (Profits from Trading within Shannon Airport), or

(c) the rendering of services in the course of a service undertaking in respect of which an employment grant was made by the Industrial Development Authority under section 2 of the Industrial Development (No. 2) Act, 1981.

(4) Where the borrower mentioned in subsection (2) is a 75 per cent. subsidiary of—

(a) an agricultural society, or

(b) a fishery society,

‘specified trade’, in that subsection, means a trade of the borrower which consists wholly or mainly of either or both of—

(i) the manufacture of goods within the meaning of subsection (3) (a), and

(ii) the selling by wholesale of—

(I) where paragraph (a) applies, agricultural products, or

(II) where paragraph (b) applies, fish.

(5) For the purposes of subsections (3) and (4), a trade shall be regarded, as respects an accounting period, as consisting wholly or mainly of particular activities if, but only if, the total amount receivable by the borrower from sales made or, as the case may be, in payment for services rendered in the course of those activities in the accounting period is not less than 75 per cent. of the total amount receivable by the borrower from all sales made or, as the case may be, in payment for all services rendered in the course of the trade in that period.

(6) In subsection (4)—

‘agricultural society’ and ‘fishery society’ have the meanings assigned to them by section 18 of the Finance Act, 1978;

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

(7) Subsection (1) shall not apply to any interest or other distribution which is payable on or before the relevant day either—

(a) under an obligation which was entered into before the 25th day of January, 1984, or

(b) under an obligation which was entered into before the 1st day of March, 1984, pursuant to negotiations which were in progress between the borrower and a lender before the 25th day of January, 1984:

Provided that—

(i) an obligation shall be treated for the purposes of paragraphs (a) and (b) as having been entered into before a particular date if, but only if, before that date, there was in existence a binding contract in writing (hereafter in this section referred to as a ‘loan contract’) under which that obligation arose, and

(ii) negotiations pursuant to which an obligation was entered into shall not be regarded for the purposes of paragraph (b) as having been in progress before the 25th day of January, 1984, unless, on or before that date, preliminary commitments or agreements in relation to that obligation had been entered into between the lender referred to in that paragraph and the borrower.

(8) (a) Subject to paragraphs (b) and (c), ‘the relevant day’, in subsection (7), means the 24th day of January, 1989, or, if it is earlier—

(i) in the case of any principal which had been paid to the borrower on or before the 24th day of January, 1984, the last day of the period (hereafter in this subsection referred to as ‘the repayment period’) within which the borrower was, on the 24th day of January, 1984, under an obligation to repay the principal and interest, or

(ii) in the case of any principal paid to the borrower after the 24th day of January, 1984, under a loan contract which was entered into on or before that date, the last day of the period (hereafter in this subsection referred to as ‘the repayment period’) within which the borrower was, on the date on which the principal was so paid, under an obligation to repay the principal and interest.

(b) Paragraph (a) shall apply in the case of an obligation referred to in subsection (7) (b) as if—

(i) the reference in the said paragraph (a) to the 24th day of January, 1989, were a reference to the 28th day of February, 1989, and

(ii) each reference in the said paragraph (a) to the 24th day of January, 1984, were a reference to the date (being a date later than the 24th day of January, 1984, but earlier than the 1st day of March, 1984) on which the obligation was entered into.

(c) (i) Where the repayment period referred to in either paragraph (a) (i) or (a) (ii) is extended after the 24th day of January, 1984 (whether or not the right to such an extension arose out of the terms of the loan contract), then, subject to subparagraph (ii) of this paragraph, paragraph (a) (i) or (a) (ii), as the case may be, shall apply as if that extension had not been made.

(ii) Where the repayment period referred to in either paragraph (a) (i) or (a) (ii) is extended after the 24th day of January, 1984, but before the 1st day of March, 1984, pursuant to negotiations which were in progress between the borrower and a lender before the 25th day of January, 1984, then, notwithstanding subparagraph (i) of this paragraph, each of the said paragraphs (a) (i) and (a) (ii) shall apply as if the repayment period referred to therein were that repayment period as so extended (hereafter in this subparagraph referred to as ‘the extended period’) or, if the extended period ends after the 24th day of January, 1989, the part of the extended period which ends on that date.

(iii) Paragraph (ii) of the proviso to subsection (7) shall apply, with any necessary modifications, for the purposes of subparagraph (ii) of this paragraph as it applies for the purposes of subsection (7) (b).

(9) Subsection (1) shall not apply in a case where the consideration given by the borrower for the use of the principal secured represents more than a reasonable commercial return for the use of that principal:

Provided that, where this subsection applies, nothing in subparagraph (ii), (iii) (I) or (v) of section 84 (2) (d) shall operate so as to treat as a distribution for the purposes of this Act so much of the interest or other distribution as represents a reasonable commercial return for the use of that principal.”.

42 Treatment of dividends on certain preference shares.

42.—(1) In this section—

“preference shares” does not include preference shares—

(a) which are quoted on a stock exchange in the State, or

(b) which are not so quoted but which carry rights in respect of dividends and capital which are comparable with those general for fixed-dividend shares quoted on a stock exchange in the State;

“shares” includes stock.

(2) Subject to subsection (4), this section applies to any dividend which—

(a) is paid on or after the 25th day of January, 1984, by a company (hereafter in this section referred to as “the issuer”) to another company (hereafter in this section referred to as “the subscriber”) which is within the charge to corporation tax, and

(b) is so paid in respect of preference shares of the issuer.

(3) Notwithstanding any provision of the Tax Acts—

(a) the subscriber shall not be entitled to a tax credit in respect of a dividend to which this section applies, and

(b) the dividend shall be chargeable to corporation tax under Case IV of Schedule D.

(4) This section shall not apply to any dividend which is payable on or before the relevant day in respect of preference shares—

(a) issued to the subscriber before the 25th day of January, 1984, or

(b) issued to the subscriber on or after that date in a case where the subscriber had either—

(i) entered into an obligation before the 25th day of January, 1984, to subscribe for those shares, or

(ii) entered into an obligation before the 1st day of March, 1984, in pursuance of negotiations which were in progress between the issuer and the subscriber before the 25th day of January, 1984, to subscribe for those shares:

Provided that—

(I) an obligation shall be treated for the purposes of paragraph (b) as having been entered into before a particular date if, but only if, before that date, there was in existence a binding contract in writing under which that obligation arose, and

(II) negotiations pursuant to which an obligation was entered into shall not be regarded for the purposes of paragraph (b) (ii) as having been in progress before the 25th day of January, 1984, unless, on or before that date, preliminary commitments or agreements in relation to that obligation had been entered into between the issuer and the subscriber.

(5) In subsection (4) “the relevant day” means the 24th day of January, 1989, or, as respects shares to which paragraph (b) (ii) of that subsection applies, the 28th day of February, 1989.

43 Extension of exempted transactions in relation to agricultural societies.

43.—The Second Schedule to the Finance Act, 1978, is hereby amended by the insertion in paragraph 2 of Part I after “manure spreading” of “relief milking”.

44 Continuance of relief in respect of increase in employment.

44.—Chapter VIII of Part I of the Finance Act, 1982, shall have effect as respects an accounting period or part of an accounting period of a company falling within the year ending on the 30th day of June, 1985, as it has effect as respects an accounting period or part of an accounting period of a company falling within the year ending on the 30th day of June, 1983, subject to the modifications that—

(a) in section 43 of that Act, in the definition of “relevant period”, “1985” shall be substituted for “1983”,

(b) in sections 44 and 45 of that Act, “1984” shall be substituted for “1982” in each place where it occurs, and

(c) in section 46 of that Act, “1983” shall be substituted for “1981”.

45 Amendment of Chapter VI (manufacturing companies) of Part I of Finance Act, 1980.

45.—Chapter VI of Part I of the Finance Act, 1980, is hereby amended—

(a) by the substitution in section 38 for the definition of “relevant accounting period” of the following definition:

“‘relevant accounting period’ means an accounting period or part of an accounting period of a company falling within the period from the 1st day of January, 1981 (or, where subsection (1CC) of section 39 applies, the 13th day of April, 1984) to the 31st day of December, 2000;”,

and

(b) by the insertion in section 39 after subsection (1C) (inserted by the Finance Act, 1981) of the following subsection:

“(ICC) (a) In this subsection ‘computer services’ means either or both of the following, that is to say:

(i) data processing services, and

(ii) software development services,

the work on the rendering of which is carried out in the State in the course of a service undertaking in respect of which an employment grant was made by the Industrial Development Authority under section 2 of the Industrial Development (No. 2) Act, 1981.

(b) The following provisions shall apply for the purposes of relief under this Chapter in relation to a company carrying on a trade which consists of or includes the rendering of computer services:

(i) the rendering of the computer services shall be regarded as the manufacture within the State of goods,

(ii) any amount receivable in payment for the rendering of the computer services shall be regarded as an amount receivable from the sale of goods, and

(iii) subsection (1D) shall have effect as respects the company in relation to a claim by it for relief from tax by virtue of this subsection as it has effect as respects a company in relation to a claim by it for relief from tax by virtue of subsection (1B) or (1C).”.

Chapter VII Advance Corporation Tax

46 Amendment of section 51 (cesser of certain provisions) of Finance Act, 1983.

46.—Subsection (2) of section 51 of the Finance Act, 1983, is hereby amended by the insertion before “section 18 (4)” of “section 16 (9),” and the said subsection (2), as so amended, is set out in the Table to this section.

TABLE

(2) The provisions of the Corporation Tax Act, 1976, referred to in subsection (1) are section 16 (9), section 18 (4), subsection (8) (inserted by the Finance Act, 1982) of section 25, paragraph (b) of the proviso to section 26 (3) and sections 90, 91, 167 and 168.

47 Extension of section 52 (transitional reduction of advance corporation tax) of Finance Act, 1983.

47.—Section 52 of the Finance Act, 1983, is hereby amended by the substitution of—

(a) “31st day of December” for “8th day of February” in each place where it occurs, and

(b) “1st day of January, 1985” for “9th day of February, 1984” in each place where it occurs,

and the said section 52, as so amended, is set out in the Table to this section.

TABLE

52.—(1) Notwithstanding anything in this Chapter, the amount of advance corporation tax which a company shall be liable to pay in respect of distributions made by it in an accounting period ending on or before the 31st day of December, 1984, shall be one-half of the amount of advance corporation tax which, apart from this section, the company would have been liable to pay in respect of those distributions.

(2) Where part of an accounting period of a company falls before the 1st day of January, 1985, and the other part falls in a period beginning on that date, this Chapter shall apply as if the part ending on the 31st day of December, 1984, and the part beginning on the 1st day of January, 1985, were two separate accounting periods.

Chapter VIII Stock Relief

48 Interpretation (Chapter VIII).

48.—In this Chapter—

“accounting period”—

(a) in relation to a company, means an accounting period determined in accordance with the provisions of section 9 of the Corporation Tax Act, 1976, and

(b) in relation to a person other than a company, means a period of one year ending on the date to which the accounts of the person are usually made up or, where accounts have not been made up or where accounts have been made up for a greater or lesser period than one year, such period not exceeding one year as the Revenue Commissioners may determine;

“period of account” means the period for which a person's accounts are made up;

“qualifying trade” means a trade which is carried on in the State and which during an accounting period consists wholly or mainly of any one or more of the following classes of trading operations (hereafter in this Chapter referred to as “qualifying trading operations”)—

(a) the manufacture of goods,

(b) the carrying out of construction operations within the meaning of section 17 of the Finance Act, 1970, or

(c) the sale of machinery or plant (excluding vehicles suitable for the conveyance by road of persons) or goods to a person engaged in a trade consisting wholly or mainly of farming or of trading operations of a class specified in paragraph (a) or (b) for use for the purposes of that trade,

and a trade which during an accounting period consists partly of qualifying trading operations and partly of other trading operations shall be regarded for the purposes of this definition as a trade which consists wholly or mainly of qualifying trading operations if, but only if, the total amount receivable in the accounting period from sales made in the course of qualifying trading operations is not less than 75 per cent. of the total amount receivable in the accounting period from all sales made in the course of the trade;

“trading stock”, in relation to a trade, has the same meaning as in section 62 of the Income Tax Act, 1967, and in determining the value of trading stock at any time for the purposes of a deduction under section 49 or 51, to the extent that, at or before that time, any payments on account have been received by the trader in respect of any trading stock, the value of that stock shall be reduced accordingly.

49 Stock relief: corporation tax.

49.—(1) Subject to the provisions of this Chapter, where a company which is resident in the State carries on in an accounting period a qualifying trade in respect of which it is within the charge to corporation tax under Case I of Schedule D it shall, in the computation for the purposes of corporation tax of its income from the qualifying trade, be entitled to a deduction under this section as if the deduction were a trading expense of the qualifying trade incurred in the accounting period.

(2) In any case where a company is entitled, in relation to an accounting period, to a deduction under this section in respect of a qualifying trade, that deduction shall be an amount determined by the formula

	A		3 ____ 100		B ___ 12

where—

A is the value at the beginning of the accounting period of the trading stock of the qualifying trade, and

B is the number of months or fractions of months comprised in the accounting period:

Provided that in no case shall the amount of the deduction as so computed exceed the amount of the income from the qualifying trade for the accounting period after account has been taken of all reductions of that income for that period by virtue of sections 16 and 18 of the Corporation Tax Act, 1976, and all deductions from and additions to that income for that period by virtue of section 14 of that Act, but before any deduction is allowed under this section.

(3) A company shall not be entitled to a deduction under this section for any accounting period which ends before the 6th day of April, 1983, or after the 5th day of April, 1984.

(4) A company shall not be entitled to a deduction under this section for an accounting period unless it makes a claim for the deduction before—

(a) the date on which the assessment to corporation tax on the company for the accounting period becomes final and conclusive, or

(b) the 31st day of December next following the end of the year of assessment in which the accounting period ends,

whichever is the later.

50 Recovery of stock relief: corporation tax.

50.—Subject to section 56, where in an accounting period (hereafter in this section referred to as “the first-mentioned accounting period”) a company carrying on a trade in respect of which a deduction under section 49 was allowed for any accounting period—

(a) ceases to carry on the trade, or

(b) ceases to be resident in the State, or

(c) ceases to be within the charge to corporation tax under Case I of Schedule D in respect of the trade,

then—

(i) the company shall not be entitled to a deduction under section 49 for the first-mentioned accounting period, and

(ii) there shall be treated as a trading receipt of the trade for the first-mentioned accounting period an amount equal to the aggregate of the deductions allowed to the company under section 49 in respect of the trade for preceding accounting periods ending in the period of five years which ends on the day immediately preceding the beginning of the first-mentioned accounting period.

51 Stock relief: income tax.

51.—(1) In this section—

“relevant year” means the year 1984-85;

“trading profits”, in relation to a trade, means the profits or gains of the trade computed in accordance with the rules applicable to Case I of Schedule D.

(2) Subject to the provisions of this Chapter, where a person (other than a body corporate) who is resident in the State and not resident elsewhere carries on in an accounting period a qualifying trade in respect of which he is chargeable to income tax under Case I of Schedule D for a relevant year on the trading profits of that accounting period he shall, in the computation for the purposes of income tax of the trading profits of the qualifying trade, be entitled to a deduction under this section as if the deduction were a trading expense of the qualifying trade incurred in the accounting period.

(3) In any case where a person is entitled, in relation to an accounting period, to a deduction under this section in respect of a qualifying trade, that deduction shall be an amount determined by the formula

	A		3 ____ 100		B ___ 12

where A and B have the same meanings as in section 49 (2):

Provided that in no case shall the amount of the deduction as so computed exceed the amount of the trading profits of the qualifying trade for the accounting period before any deduction is allowed under this section.

(4) Where a deduction allowed under this section in computing a person's trading profits of a qualifying trade for an accounting period has effect for a relevant year—

(a) the person shall not be entitled to relief—

(i) under section 309 of the Income Tax Act, 1967, for any year of assessment later than the relevant year in respect of a loss sustained in the trade before the commencement of the relevant year, or

(ii) under section 311 of that Act for any year of assessment earlier than the relevant year in respect of a loss sustained in the trade,

(b) the provisions of section 241 (3) of that Act or of that section as applied by any other provision of the Income Tax Acts, shall not apply as respects a capital allowance or part of a capital allowance which is, or is deemed to be, all or part of a capital allowance for the relevant year and to which full effect has not been given in that year owing to there being no profits or gains chargeable for that year or an insufficiency of profits or gains chargeable for that year, and

(c) the provisions of section 318 of that Act shall not apply to the capital allowances or any part thereof for the relevant year.

(5) A person shall not be entitled to a deduction under this section in respect of an assessment made for a relevant year unless he makes a claim before—

(a) the date on which the assessment becomes final and conclusive, or

(b) the 31st day of December in the relevant year,

whichever is the later.

52 Recovery of stock relief: income tax.

52.—Subject to section 56, where in an accounting period (hereafter in this section referred to as “the first-mentioned accounting period”) a person carrying on a trade in respect of which a deduction under section 51 was allowed for any accounting period—

(a) ceases to carry on the trade, or

(b) ceases to be resident in the State, or

(c) ceases to be within the charge to income tax under Case I of Schedule D in respect of the trade,

then—

(i) he shall not be entitled to a deduction under section 51 for the first-mentioned accounting period, and

(ii) there shall be treated as a trading receipt of the trade for the first-mentioned accounting period an amount equal to the aggregate of the deductions allowed to him under section 51 in respect of the trade for preceding accounting periods ending in the period of five years which ends on the day immediately preceding the beginning of the first-mentioned accounting period.

53 Valuation of stock other than at beginning of period of account.

53.—Where for the purposes of this Chapter it is necessary to ascertain the value of a person's trading stock at a date other than the beginning of a period of account and that value has not in fact been ascertained, the person shall be treated as having at that date trading stock of such value as appears to the inspector (or, on appeal, to the Appeal Commissioners) to be reasonable and just having regard to all the relevant circumstances of the case and in particular to—

(a) the values of trading stock at the beginning and end of the period of account which includes the date in question,

(b) movements during that period of account in the costs of items of a kind comprised in the person's trading stock during the period, and

(c) changes during that period in the volume of the trade carried on by him.

54 Opening stock of a new business.

54.—Where a person (hereafter in this section referred to as “the first-mentioned person”) carries on in an accounting period a trade in respect of which a deduction under section 49 or 51 is claimed and, immediately before the beginning of that accounting period, the trade was not being carried on by him, then, unless—

(a) the first-mentioned person acquired the initial trading stock of the qualifying trade on a sale or transfer from another person on that person's ceasing to carry on the trade, and

(b) the stock so acquired is, or is included in, the first-mentioned person's trading stock as valued at the beginning of the accounting period,

the first-mentioned person shall be treated for the purposes of this Chapter as having at the beginning of the accounting period trading stock of such value as appears to the inspector (or, on appeal, to the Appeal Commissioners) to be reasonable and just having regard to all the relevant circumstances of the case and in particular to—

(i) movements during the accounting period in the costs of items of a kind comprised in the first-mentioned person's trading stock during the period, and

(ii) changes during that period in the volume of the trade carried on by him.

55 Adjustment of value of stock in certain circumstances.

55.—Where, before or after the beginning of a period of account, a person has acquired or disposed of trading stock otherwise than in the normal conduct of his trade, he shall be treated for the purposes of this Chapter as having at any relevant date in the period of account trading stock of such value as appears to the inspector (or, on appeal, to the Appeal Commissioners) to be reasonable and just having regard to all the circumstances of the case.

56 Successions, etc., to trade.

56.—(1) Subject to subsection (3), this section applies to a relevant disposal of a trade.

(2) There shall be a relevant disposal of a trade where—

(a) a trade carried on by one company (hereafter in this section referred to as “the predecessor”) is transferred to another company (hereafter in this section referred to as “the successor”) and section 20 of the Corporation Tax Act, 1976, has effect in relation to the transfer, or

(b) a trade carried on by an individual or by persons in partnership (hereafter in this section referred to as “the predecessor”) is transferred to a company (hereafter in this section referred to as “the successor”) and at the date of the transfer not less than three-quarters of the ordinary share capital of the company is held by that individual or those persons, as the case may be, or

(c) a person (hereafter in this section referred to as “the successor”) succeeds to a trade on the death of a deceased person (hereafter in this section referred to as “the predecessor”) who carried on that trade, or

(d) a trade carried on by an individual (hereafter in this section referred to as “the predecessor”) is disposed of in his lifetime to a child of his (hereafter in this section referred to as “the successor”).

(3) This section shall not apply unless—

(a) in a case where subsection (2) (a) or (2) (b) applies, the trading stock of the trade is transferred at cost or market value, and

(b) in any case, the successor is resident in the State (and, if he is an individual, not resident elsewhere) and is within the charge to tax under Case I of Schedule D in respect of the trade.

(4) Where there is a relevant disposal of a trade and the predecessor (or, where subsection (2) (c) applies, the personal representatives of the predecessor) and the successor so elect, section 50 or 52, as the case may be, shall not apply to the accounting period of the predecessor which ends with or includes the date of the relevant disposal but, for the purposes of section 50 or 52, as the case may be, the successor shall be treated as if he were the person who had carried on the trade since the predecessor began to do so (or was treated by virtue of a previous application of this section as having begun to do so).

(5) An election under subsection (4) shall be made by notice in writing signed by both the predecessor (or where subsection (2) (c) applies, the personal representatives of the predecessor) and the successor and sent to the inspector not later than two years after the date of the relevant disposal.

(6) For the purposes of subsection (2) (c), a person shall be treated as succeeding on a death if he so succeeds—

(a) under a will or an intestacy (including a partial intestacy),

(b) by virtue of any provision of Part IX of the Succession Act, 1965,

(c) by survivorship, in the case of a joint tenancy, or

(d) as remainderman on the death of a tenant for life.

(7) In subsection (2) (d) “child” has the same meaning as in section 27 (inserted by the Capital Gains Tax (Amendment) Act, 1978) of the Capital Gains Tax Act, 1975.

57 Trade carried on by a partnership.

57.—The provisions of this Chapter shall apply with any necessary modifications to a trade carried on by a partnership as they apply to a trade carried on otherwise than by a partnership.

58 Assessments, etc.

58.—There shall be made such assessments, additional assessments, reductions of assessments or repayments of tax as are required to give effect to this Chapter.

CHAPTER IX Amendment of Provisions in relation to Decrease in Stock Values other than in Trade of Farming

59 Decrease in stock values: corporation tax.

59.—(1) Subject to sections 60 and 65, this section applies to any amount which, as respects an accounting period of a company ending after the 5th day of April, 1982, would, apart from this section, fall to be treated by virtue of section 31A (inserted by the Finance Act, 1976) of the Finance Act, 1975, as a trading receipt of the company's trade for that accounting period.

(2) Notwithstanding any provision to the contrary other than section 60, an amount to which this section applies in relation to a company shall not be treated as a trading receipt of the company's trade.

60 Limitation of application of section 59.

60.—Subject to section 63, section 59 shall not have effect as respects a trade of a company where the provisions of subsection (10) (inserted by the Finance Act, 1977) of section 31A of the Finance Act, 1975, apply in relation to an accounting period of the company ending before the 6th day of April, 1988.

61 Decrease in stock values: income tax.

61.—(1) Subject to sections 62 and 65, this section applies to any amount which, as respects an accounting period ending after the 5th day of April, 1982, would, apart from this section, fall to be treated by virtue of section 12 of the Finance Act, 1976, as a trading receipt of a person's trade for that accounting period.

(2) Notwithstanding any provision to the contrary other than section 62, an amount to which this section applies in relation to a person shall not be treated as a trading receipt of the person's trade.

62 Limitation of application of section 61.

62.—Subject to section 63, section 61 shall not have effect as respects a trade of a person where the provisions of subsection (8) (inserted by the Finance Act, 1977) of section 12 of the Finance Act, 1976, apply in relation to an accounting period of the person ending before the 6th day of April, 1988.

63 Successions, etc., to trade.

63.—Section 56 shall have effect with any necessary modifications for the purposes of this Chapter as it has effect for the purposes of Chapter VIII as if the references in subsection (4) of that section to section 50 or 52 were references respectively to section 60 or 62.

64 Cesser of certain provisions of Finance Act, 1983.

64.—(1) Save as respects a trade of farming, the Tax Acts shall have effect, and shall be deemed always to have had effect, as if subsections (3) and (4) of section 26 of the Finance Act, 1983, had not been enacted.

(2) Where, by virtue of either subsection (3) (b) or (4) (b) of the said section 26, any amount was, notwithstanding subsection (1) of this section, treated as a trading receipt for the purpose of any assessment to tax, there shall be made such assessments, additional assessments, reductions of assessments or repayments of tax as may in any case be required in order to give effect to the said subsection (1).

65 Limitation of application of Chapter IX.

65.—This Chapter shall not have effect as respects any amount which would, apart from this Chapter, fall to be treated by virtue of section 31A of the Finance Act, 1975, or section 12 of the Finance Act, 1976, as a trading receipt of a trade of farming.

CHAPTER X Capital Gains Tax

66 Extension of section 19 (Government and other securities) of Capital Gains Tax Act, 1975.

66.—Section 19 of the Capital Gains Tax Act, 1975, shall apply in relation to securities issued—

(a) in the State, with the approval of the Minister for Finance, by the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank as it applies to the forms of security specified in paragraph (a) of that section, and

(b) by An Post or Bord Telecom Éireann and guaranteed by the Minister for Finance as it applies to the forms of security specified in paragraph (d) of that section.

67 Amendment of section 25 (private residence) of Capital Gains Tax Act, 1975.

67.—Section 25 of the Capital Gains Tax Act, 1975, is hereby amended by the insertion after subsection (10) of the following subsection:

“(10A) (a) In this subsection—

‘base date’, in relation to an asset disposed of by an individual, means the date of acquisition by him of the asset or, if the asset was held by him on the 6th day of April, 1974, that date;

‘base value’, in relation to an asset disposed of by an individual, means the amount or value of the consideration, in money or money's worth, given by him or on his behalf wholly and exclusively for the acquisition of the asset exclusive of the incidental costs to him of the acquisition or, if the asset was held by him on the 6th day of April, 1974, the market value of the asset on that date;

‘current use value’ and ‘development land’ have the same meanings as in section 36 of the Finance Act, 1982.

(b) Where—

(i) a gain accrues to an individual on the disposal of, or of an interest in, an asset which is development land, and

(ii) apart from this subsection relief would be given under this section in respect of the disposal of that asset (being an asset within subsection (1) or (9A)), and

(iii) the disposal was made on or after the 25th day of January, 1984,

then, subject to paragraph (c), the relief aforesaid shall be given in respect of the gain (or, where appropriate, of a portion of the gain), only to the extent (if any) to which such relief would be given if, in computing the chargeable gain accruing on the disposal (notwithstanding that the disposal was a disposal of development land), there were excluded from the computation—

(I) the amount (if any) by which the base value of the asset exceeds the current use value of the asset on the base date,

(II) the amount by which the consideration for the disposal of the asset exceeds the current use value of the asset on the date of the disposal,

(III) if the asset was not held by him on the 6th day of April, 1974, such proportion (if any) of the incidental costs to the individual of the acquisition of the asset as would be referable to the amount (if any) referred to in subparagraph (I), and

(IV) such proportion of the incidental costs to the individual of the disposal of the asset as would be referable to the amount referred to in subparagraph (II).

(c) Paragraph (b) shall not apply to a disposal made by an individual in any year of assessment if the total consideration in respect of all disposals made by that individual in that year and to which that paragraph would otherwise apply does not exceed £15,000.”.

PART II Customs and Excise

68 Interpretation (Part II).

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

69 Beer.

69.—(1) Subject to paragraph 4 of the Imposition of Duties (No. 258) (Beer) (No. 2) Order, 1982 (S.I. No. 37 of 1982), 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 26th day of January, 1984, at the rate of £146.047 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 specified in paragraph 4 (1) of the Imposition of Duties (No. 263) (Excise Duties) (No. 2) Order, 1983 (S.I. No. 42 of 1983).

(2) Subject to paragraph 5 of the Imposition of Duties (No. 267) (Beer) (No. 2) Order, 1983 (S.I. No. 398 of 1983), 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 specified in subsection (1) has been paid, be calculated, according to the original specific gravity of the beer, at the rate of £146.047 on every 36 gallons of beer of which the original specific gravity was 1,055 degrees.

(3) Where it is shown to the satisfaction of the Revenue Commissioners that beer in respect of which the duty of excise imposed by paragraph 7 (1) of the Order of 1975 has been paid has been used, on or after the 1st day of March, 1984, by any person as an ingredient in the production or manufacture of a beverage (other than beer) containing not more than 1.2 of alcohol by volume, they may, subject to compliance with such conditions as they may think fit to impose, repay to that person the duty of excise paid on the quantity of beer so used.

70 Tobacco products.

70.—(1) In this section and in the Third Schedule “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 Finance (Excise Duty on Tobacco Products) Act, 1977, as amended by 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 Finance (Excise Duty on Tobacco Products) Act, 1977, shall be charged, levied and paid, as on and from the 26th day of January, 1984, at the several rates specified in the Third Schedule in lieu of the several rates specified in the Schedule to the Imposition of Duties (No. 266) (Tobacco Products) Order, 1983 (S.I. No. 213 of 1983).

(3) The duty of excise referred to in subsection (2) shall not be charged or levied on products which contain no tobacco and which are commonly known as herbal cigarettes or herbal smoking mixtures.

71 Wine and made wine.

71.—(1) In this section and in the Fourth Schedule—

“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;

“the Order of 1983” means the Imposition of Duties (No. 263) (Excise Duties) (No. 2) Order, 1983 (S.I. No. 42 of 1983);

“ vol” means alcoholic strength by volume.

(2) 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 26th day of January, 1984, at the several rates specified in Part I of the Fourth Schedule in lieu of the several rates specified in the Second Schedule to the Order of 1983.

(3) Paragraph 5 of the Order of 1975 shall be amended, as on and from the 1st day of March, 1984, by the insertion of the following subparagraph after subparagraph (2):

“(2A) 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 subparagraph (2) of this paragraph to be deferred to a day not later than—

(a) in case the duty is charged on a day in the month of December in any year not later than the twentieth day of that month, the last day of that month in that year, or

(b) in any other case, the fifteenth day of the month succeeding the month in which the duty is charged:

Provided, however, that no deferment of payment of duty as provided for in this subparagraph shall be allowed in any case where the duty is charged on or after the twenty-first day in the month of December in any year.”.

(4) 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 26th day of January, 1984, at the several rates specified in Part II of the Fourth Schedule in lieu of the several rates specified in the Third Schedule to the Order of 1983.

72 Cider and perry.

72.—(1) In the Fifth Schedule—

“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.

(2) 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 26th day of January, 1984, at the several rates specified in the Fifth Schedule in lieu of the several rates specified in the Fourth Schedule to the Imposition of Duties (No. 259) (Excise Duties) Order, 1982 (S.I. No. 48 of 1982).

73 Hydrocarbons.

73.—(1) In this section—

“the Order of 1983” means the Imposition of Duties (No. 264) (Hydrocarbons) Order, 1983 (S.I. No. 85 of 1983);

“aviation gasoline” means mineral hydrocarbon light oil within the meaning of paragraph 11 (15) of the Order of 1975 which—

(a) is specially manufactured as fuel for aircraft, and

(b) is not normally used in motor vehicles, and

(c) is delivered for use solely as fuel for aircraft.

(2) Subject to subsection (3), 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 26th day of January, 1984, at the rate of £23.78 per hectolitre in lieu of the rate specified in paragraph 4 (1) of the Order of 1983.

(3) As on and from the 1st day of June, 1984, the duty of excise on mineral hydrocarbon light oil imposed by paragraph 11 (1) of the Order of 1975, insofar as it is chargeable on aviation gasoline, shall be charged, levied and paid at one-half of the rate which, but for this subsection, would be chargeable.

(4) (a) The Revenue Commissioners may make regulations for the purpose of giving full effect to the provisions of subsection (3).

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

(i) govern the sale, delivery, storage and use of aviation gasoline,

(ii) require that aviation gasoline shall be deposited in a bonded warehouse prior to its delivery for home use,

(iii) prohibit the use of aviation gasoline otherwise than as a fuel for aircraft,

(iv) prohibit the taking of aviation gasoline into a fuel tank other than the fuel tank of an aircraft,

(v) provide that aviation gasoline shall not be mixed with any other substance, save with the permission of the Revenue Commissioners,

(vi) require a manufacturer of, or a person who imports or deals in or uses, aviation gasoline to keep in a specified manner, and to preserve for a specified period, such accounts and records relating to the manufacture, importation, purchase, receipt, storage, sale or use of aviation gasoline 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,

(vii) require a manufacturer of, or a person who imports or deals in or uses, aviation gasoline to furnish, at such times and in such form as may be specified, such information and returns in relation to such matters as may be specified.

(c) Any person who contravenes or fails to comply with a regulation under this subsection shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to an excise penalty of £1,000 and any aviation gasoline in respect of which the offence was committed, and any substance mixed therewith, shall be liable to forfeiture, and, in the case of an offence involving a motor vehicle, the vehicle shall be liable to forfeiture.

(5) (a) For the purposes of the provisions of subsection (3) and regulations under subsection (4), an officer of Customs and Excise may, at all reasonable times, enter premises in which aviation gasoline is, or is reasonably believed by the officer to be kept or stored and may there make such search and investigation and take such samples of aviation gasoline, or any substance reasonably believed by the officer to be or to contain aviation gasoline, 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 any dealing in aviation gasoline.

(b) 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 summary conviction to an excise penalty of £500.

(6) 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 26th day of January, 1984, at the rate of £17.21 per hectolitre in lieu of the rate specified in paragraph 4 (2) of the Order of 1983.

(7) As on and from the 26th day of January, 1984, the rate of any repayment allowed under paragraph 12 (11) of the Order of 1975 in respect of hydrocarbon oil on which such repayment is allowable shall be the amount of excise duty paid less an amount calculated at the rate of £1.79 per hectolitre.

(8) Subject to the provisions of the Imposition of Duties (No. 265) (Excise Duty on Hydrocarbon Oils) Order, 1983 (S.I. No. 126 of 1983), the amount of the rebate allowed under paragraph 12 (3) of the Order of 1975 shall, in respect of fuel oil within the meaning of paragraph 3 of the Imposition of Duties (No. 256) (Excise Duty on Hydrocarbon Oils) Order, 1981 (S.I. No. 404 of 1981), which is intended for use for a purpose other than the generation of electricity for sale and is imported or delivered from the premises of a refiner of hydrocarbon oil or from a bonded warehouse on or after the 26th day of January, 1984, be the amount of excise duty chargeable less an amount calculated at the rate of £0.76 per hectolitre.

(9) The duty of excise on gaseous hydrocarbons in liquid form imposed by section 41 (1) of the Finance Act, 1976, shall be charged, levied and paid, as on and from the 26th day of January, 1984, at the rate of £0.767 per gallon in lieu of the rate specified in paragraph 4 (4) of the Order of 1983.

74 Foreign travel.

74.—(1) (a) Section 65 (5) of the Finance Act, 1982, shall be amended, as on and from the 1st day of April, 1984, by the insertion of the following paragraphs after paragraph (d):

“(dd) relating to a person under the age of 18 years who is travelling as a member of a group of at least 10 such persons on a journey organised for educational purposes by a primary school or a post primary school or by a voluntary non profit-making organisation established for the purpose of promoting the educational advancement or welfare of young persons, or

(ddd) relating to a mentally handicapped person travelling as a member of a group of at least 5 such persons on a journey organised by an organisation established for the purpose of promoting the welfare of mentally handicapped persons, or”.

(b) Any duty of excise paid in respect of a passenger ticket issued on or after the 1st day of April, 1984, and to which paragraph (ddd) (inserted by this subsection) of section 65 (5) of the Finance Act, 1982, applies may be repaid.

(2) Where a passenger ticket within the meaning of section 65 of the Finance Act, 1982, is received in the State on or after the 26th day of January, 1984, by the person to whose carriage it relates or by another person on his behalf, the ticket shall, notwithstanding that it was sent or brought to the State from outside the State, be deemed, for the purposes of the said section 65, to have been issued in the State and to have been so issued on the date on which it was sent or brought to the State.

75 Provisions relating to excise duties on motor vehicles, televisions and gramophone records.

75.—(1) In this section—

“the Order of 1979” means the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 (S.I. No. 57 of 1979);

“dutiable goods” has the same meaning as it has in the Order of 1979.

(2) (a) The Revenue Commissioners may make regulations for the purpose of giving full effect to the provisions of the Order of 1979.

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

(i) prescribe the method of charging, securing and collecting the duties imposed by paragraphs 4 and 5 of the Order of 1979,

(ii) govern the importation, manufacture, storage, warehousing and exportation of dutiable goods and articles and materials for use in the manufacture thereof,

(iii) require a person liable to pay either of the duties imposed by paragraphs 4 and 5 of the Order of 1979 to keep in a specified manner, and to preserve for a specified period, such records and accounts relating to the importation, receipt, manufacture, sale and delivery of dutiable goods, or articles and materials for use in the manufacture thereof, as may be specified and to allow an officer of Customs and Excise to inspect and take copies of or extracts from such records and accounts and any other books and documents kept by him relating to any of the matters aforesaid,

(iv) require a manufacturer of dutiable goods to make proper entry with the proper officer of Customs and Excise of all premises intended to be used by him in the carrying on of his business as such manufacturer and provide for the method of such entry with the said officer,

(v) provide for the approval by the Revenue Commissioners of premises to be used by a manufacturer of dutiable goods for the receipt, storage, manufacture, or delivery of such goods or articles or materials for use in the manufacture thereof and for the compliance, as respects the premises, by the said manufacturer with such conditions as may be specified in writing by an officer of the Revenue Commissioners,

(vi) require a person liable to pay either of the duties imposed by paragraphs 4 and 5 of the Order of 1979 to furnish at such times and in such form as may be specified such information and returns as may be specified in relation to such matters as may be specified,

(vii) make provision for the issue of certificates, in such form as may be specified, in relation to motor vehicles liable to the duty imposed by paragraph 4 of the Order of 1979.

(3) An officer of Customs and Excise may, at all reasonable times, enter premises on which the manufacture of dutiable goods is reasonably believed by the officer to be carried on or on which dutiable goods, or books or other documents relating to the manufacture or storage of such goods, are reasonably believed by such officer to be stored or kept and may there make such search and investigation 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 dutiable goods.

(4) Section 3 of the Excise Act, 1848, shall apply in relation to the duties imposed by paragraphs 4 and 5 of the Order of 1979 with the modification that “three years” shall be substituted for “six calendar months”.

(5) Where a motor vehicle liable to the duty imposed by paragraph 4 of the Order of 1979 is imported into the State, or is delivered within the meaning of that Order, an officer of Customs and Excise may, at any time within three years after such importation or delivery, as the case may be, require any person to whom that vehicle has been sold or otherwise disposed of (as the case may be) to do either or both of the following things, that is to say:

(a) to furnish to such officer, within such time and in such form and manner as is specified by such officer, all such information in relation to such vehicle as is reasonably required by such officer and is in the possession or procurement of such person;

(b) within such time as is specified by such officer, to produce to such officer and permit him to inspect and take copies of or extracts from all such books and documents relating to such vehicle as are reasonably required by such officer and are in the possession, custody or procurement of such person.

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

(7) A person who contravenes or fails to comply with any of the provisions of the Order of 1979 or of regulations under subsection (2), or who fails or refuses to do anything which he is required under subsection (5) by an officer of Customs and Excise to do, shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to a penalty, under the law relating to customs or the law relating to excise (as the case may be), of £1,000, and any goods in respect of which the offence was committed shall be liable to forfeiture.

(8) (a) Paragraph 21 of the Order of 1979 is hereby revoked.

(b) Paragraph 24 (1) of the Order of 1979 is hereby amended by the deletion of “and paragraph 21 of this Order”.

(c) The reference to subparagraph (2) of paragraph 21 of the Order of 1979 in paragraphs 4, 5 and 7 of that Order shall be construed as a reference to subsection (2) and the reference to the said paragraph 21 in paragraph 24 (2) of that Order shall be construed as a reference to subsection (4).

(9) (a) In this subsection “continuous seat” includes two or more separate seats which are divided by such means as to allow such seats to be used as one continuous seat.

(b) For the purposes of the duty of excise on motor vehicles imposed by paragraph 4 of the Order of 1979, a motor vehicle shall not be deemed to be designed, constructed or adapted for the carriage of more than sixteen persons (inclusive of the driver) unless it has seating accommodation, calculated as follows, for more than sixteen persons:

(i) each separate seat which is fitted as a permanent fixture to the vehicle and on which a person could be seated, allowing a width of sixteen inches measured lengthwise on the front of the seat for such person, shall be reckoned as accommodating one person;

(ii) each continuous seat fitted as a permanent fixture to the vehicle shall be reckoned as accommodating the number of persons who could be seated on such seat, allowing a width of sixteen inches measured lengthwise on the front of each such seat for each person.

(c) Where the total seating accommodation of a vehicle calculated under this subsection consists of a whole number and a fraction, the fraction shall be disregarded.

76 Provisions in relation to betting duty.

76.—(1) In this section—

“authorised racecourse” has the same meaning as it has in the Racing Board and Racecourses Act, 1945;

“duty” means, save where the context otherwise requires, the excise duty on bets imposed by section 24 of the Finance Act, 1926;

“greyhound race track” and “authorised coursing meeting” have the same meanings as they have in the Greyhound Industry Act, 1958;

“licensed bookmaker”, “premises”, “registered premises” and “registered proprietor” have the same meanings as they have in the Betting Act, 1931;

“register” means the register of bookmaking offices kept by the Revenue Commissioners under the Betting Act, 1931;

“return” includes Official Betting Sheet within the meaning of the Betting Duty (Official Sheets) Regulations, 1934 (S.R. &.O., No. 114 of 1934).

(2) Where, in respect of any registered premises, arrears of duty are due and owing or any return which is required by regulations made by the Revenue Commissioners to be furnished in respect of the premises is not furnished within such period as is for the time being specified for that purpose, the Revenue Commissioners may cause a notice in writing to be sent to the registered proprietor of the said premises stating that, if the said arrears are not paid or the said returns are not furnished within seven days from the date on which the said notice is sent, the premises shall be removed from the register under subsection (4).

(3) Any notice under subsection (2) shall be in such form as the Revenue Commissioners may prescribe and shall be sent by registered post to the registered proprietor as aforesaid at the registered premises to which it relates.

(4) If the arrears or the returns referred to in subsection (2) are not paid or furnished, as the case may be, within the period specified in a notice sent under that subsection, the Revenue Commissioners shall, notwithstanding the provisions of section 12 of the Betting Act, 1931, remove from the register the registered premises to which the notice relates.

(5) Whenever any premises are removed from the register under subsection (4), the person who was the registered proprietor of such premises immediately before such removal shall, on demand in writing delivered at or sent by post to such premises, deliver or send to the Revenue Commissioners the latest certificate of registration of such premises issued under section 12 of the Betting Act, 1931, or the latest certificate of renewal of registration of such premises issued under the said section 12 or subsection (7), and a person who fails so to deliver or send such certificate within seven days after such demand shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £100.

(6) (a) Whenever any premises are removed from the register under subsection (4) and the registration of the premises is not renewed under subsection (7) or under the Betting Act, 1931, an officer of Customs and Excise may enter the premises at any time if the business of bookmaking is being, or is suspected by such officer to be, carried on therein and may there search for and demand the production of any books, accounts, betting slips, betting dockets or any other documents relating or believed by such officer to relate to the business of bookmaking and any such books or other documents relating to the business of bookmaking shall be liable to forfeiture and may be seized and removed from the premises by the said officer.

(b) Section 31 (2) of the Finance Act, 1929, shall not apply to the removal of documents from premises under paragraph (a).

(c) Every person who resists, obstructs or impedes an officer of Customs and Excise in the exercise of any right or power conferred on such officer by this subsection or refuses without lawful and sufficient excuse to produce any books or other documents which he is required by such officer under this subsection to produce shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £500.

(7) (a) Subject to paragraph (b), where—

(i) all arrears of duty which are due and owing in respect of any premises which were removed from the register under subsection (4) are paid, and

(ii) all returns required by regulations made by the Revenue Commissioners to be furnished in respect of the premises are furnished,

the Revenue Commissioners shall, not later than seven days after the date on which the said arrears are paid and the said returns are furnished, renew the registration of the premises in the register and shall issue to the person who was the registered proprietor of the premises immediately before the premises were removed from the register a certificate in the prescribed form of such renewal of registration.

(b) The registration of premises shall not be renewed under paragraph (a)—

(i) on any date later than the 30th day of November next after the date on which the premises were last removed from the register under subsection (4), or

(ii) if any of the circumstances by reference to which premises would be removed from the register under section 17 of the Betting Act, 1931, obtain in respect of the said premises at the time at which such renewal would otherwise be granted under paragraph (a).

(c) The duty of excise imposed by section 18 of the Finance Act, 1931, on the registration and on the renewal of the registration of any premises in which the business of bookmaking is carried on shall not be charged on the renewal of the registration of premises in the register under this subsection and, notwithstanding section 12 (3) of the Betting Act, 1931, the said renewal shall commence and take effect from the date on which the certificate of such renewal is issued by the Revenue Commissioners under paragraph (a).

(8) (a) A person shall not, in the course of carrying on business as a bookmaker or acting as a bookmaker, accept a bet in any premises which are not for the time being registered in the register.

(b) A person who accepts a bet in contravention of this subsection shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable on summary conviction to an excise penalty of £1,000.

(c) This subsection shall not apply to a licensed bookmaker who is lawfully carrying on the business of a bookmaker at, or in the precincts of, an authorised racecourse, a greyhound race track or an authorised coursing meeting in accordance with the Racing Board and Racecourses Act, 1945, or the Greyhound Industry Act, 1958.

(9) Any person employed by the registered proprietor of registered premises as a clerk or assistant in those premises or any other person acting for or on behalf of the said proprietor who makes any entry on any slip or other document by means of which a bet is made, knowing that the said entry is false, or who substitutes for any such slip or document another document which is false, or who makes any entry in any book or document kept for the purpose of recording particulars of bets in the said premises knowing that the said entry is false, or who is otherwise knowingly concerned in the fraudulent evasion or attempt at evasion of duty shall be guilty of an offence and shall be liable on summary conviction to an excise penalty of £1,000.

77 Amendment of section 11 (grounds for refusal of certificate of suitability of premises) of Betting Act, 1931.

77.—Section 11 (1) of the Betting Act, 1931, shall be amended by the insertion of the following paragraph after paragraph (m):

“(mm) that—

(i) the premises are so constructed or so subdivided, or of such size, as to prevent or hinder the proper performance of any surveys, inspections or investigations that may be required to be carried out by an officer of Customs and Excise in the said premises for purposes connected with any duty for the time being payable on or in respect of bets, or

(ii) at the time of the application for the certificate, any returns that were required by regulations made by the Revenue Commissioners to be furnished by the applicant in respect of the premises for purposes connected with any such duty as aforesaid had not been so furnished, or

(iii) at the time of the application for the certificate, arrears of any such duty as aforesaid are due and owing by any person in respect of the premises, or

(iv) such security as is required by the Revenue Commissioners for the payment of any such duty as aforesaid payable by the applicant has not been furnished by him,

and that the Revenue Commissioners have so notified the Superintendent of the Garda Síochána for the district in which the premises are situate;”.

78 Restriction of Probation of Offenders Act, 1907.

78.—Section 1 of the Probation of Offenders Act, 1907, shall not apply in relation to offences under the statutes which relate to the duties of excise and to the management of those duties.

79 Amendment of section 29 (temporary importation of motor vehicles) of Finance Act, 1963.

79.—Subsection (2) of section 29 of the Finance Act, 1963, is hereby amended by the substitution of “£1,000” for “one hundred pounds” and the said subsection (2), as so amended, is set out in the Table to this section.

TABLE

(2) Where a person contravenes, whether by act or omission, a condition under a regulation under this section, such person, without prejudice to any other penalty to which he may be liable, shall be guilty of an offence under the Customs Acts and shall be liable on summary conviction thereof to a penalty of £1,000; and the motor vehicle shall be liable to forfeiture and the offender may either be detained or proceeded against by summons.

80 Excise duties on mechanically propelled vehicles.

80.—(1) Subject to subsections (2) and (3), the Finance (Excise Duties) (Vehicles) Act, 1952 (No. 24 of 1952), shall, as respects licences under section 1 thereof taken out for periods beginning on or after the 1st day of March, 1984, be amended by the substitution in Part I of the Schedule thereto (as amended by section 73 of the Finance Act, 1983) of the following subparagraph for subparagraph (d) of paragraph 6:

“(d) other vehicles to which this paragraph applies—

not exceeding 8 horse-power	£8 for each unit or part of a unit of horse-power
exceeding 8 horse-power and not exceeding 12 horse-power	£10 for each unit or part of a unit of horse-power
exceeding 12 horse-power and not exceeding 16 horse-power	£12 for each unit or part of a unit of horse-power
exceeding 16 horse-power and not exceeding 20 horse-power	£14 for each unit or part of a unit of horse-power
exceeding 20 horse-power	£15 for each unit or part of a unit of horse-power
electrically propelled	£54”.

(2) Subsection (1) shall not have effect in relation to any vehicle—

(i) which is used as a small public service vehicle within the meaning of the Road Traffic Act, 1961, and for no other purpose, or

(ii) which is fitted with a taximeter and is lawfully used as a street service vehicle within the meaning of the said Road Traffic Act, 1961, or for purposes incidental to such user and for no other purpose.

(3) Subsection (1) shall not have effect in relation to vehicles specified in Article 3 of the Imposition of Duties (No. 170) (Excise Duties) (Vehicles) Order, 1968 (S.I. No. 68 of 1968), as amended by the Imposition of Duties (No. 216) (Excise Duties) (Vehicles) Order, 1975 (S.I. No. 5 of 1975).

81 Amendment of section 3 of Finance (Excise Duties) (Vehicles) (Amendment) Act, 1960.

81.—Section 3 (7) of the Finance (Excise Duties) (Vehicles) (Amendment) Act, 1960, is hereby amended by the substitution of “£350” for “fifty pounds”.

82 Amendment of section 23 (payment of licence duty by cheque) of Finance Act, 1936.

82.—Section 23 of the Finance Act, 1936, is hereby amended by the substitution of “£500” for “fifty pounds” in paragraph (c).

83 Confirmation of Orders.