Finance Act , 1987

(ii) entertainment expenses incurred by the taxable person, his agents or his employees,

(iii) the acquisition (including hiring) of motor vehicles otherwise than as stock-in-trade or for the purposes of a business which consists in whole or part of the hiring of motor vehicles or for use, in a driving school business, for giving driving instruction, or

(iv) the purchase of petrol otherwise than as stock-in-trade.,

and

(c) by the substitution of the following subsection for subsection (4):

“(4) Where goods or services (not being goods or services on the acquisition of which a deduction of tax shall not, in accordance with subsection (3), be made) are used by a taxable person for the purposes of supplies or activities in relation to which tax is deductible in accordance with this section and also for the purposes of other supplies or activities, such proportion only of tax shall be deductible as is attributable to those first-mentioned supplies or activities and the said proportion shall be determined in accordance with regulations.”.

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

42.—Section 12A (inserted by the Act of 1978) of the Principal Act is hereby amended by the substitution in subsection (1) of “1.7 per cent.” for “2.4 per cent.” (inserted by the Act of 1986).

43 Amendment of section 13 (remission of tax on goods exported, etc.) of Principal Act.

43.—Section 13 (inserted by the Act of 1978) of the Principal Act is hereby amended by the insertion in subsection (3) (c) after “within the State”, where that secondly occurs, of “or in respect of means of transport for hiring out for utilisation within the State”.

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

44.—Section 32 of the Principal Act is hereby amended by the insertion in subsection (2A) (inserted by the Act of 1978) after “section 5 (7),”, of “subsection 1 (a) (vi) of section 12,”.

45 Amendment of First Schedule to Principal Act.

45.—The First Schedule (inserted by the Act of 1978) to the Principal Act is hereby amended—

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

“(i) Financial services consisting of—

(a) the issue, transfer or receipt of, or any dealing in, stocks, shares, debentures and other securities, other than documents establishing title to goods,

(b) the arranging for, or the underwriting of, an issue specified in subparagraph (a),

(c) the operation of any current, deposit or savings account,

(d) the issue, transfer or receipt of, or any dealing in, currency, bank notes and metal coins, in use as legal tender in any country, excluding such bank notes and coins when supplied as investment goods or as collectors' pieces,

(e) lending money or affording credit otherwise than by means of hire-purchase or credit-sale transactions,

(f) the granting of, or any dealing in, credit guarantees or any other security for money and the management of credit guarantees by the person who granted the credit,

(g) the management of a unit trust scheme which is—

(I) registered under the Unit Trusts Act, 1972,

(II) administered by the holder of an authorisation granted pursuant to the European Communities (Life Assurance) Regulations (S.I. No. 57 of 1984), or by a person who is deemed, pursuant to Article 6 of those Regulations, to be such a holder, the criteria in relation to which are the criteria specified, in relation to an arrangement administered by the holder of a licence under the Insurance Act, 1936, in section 7 (4) of the Unit Trusts Act, 1972,

(III) established solely for the purposes of superannuation fund schemes or charities, or

(IV) determined by the Minister for Finance to be a unit trust scheme to which the provisions of this subparagraph apply;

(h) services supplied to a person under arrangements which provide for the reimbursement of the person in respect of the supply by him of goods or services in accordance with a credit card, charge card or similar card scheme;”,

(b) in paragraph (ix) by—

(i) the deletion in subparagraph (a) of “and”,

(ii) the substitution of the following subparagraphs for subparagraphs (c), (d) and (e):

“(c) insurance services, and

(d) services specified in paragraph (i),”,

and

(iii) the insertion after subparagraph (d) (inserted by this Act) of the following:

“excluding management and safekeeping services in regard to the services specified in paragraph (i) (a), not being services specified in paragraph (i) (g);”,

and the said paragraph, as so amended, is set out in the Table to this paragraph,

TABLE

(ix) agency services in regard to—

(a) the arrangement of passenger transport or accommodation for persons,

(b) the collection of insurance premiums,

(c) insurance services, and

(d) services specified in paragraph (i),

excluding management and safekeeping services in regard to the services specified in paragraph (i) (a), not being services specified in paragraph (i) (g);,

(c) by the deletion in paragraph (xi) of “banking and”, and the said paragraph, as so amended, is set out in the Table to this paragraph,

TABLE

(xi) insurance services;,

and

(d) by the deletion of paragraphs (xia) (inserted by the Value-Added Tax (Exempted Activities) (No. 1) Order, 1985 (S.I. No. 430 of 1985)) and (xii).

46 Amendment of Second Schedule to Principal Act.

46.— The Second Schedule (inserted by the Finance Act, 1976) to the Principal Act is hereby amended by the deletion in subparagraph (d) (I) of paragraph (xii) (inserted by the Act of 1985) of “drained,”.

47 Amendment of Sixth Schedule to Principal Act.

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

(a) after paragraph (xif) (inserted by the Act of 1986) of the following paragraph:

“(xig) tour guide services;”

and

(b) after paragraph (xiic) (inserted by the Act of 1986) of the following paragraphs:

“(xiii) the supply to a person of photographic prints (other than goods produced by means of a photocopying process), slides or negatives, which have been produced from goods provided by that person;

(xiiia) goods being—

(a) photographic prints (other than goods produced by means of a photocopying process), mounted or unmounted, but unframed,

(b) slides and negatives, and

(c) cinematographic and video film,

which record particular persons, objects or events, supplied under an agreement to photograph those persons, objects or events;

(xiiib) the supply by a photographer of—

(a) negatives which have been produced from film exposed for the purposes of his business, and

(b) film which has been exposed for the purposes of his business;

(xiiic) photographic prints produced by means of a vending machine which incorporates a camera and developing and printing equipment;

(xiiid) services consisting of—

(a) the editing of photographic, cinematographic and video film, and

(b) microfilming;

(xiiie) agency services in regard to a supply specified in paragraph (xiii);

(xiiif) services consisting of the acceptance for disposal of waste material;

(xiiig) instruction in the driving of mechanically propelled road vehicles, not being education, training or retraining of the kinds specified in paragraph (ii) of the First Schedule;

(xiiih) admissions to exhibitions, of the kind normally held in museums and art galleries, of objects of historical, cultural, artistic or scientific interest;”.

PART IV Stamp Duties

48 Levy on banks.

48.—(1) In this section—

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

“bank” means a person who, on the 1st day of September, 1986, 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 15th day of January, 1986, the 19th day of February, 1986, the 31st day of March, 1986, the 16th day of April, 1986, the 21st day of May, 1986, the 30th day of June, 1986, the 16th day of July, 1986, the 20th day of August, 1986, the 30th day of September, 1986, the 15th day of October, 1986, the 19th day of November, 1986, and the 31st day of December, 1986;

“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 16th day of September, 1987, 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) 0.3 per cent. of that part of the assessable amount shown therein that does not exceed £100,000,000, and

(b) 0.305 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 0.3 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 wayof penalty, in addition to the duty, interest thereon at the rate of 15 per cent. per annum and also from the 16th day of September, 1987, 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.

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

49.—(1) Section 92 of the Finance Act, 1982, is hereby amended by the substitution in subsection (8) (inserted by the Finance Act, 1984) of “three per cent.” for “one and two-thirds per cent.”.

(2) The Imposition of Duties (No. 286) (Levy on Certain Premiums of Insurance) Order, 1987 (S.I. No. 88 of 1987), is hereby revoked.

PART V Capital Acquisitions Tax

50 Amendment of section 54 (provisions relating to charities, etc.) of Capital Acquisitions Tax Act, 1976.

50.—(1) Section 54 of the Capital Acquisitions Tax Act, 1976, is hereby amended by the substitution of the following subsection for subsection (2):

“(2) A gift or an inheritance which is taken for public or charitable purposes shall be exempt from tax, and shall not be taken into account in computing tax, to the extent that the Commissioners are satisfied that it has been, or will be, applied to purposes which, in accordance with the law of the State, are public or charitable.”.

(2) This section shall apply where the date of the gift or the date of the inheritance is on or after the date of the passing of this Act.

PART VI Miscellaneous

51 Capital Services Redemption Account.

51.—(1) In this section—

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

“the 1986 amending section” means section 111 of the Finance Act, 1986;

“the thirty-seventh 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,1987, subsection (4) of the 1986 amending section shall have effect with the substitution of “£42,934,622 ” for “£41,472,176”.

(3) Subsection (6) of the 1986 amending section shall have effect with the substitution of “£32,503,814 ” for “£31,876,450”.

(4) A sum of £45,510,049 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, 1987.

(5) The thirty-seventh 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-seventh additional annuity, not exceeding £34,980,050 in any financial year, may be applied towards defraying the interest on the public debt.

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

52 Amendment of section 162 (Collector-General) of Income Tax Act, 1967.

52.—Section 162 of the Income Tax Act, 1967, is hereby amended by the substitution, in subsection (3), of the following paragraphs for paragraphs (a) and (b):

“(a) The Revenue Commissioners may nominate persons to exercise on behalf of the Collector-General and at his direction any or all of the powers and functions conferred upon him by any of the provisions of the Tax Acts.

(b) Those powers and functions, as well as being exercisable by the Collector-General, shall also be exercisable on his behalf and at his direction by persons nominated under this subsection.”.

53 Amendment of section 21 (institution of proceedings for fines, etc.) of Inland Revenue Regulation Act, 1890.

53.—Section 21 of the Inland Revenue Regulation Act, 1890, is hereby amended by the substitution of the following subsection for subsection (1):

“(1) It shall not be lawful to commence proceedings against any person for the recovery of any fine, penalty, or forfeiture under any Act relating to Inland Revenue, or for the condemnation of any goods seized as forfeited under any such Act, except in the name of an officer or in the name of the Attorney General or in the name of the Director of Public Prosecutions.”.

54 Care and management of taxes and duties.

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

55 Short title, construction and commencement.

55.—(1) This Act may be cited as the Finance Act, 1987.

(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.

(3) Part II (so far as relating to customs) shall be construed togetherwith 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 1986, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1987.

(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, 1987.

(8) In Part III, sections 40 and 42 shall be deemed to have come into force and shall take effect as on and from the 1st day of May, 1987, section 39 (a) (ii) shall be deemed to have come into force and shall take effect as on and from the 6th day of June, 1987, sections 46 and 47 shall be deemed to have come into force and shall take effect as on and from the 1st day of July, 1987, and sections 41 and 45 shall come into force on the 1st day of November, 1987.

(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.