Finance Act , 1986

Type Act

Publication 1986-05-27

State In force

Source Irish Statute Book

articles 118

(3) The provisions of section 6 of the Finance Act, 1914 (Session 2), for the payment of drawback on beer on which duty has been paid and which is deposited in a warehouse for the purpose of being exported or shipped as stores shall apply to beer on which duty has been paid and which is deposited in a warehouse for the purpose of being used in the manufacture of a product (not being beer) for exportation.

68 Wine and made wine.

68.—(1) In the Eighth 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 duties of excise on wine and made wine imposed by paragraphs 5(2) and 6(2), respectively, of the Order of 1975 shall be charged, levied and paid, as on and from the 30th day of January, 1986, at the several rates specified in the Eighth Schedule in lieu of the several rates specified in Parts I and II, respectively, of the Fourth Schedule to the Finance Act, 1984.

69 Table waters.

69.—(1) The rebate of excise duty provided for in paragraph (a) of subsection (3) of section 69 of the Finance Act, 1980 (inserted by section 37(2) of the Finance Act, 1981), shall, in respect of table waters on which duty was paid in the years hereinafter specified, be calculated in the following manner in lieu of the manner specified in the said paragraph (a):

	Rate of Rebate
Where the quantity manufactured by a manufacturer in each premises in which he manufactures table waters on which duty was paid by him—
(a) in the year commencing on the 1st day of March, 1986, does not exceed 40,000 gallons	£0.16 per gallon for each gallon thereof.
exceeds 40,000 gallons and does not exceed 80,000 gallons	£0.16 per gallon for each of the first 40,000 gallons and £0.08 per gallon for each other gallon.
exceeds 80,000 gallons	£0.16 per gallon for each of the first 40,000 gallons and £0.08 per gallon for each of the next 40,000 gallons.
(b) in the year commencing on the 1st day of March, 1987, does not exceed 40,000 gallons	£0.16 per gallon for each gallon thereof.
exceeds 40,000 gallons	£0.16 per gallon for each of the first 40,000 gallons.
(c) in the year commencing on the 1st day of March, 1988, does not exceed 20,000 gallons	£0.16 per gallon for each gallon thereof.
exceeds 20,000 gallons	£0.16 per gallon for each of the first 20,000 gallons.

(2) No rebate of excise duty shall be allowed under paragraph (a) of subsection (3) of section 69 of the Finance Act, 1980 (inserted by section 37(2) of the Finance Act, 1981), in respect of table waters on which duty was paid on or after the 1st day of March, 1989.

(3) The duty of excise on table waters imposed by paragraph 9(2) of the Order of 1975 (inserted by section 37(1) of the Finance Act, 1981), shall be charged, levied and paid, as on and from the 1st day of October, 1986, at the rate of £0.36 per gallon in lieu of the rate specified in section 69(1) of the Finance Act, 1980.

(4) Paragraph 9 (3) of the Order of 1975 (inserted by section 37 (1) (b) of the Finance Act, 1981), is hereby amended by the substitution of the following for clauses (c) and (d):

“(c) soups and broths,

(d) fruit and vegetable juices which, in the opinion of the Revenue Commissioners, have not lost their original character through the addition of water or of other substances for sweetening, preservative or other purposes, and

(e) the milk substitute commonly known as soya milk (being a product which derives its essential character from soya bean protein), whether or not sweetened but not containing any added flavouring matter.”.

70 Cessation of certain allowances in respect of spirits, matches and nicotine and tobacco extract.

70.—(1) No allowance shall be payable on or after the 1st day of July, 1986—

(a) in respect of spirits, under section 3 of the Customs and Inland Revenue Act, 1885, section 6 of the Finance Act, 1895, and sections 1 and 3 of the Revenue Act, 1906, or

(b) in respect of matches, under section 3 (4) of the Finance (New Duties) Act, 1916, and Regulation 16 of the Match Duty Regulations, 1928 (S.R. & O., No. 74 of 1928), or

(c) in respect of nicotine or tobacco extract or any preparation in the manufacture of which nicotine or tobacco extract is used as an ingredient, under section 11 (1) of the Finance (Customs Duties) (No. 4) Act, 1932.

(2) In any case where the event which, but for subsection (1), would have governed the payment of an allowance occurred on or before the 30th day of June, 1986, the said allowance shall be payable notwithstanding that subsection.

71 Application of section 76 (6) of Finance Act, 1984, to all premises which are not registered bookmaking offices.

71.—(1) In this section—

“premises” has the same meaning as it has in the Betting Act, 1931;

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

(2) The provisions of subsection (6) of section 76 of the Finance Act, 1984 (which apply in relation to premises which are removed from the register under subsection (4) of that section), shall, as on and from the date of the passing of this Act, apply and have effect in relation to any premises which are not for the time being registered in the register.

72 Removal of prescribed marker, etc., from hydrocarbon oil.

72.—(1) In this section—

“hydrocarbon oil” and “prescribed” have the meanings respectively assigned to them by section 21 (15) of the Finance Act, 1935, as amended;

“land” includes any structure on land;

“prohibited goods” means any machinery, apparatus, equipment, vessel, substance or other thing which is being used, or was used, or is intended to be used, in the removal from any hydrocarbon oil of any prescribed marker or for the purpose of impeding the identification in any hydrocarbon oil of any prescribed marker.

(2) No person shall keep prohibited goods in any premises or on any land.

(3) No person shall knowingly deal in any hydrocarbon oil from which any prescribed marker has been removed or to which any substance has been added for the purpose of impeding the identification in the said hydrocarbon oil of any prescribed marker.

(4) A person who contravenes the provisions of subsection (2) or (3) 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 prohibited goods and any hydrocarbon oil in respect of which the offence is committed and any hydrocarbon oil found in the premises or on the land at which the offence was committed at the time at which the offence was committed shall be liable to forfeiture, and any conveyance or container or any other thing which was used for the carriage, storage or concealment of any such prohibited goods or hydrocarbon oil shall also be liable to forfeiture.

(5) Whenever a person who is the owner or the occupier for the time being of premises or land in or on which prohibited goods are found is charged in any legal proceedings with contravening subsection (2), the said prohibited goods shall, until the contrary is proved, be presumed to have been kept by the said person in the said premises, or on the said land (as the case may be), in contravention of the said subsection.

(6) An officer of the Revenue Commissioners or a member of the Garda Síochána may arrest without warrant a person whom he has reasonable grounds to suspect is committing or has committed an offence under this section.

73 Power to search premises in relation to hydrocarbon oil.

73.—(1) In this section reference to dealing in hydrocarbon oil shall be construed as including reference to the purchase, sale or storage of hydrocarbon oil or the carrying on of any other transaction in relation to hydrocarbon oil.

(2) An officer of the Revenue Commissioners may, at all reasonable times, enter any premises in which any dealing in hydrocarbon oil liable to the duty of excise imposed by paragraph 12 of the Order of 1975 is being or is reasonably believed by the officer to be carried on or in which any books, records, accounts or other documents relating or reasonably believed by the officer to relate to any dealing in such hydrocarbon oil are kept and may there require any person to produce all books, records, accounts or other documents relating to any dealing in such hydrocarbon oil and may search for, inspect, and take copies of or extracts from any such books, records, accounts or other documents relating or believed by the officer to relate to any dealing in such hydrocarbon oil and may remove and retain the said books, records, accounts or other documents for such period as may be reasonable for their further examination.

(3) Any person who fails without lawful and sufficient excuse to comply with any requirement under this section or who resists, obstructs or impedes an officer of the Revenue Commissioners 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.

74 Termination of excise duties on tyres and tyre manufacturer's licence.

74.—(1) In this section “the Order of 1935” means the Emergency Imposition of Duties (No. 66) Order, 1935 (S.R. & O., No. 81 of 1935).

(2) With effect as on and from the 1st day of September, 1986, the provisions of paragraph 5 of the Order of 1935 shall cease to have effect.

(3) The duties of excise on tyres imposed by—

(a) paragraph 6 of the Order of 1935, and

(b) paragraph 15 (3) of the Order of 1975,

shall not be charged or levied on or after the 1st day of September, 1986.

75 Reduction and termination of excise duty on motor vehicle parts and accessories.

75.—(1) The Order of 1975 shall be amended, with effect as on and from the 1st day of September, 1986, by the substitution in column (2) of the Fifth Schedule at reference number 2 of “5 per cent.” for “10 per cent.” (inserted by section 34 of the Finance Act, 1985).

(2) The duty of excise on motor vehicle parts and accessories imposed by paragraph 14 (3) of the Order of 1975 shall not be charged or levied on or after the 1st day of January, 1987.

76 Motor vehicles.

76.—The duty of excise on category A motor vehicles imposed by paragraph 4 (1) of the Imposition of Duties (No. 236) (Excise Duties on Motor Vehicles, Televisions and Gramophone Records) Order, 1979 (S.I. No. 57 of 1979), shall be charged, levied and paid, as on and from the 1st day of March, 1986—

(i) insofar as it is chargeable on category A motor vehicles the engines of which have a cylinder capacity exceeding 2012 cubic centimetres, at the rate of an amount equal to 24.7 per cent. of the chargeable value, and

(ii) insofar as it is chargeable on other category A motor vehicles, at the rate of an amount equal to 21.7 per cent. of the chargeable value,

in lieu of the rates specified in paragraph 5 (a) of the Imposition of Duties (No. 272) (Excise Duties on Motor Vehicles) Order, 1984 (S.I. No. 353 of 1984), as amended by paragraph 4 (b) of the Imposition of Duties (No. 279) (Motor Vehicles and Motor-cycles) (Amendment) Order, 1985 (S.I. No. 267 of 1985).

77 Excise duty on mechanically propelled vehicles.

77.—The Finance (Excise Duties) (Vehicles) Act, 1952, shall, as respects licences under section 1 thereof taken out for periods beginning on or after the 1st day of March, 1986, be amended by the substitution of the following subparagraph for subparagraph (d) (inserted by section 33 of the Finance Act, 1985) of paragraph 6 of Part I of the Schedule thereto:

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

not exceeding 1,000 cubic centimetres	£70
exceeding 1,000 cubic centimetres but not exceeding 1,500 cubic centimetres	£9.50 per 100 cubic centimetres or part thereof
exceeding 1,500 cubic centimetres but not exceeding 1,700 cubic centimetres	£11 per 100 cubic centimetres or part thereof
exceeding 1,700 cubic centimetres but not exceeding 2,000 cubic centimetres	£12 per 100 cubic centimetres or part thereof
exceeding 2,000 cubic centimetres but not exceeding 2,500 cubic centimetres	£14 per 100 cubic centimetres or part thereof
exceeding 2,500 cubic centimetres	£15 per 100 cubic centimetres or part thereof
electrically propelled	£70.”

78 Confirmation of Orders.

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

TABLE

S.I. No. 267 of 1985	Imposition of Duties (No. 279) (Motor Vehicles and Motor-cycles) (Amendment) Order, 1985
S.I. No. 304 of 1985	Imposition of Duties (No. 280) (Excise Duties) (Vehicles) Order, 1985
S.I. No. 3 of 1986	Imposition of Duties (No. 281) (Hydrocarbons) Order, 1986

PART III Value-Added Tax

79 Interpretation (Part III).

79.—In this Part—

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

“the Act of 1978” means the Value-Added Tax (Amendment) Act, 1978;

“the Act of 1985” means the Finance Act, 1985.

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

80.—Section 1 of the Principal Act is hereby amended by the insertion in subsection (1) after the definition of “footwear” of the following definition:

“‘free port’ means the land declared to be a free port for the purposes of the Free Ports Act, 1986 (No. 6 of 1986), by order made under section 2 of that Act;”.

81 Amendment of section 5 (rendering of services) of Principal Act.

81.—Section 5 (inserted by the Act of 1978) of the Principal Act is hereby amended—

(a) by the insertion after subsection (3) of the following subsection:

“(3A) Where a person is in receipt of a service, other than a service specified in the Fourth Schedule, for the purposes of his business and the circumstances are such that value-added tax referred to in Community Council Directive No. 77/388/EEC[^1] is not payable on the supply or, if it is payable, is, in accordance with the laws of the country in which the supplier has his establishment, repayable to or deductible by the person, that person shall be deemed, for the purposes of this Act, to have himself supplied the service for consideration in the course or furtherance of his business and shall be liable for tax on the supply except where such tax, if it were chargeable, would be wholly deductible under section 12.”, and

(b) in subsection (6)—

(i) by the insertion after paragraph (c) of the following paragraph:

“(d) In confirmation of the provisions contained in the Value-Added Tax (Place of Supply of Certain Services) Regulations, 1985 (S.I. No. 343 of 1985), which regulations are hereby revoked, the place of supply of services consisting of the hiring out of movable goods by a person established outside the Community shall be deemed to be the place where the movable goods are, or are to be, effectively used.”,

and

(ii) by the substitution of the following paragraph for paragraph (e):

“(e) The place of supply of services of any of the descriptions specified in the Fourth Schedule, with the exception of services of the description specified in paragraph (ia) of the said Schedule supplied by a person who has his establishment outside the Community, shall be deemed, for the purposes of this Act, to be—

(i) in case they are received, otherwise than for a business purpose, by a person whose usual place of residence is situated outside the Community, the place where he usually resides,

(ii) in case they are received, for the purposes of any business carried on by him, by a person—

(I) who has his establishment outside the Community and has not also an establishment in the Community, or

(II) who has his establishment in the Community but does not have his establishment or, if he has more than one establishment, his principal establishment in the country in which, but for this subparagraph, the services would be deemed to be supplied,

the place where he has his establishment or, if he has more than one establishment, the establishment of his at which or for the purposes of which the services are most directly used or to be used, as the case may be,

(iii) in case they are received, for the purposes of any business carried on by him, by a person resident in the Community who has no establishment anywhere, the place where he usually resides,

(iv) in case they are received by a department of State, by a local authority or by a body established by statute, and are supplied—

(I) by a person who has his establishment outside the Community and has not also an establishment in the Community, or

(II) by a person who has his establishment in another Member State of the Community, in circumstances in which value-added tax referred to in Community Council Directive No. 77/388/EEC is not payable in that Member State in respect of the supply,

the State,

(v) in any other case, the place specified in subsection (5) that is appropriate to the circumstances.”.

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

82.—Section 8 of the Principal Act is hereby amended by the insertion in subsection (2) (inserted by the Act of 1978) after “section 5 (6) (e) (ii)” of “, (iii) or (iv)”.

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

83.—Section 11 (inserted by the Act of 1978) of the Principal Act is hereby amended—

(a) in subsection (1)—

(i) in paragraph (a) by the substitution of “25 per cent.” for “23 per cent.”, and

(ii) in paragraph (d) by the substitution of “2.4 per cent.” for “2.2 per cent.”,

and

(b) in subsection (4A) (inserted by the Finance Act, 1973) by the substitution of “section 11 (1) (c)” for “section 11 (1) (a)”.

84 Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

84.—Section 12 of the Principal Act is hereby amended—

(a) in subsection (1) (inserted by the Act of 1978) by the insertion after paragraph (d) of the following paragraph:

“(dd) the tax chargeable during the period, being tax for which he is liable by virtue of section 5 (3A), in respect of services received by him,”

and

(b) in subsection (2) by the insertion after “section 20 (1)” of “, but subject to section 20 (1A)”.

85 Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

85.—Section 12A (inserted by the Act of 1978) of the Principal Act is hereby amended by the substitution of “2.4 per cent.” for “2.2 per cent.” (inserted by the Act of 1985).

86 Amendment of section 17 (invoices) of Principal Act.

86.—Section 17 of the Principal Act is hereby amended by the insertion after subsection (1) of the following subsection:

“(1A) (a) An invoice or other document required to be issued under this section shall, subject to paragraph (b), be deemed to be so issued if the particulars which are required by regulations to be contained in such invoice or other document, as the case may be, are recorded and retained in an electronic data processing system and are transmitted by electronic means without the issue of any invoice or other document.

(b) An invoice or other document required to be issued under this section shall not be deemed by paragraph (a) to be issued unless the person who is required to issue such invoice or other document, as the case may be, has given to the Revenue Commissioners at least one month's notice in writing that he proposes to keep and retain such records and make such transmissions as are referred to in that paragraph, and he complies with such other conditions as may be specified by regulations.

(c) A person who receives the transmissions referred to in paragraphs (a) and (b) shall not be deemed to be issued with an invoice or other document, as the case may be, required to be issued under this section unless he has given to the Revenue Commissioners at least one month's notice in writing that he proposes to receive such transmissions, and he complies with such other conditions as may be specified by regulations.”.

87 Amendment of section 20 (refund of tax) of Principal Act.

87.—Section 20 of the Principal Act is hereby amended—

(a) in subsection (1) by the substitution of “Subject to subsection (1A), where” for “Where”,

and

(b) by the insertion after subsection (1) of the following subsection:

“(1A) The Revenue Commissioners may defer repayment of all or part of any tax refundable to any taxable person under subsection (1) where they are satisfied that the business activities of that taxable person are so interlinked with the business activities of one or more other taxable persons that it would have been expedient to apply the provisions of section 8 (8) in relation to all the taxable persons concerned, if the request specified in that section had been made, and any of the said one or more other taxable persons has not furnished all returns and remitted all amounts of tax referred to in section 19 (3).”.

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

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

(a) in paragraph (h) by the insertion after “documents” of “or other recorded data”,

and

(b) by the substitution of the following paragraph for paragraph (i):

“(i) the form of invoice, credit note, debit note and settlement voucher, including electronic form, required to be used for the purposes of this Act, the particulars required to be inserted in such documents or electronically recorded and the period within which such documents or electronic data are required to be issued or transmitted and such other conditions in relation to the issue or receipt, in any form, of an invoice, credit note, debit note and settlement voucher as may be imposed by the Revenue Commissioners;”.

89 Amendment of First Schedule to Principal Act.

89.—The First Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended by the insertion after paragraph (iii) of the following paragraph:

“(iiia) supply by dental technicians of services of a dental nature and of dentures or other dental prostheses;”.

90 Amendment of Second Schedule to Principal Act.

90.—The Second Schedule (inserted by the Finance Act, 1976) to the Principal Act is hereby amended—

(a) in paragraph (i)—

(i) by the insertion of the following subparagraph after subparagraph (a):

“(aa) by a registered person within a free port to another registered person within a free port,”,

and

(ii) by the insertion in subparagraph (b), after “customs-free airport” where that secondly occurs, of “or a free port”,

and

(b) in paragraph (xii)—

(i) by the insertion after “food and drink of a kind used for human consumption” of “, other than the supply thereof specified in paragraph (xic) of the Sixth Schedule”,

and

(ii) by the deletion in subparagraph (e) of “, potato chips”.

91 Amendment of Sixth Schedule to Principal Act.

91.—The Sixth Schedule (inserted by the Act of 1985) to the Principal Act is hereby amended—

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

“(x) (a) newspapers, normally published daily, the contents of each issue of which consist, wholly or mainly, as regards the quantity of printed matter contained in them, of information on the principal current events and topics of general public interest,

(b) newspapers, normally published at least fort-nightly, which are similar in range and nature of contents to any newspaper of a kind specified in subparagraph (a) and are also similar in format to any newspaper published in the State which is of a kind specified in subparagraph (a);”,

(b) by the insertion after paragraph (xi) of the following paragraphs:

“(xia) the provision of food and drink of a kind specified in paragraph (xii) of the Second Schedule in a form suitable for human consumption without further preparation—

(a) by means of a vending machine,

(b) in the course of operating a hotel, restaurant, cafe, refreshment house, canteen, establishment licensed for the sale for consumption on the premises of intoxicating liquor, catering business or similar business, or

(c) in the course of operating any other business in connection with the carrying on of which facilities are provided for the consumption of the food or drink supplied;

(xib) the supply, in the course of the provision of a meal, of goods of a kind specified in subparagraph (c), (d) or (e) of paragraph (xii) of the Second Schedule, and fruit juices other than fruit juices chargeable with a duty of excise—

(a) in the course of operating a hotel, restaurant, cafe, refreshment house, canteen, establishment licensed for the sale for consumption on the premises of intoxicating liquor, catering business or similar business, or

(b) in the course of operating any other business in connection with the carrying on of which facilities are provided for the consumption of the food or drink supplied;

(xic) the supply of food and drink (other than beverages specified in subparagraph (a) or (b) of paragraph (xii) of the Second Schedule) which is, or includes, food or drink which—

(a) has been heated for the purposes of enabling it to be consumed at a temperature above the ambient air temperature, or

(b) has been retained heated after cooking for the purpose of enabling it to be consumed at a temperature above the ambient air temperature, or

(c) is supplied, while still warm after cooking, for the purpose of enabling it to be consumed at a temperature above the ambient air temperature,

and is above the ambient air temperature at the time of supply;

(xid) promotion of and admissions to cinematographic performances;

(xie) promotion of and admissions to live theatrical or musical performances, excluding—

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

(b) performances specified in paragraph (viii) of the First Schedule;

(xif) entertainment services, other than dances to which section 11 (7) relates and circuses, supplied in fair-grounds by travelling showmen where, in any particular case, the total period spent in any one locality in relation to a series of successive performances does not exceed 19 consecutive days and an interval of at least one month elapses before the next performance in the same locality;”,

“(xiia) services consisting of—

(a) the repair or maintenance of movable goods, or

(b) the alteration of second-hand movable goods,

other than any such services specified in paragraph (v) or (xvi) of the Second Schedule,

but excluding the provision in the course of any such repair, maintenance or alteration service of—

(I) accessories, attachments or batteries, or

(II) tyres, tyre cases, interchangeable tyre treads, inner tubes and tyre flaps, for wheels of all kinds;

(xiib) services consisting of work on immovable goods, other than services consisting of such work specified in paragraph (xiv) and services specified in paragraph (iii);

(xiic) services consisting of the care of the human body, excluding such services specified in the First Schedule, but including services supplied in the course of a health studio business or similar business;”,

and

(d) by the deletion of paragraph (xiii).

PART IV Stamp Duties

92 Levy on banks.

92.—(1) In this section—

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

“bank” means a person who, on the 1st day of September, 1985, was the holder of a licence granted under section 9 of the Central Bank Act, 1971;

“relevant sum”, in relation to a return, means a sum shown in the return other than a sum shown in respect of foreign currency;

“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 16th day of January, 1985, the 20th day of February, 1985, the 31st day of March, 1985, the 17th day of April, 1985, the 15th day of May, 1985, the 30th day of June, 1985, the 17th day of July, 1985, the 21st day of August, 1985, the 30th day of September, 1985, the 16th day of October, 1985, the 20th day of November, 1985 and the 31st day of December, 1985;

“specified amount”, in relation to a bank, means the amount obtained by deducting the aggregate amount of the relevant sums shown in respect of Item 302.2 in supplement 1 of the returns of the bank from the aggregate amount of the relevant sums shown in the returns in respect of Government deposits and Non-Government deposits and shown as liabilities of the bank in such returns.

(2) A bank shall, not later than the 17th day of September, 1986, 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) 0.25 per cent. of that part of the assessable amount shown therein that does not exceed £100,000,000, and

(b) 0.316 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 0.25 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 17th day of September, 1986, 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.

93 Levy on certain investment income.

93.—(1) In this section—

“assessable amount” means the total amount of income, without any deduction whatsoever, which arises to an insurer from investments during the year 1986 and, in the case of any investment sold in that year, includes the amount by which the sale price of the investment exceeds the price for which the investment was acquired:

Provided that, for the purposes of this definition, the total amount of income which arises shall not be reduced by any amount which is deducted or withheld from the income pursuant to any of the provisions of the Tax Acts and shall, in the case of any income which gives entitlement to a tax credit, include the amount of that tax credit;

“excluded property” means property derived from or representing—

(a) business carried on by the insurer outside the State;

(b) a pension fund within the meaning of section 50 of the Corporation Tax Act, 1976;

(d) business relating to a society which is a credit union for the purposes of the Credit Union Act, 1966;

“first statement” means a statement in writing showing an amount which is estimated by the insurer to be the equivalent of 90 per cent. of the assessable amount for that insurer;

“insurer” means a person who is the holder of an authorisation within the meaning of the Regulations or is the holder of an assurance licence which is by those Regulations deemed to be an authorisation;

“investments” includes property of every description other than excluded property;

“Regulations” means the European Communities (Life Assurance) Regulations, 1984 (S.I. No. 57 of 1984);

“second statement” means a statement in writing showing an amount which is equal to the difference between the amount shown in the first statement and the assessable amount for the insurer.

(2) An insurer shall deliver to the Revenue Commissioners the first statement on or before the 1st day of November, 1986, and the second statement on or before the 30th day of June, 1987.

(3) There shall be charged on every first statement and on every second statement delivered in pursuance of subsection (2) a stamp duty of an amount equal to 9 per cent. of the amount shown in each such statement.

(4) The duty charged by subsection (3) on a first statement or a second statement delivered by an insurer pursuant to subsection (2) shall be paid by the insurer on the delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by an insurer such particulars and accounts as the Revenue Commissioners may deem necessary in relation to a first statement or a second statement required by this section to be delivered by the insurer and in relation to the assessable amount in respect of the insurer.

(6) In the case of failure by an insurer—

(a) to deliver a first statement required by subsection (2) within the time specified in that subsection,

(b) to pay, on the delivery of the first statement, an amount of duty which is not less than 85 per cent. of the duty payable in respect of the assessable amount,

(d) to pay the duty on the second statement on the delivery thereof,

the insurer shall be liable to pay by way of penalty, in addition to the duty, interest on the unpaid duty at the rate of 15 per cent. per annum from the date of the failure until the day on which the duty is paid.

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

94 Stamp duty on certain statements of interest.

94.—(1) (a) In this section—

“corporation tax” means the tax charged by the Corporation Tax Acts;

“Corporation Tax Acts” has the meaning given to it by section 155(1) of the Corporation Tax Act, 1976;

“relevant interest” means any interest or other distribution which—

(i) is received by a company (hereinafter in this section referred to as “the lender”) which is within the charge to corporation tax, and

(ii) is payable out of the assets of another company (hereinafter in this subsection referred to as “the borrower”) which is resident in the State for the purposes of corporation tax, in respect of a security of the borrower which is a security falling within subparagraph (ii), (iii) (I) or (v) of section 84 (2) (d) of the Corporation Tax Act, 1976, and

(iii) is a distribution for the purposes of the Corporation Tax Acts;

“relevant period” means the period beginning on the 30th day of January, 1986, and ending on the 31st day of July, 1986, the period of six months ending on the 31st day of January, 1987, or any subsequent period of six months ending on the 31st day of January or the 31st day of July.

(b) For the purposes of this section, any amount which, in a relevant period, is debited to a borrower's account with a lender in respect of relevant interest shall be treated as an amount received by the lender in that relevant period.

(2) A lender shall, within 30 days from the end of each relevant period, deliver to the Revenue Commissioners a statement in writing showing the amount of the relevant interest for that lender in respect of that relevant period.

(3) There shall be charged on every statement delivered in pursuance of subsection (2) a stamp duty of an amount equal to 12 per cent. of the amount of the relevant interest shown therein:

Provided that, in a case where the amount of the relevant interest received by a lender in respect of a security referred to in subsection (1) is an amount which is less than what would have been received by that lender had the security yielded simple interest at the rate of 6 per cent. per annum throughout the period for which the relevant interest was payable, the stamp duty charged on the statement on the amount of the relevant interest for that security shall be an amount equal to 8 per cent. of the amount received.

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

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

(6) In the case of failure by a lender to deliver any statement required by subsection (2) within the time specified in that subsection or of failure by a lender to pay any duty chargeable on any such statement on the delivery thereof, the lender shall be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 2.5 per cent. for each month or part of a month from the expiration of the relevant period to which the statement relates until the date on which the duty is paid.

(9) The Imposition of Duties (No. 282) (Stamp Duty on Certain Statements of Interest) Order, 1986 (S.I. No. 27 of 1986), is hereby revoked.

95 Stamp duty on letters of renunciation.

95.—(1) In this section—

“share” includes stock;

“unquoted company” means a company none of whose shares, stocks or debentures are listed in the official list of a recognised stock exchange or dealt in on an unlisted securities market recognised by such a stock exchange.

(2) Notwithstanding the provisions of section 23 of the Finance Act, 1964, any instrument which releases or renounces or has the effect of releasing or renouncing a right under a letter of allotment, or under any other document having the effect of a letter of allotment, to any share in an unquoted company shall be chargeable to stamp duty as if it were a release or renunciation of property consisting of stocks or marketable securities by reference to the Heading “RELEASE or RENUNCIATION of any property, or of any right or interest in any property” in the First Schedule (inserted by the Finance Act, 1970) to the Stamp Act, 1891, and that Schedule shall be construed accordingly.

(3) The Imposition of Duties (No. 278) (Stamp Duty on Letters of Renunciation) Order, 1985 (S.I. No. 152 of 1985), is hereby revoked.

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

96 Stamp duty on certain instruments.

96.—(1) Where, in connection with, or in contemplation of, a sale of property, the vendor enters into—

(a) an agreement for the grant of a lease of the property for a term exceeding 35 years, or

(b) an agreement (other than a contract for the sale of the property) under which the vendor grants any other rights in relation to the property,

any conveyance or transfer, subject to the agreement, of the property by the vendor shall be charged to stamp duty as a conveyance or transfer on sale of the property for a consideration equal to the value of the property and the value shall be determined without regard to the agreement.

(2) A declaration by deed under section 65 (2) of the Conveyancing Act, 1881, to the effect that, from and after the execution of the deed, a term subsisting in land shall be enlarged, shall, where the term was created by an instrument executed within 6 years of the date of the execution of the deed, be charged to stamp duty as a conveyance or transfer on sale of that land for a consideration equal to the value of the land and that value shall be determined without regard to the said term or any part thereof.

(3) The provisions of section 50 of the Finance Act, 1979, shall not apply to a deed which is chargeable to stamp duty under subsection (2).

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

97 Stamp duty on conveyances and transfers on sale of stocks and marketable securities.

97.—(1) Section 83 of the Finance Act, 1974, shall cease to have effect and, in lieu thereof, in the case of a conveyance or transfer on sale of any stocks or marketable securities, such stamp duty shall be chargeable as would have been chargeable if that section had not been enacted.

(2) The Imposition of Duties (No. 276) (Stamp Duties on Conveyances and Transfers on Sale of Stocks and Marketable Securities) Order, 1985 (S.I. No. 146 of 1985), is hereby revoked.

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

98 Repayment of stamp duty on certain instruments.

98.—(1) In this section—

(a) “the First Schedule” means the First Schedule, as amended by the Finance Act, 1970, and subsequent enactments, to the Stamp Act, 1891;

(b) the terms “approved scheme”, “participant”, “the release date” and “shares” have the meanings respectively assigned to them by section 50 of the Finance Act, 1982.

(2) Where, in relation to an instrument, it is shown to the satisfaction of the Revenue Commissioners that the instrument gives effect, on or after the release date, to the transfer of shares by, or on behalf of, a person who is, or had become, entitled to those shares as a participant in an approved scheme, the Revenue Commissioners shall repay such an amount of the stamp duty as was paid, by reference to the heading “CONVEYANCE OR TRANSFER on sale of any stocks or marketable securities” in the First Schedule, on the instrument in respect of those shares.

99 Amendment of First Schedule to Stamp Act, 1891.

99.—(1) The First Schedule (as amended by the Finance Act, 1970, and subsequent enactments) to the Stamp Act, 1891, is hereby amended by the substitution for the heading

“SURRENDER, not being an instrument chargeable with duty as a conveyance on sale or a mortgage................... £5”

of the heading

“SURRENDER of any property, or of any right or interest in any property—

Upon a sale. See CONVEYANCE ON SALE.

By way of security. See MORTGAGE, etc.

In any other case....................................... £5”.

(2) An instrument bearing witness to, or acknowledging—

(a) the surrender, by parol or otherwise, of a leasehold interest in immovable property, or

(b) the merger of such an interest in a superior interest,

shall be charged to the same stamp duty as if it were a surrender of that leasehold interest.

(3) The Imposition of Duties (No. 277) (Stamp Duty on Certain Instruments) Order, 1985 (S.I. No. 151 of 1985), is hereby revoked.

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

100 Amendment of section 1 of Provisional Collection of Taxes Act, 1927.

100.—Section 1 of the Provisional Collection of Taxes Act, 1927, is hereby amended by the insertion of “and stamp duties” before “but no other tax or duty”.

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

101.—(1) Section 93 of the Finance Act, 1982, is hereby amended by the substitution of the following subsection for subsection (5):

“(5) This section shall have effect with respect to any instrument executed after the date of the passing of this Act and before the 30th day of September, 1986.”.

(2) The said section 93 is hereby further amended—

(a) in subsection (4) (a), by the substitution of “30 years” for “35 years”, and

(b) in subsection (4) (b) (i) (I), by the substitution of “150 hours” for “100 hours”, and

the said section 93, as amended by paragraphs (a) and (b), shall have effect with respect to any instrument executed after the 1st day of October, 1986, and before the expiration of one year from that date.

PART V Capital Acquisitions Tax

Chapter I Discretionary Trusts

102 Interpretation (Part V).

102.—In this Part—

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

“chargeable date”, in relation to any year, means the 5th day of April in that year;

“chargeable discretionary trust” means a discretionary trust in relation to which—

(a) the disponer is dead, and

(b) none of the principal objects of the trust, if any, is under the age of 25 years;

“object” and “principal objects”, in relation to a discretionary trust, have the meanings respectively assigned to them by section 104 of the Finance Act, 1984.

103 Annual acquisitions by discretionary trusts.

103.—(1) Where, in any year commencing with the year 1986, under or in consequence of any disposition, property is subject to a chargeable discretionary trust on the chargeable date, the trust shall be deemed on each such date to become beneficially entitled in possession to an absolute interest in that property, and to take on each such date 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 each such chargeable date shall be the date of such inheritance.

(2) (a) Where—

(i) under or in consequence of any disposition, property was subject to a discretionary trust prior to a chargeable date,

(ii) that property is not on that chargeable date subject to that discretionary trust (being on that date a chargeable discretionary trust) because such property is on that date property to which for the time being a person is beneficially entitled for an interest in possession, and

(iii) on that chargeable date that property is property which is limited to become subject again to that chargeable discretionary trust, or will do so by the exercise of a power of revocation,

that property shall be deemed to be subject to that chargeable discretionary trust on that chargeable date if that interest in possession is an interest which is revocable or which is limited to cease on an event other than—

(I) the death of that person, or

(II) the expiration of a specified period, where that interest is taken by that person under a power of appointment contained in that disposition and is, at the time of the appointment thereof, an interest for a period certain of five years or more.

(b) In this subsection, “property” includes property representing such property.

(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) This section shall not apply or have effect in relation to property which is subject to a chargeable discretionary trust on a chargeable date if that property or property representing that property is subject to a charge for tax arising under or in consequence of the same disposition by reason of the provisions of section 106 of the Finance Act, 1984, on that same date or within the year prior to that date.

104 Application of Principal Act.

104.—In relation to a charge for tax arising by reason of the provisions of section 103—

(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) (i) subject to the provisions of subparagraph (ii), the valuation date of the taxable inheritance shall be the relevant chargeable date;

(ii) where—

(I) a charge for tax arises on a particular date by reason of the provisions of section 106 of the Finance Act, 1984, giving rise to a taxable inheritance (in this subparagraph called the first taxable inheritance),

(II) on a later date, a charge for tax arises under or in consequence of the same disposition by reason of the provisions of section 103 giving rise to a taxable inheritance (in this subparagraph called the second taxable inheritance) comprising the same property or property representing that property, and

(III) the valuation date of the first taxable inheritance is a date after the chargeable date of the second taxable inheritance,

the valuation date of the second taxable inheritance shall be the same date as the valuation date of the first taxable inheritance;

(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—

(i) 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;

(ii) notwithstanding the provisions of the Principal Act, make an assessment of such amount of tax as, to the best of his knowledge, information and belief, ought to be charged, levied and paid on that valuation date; and

(iii) pay the amount of such tax to the Accountant-General of the Commissioners;

(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 21, subsection (1) of section 35, subsections (2), (3), (4) and (5) of section 36 and sections 40, 43, 45 and 57 of, and the Second Schedule to, the Principal Act shall not apply.

105 Exemptions.

105.—Section 103 shall not apply or have effect in relation to a discretionary trust referred to in section 108 of the Finance Act, 1984, or in respect of the property or the inheritance referred to in section 65 of the Finance Act, 1985.

106 Computation of tax.

106.—The tax chargeable on the taxable value of a taxable inheritance which is charged to tax by reason of the provisions of section 103 shall be computed at the rate of one per cent. of such taxable value.

107 Values agreed.

107.—(1) Where—

(a) under or in consequence of any disposition, a charge for tax arises by reason of the provisions of section 103 on a chargeable date (in this section called the first chargeable date),

(b) an accountable person has furnished all the information necessary to enable the Commissioners to ascertain the market value of—

(i) real property, or

(ii) shares which are not dealt in on a stock exchange,

comprised in the taxable inheritance so taken on the valuation date of that taxable inheritance,

(c) pursuant to an application in writing to the Commissioners on that behalf, the market value of such property on that valuation date is agreed on between that person and the Commissioners,

(d) under or in consequence of the same disposition, a charge for tax arises by reason of the provisions of section 103 on either or both of the two chargeable dates in the years next following the year in which the first chargeable date occurs (in this section called the subsequent chargeable dates), and

(e) the same property at subparagraph (i) or (ii) of paragraph (b) is comprised in the taxable inheritances so taken on the subsequent chargeable dates,

the value so agreed on shall be treated for the purposes of this Part as the market value of such property on that valuation date and on the valuation dates of the taxable inheritances so taken on the subsequent chargeable dates.

(2) Notwithstanding the provisions of subsection (1), the market value so agreed shall not be binding—

(a) in any case where there is failure to disclose material facts in relation to any part of the property comprised in the taxable inheritances taken on the first chargeable date or on the subsequent chargeable dates, or

(b) where, at any time after the first chargeable date and before the third of those chargeable dates—

(i) in the case of real property, there is any alteration in the tenure under which the property is held or let, or

(ii) in the case of shares, there is any alteration in the capital or the ownership of the capital of the company concerned or of the rights of the shareholders interse, or

(i) in the case of real property, there is any change whatever, whether affecting that or any other property, which would materially increase or decrease the market value over and above any increase or decrease which might normally be expected if such a change had not occurred, or

(ii) in the case of shares, there has been any material change in the assets of the company or in their market value over and above any such change which might normally be expected,

and in such cases the market value of the real property, or of the shares, may be ascertained again by the Commissioners for each of the relevant valuation dates:

Provided that, in the case of any change referred to in paragraph (c), the market value may be ascertained again by the Commissioners only at the request of the person primarily accountable for the payment of the tax arising by reason of the provisions of section 103 on that relevant valuation date.

(3) Any agreement made under this section shall be binding only on the persons who as such are accountable for the payment of the tax arising by reason of the provisions of section 103 on the first chargeable date and on the subsequent chargeable dates.

108 Penalty.

108.—Any person who contravenes or fails to comply with any requirement under paragraph (e) of section 104 shall be liable to a penalty of—

(a) £1,000, or

(b) twice the amount of tax payable in respect of the taxable inheritance to which the return relates,

whichever is the lesser.

Chapter II General

109 Amendment of section 46 (overpayment of tax) of Principal Act.

109.—(1) Section 46 of the Principal Act is hereby amended—

(a) by the substitution of “at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month from the date on which the payment was made, and income tax shall not be deductible on payment of interest under this section and such interest shall not be reckoned in computing income for the purposes of the Tax Acts” for “, without deduction of income tax, from the date on which the payment was made, at the same rate as that at which the tax would from time to time have carried interest if it were due and such payment had not been made”, and

(b) by the insertion of the following subsection:

“(2) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”,

and the said section 46, as so amended, is set out in the Table to this subsection.

TABLE

46.—(1) Where, on application to the Commissioners for relief under this section, it is proved to their satisfaction that an amount has been paid in excess of the liability for tax or for interest on tax, they shall give relief by way of repayment of the excess or otherwise as is reasonable and just; and any such repayment shall carry simple interest (not exceeding the amount of such excess) at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month from the date on which the payment was made, and income tax shall not be deductible on payment of interest under this section and such interest shall not be reckoned in computing income for the purposes of the Tax Acts.

(2) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(2) This section shall apply and have effect in relation to interest payable under the said section 46 for any month, or any part of a month, commencing on or after the date of the passing of this Act.

110 Amendment of section 61 (payment of money standing in names of two or more persons) of Principal Act.

110.—Section 61 of the Principal Act is hereby amended by the insertion after subsection (7) of the following subsection:

“(8) This section shall not apply or have effect where the sum of money referred to in subsection (1) is lodged or deposited in the joint names of two persons, one of whom dies on or after the 30th day of January, 1985, and is at the time of his death the spouse of that other person.”.

PART VI Miscellaneous

111 Capital Services Redemption Account.

111.—(1) In this section—

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

“the 1985 amending section” means section 66 of the Finance Act, 1985;

“the thirty-sixth additional annuity” means the sum charged on the Central Fund under subsection (4);

“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, 1986, subsection (4) of the 1985 amending section shall have effect with the substitution of “£38,647,426” for “£40,369,034”.

(3) Subsection (6) of the 1985 amending section shall have effect with the substitution of “£29,258,176” for “£31,028,550”.

(4) A sum of £41,472,176 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, 1986.

(5) The thirty-sixth 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-sixth additional annuity, not exceeding £31,876,450 in any financial year, may be applied towards defraying the interest on the public debt.

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

112 Application of Age of Majority Act, 1985.

112.—(1) Notwithstanding the provisions of subsection (4) of section 2 of the Age of Majority Act, 1985, subsections (2) and (3) of the said section 2 shall, subject to subsection (2), apply and have effect for the purposes of the Income Tax Acts and any other statutory provision (within the meaning of the said Act) dealing with the imposition, repeal, remission, alteration or regulation of any tax or other duty under the care and management of the Revenue Commissioners and accordingly subparagraph (vii) of paragraph (b) of the said subsection (4) shall cease to have effect.

(2) Nothing in subsection (1) shall affect a claimant's entitlement to a deduction under section 138A (inserted by the Finance Act, 1985) or section 141 (inserted by this Act) of the Income Tax Act, 1967.

(3) This section shall be deemed to have come into force and shall take effect as on and from the 6th day of April, 1986, and so far as it relates to gift tax or inheritance tax shall have effect in relation to gifts and inheritances taken on or after that date.

113 Use of electronic data processing.

113.—(1) In this section—

“the Acts” means—

(a) the Tax Acts,

(b) the Capital Gains Tax Acts,

(d) the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act, and

(e) Part VI of the Finance Act, 1983,

and any instruments made thereunder;

“records” means documents which a person is obliged by any provision of the Acts to keep, to issue or to produce for inspection, and any other written or printed material;

“tax” means income tax, corporation tax, capital gains tax, value-added tax or residential property tax, as the case may be.

(2) Subject to the agreement of the Revenue Commissioners, records may be stored, maintained, transmitted, reproduced or communicated, as the case may be, by any electronic, photographic or other process approved of by the Revenue Commissioners, and in circumstances where the use of such process has been agreed by them and subject to such conditions as they may impose.

(3) Where, in pursuance of subsection (2), records are preserved by electronic, photographic or other process, a statement contained in a document produced by any such process shall, subject to the rules of court, be admissible in evidence in any proceedings, whether civil or criminal, to the same extent as the records themselves.

(4) Notwithstanding anything in the Tax Acts, duplicates of assessments need not be made, transmitted or delivered.

(5) The entering by an inspector or other authorised officer of details of an assessment and the tax charged therein in an electronic, photographic or other record from which the Collector-General may extract such details by electronic, photographic or other process shall constitute transmission of such details by the inspector or other authorised officer to the Collector-General.

(6) In any proceedings in the Circuit Court, the District Court or the High Court for or in relation to the recovery of any tax, a certificate signed by the Collector-General or other authorised officer certifying that, before the institution of proceedings, a stated sum of tax as so transmitted became due and payable by the defendant—

(a) (i) under an assessment which had become final and conclusive,

(ii) under the provisions of section 429 (4) (inserted by the Finance Act, 1971) of the Income Tax Act, 1967, or

(iii) under the provisions relating to the specified amount of tax within the meaning of section 30 of the Finance Act, 1976,

and

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

shall be prima facie evidence, until the contrary has been proved, of those facts and a certificate certifying as aforesaid and purporting to be signed by the Collector-General or other authorised officer may be tendered in evidence without proof and shall be deemed, until the contrary is proved, to have been signed by the Collector-General or other authorised officer.

114 Amendment of provisions relating to payment of interest on tax overpaid.

114.—(1) Section 429 of the Income Tax Act, 1967, is hereby amended—

(a) by the substitution, in paragraph (a) of the proviso to subsection (4), of “at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month” for “at the rate provided by section 550(1)”, and

(b) by the insertion of the following subsection after subsection (6):

‘(7) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”,

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

TABLE

(a) if too much tax has been paid, the amount or amounts overpaid shall, save where the interest amounts to less than £1, be repaid with interest at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month from the date or dates of payment of the amount or amounts giving rise to the overpayment to the date on which the repayment is made; or

(2) Section 30 of the Finance Act, 1976, is hereby amended—

(a) by the substitution, in subsection (4), of “at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month” for “at the rate or rates in force by virtue of section 550 (1) of the Income Tax Act, 1967,”, and

(b) by the insertion of the following subsection after subsection (8):

“(9) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”,

and the said subsection (4) (apart from the proviso thereto), as so amended, is set out in the Table to this subsection.

TABLE

(4) Where an overpayment of tax is to be repaid under subsection (3), the overpayment shall carry interest at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, for each month or part of a month for the period from the date or dates of the payment of the amount or amounts giving rise to the overpayment, as the case may require, to the date on which the repayment is made:

(3) Section 107 of the Finance Act, 1983, is hereby amended—

(a) by the substitution, in subsection (2), of “at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations,” for “at the rate of 1.25 per cent.”, and

(b) by the insertion of the following subsection after subsection (2):

“(3) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”,

and the said subsection (2), as so amended, is set out in the Table to this subsection.

TABLE

(2) Where, under this section, any amount falls to be repaid or retained, there shall be added to such amount simple interest at the rate of one per cent., or such other rate (if any) as stands prescribed by the Minister for Finance by regulations, of the amount to be repaid or retained for each month or part of a month from the date of the payment of the excess giving rise to the repayment to the date of the repayment or retention as the case may be. Income tax shall not be deductible on payment of interest under this subsection and such interest shall not be reckoned in computing income for the purposes of the Tax Acts.

(4) This section shall apply and have effect in relation to interest payable under the said paragraph (a) and the said subsections (4) and (2) for any month, or any part of a month, commencing on or after the date of the passing of this Act.

115 Liability to tax, etc., of holder of fixed charge on book debts of company.

115.—(1) Where a person holds a fixed charge (being a fixed charge which is created on or after the passing of this Act) on the book debts of a company (within the meaning of the Companies Act, 1963) and the company fails to pay any relevant amount for which it is liable, then the said person shall, on being notified accordingly in writing by the Revenue Commissioners, become liable to pay such relevant amount on due demand, and on neglect or refusal of payment may be proceeded against in like manner as any other defaulter:

Provided that—

(i) the amount or aggregate amount which the person shall be liable to pay in relation to a company in accordance with this section shall not exceed the amount or aggregate amount which that person has, while the fixed charge on book debts in relation to the said company is in existence, received, directly or indirectly, from that company in payment or in part payment of any debts due by the company to that person, and

(ii) this section shall not apply to any amounts received by the holder of the fixed charge from the company before the date on which he is notified in writing by the Revenue Commissioners that he is liable by reason of this section for payment of a relevant amount due by the company.

(2) In this section “relevant amount” means any amount which the company is liable to remit—

(a) under Chapter IV of Part V of the Income Tax Act, 1967, and

(b) under the Value-Added Tax Act, 1972.

116 Amendment of section 161 (inspectors of taxes) of Income Tax Act, 1967.

116.—(1) The Income Tax Act, 1967, is hereby amended by the substitution of the following section for section 161:

“161.—(1) The Revenue Commissioners may appoint inspectors of taxes, and all such inspectors and all other officers or persons employed in the execution of this Act shall observe and follow the orders, instructions and directions of the Revenue Commissioners.

(2) The Revenue Commissioners may revoke an appointment made by them under this section.”.

(2) Inspectors of taxes who have been appointed by the Minister for Finance before the passing of this Act shall be deemed to have been appointed by the Revenue Commissioners.

117 Care and management of taxes and duties.

117.—All taxes and duties (except the excise duties on mechanically propelled vehicles imposed by section 77) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

118 Short title, construction and commencement.

118.—(1) This Act may be cited as the Finance Act, 1986.

(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 1985, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1986.

(5) Part IV shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts.

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

(7) Part VI (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 and (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 and (so far as relating to value-added tax) shall be construed together with the Value-Added Tax Acts, 1972 to 1986, and (so far as relating to stamp duties) shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act and (so far as relating to gift tax or inheritance tax) shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act and (so far as relating to residential property tax) shall be construed together with Part VI of the Finance Act, 1983.

(8) 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, 1986.

(9) In Part III, sections 79, 83 (a) and 85 shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1986, and sections 83 (b) and 89 to 91 (other than paragraph (a) of section 91) shall come into force on the 1st day of July, 1986.

(10) 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.

(11) 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.

(12) 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 Amendment of Enactments

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 “£4,000” for “£3,800” (inserted by the Finance Act, 1985),

(ii) in paragraph (b), by the substitution of “£2,500” for “£2,400” (inserted by the Finance Act, 1985) and of “£4,000” for “£3,800” (inserted by the Finance Act, 1985),

and

(iii) in paragraph (c), by the substitution of “£2,000” for “£1,900” (inserted by the Finance Act, 1985),

(b) in section 138A (2) (inserted by the Finance Act, 1985), by the substitution of “£1,500” for “£1,400” and of “£2,000” for “£1,900”,

and

(c) in section 138B (1), by the substitution of “£700” for “£600” (inserted by the Finance Act, 1981) in each place where it occurs.

Section 8 of the Finance Act, 1974, is hereby amended, in subsection (1), by the substitution of “£400” for “£200” (inserted by the Finance Act, 1982) and of “£200” for “£100” (inserted by the Finance Act, 1982).

Interpretation

1.—(1) In this Schedule—

“associated company” has the same meaning as in section 102 of the Corporation Tax Act, 1976;

“control” has the same meaning as in section 158 of the Corporation Tax Act, 1976;

“full-time director” has the same meaning as in section 8 of the Finance Act, 1978;

“grantor” has the meaning given by paragraph 2 (1);

“group scheme” and, in relation to such a scheme, “participating company” have the meanings given by paragraph 2;

“market value” shall be construed in accordance with section 49 of the Capital Gains Tax Act, 1975;

“qualifying employee” in relation to a company, means an employee of the company (other than one who is a director of the company or, in the case of a group scheme, of a participating company) who is required, under the terms of his employment, to work for the company for at least twenty hours a week;

“scheme shares” has the meaning given by paragraph 6; and

“shares” includes stock.

(2) Subsection (3) of section 103 of the Corporation Tax Act, 1976, shall have effect in a case where the scheme is a group scheme, with the substitution of a reference to all the participating companies for the first reference to the company in paragraph (ii) of the proviso to that subsection.

(3) Section 157 of the Corporation Tax Act, 1976, shall apply for the purposes of this Schedule.

(4) For the purposes of this Schedule a company is a member of a consortium owning another company if it is one of a number of companies which between them beneficially own not less than three-quarters of the other company's ordinary share capital and each of which beneficially owns not less than one-twentieth of that capital.

Approval of schemes

2.—(1) On the application of a body corporate (in this Schedule referred to as “the grantor”) which has established a share option scheme, the Revenue Commissioners shall approve the scheme if they are satisfied that it fulfils the requirements of this Schedule, but shall not approve it if it appears to them that there are features of the scheme which are neither essential nor reasonably incidental to the purpose of providing for employees and directors benefits in the nature of rights to acquire shares.

(2) An application under subparagraph (1) shall be made in writing and contain such particulars and be supported by such evidence as the Revenue Commissioners may require.

(3) Where the grantor has control of another company or companies, the scheme may be expressed to extend to all or any of the companies of which it has control and in this Schedule a scheme which is expressed so to extend is referred to as a “group scheme”.

(4) In relation to a group scheme “participating company” means the grantor or any other company to which for the time being the scheme is expressed to extend.

3.—(1) If, at any time after the Revenue Commissioners have approved a scheme, any of the requirements of this Schedule cease to be satisfied or the grantor fails to provide information requested by the Revenue Commissioners under paragraph 14, the Revenue Commissioners may withdraw the approval with effect from that time or such later time as the Revenue Commissioners may specify.

(2) If an alteration is made in the scheme at any time after the Revenue Commissioners have approved the scheme, the approval shall not have effect after the date of the alteration unless the Revenue Commissioners have approved the alteration.

If the grantor is aggrieved by—

(a) the failure of the Revenue Commissioners to approve the scheme or to approve an alteration in the scheme, or

(b) the withdrawal of approval,

it may, by notice in writing given to the Revenue Commissioners within thirty days from the date on which it is notified of the Revenue Commissioners’ decision, require the matter to be determined by the Appeal Commissioners, and the Appeal Commissioners shall hear and determine the matter in like manner as an appeal made to them against an assessment and all the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.

Eligibility

5.—(1) The scheme shall not provide for any person to be eligible to participate in it, that is to say, to obtain and exercise rights under it—

(a) unless he is a full-time director or a qualifying employee of the grantor or, in the case of a group scheme, of a participating company;

(b) at any time when he has, or has within the preceding twelve months had, a material interest in a close company within the meaning of Part X of the Corporation Tax Act, 1976, which is—

(i) a company the shares of which may be acquired pursuant to the exercise of rights obtained under the scheme; or

(ii) a company which has control of such a company or is a member of a consortium which owns such a company.

(2) Notwithstanding subparagraph (1) (a) the scheme may provide that a person may exercise rights obtained under it despite having ceased to be a full-time director or a qualifying employee.

(3) In determining whether a company is a close company for the purposes of subparagraph (1), sections 94 (1) (a) and 95 of the Corporation Tax Act, 1976, shall be disregarded.

(4) In determining for the purposes of this paragraph whether a person has or has had a material interest in a company, subsection (6) of section 97 of the Corporation Tax Act, 1976, and paragraph (ii) of the proviso to section 103 (3) of that Act shall have effect with the substitution for the references in those provisions to 5 per cent. of references to 10 per cent.

Scheme shares

The scheme shall provide for directors and employees to obtain rights to acquire shares (in this Schedule referred to as “scheme shares”) which satisfy the requirements of paragraphs 7 to 11.

Scheme shares shall from part of the ordinary share capital of—

(a) the grantor; or

(b) a company which has control of the grantor; or

(i) is a member of a consortium owning either the grantor or a company having control of the grantor; and

(ii) beneficially owns not less than three-twentieths of the ordinary share capital of the company so owned.

Scheme shares shall be—

(a) shares of a class quoted on a stock exchange; or

(b) shares in a company which is not under the control of another company; or

(c) shares in a company which is under the control of a company (other than a company which is, or would if resident in the State be, a close company within the meaning of section 94 of the Corporation Tax Act, 1976) whose shares are quoted on a stock exchange.

Scheme shares shall be—

(a) fully paid up;

(b) not redeemable; and

10.—(1) In determining for the purposes of paragraph 9 (c) whether scheme shares which are or are to be acquired by any person are subject to any restrictions, there shall be regarded as a restriction attaching to the shares any contract, agreement, arrangement or condition by which his freedom to dispose of the shares or of any interest in them or of the proceeds of their sale or to exercise any right conferred by them is restricted or by which such a disposal or exercise may result in any disadvantage to him or to a person connected with him.

(2) Subparagraph (1) does not apply to so much of any contract, agreement, arrangement or condition as contains provisions similar in purpose and effect to any of the provisions of the Model Rules set out in the Model Code for Securities Transactions by Directors of Listed Companies issued by the authority of the Council of the Stock Exchange in November, 1984.

11.—Except where scheme shares are in a company whose ordinary share capital consists of shares of one class only, the majority of the issued shares of the same class shall be held by person other than—

(a) persons who acquired their shares in pursuance of a right conferred on them or an opportunity afforded to them as a director or employee of the grantor or any other company and not in pursuance of an offer to the public;

(b) trustees holding shares on behalf of persons who acquired their beneficial interests in the shares as mentioned in paragraph (a); and

(c) in a case where the shares fall within paragraph 8 (c) and do not fall within paragraph 8 (a), companies which have control of the company whose shares are in question or of which that company is an associated company.

Transfer of rights

12.— The scheme shall not permit any person obtaining rights under it to transfer any of them but may provide that if such a person dies before exercising them, they may be exercised after, but not later than one year after, the date of his death.

Share price

13.— The price at which scheme shares may be acquired by the exercise of a right obtained under the scheme shall be stated at the time the right is obtained and shall not be less than the market value of shares of the same class at that time or, if the Revenue Commissioners and the grantor agree in writing, at such earlier time or times as may be provided in the agreement, but the scheme—

(a) may provide for such variation of the price so stated as may be necessary to take account of any variation in the share capital of which the scheme shares form part, and

(b) shall provide that, if it subsequently transpires that the price so stated is less than the market value of the shares of the same class at that time, the said price shall be increased to that market value.

Information

14.— The Revenue Commissioners may by notice in writing require any person to furnish them, within such time as the Revenue Commissioners may direct (not being less than thirty days), with such information as the Revenue Commissioners think necessary for the performance of their functions under this Schedule, and as the person to whom the notice is addressed has or can reasonably obtain, including in particular information—

(a) to enable the Revenue Commissioners to determine—

(i) whether to approve a scheme or withdraw an approval already given; or

(ii) the liability to tax, including capital gains tax, of any person who has participated in a scheme; and

(b) in relation to the administration of a scheme and any alternation of the terms of a scheme.

THIRD SCHEDULE Tax Appropriate to the Profits or Gains from Farming

“Tax appropriate to the profits or gains from farming”, in relation to an individual who is chargeable to income tax for a year of assessment in respect of profits or gains from farming, means the amount of tax determined by the formula—

A ____ A B	C

where—

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Finance Act , 1986

68 Wine and made wine.

69 Table waters.

70 Cessation of certain allowances in respect of spirits, matches and nicotine and tobacco extract.

71 Application of section 76 (6) of Finance Act, 1984, to all premises which are not registered bookmaking offices.

72 Removal of prescribed marker, etc., from hydrocarbon oil.

73 Power to search premises in relation to hydrocarbon oil.

74 Termination of excise duties on tyres and tyre manufacturer's licence.

75 Reduction and termination of excise duty on motor vehicle parts and accessories.

76 Motor vehicles.

77 Excise duty on mechanically propelled vehicles.

78 Confirmation of Orders.

PART III Value-Added Tax

79 Interpretation (Part III).

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

81 Amendment of section 5 (rendering of services) of Principal Act.

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

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

84 Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

85 Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

86 Amendment of section 17 (invoices) of Principal Act.

87 Amendment of section 20 (refund of tax) of Principal Act.

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

89 Amendment of First Schedule to Principal Act.

90 Amendment of Second Schedule to Principal Act.

91 Amendment of Sixth Schedule to Principal Act.

PART IV Stamp Duties

92 Levy on banks.

93 Levy on certain investment income.

94 Stamp duty on certain statements of interest.

95 Stamp duty on letters of renunciation.

96 Stamp duty on certain instruments.

97 Stamp duty on conveyances and transfers on sale of stocks and marketable securities.

98 Repayment of stamp duty on certain instruments.

99 Amendment of First Schedule to Stamp Act, 1891.

100 Amendment of section 1 of Provisional Collection of Taxes Act, 1927.

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

PART V Capital Acquisitions Tax

Chapter I Discretionary Trusts

102 Interpretation (Part V).

103 Annual acquisitions by discretionary trusts.

104 Application of Principal Act.

105 Exemptions.

106 Computation of tax.

107 Values agreed.

108 Penalty.

Chapter II General

109 Amendment of section 46 (overpayment of tax) of Principal Act.

110 Amendment of section 61 (payment of money standing in names of two or more persons) of Principal Act.

PART VI Miscellaneous

111 Capital Services Redemption Account.

112 Application of Age of Majority Act, 1985.

113 Use of electronic data processing.

114 Amendment of provisions relating to payment of interest on tax overpaid.

115 Liability to tax, etc., of holder of fixed charge on book debts of company.

116 Amendment of section 161 (inspectors of taxes) of Income Tax Act, 1967.

117 Care and management of taxes and duties.

118 Short title, construction and commencement.

FIRST SCHEDULE Amendment of Enactments

SECOND SCHEDULE Approved Share Option Schemes

THIRD SCHEDULE Tax Appropriate to the Profits or Gains from Farming