Finance Act , 1984

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

TABLE

S.I. No. 12 of 1983	Imposition of Duties (No. 262) (Beer) Order, 1983
S.I. No. 126 of 1983	Imposition of Duties (No. 265) (Excise Duty on Hydrocarbon Oils) Order, 1983
S.I. No. 213 of 1983	Imposition of Duties (No. 266) (Tobacco Products) Order, 1983
S.I. No. 398 of 1983	Imposition of Duties (No. 267) (Beer) (No. 2) Order, 1983

PART III Value-Added Tax

84 Interpretation (Part III).

84.—In this Part—

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

“the Act of 1983” means the Finance Act, 1983;

“the Principal Act” means the Value-Added Tax Act, 1972.

85 Amendment of section 1 (interpretation) of Principal Act.

85.—Section 1 of the Principal Act is hereby amended—

(a) by the insertion in subsection (1) after the definition of “business” of the following definition:

“clothing' does not include footwear;”,

and

(b) by the insertion in the said subsection (1) after the definition of “flat-rate farmer” of the following definition:

“‘footwear’ includes shoes, boots, slippers and the like but does not include stockings, under-stockings, socks, ankle-socks or similar articles or footwear without soles or footwear which is or incorporates skating or swimming equipment;”.

86 Amendment of section 8 (accountable persons) of Principal Act.

86.—Section 8 of the Principal Act is hereby amended—

(a) in subsection (1) (inserted by the Finance Act, 1978) by the insertion after “in the course” of “or furtherance”,

(b) in subsection (3) (inserted by the Finance Act, 1978)—

(i) in subparagraph (c) (ii) (inserted by the Finance (No. 2) Act, 1981), by the insertion after “taxable goods” of “(not being goods chargeable at either of the rates specified in paragraphs (a) and (c) of subsection (1) of section 11 which were produced or manufactured by him wholly or mainly from materials chargeable at the rate specified in paragraph (b) of that subsection)”, and

(ii) by the substitution of the following paragraph for paragraph (e) (inserted by the Finance (No. 2) Act, 1981):

“(e) a person, other than a person to whom paragraph (a), (b) or (c) applies, for whose supply of taxable goods and services the total consideration has not exceeded and is not likely to exceed £12,000 in any continuous period of twelve months:

Provided that, where in the case of two or more persons one of whom exercises control over one or more of the other persons, supplies of goods of the same class or of services of the same nature are made by two or more of those persons, the total of the consideration relating to the said supplies shall, for the purposes of the application of paragraphs (c) and (e) in relation to each of the persons aforesaid who made the said supplies be treated as if all of the supplies in question had been made by each of the last-mentioned persons.”,

and

(c) by the insertion after subsection (3A) (inserted by the Finance Act, 1982) of the following subsection:

“(3B) In this section ‘control’, in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are con ducted in accordance with the wishes of that person, and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership.”.

87 Amendment of section 11 (rates of tax) of Principal Act.

87.—Section 11 of the Principal Act is hereby amended—

(a) in subsection (1) (inserted by the Value-Added Tax (Amendment) Act, 1978)—

(i) by the insertion after paragraph (aa) (inserted by the Act of 1983) of the following paragraph:

“(aaa) 8 per cent of the amount on which tax is chargeable in relation to the supply of goods of a kind specified in the Seventh Schedule,”,

and

(ii) by the insertion in paragraph (c) (inserted by the Finance Act, 1980) after “(aa)” of “, (aaa)”,

(b) in subsection (7) (inserted by the Act of 1976), by the insertion in paragraph (e) (i) after “subsection (1) (aa)” of “, subsection (1) (aaa)”, and

(c) in subsection (8), by the substitution in paragraph (a) (inserted by the Finance Act, 1973) of “Second, Third, Sixth or Seventh” for “Second, Third or Sixth”.

88 Amendment of section 15 (charge of tax on imported goods) of Principal Act.

88.—Section 15 of the Principal Act is hereby amended by the insertion after paragraph (aa) (inserted by the Act of 1983) of subsection (1) of the following paragraph:

“(aaa) on goods of a kind specified in the Seventh Schedule at the percentage specified in section 11 (1) (aaa) of the value of the goods, and”.

89 Amendment of section 18 (inspection and removal of records) of Principal Act.

89.—Section 18 of the Principal Act is hereby amended—

(a) by the substitution of the following subsection for subsection (1):

“(1) (a) For the purposes of this Act and regulations, an authorised officer may at all reasonable times enter any premises or place where he has reason to believe that business is carried on or anything is done in connection with business and—

(i) may require the person carrying on the business, or any person on those premises or in that place who is employed by the person carrying on the business or who is associated with him in the carrying on of the business, to produce any books, records, accounts or other documents relating to the business or to any other business which he has reason to believe may be, or have been, connected with the said business or have, or have had, trading relations with the said business,

(ii) may, if he has reason to believe that any of the books, records, accounts or other documents, which he has required to be produced to him under the provisions of this subsection have not been so produced, search in those premises or that place for those books, records, accounts or other documents,

(iii) may, in the case of any such books, records, accounts or other documents produced to or found by him, take copies of or extracts from them and remove and retain them for such period as may be reasonable for their further examination or for the purposes of any proceedings for the recovery of a penalty in relation to tax,

(iv) may, if he has reason to believe that goods connected with taxable supplies or importations are held on those premises or in that place and that particulars of such goods have not been kept and retained, as required by this Act or by regulations, in the books, records, accounts or other documents of the business or of any other business similarly required to keep and retain particulars of those goods, search those premises or that place for the said goods and, on their discovery, examine and take particulars of them,

(v) may require the person carrying on the business, or any person on those premises or in that place, who is employed by the person carrying on the business or who is associated with him in the carrying on of the business, 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 as are material to the tax affairs 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.”,

and

(b) by the deletion of subsection (2).

90 Amendment of section 26 (penalties generally) of Principal Act.

90.—Section 26 of the Principal Act is hereby amended, as respects non-compliance occurring on or after the date of passing of this Act—

(a) in subsection (1), by the deletion of “18 (2)”, and

(b) in subsection (3A), by the substitution of “subsection (3) of section 18 or with a requirement of an authorised officer under that section” for “section 18 (3)”.

91 Amendment of section 32 (regulations) of Principal Act.

91.—Section 32 of the Principal Act is hereby amended—

(a) by the insertion in subsection (1) after paragraph (v) of the following paragraph:

“(w) the determination of average build for the purposes of paragraph (xvii) of the Second Schedule;”, and

(b) by the insertion in subsection (2A) after “section 15” of “or in relation to the matter specified in subsection (1) (w)”.

92 Amendment of Second Schedule to Principal Act.

92.—The Second Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended—

(a) by the substitution for paragraph (xvii) of the following paragraph:

“(xvii) articles of children's personal clothing of sizes which do not exceed the sizes of those articles appropriate to children of average build of 10 years of age (a child whose age is 10 years or 10 years and a fraction of a year being taken for the purposes of this paragraph to be a child of 10 years of age), but excluding—

(a) articles of clothing made wholly or partly of fur skin other than garments merely trimmed with fur skin, unless the trimming has an area greater than one-fifth of the area of the outside material, and

(b) articles of clothing which are not described, labelled, marked or marketed on the basis of age or size;”,

and

(b) by the substitution for paragraph (xviii) of the following paragraphs:

“(xviii) sanitary towels and sanitary tampons;

(xviiia) footwear;”.

93 Amendment of Third Schedule to Principal Act.

93.—The Third Schedule (inserted by the Act of 1976) to the Principal Act is hereby amended—

(a) in Part I—

(i) by the deletion in paragraph (x) (b) of “concrete,”, and

(ii) by the insertion in paragraph (xxviii) after “Second” of “, Sixth or Seventh”,

and

(b) in Part II, by the substitution of the following paragraph for paragraph (viii):

“(viii) the hiring of goods specified in paragraphs (xvii) and (xviii) of the Second Schedule and paragraph (i) of the Seventh Schedule.”.

94 Amendment of Sixth Schedule to Principal Act.

94.—The Sixth Schedule (inserted by the Act of 1983) to the Principal Act is hereby amended—

(a) by the insertion after paragraph (ii) of the following paragraph:

“(iia) concrete ready to pour;”,

and

(b) by the insertion after paragraph (iii) of the following paragraph:

“(iiia) promotion of or admission to live theatrical or musical performances, including circuses, but not including—

(a) dances to which section 11 (7) relates, or

(b) performances in conjunction with which facilities are available for the consumption of food or drink during all or part of the performance by persons attending the performance;”.

95 Insertion of Seventh Schedule in Principal Act.

95.—The Principal Act is hereby amended by the insertion after the Sixth Schedule (inserted by the Act of 1983) of the following Schedule:

“SEVENTH SCHEDULE

(i) Articles of personal clothing and textile handkerchiefs, excluding—

(a) articles of clothing made wholly or partly of fur skin, other than garments merely trimmed with fur skin unless the trimming has an area greater than one-fifth of the area of the outside material, and

(b) articles of personal clothing of a kind specified in paragraphs (xvii) and (xviii) of the Second Schedule;

(ii) (a) fabrics, yarn, thread and leather, of a kind normally used in the manufacture of clothing, including elastics, tapes and padding materials in the form supplied for the manufacture of clothing, and

(b) yarn of a kind normally used in the manufacture of clothing fabrics.”.

96 Rate of tax in relation to short-term hiring of certain goods.

96.—Notwithstanding the provisions of section 11 of the Principal Act, the rate of value-added tax chargeable on the following services shall be 18 per cent. of the amount in respect of which tax is chargeable in relation to those services:

(a) the service specified in paragraph (ii) of Part II of the Third Schedule to the Principal Act, and

(b) the service consisting of the hiring to a person, under an agreement of the kind specified in the said paragraph (ii) of a tent or of a vehicle designed and constructed, or adapted, for the conveyance of persons by road.

PART IV Stamp Duties

97 Levy on banks.

97.—(1) In this section—

“assessable amount” means the amount arrived at by dividing the specified amount by three and deducting £10,000,000 from the quotient;

“bank” means a person who, on the 1st day of September, 1983, was the holder of a licence granted under section 9 of the Central Bank Act, 1971;

“returns”, in relation to a bank, means the returns, entitled “MONTHLY RETURN OF ALL LICENSED BANKS: RESIDENT BRANCHES”, furnished to the Central Bank of Ireland by the bank in respect of the assets and liabilities of the bank as on the 30th day of September, 1983, the 19th day of October, 1983, and the 16th day of November, 1983;

“specified amount” in relation to a bank, means the amount obtained by deducting the aggregate of the sums shown in respect of Item 302.2 in supplement 1 of the returns of the bank from the aggregate of all sums shown in respect of Items 107 and 108 as liabilities of the bank in such returns.

(2) A bank shall, not later than the 12th day of September, 1984, deliver to the Revenue Commissioners a statement in writing showing the assessable amount for that bank, the specified amount for that bank and the sums referred to in the definition of “specified amount” in subsection (1) by reference to which that specified amount was calculated.

(3) There shall be charged on every statement delivered pursuant to subsection (2) a stamp duty of an amount equal to the sum of the following:

(a) 0.2 per cent. of that part of the assessable amount shown therein that does not exceed £100,000,000 and

(b) 0.344 per cent. of that part of the assessable amount shown therein that exceeds £100,000,000:

Provided that in the case where the assessable amount shown in the statement does not exceed £100,000,000 stamp duty of an amount equal to 0.2 per cent. of the assessable amount shown therein shall be charged.

(4) The duty charged by subsection (3) upon a statement delivered by a bank pursuant to subsection (2) shall be paid by the bank upon delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by a bank such particulars as the Revenue Commissioners may deem necessary in relation to any statement required by this section to be delivered by the bank.

(6) In the case of failure by a bank to deliver any statement required by subsection (2) within the time provided for in that subsection or of failure to pay the duty chargeable on any such statement on the delivery thereof, the bank shall, from the date of the passing of this Act until the day on which the duty is paid, be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 15 per cent. per annum and also from the 12th day of September, 1984, by way of further penalty, a sum equal to 1 per cent. of the duty for each day the duty remains unpaid and each penalty shall be recoverable in the same manner as if the penalty were part of the duty.

(7) The delivery of any statement required by subsection (2) may be enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853, in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(8) The stamp duty charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty under the care and management of the Revenue Commissioners payable by the bank.

98 Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982.

98.—Section 92 of the Finance Act, 1982, is hereby amended by the insertion after subsection (7) of the following subsection:

“(8) (a) In this subsection—

‘life insurance amount’ means so much of an assessable amount as consists of relevant premiums received on or after the 1st day of July 1984, in respect of business in classes I, II, III, IV, V, VI, VIII, and IX of the Annex to First Council Directive 79/267/EEC of 5 March 1979 (OJ No. L 63,13/3/1979);

‘relevant premium’ means—

(i) in the case of a contract of insurance made on or after the 1st day of July, 1983, a premium or part of a premium received in pursuance of the contract in the period of twelve months from the date on which the first payment of the premium or part of the premium is made, and

(ii) in the case where a premium under a contract of insurance, whensoever made, is increased, the amount by which the premium is increased and which is received in the period of twelve months from the date on which the first payment of the increased amount or part of the increased amount is made.

(b) An insurer shall, within 30 days from the end of the quarter ending on the 30th day of September, 1984, and within 30 days from the end of each quarter thereafter, deliver to the Revenue Commissioners a statement in writing showing the life insurance amount for that insurer for that quarter.

(c) There shall be charged on every statement delivered in pursuance of paragraph (b) of this subsection a stamp duty of an amount equal to one and two-thirds per cent. of the life insurance amount shown therein.

(d) Subsections (4), (5), (6) and (7) of this section shall apply to any statement required by paragraph (b) of this subsection to be delivered by an insurer in all respects as if such statement were a statement in respect of an assessable amount.

(e) In relation to the quarter ending on the 30th day of September, 1984, and each subsequent quarter, any premiums received by an insurer in respect of business in the classes referred to in the definition of ‘life insurance amount’ shall not be included in the assessable amount for the purposes of subsections (2) and (3) of this section.”.

99 Amendment of section 93 (exemption of certain instruments from stamp duty) of Finance Act, 1982.

99.—Subsection (5) of section 93 of the Finance Act, 1982, is hereby amended by the substitution of “three years” for “two years”, and the said subsection (5), as so amended, is set out in the Table to this section.

TABLE

(5) This section shall have effect with respect to any instrument executed after the date of the passing of this Act and before the expiration of three years after that date.

100 Amendment of section 49 (exemption of certain instruments from stamp duty) of Finance Act, 1969.

100.—(1) Section 49 of the Finance Act, 1969, is hereby amended by the insertion after subsection (2A) (inserted by the Finance Act, 1981) of the following subsection:

“(2B) Notwithstanding subsections (2) and (2A) of this section, subsection (1) of this section shall have effect in relation to an instrument if, but (apart from the said subsections (2) and (2A)) only if, it is shown to the satisfaction of the Revenue Commissioners that the Minister for the Environment has certified that he is satisfied, on the basis of the information available to him at the time of so certifying, that the total floor area of the said house measured in the manner referred to in section 4 (2) (b) of the Housing (Miscellaneous Provisions) Act, 1979, does not or will not exceed the maximum total floor area standing specified in regulations under the said section 4 (2) (b) and is not or will not be less than the minimum total floor area standing so specified.”.

(2) The Imposition of Duties (No. 269) (Exemption of Certain Instruments from Stamp Duty) Order, 1984 (S.I. No. 49 of 1984), is hereby revoked.

(3) This section shall have effect with respect to instruments executed on or after the date of the passing of this Act.

101 Stamp duty on bills of exchange and promissory notes.

101.—(1) The Stamp Act, 1891, is hereby amended by the substitution for section 7 of the following section:

“7. Any stamp duties of an amount not exceeding 7p upon instruments which are permitted by law to be denoted by adhesive stamps not appropriated by any word or words on the face of them to any particular description of instrument shall, if denoted by adhesive stamps, be denoted by adhesive stamps issued by the Revenue Commissioners.”.

(2) Section 41 of the Finance Act, 1970, is hereby amended by the substitution of “7p” for “5p” (inserted by the Finance Act, 1982) in both places where it occurs.

(3) This section shall have effect with respect to bills of exchange and promissory notes drawn on or after the date of the passing of this Act.

102 Amendment of section 17 (stamp duty in respect of credit cards and charge cards) of Finance (No. 2) Act, 1981.

102.—Section 17 of the Finance (No. 2) Act, 1981, is hereby amended—

(a) in subsection (1) (c), by the substitution of “£10” for “£5”,

(b) in subsection (2), by the substitution of “£5” for “£2.50”., and

(c) in paragraph (d) (ii) (inserted by the Finance Act, 1983) of subsection (2), by the substitution of “£10” for “£5”.

103 Revocation of Order.

103.—The Imposition of Duties (No. 268) (Stamp Duty on Bills of Exchange, Promissory Notes, Credit Cards and Charge Cards) Order, 1984 (S.I. No. 34 of 1984), is hereby revoked.

PART V Capital Acquisitions Tax

Chapter I Discretionary Trusts

104 Interpretation (Part V).

104.—In this Part—

“the Principal Act” means the Capital Acquisitions Tax Act, 1976;

“object”, in relation to a discretionary trust, means a person for whose benefit the income or capital, or any part of the income or capital, of the trust property is applied, or may be applied;

“principal objects”, in relation to a discretionary trust, means such objects, if any, of the trust for the time being as are—

(a) the spouse of the disponer,

(b) the children of the disponer, or

(c) the children of a child of the disponer where such child predeceased the disponer.

105 Amendment of section 2 (interpretation) of Principal Act.

105.—Section 2 (1) of the Principal Act is hereby amended by the insertion, in the definition of “discretionary trust” after “property is held on trust” of—

“to accumulate the income or part of the income of the property, or any trust whereby, or by virtue or in consequence of which, property (other than property to which for the time being a person is beneficially entitled for an interest in possession) is held on trust”,

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

TABLE

“discretionary trust” means any trust whereby, or by virtue or in consequence of which, property is held on trust to accumulate the income or part of the income of the property, or any trust whereby, or by virtue or in consequence of which, property (other than property to which for the time being a person is beneficially entitled for an interest in possession) is held on trust to apply, or with a power to apply, the income or capital or part of the income or capital of the property for the benefit of any person or persons or of any one or more of a number or of a class of persons whether at the discretion of trustees or any other person and notwithstanding that there may be a power to accumulate all or any part of the income;

106 Acquisitions by discretionary trusts.

106.—(1) Where, on or after the 25th day of January, 1984, under or in consequence of any disposition, property becomes subject to a discretionary trust (which expression has in this Part the meaning assigned to it by the Principal Act as amended by section 105) otherwise than for full consideration in money or money's worth paid by the trustees of the trust, the trust shall be deemed, on—

(a) the date on which that property becomes or became subject to the discretionary trust;

(b) the date of death of the disponer; or

(c) where there are principal objects of the trust, the date on which there ceases to be a principal object of the trust who is under the age of 25 years,

whichever date is the latest, to become or to have become beneficially entitled in possession to an absolute interest in so much, if any, of that property or of property representing that property and of accumulations of income thereof or of property representing those accumulations as remains subject to the discretionary trust on that latest date, and to take or to have taken an inheritance accordingly as if the trust, and the trustees as such for the time being of the trust, were together a person for the purposes of the Principal Act, and that latest date shall be the date of the inheritance.

(2) Property which, under or in consequence of any disposition, was subject to a discretionary trust on the 25th day of January, 1984, shall, for the purposes of subsection (1), be deemed to have become subject to the trust on that date.

(3) For the purposes of this section—

(a) an interest in expectancy shall not be property until an event happens whereby the interest ceases to be an interest in expectancy or is represented by property which is not an interest in expectancy;

(b) an interest in a policy of assurance upon human life shall not be property until, and then only to the extent that, the interest becomes an interest in possession under the provisions of section 32 of the Principal Act or is represented by property which is not an interest in expectancy.

(4) Where, apart from this subsection, property or property representing such property would be chargeable under this section with tax more than once under the same disposition, such property shall be so chargeable with tax once only, that is to say, on the earliest occasion on which such property becomes so chargeable with tax.

107 Application of Principal Act.

107.—In relation to a charge for tax arising by reason of the provisions of section 106—

(a) a reference in section 16 of the Principal Act to a company controlled by the successor shall be construed as including a reference to a company that is under the control of any one or more of the following, that is to say, the trustees of the discretionary trust, the living objects of the discretionary trust, the relatives of those objects, and nominees of those trustees or of those objects or of the relatives of those objects;

(b) section 21 of the Principal Act shall apply, with the modification that the valuation date of the taxable inheritance shall be—

(i) the date of the inheritance, or

(ii) the valuation date ascertained in accordance with that section,

whichever is the later, and with any other necessary modifications;

(c) a person who is a trustee of the discretionary trust concerned for the time being at the date of the inheritance or at any date subsequent thereto shall be a person primarily accountable for the payment of the tax;

(d) an object of the discretionary trust concerned to whom or for whose benefit any of the property subject to the trust is applied or appointed shall also be accountable for the payment of tax the charge in respect of which has arisen prior to the date of the application or appointment of the property to him or for his benefit, and the Principal Act shall have effect, in its application to that charge for tax, as if that object of the discretionary trust were a person referred to in section 35 (2) of the Principal Act;

(e) any person who is primarily accountable for the payment of tax by virtue of paragraph (c) shall, within three months after the valuation date or the date of the passing of this Act, whichever is the later, deliver to the Commissioners a full and true return—

(i) of every inheritance in respect of which he is so primarily accountable;

(ii) of all the property comprised in such inheritance; and

(iii) of an estimate of the market value of such property;

(f) the provisions of section 41 of the Principal Act shall have effect, in the application of the Principal Act to any such charge for tax as aforesaid arising before the date of the passing of this Act, as if the references to the valuation date in subsections (1), (2) and (3) of that section were references to the date of the passing of this Act, or to the valuation date, whichever is the later;

and

(g) section 35 (1), subsections (2), (3), (4) and (5) of section 36 and sections 40, 45 and 57 of, and the Second Schedule to, the Principal Act shall not apply.

108 Exemptions.

108.—Section 106 shall not apply or have effect in relation to a discretionary trust which is shown to the satisfaction of the Commissioners to have been created exclusively—

(a) for public or charitable purposes in the State or Northern Ireland;

(b) for the purposes of—

(i) any scheme for the provision of superannuation benefits on retirement established by or under any enactment or by or under an instrument made under any enactment, or

(ii) any sponsored superannuation scheme within the meaning of subsection (9) of section 235 of the Income Tax Act, 1967, or a trust scheme or part of a trust scheme approved by the Commissioners under that section or section 235A of that Act;

(c) for the purposes of a registered unit trust scheme within the meaning of the Unit Trusts Act, 1972;

(d) (i) for the benefit of one or more named individuals, and

(ii) for the reason that such individual, or all such individuals, is or are, because of age or improvidence, or of physical, mental or legal incapacity, incapable of managing his or their affairs; or

(e) for the purpose of providing for the upkeep of a house or garden referred to in section 39 of the Finance Act, 1978.

109 Computation of tax.

109.—The tax chargeable on the taxable value of a taxable inheritance which is charged to tax by reason of the provisions of section 106 shall be computed at the rate of three per cent. of such taxable value.

Chapter II Revised Computation

110 Amendment of certain sections of Principal Act.

110.—(1) Section 36 of the Principal Act is hereby amended by the substitution of the following subsection for subsections (3) and (4):

“(3) Subsection (2) applies to a gift where—

(a) the aggregate of the taxable values of all taxable gifts taken by the donee on or after the 2nd day of June, 1982, exceeds an amount which is 80 per cent. of the threshold amount (as defined in the Second Schedule) which applies in the computation of the tax on that aggregate, or

(b) the donee is required by notice in writing by the Commissioners to deliver a return.”.

(2) Sections 9 and 53 (3) of the Principal Act shall not apply or have effect.

(3) Section 54 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (1):

“(1) Where any person takes a benefit for public or charitable purposes he shall be deemed—

(a) for the purposes of sections 5 (1) and 11 (1), to have taken that benefit beneficially, and

(b) for the purposes of the Second Schedule, to have taken a gift or an inheritance accordingly to which the class threshold of £10,000 applies.”.

(4) Section 55 of the Principal Act (as extended by the Finance Act, 1978) is hereby amended by the deletion of “from the same disponer” in subsection (2) (a).

(5) Section 57 of the Principal Act (as amended by the Finance Act, 1978) is hereby amended by the deletion of “from the same disponer” in subsection (2).

111 Amendment of Second Schedule to Principal Act.

111.—The Second Schedule to the Principal Act is hereby amended—

(a) in Part I, by the substitution of the following paragraphs for paragraphs 1 to 5 and 7:

“1. In this Schedule—

‘class threshold’, in relation to a taxable gift or a taxable inheritance taken on a particular day, means—

(a) £150,000, where the donee or successor is on that day the spouse, child, or minor child of a deceased child, of the disponer;

(b) £20,000, where the donee or successor is, on that day, a lineal ancestor, a lineal descendant (other than a child, or a minor child of a deceased child), a brother, a sister, or a child of a brother or of a sister, of the disponer;

(c) £10,000, where the donee or successor does not, on that day, stand to the disponer in a relationship referred to in subparagraph (a) or (b);

‘revised class threshold’, in relation to a taxable gift or a taxable inheritance included in any aggregate of taxable values under the provisions of paragraph 3, means—

(a) the class threshold that applies to that taxable gift or taxable inheritance, or

(b) the total of the taxable values of all the taxable gifts and taxable inheritances to which that class threshold applies and which are included in that aggregate,

whichever is the lesser:

Provided that where the revised class threshold so ascertained is less than the smallest of the class thresholds that apply in relation to all of the taxable gifts and taxable inheritances included in that aggregate, the revised class threshold shall be that smallest class threshold;

‘Table’ means the Table contained in Part II of this Schedule;

‘threshold amount’, in relation to the computation of tax on any aggregate of taxable values under the provisions of paragraph 3, means the greatest of the revised class thresholds that apply in relation to all of the taxable gifts and taxable inheritances included in that aggregate.

(a) that taxable value; and

(b) the taxable values of all taxable gifts and taxable inheritances (if any) taken previously by that donee or successor on or after the 2nd day of June, 1982,

exceeds the tax, computed at the rate or rates of tax applicable under the Table, on the aggregate of the taxable values of all taxable gifts and taxable inheritances so previously taken (if any):

Provided that the tax so chargeable on the taxable value of a taxable gift or a taxable inheritance shall not be greater than an amount equal to the tax computed at the rate or rates applicable under the Table to such part of the aggregate of the values referred to in subparagraphs (a) and (b) as is the highest part of that aggregate and is equal to that taxable value.

(b) in Part II, by the substitution of the following Table for Tables I to IV:

“

TABLE

Portion of Value	Rate of tax
	Per cent.
The threshold amount	Nil
The next £10,000	20
The next £40,000	30
The next £50,000	35
The next £50,000	40
The next £50,000	45
The balance	55

”.

112 Application of Chapter II.

112.—This Chapter shall have effect in relation to gifts and inheritances taken on or after the 26th day of March, 1984.

CHAPTER III Certificate of Discharge

113 Extension of section 48 (receipts and certificates) of Principal Act.

113.—Section 48 of the Principal Act is hereby amended, with respect to gifts and inheritances taken on or after the 2nd day of June, 1982, by the insertion after subsection (4) of the following subsections:

“(5) Subject to the provisions of subsection (6), where tax is chargeable on the taxable value of a taxable gift or taxable inheritance and—

(a) after the expiration of two years from the valuation date of such taxable gift or taxable inheritance, application is made to the Commissioners by any person (in this section referred to as the applicant)—

(i) who is a person accountable, but not primarily accountable, for the payment of the whole or part of the tax, or

(ii) who is the personal representative of any person referred to in subparagraph (i),

and

(b) the applicant delivers to the Commissioners a full statement of all the property comprised in the taxable gift or taxable inheritance and of such particulars as may be relevant to the assessment of the tax, together with such evidence as they require relating to such property or particulars,

the Commissioners may determine the amount of the tax that is recoverable from the applicant, and on payment of the tax so determined, the Commissioners shall give a certificate of their determination, in such form as they think fit, which shall discharge the applicant from any further claim for tax in respect of the taxable gift or taxable inheritance.

(6) A certificate by the Commissioners under subsection (5) shall not discharge the applicant in the case of fraud or failure to disclose material facts within his own knowledge and shall not affect any further tax that may be payable by the applicant if any further property is afterwards shown to have been comprised in the taxable gift or taxable inheritance to which the certificate relates and in respect of which further property the applicant is liable for the tax.

(7) The Commissioners may, if they think fit, entertain any application made for the purpose of subsection (5) at whatever time the application is made and, as respects any application so entertained, the provisions of that subsection shall have effect notwithstanding that the application is made before the lapse of the two years mentioned in that subsection.”.

PART VI Miscellaneous

114 Capital Services Redemption Account.

114.—(1) In this section—

“the principal section” means section 22 of the Finance Act, 1950;

“the 1983 amending section” means section 117 of the Finance Act, 1983;

“the thirty-fourth additional annuity” means the sum charged on the Central Fund under subsection (4) of this section;

“the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1984, subsection (4) of the 1983 amending section shall have effect with the substitution of “£29, 401, 449” for “£30, 566, 856”.

(3) Subsection (6) of the 1983 amending section shall have effect with the substitution of “£18, 559, 719” for “£19, 676, 545”.

(4) A sum of £32, 706, 344 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of December, 1984.

(5) The thirty-fourth additional annuity shall be paid into the Account in such manner and at such times in the relevant financial year as the Minister may determine.

(6) Any amount of the thirty-fourth additional annuity, not exceeding £23,973,750 in any financial year, may be applied towards defraying the interest on the public debt.

(7) The balance of the thirty-fourth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

115 Care and management of taxes and duties.

115.—All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

116 Short title, construction and commencement.

116.—(1) This Act may be cited as the Finance Act, 1984.

(2) Part I (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(3) Part II (so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties.

(4) Part III shall be construed together with the Value-Added Tax Acts, 1972 to 1983, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1984.

(5) Part IV shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6) Part V shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act.

(7) Part I shall, save as is otherwise expressly provided therein, be deemed to have come into force and shall take effect as on and from the 6th day of April, 1984.

(8) Part III other than sections 84, 86, 89, 90, 93 (a) (i), 94 and 96 shall be deemed to have come into force and shall take effect as on and from the 1st day of May, 1984, and the said sections 84, 93 (a) (i), 94 and 96 shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1984.

(9) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment including this Act.

(10) In this Act, a reference to a Part, section or Schedule is to a Part or section of, or Schedule to, this Act, unless it is indicated that reference to some other enactment is intended.

(11) In this Act, a reference to a subsection, paragraph or subparagraph is to the subsection, paragraph or subparagraph of the provision (including a Schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.

FIRST SCHEDULE Amendments of Enactments

PART I Amendments Consequential on Changes in Rates of Tax

(a) in section 1 (1)—

(i) the following shall be substituted for the definition of “higher rates” (inserted by section 5 of the Finance Act, 1977):

“‘higher rates’, in relation to tax, means the rates of tax, known by that description, provided for in section 2 of the Finance Act, 1984;”,

(ii) the definition of “reduced rate” (inserted by section 5 of the Finance Act, 1977) shall be deleted, and

(iii) the following shall be substituted for the definition of “standard rate” (inserted by section 5 of the Finance Act, 1977):

“‘standard rate’, in relation to tax, means the rate of tax, known by that description, provided for in section 2 of the Finance Act, 1984;”,

(b) section 153 (1) (dd) shall be deleted,

(c) in section 497, “reduced rate”, in each place where it occurs, shall be deleted, and

(d) in section 525 (1), subparagraph (i) (b) shall be deleted.

PART II Amendments Consequential on Changes in Personal Reliefs

The Income Tax Act, 1967, is hereby amended in accordance with the following provisions:

(a) in section 138—

(i) in paragraph (a), by the substitution of “£3,600” for “£2,900”,

(ii) in paragraph (b), by the substitution of “£2,300” for “£1,950” and of “£3,600” for “£2,900”, and

(iii) in paragraph (c) by the substitution of “£1,800” for “£1,450”,

and

(b) in section 138A, by the substitution of “£1,300” for “£950” and of “£1,800” for “£1,450”.

SECOND SCHEDULE Relief for Investment in Corporate Trades: Subsidiaries

Finance for trade of subsidiary

Individuals qualifying for relief

2.—(1) In subsections (2), (4) and (6) of section 14, references to a company (except, in each subsection, the first such reference) include references to a company which is during the relevant period a subsidiary of that company, whether it becomes a subsidiary before, during or after the year of assessment in respect of which the individual concerned claims relief and whether or not it is such a subsidiary while he is such a partner, director or employee as is mentioned in subsection (2) or while he has or is entitled to acquire such capital or voting power or rights as are mentioned in subsections (4) and (6).

(2) Without prejudice to the provisions of section 14 (as it has effect in accordance with subparagraph (1) an individual shall be treated as connected with a company if—

(a) he has at any time in the relevant period had control (within the meaning of section 158 of the Corporation Tax Act, 1976) of another company which has since that time and before the end of the relevant period become a subsidiary of the company; or

(b) he directly or indirectly possesses or is entitled to acquire any loan capital of a subsidiary of that company.

(3) Section 14 (5) and (8) shall apply for the purposes of this paragraph.

Value received

3.—(1) In sections 18 (1) and 20 (3) references to the receipt of value from the company shall include references to the receipt of value from any company which during the relevant period is a subsidiary of that company, whether it becomes a subsidiary before or after the individual concerned receives any value from it, and references to the company in the other provisions of sections 18 and 20 (6) shall be construed accordingly.

(2) In section 20 (1) references to the company (except the first) shall include references to a company which during the relevant period is a subsidiary of the company, whether it becomes a subsidiary before or after the redemption, repayment, repurchase or payment referred to in that subsection.

Information

THIRD SCHEDULE Rates of Excise Duty on Tobacco Products

Description of Product	Rate of Duty
Cigarettes	£29.50 per thousand together with an amount equal to 15.39 per cent, of the price at which the cigarettes are sold by retail.
Cigars	£44.928 per kilogram
Cavendish or negrohead	£45.401 per kilogram
Hard pressed tobacco	£29.035 per kilogram
Other pipe tobacco	£36.497 per kilogram
Other smoking or chewing tobacco	£37.913 per kilogram

FOURTH SCHEDULE

PART I Rates of Excise Duty on Wine

Description of Wine	Rate of Duty
Still:
Of an actual alcoholic strength by volume not exceeding 15 vol	£1.96 per litre
Of an actual alcoholic strength by volume exceeding 15 vol but not exceeding 18 vol	£2.84 per litre
Of an actual alcoholic strength by volume exceeding 18 vol	£3.71 per litre
Sparkling	£3.93 per litre
Whether still or sparkling of an actual alcoholic strength by volume exceeding 22 vol:
An additional duty for every 1 vol or fraction of 1 vol above 22 vol	£0.23 per litre

PART II Rates of Excise Duty on Made Wine

Description of Made Wine	Rate of Duty
Still:
Of an actual alcoholic strength by volume not exceeding 15 vol	£1.87 per litre
Of an actual alcoholic strength by volume exceeding 15 vol but not exceeding 18 vol	£2.69 per litre
Of an actual alcoholic strength by volume exceeding 18 vol	£3.44 per litre
Sparkling	£3.64 per litre
Whether still or sparkling of an actual alcoholic strength by volume exceeding 22 vol:
An additional duty for every 1 vol or fraction of 1 vol above 22 vol	£0.23 per litre

FIFTH SCHEDULE Rates of Excise Duty on Cider and Perry

Description of Cider and Perry	Rate of Duty
Of an actual alcoholic strength by volume not exceeding 6 vol	£0.53 the gallon
Of an actual alcoholic strength by volume exceeding 6 vol but not exceeding 8.7 vol	£2.60 the gallon
Of an actual alcoholic strength by volume exceeding 8.7 vol	£8.50 the gallon