Finance Act 1988

Type Act

Publication 1988-05-25

State In force

Source Irish Statute Book

articles 77

(a) (i) a loss from the sale of goods in the course of a trade, or

(ii) an excess of charges on income paid for the purpose of the sale of goods in the course of a trade, in an accounting period or part of an accounting period falling before the 6th day of April, 1990, if, in the latest preceding accounting period in which there was income from the trade in respect of which corporation tax was payable, the amount thereof was reduced under Part IV, or

(b) so much of a loss from the sale of goods in the course of a trade in an accounting period as does not exceed the amount of the capital allowances under section 42 (2) of the Finance Act, 1986, deducted by the surrendering company in computing the loss which it has incurred in that period in carrying on trading operations specified in a certificate given to it and not revoked by the Minister for Finance under section 39B (2) of the Finance Act, 1980.

(5) For the purposes of this section—

(a) in the case of a claim made by a company as a member of a consortium, only a fraction of a loss from the sale of goods or an excess of charges on income paid for the purpose of the sale of goods may be set off, and that fraction shall be equal to that member's share in the consortium, subject to any further reduction under section 118 (2), and

(b) section 118 shall have effect as if—

(i) for ‘total profits’ in paragraph (a) of subsection (2) there were substituted ‘income from a trade’, and

(ii) for ‘the said profits’ in paragraph (b) there were substituted ‘the income from the sale of goods in the course of a trade of the claimant company’.”.

35 Amendment of section 39A (relief in relation to income from certain trading operations carried on in Shannon Airport) of Finance Act, 1980.

35.—Section 39A of the Finance Act, 1980, is hereby amended by the deletion of the proviso to subsection (2).

36 Amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980.

36.—(1) Subsection (7) (c) of section 39B (inserted by the Finance Act, 1987) of the Finance Act, 1980, is hereby repealed and shall be deemed never to have been enacted.

(2) Subject to the provisions of subsections (6) and (7) of the said section 39B, the Minister for Finance may give to a company a certificate, within the meaning of subsection (2) of that section, having effect from the date on which it would have had effect but for the said subsection (7) (c).

(3) Subsection (6) of the said section 39B is hereby amended by the insertion after paragraph (iii) of the following paragraph—

“(iiia) dealing in commodity futures or commodity options on behalf of persons not ordinarily resident in the State, other than on behalf of persons who—

(I) carry on a trade in which commodities of a type which are the subject of the futures or options, as the case may be, are used in the course of the carrying on of the trade, or

(II) would be regarded for the purposes of the Corporation Tax Acts as connected with a person who carries on such a trade,”.

(4) (a) In this subsection—

“the Area” has the same meaning as it has for the purposes of the said section 39B;

“foreign life assurance business” means relevant trading operations within the meaning of the said section 39B consisting of life assurance business with policy holders and annuitants who reside outside the State;

“foreign unit trust business” means relevant trading operations within the meaning of the said section 39B consisting of the management of the investments of one or more qualifying unit trusts;

“qualifying unit trust” means a unit trust scheme—

(a) that is a registered unit trust scheme within the meaning of the Unit Trusts Act, 1972,

(b) the business of which—

(i) is carried on in the Area, or

(ii) is not so carried on but is carried on in the State and would be carried on in the Area but for circumstances outside the control of the person or persons carrying on the business,

and

“tax” means income tax, corporation tax or capital gains tax, as may be appropriate.

(b) Notwithstanding any other provision of the Tax Acts, the rate at which any tax is chargeable (before any credit is allowed for foreign tax) in respect of income arising or chargeable gains accruing from securities or possessions in any place outside the State that are investments of a foreign life assurance business or investments managed by a foreign unit trust business shall not exceed 10 per cent.

37 Application of section 84 (matters to be treated as distributions) of Corporation Tax Act, 1976, to certain interest.

37.—(1) (a) This section applies to so much of any interest as—

(i) is a distribution by virtue only of section 84 (2) (d) (iv) of the Corporation Tax Act, 1976,

(ii) is payable by a qualified company in the course of carrying on relevant trading operations and would, but for the said section 84 (2) (d) (iv), be deductible as a trading expense in computing the amount of the company's income from the relevant trading operations, and

(iii) is interest payable to a company which is a resident of the United States of America or of a territory with the government of which arrangements having the force of law by virtue of section 361 of the Income Tax Act, 1967, have been made.

(b) In paragraph (a)—

“qualified company” and “relevant trading operations” have the same meaning as they have for the purposes of section 39B (inserted by the Finance Act, 1987) of the Finance Act, 1980;

“resident of the United States of America” has the meaning assigned to it by the Convention set out in Schedule 8 to the Income Tax Act, 1967.

(c) For the purposes of paragraph (a), a company shall be regarded as being a resident of a territory other than the United States of America if it is so regarded under arrangements made with the government of that territory and having the force of law by virtue of section 361 of the Income Tax Act, 1967.

(2) Where a company proves that this section applies to any interest payable by it for an accounting period and elects to have that interest treated as not being a distribution for the purposes of section 84 (2) (d) (iv) of the Corporation Tax Act, 1976, the said section 84 (2) (d) (iv) shall not apply to that interest.

(3) An election under this section in relation to interest payable by a company for an accounting period shall be made in writing to the inspector and submitted together with the company's return of its profits for the period.

38 Amendment of section 31 (interest payments by companies and to non-residents) of Finance Act, 1974.

38.—Section 31 of the Finance Act, 1974, is hereby amended by the insertion in subsection (3), after paragraph (c), of the following paragraph—

“(cc) interest paid to a person whose usual place of abode is outside the State by a company in the course of carrying on relevant trading operations within the meaning of section 39A (inserted by the Finance Act, 1981) or section 39B (inserted by the Finance Act, 1987) of the Finance Act, 1980, or”.

39 Exemption of certain income of Nítrigin Éireann Teoranta.

39.—Notwithstanding any provision of the Corporation Tax Acts, income—

(a) arising to Nítrigin Éireann Teoranta in any accounting period ending in the period commencing on the 1st day of January, 1987, and ending on the 31st day of December, 1992, from the business of supplying gas, purchased from Bord Gáis Éireann, to Irish Fertilizer Industries Limited under a contract between Nítrigin Éireann Teoranta and Irish Fertilizer Industries Limited, and

(b) which, but for this section, would have been chargeable to corporation tax under Case I of Schedule D, shall be exempt from corporation tax.

40 Amendment of section 28 (relief in relation to income from qualifying shipping trade) of Finance Act, 1987.

40.—(1) Subsection (1) of section 28 of the Finance Act, 1987, is hereby amended—

(a) by the insertion after “vessel” in paragraph (i) of the definition of “qualifying ship” of “other than a vessel normally used for the purposes of an activity mentioned in paragraph (d) of the definition of qualifying shipping activities in this subsection”, and

(b) in the definition of “qualifying shipping activities”—

(i) by the deletion of “and” in paragraph (c), and

(ii) by the substitution for paragraph (d) of the following paragraphs—

“(d) the subjecting of fish to a manufacturing process on board a qualifying ship, and

(e) the letting on charter of a qualifying ship for use for the said purposes where the operation of the ship, and the crew of the ship, remain under the direction and control of the company;”,

and the said definitions as so amended are set out in the Table to this section.

(2) For the purposes of Chapter III (Income Tax: Relief for Investment in Corporate Trades) of the Finance Act, 1984, any reference to section 28 (1) of the Finance Act, 1987, shall be construed as if subsection (1) had not been enacted.

(3) Subsection (4) of the said section 28 is hereby amended by the substitution in paragraph (c) of “paragraph (c)” for “paragraph (b)” and the said paragraph, as so amended, is set out in the Table to this section.

TABLE

“qualifying ship” means a sea-going vessel which—

(a) is owned to the extent of not less than 51 per cent. by a person or persons ordinarily resident in the State,

(b) is registered in the State under Part II of the Mercantile Marine Act, 1955,

(d) is self-propelled,

but notwithstanding anything in paragraphs (a), (b), (c) or (d) of this definition does not include—

(i) a fishing vessel other than a vessel normally used for the purposes of an activity mentioned in paragraph (d) of the definition of qualifying shipping activities in this subsection,

(ii) a tug,

(iii) a vessel (including a dredger) used primarily as a floating platform for working machinery or as a diving platform,

(iv) a vessel used for the purposes of transporting supplies or personnel to, or providing services in respect of, a mobile or fixed rig, platform, vessel or installation of any kind at sea, and

(v) any other vessel of a type which is not normally used for the purposes of qualifying shipping activities;

“qualifying shipping activities” means activities carried on by a company in the course of a trade and which consist of—

(a) the use of a qualifying ship for the purpose of carrying by sea passengers or cargo for reward,

(b) the provision, on board the qualifying ship, of services ancillary to the said use of the qualifying ship,

(c) the granting of rights by virtue of which another person provides, or will provide, the said services, on board the said qualifying ship,

(d) the subjecting of fish to a manufacturing process on board a qualifying ship, and

(e) the letting on charter of a qualifying ship for use for the said purposes where the operation of the ship, and the crew of the ship, remain under the direction and control of the company;

(c) the letting on charter of a ship referred to at paragraph (a) (ii), in the course of a trade, shall be deemed notwithstanding paragraph (c) of subsection (1) of section 40 of the Finance Act, 1984, to be a trade of leasing for the purposes of that section and to be a separate trade as provided for in subsection (2) of that section.

41 Relief from corporation tax in respect of certain dividends from a non-resident subsidiary.

41.—(1) (a) In this section—

“approved investment plan” means an investment plan in respect of which the Minister has given a certificate in accordance with subsection (2) to the company concerned;

“investment plan” means a plan of a company resident in the State which is directed towards the creation or maintenance of employment in the State in trading operations carried on, or to be carried on, in the State and which has, prior to its implementation, been submitted to the Minister by the company for the purpose of enabling it to claim relief under this section;

“Minister” means the Minister for Finance;

“relevant dividends” means dividends received on or after the 6th day of April, 1988, by a company resident in the State (being the company claiming the relief under this section) from a foreign subsidiary of the company and which are—

(i) applied, not earlier than the 6th day of April, 1988, and within a period which commences one year before the day on which the dividends are received in the State and ends two years after that day, for the purposes of an approved investment plan, and

(ii) specified in a certificate given by the Minister under subsection (2);

“relief under this section” means, in relation to a company for an accounting period, the amount by which any corporation tax payable by the company is reduced by virtue of subsection (3).

(b) (i) The reference in paragraph (a) to “a foreign subsidiary” means a 51 per cent. subsidiary of a company where the company is resident in the State and the subsidiary is a resident of the United States of America or of a territory with the government of which arrangements having the force of law by virtue of section 361 of the Income Tax Act, 1967, have been made.

(ii) For the purposes of subparagraph (i)—

“resident of the United States of America” has the meaning assigned to it by the Convention set out in Schedule 8 to the Income Tax Act, 1967;

a company shall be regarded as being a resident of a territory other than the United States of America if it is so regarded under the provisions of arrangements made with the government of that territory and having the force of law by virtue of section 361 of the said Act.

(2) Where an investment plan has been duly submitted by a company and the Minister—

(a) is satisfied that the plan is directed towards the creation or maintenance of employment in the State in trading operations carried on, or to be carried on, in the State, and

(b) has been informed in writing by the company of the amount of dividends concerned,

the Minister may give a certificate to the company certifying that an amount of dividends specified in the certificate shall be an amount of relevant dividends.

(3) Subject to subsection (4), where a company claims and proves that it has received in an accounting period any amount of relevant dividends, the amount of its income for the period represented by those dividends shall not be taken into account in computing the income of the company for that accounting period for the purposes of corporation tax.

(4) Where, in relation to a certificate given to a company under subsection (2), the Minister considers that, as regards the approved investment plan concerned, all or part of the relevant dividends have not been applied within the period provided for in the definition of “relevant dividends” in subsection (1) (a), he may, by notice in writing to the company, reduce the amount of the relevant dividends specified in the certificate by so much as has not been so applied and, accordingly, where the amount of the relevant dividends specified in a certificate is so reduced—

(a) in a case where relief under this section has been granted in respect of the amount of the relevant dividends specified in the certificate before such a reduction of that amount, the inspector shall make such assessments or additional assessments as are necessary to recover the relief given in respect of the amount of the reduction, and

(b) in a case where a claim for relief has not yet been made, relief shall not be due under this section in respect of the amount of the reduction.

(5) A claim for relief under this section shall be made in writing to the inspector and shall be submitted together with the company's return of profits for the period in which the relevant dividends are received in the State.

42 Exemption from corporation tax of profits of Custom House Docks Development Authority.

42.—Notwithstanding any provision of the Corporation Tax Acts, profits arising to the Custom House Docks Development Authority in any accounting period ending after the 17th day of November, 1986, shall be exempt from corporation tax.

Chapter V Capital Allowances

43 Amendment of section 251 (initial allowances for machinery and plant) of Income Tax Act, 1967.

43.—Section 251 (as amended by section 20 of the Finance Act, 1985) of the Income Tax Act, 1967, is hereby amended—

(a) by the insertion in subsection (4), after paragraph (b), of the following paragraph:

“(bb) (i) in relation to capital expenditure incurred on or after the 1st day of April, 1988, and before the 1st day of April, 1989, as if ‘three-fourths’ were substituted for ‘one-fifth’ in subsection (1), and

(ii) in relation to capital expenditure incurred on or after the 1st day of April, 1989, and before the 1st day of April, 1991, as if ‘one-half’ were substituted for ‘one-fifth’ in subsection (1).”,

and

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

“(7) Where an allowance in respect of capital expenditure incurred on or after the 1st day of April, 1988, on the provision of new machinery or plant is made under this section, section 11 of the Finance Act, 1967, and section 26 of the Finance Act, 1971, shall not have effect in relation to an allowance which falls to be made under section 241 of the Income Tax Act, 1967, for wear and tear of the said machinery or plant.”.

44 Amendment of section 254 (industrial building allowance) of Income Tax Act, 1967.

44.—Section 254 (as amended by section 20 of the Finance Act, 1985) of the Income Tax Act, 1967, is hereby amended by the insertion after subsection (6) of the following subsection:

“(7) Where an allowance in respect of capital expenditure incurred on or after the 1st day of April, 1988, on the construction of a building or structure is made under this section, no increase in any allowance under section 264 of the Income Tax Act, 1967, by virtue of the provisions of section 25 of the Finance Act, 1978, shall be made in relation to that capital expenditure.”.

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

45.—Section 265 (as amended by section 20 of the Finance Act, 1985) of the Income Tax Act, 1967, is hereby amended—

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

“(d) where consideration (other than rent or an amount treated as rent under section 83 of the Income Tax Act, 1967) is received by the person entitled to the relevant interest in respect of an interest which is subject to that relevant interest,”,

(b) by the substitution for subsection (2) of the following subsection:

“(2) Where there are no sale, insurance, salvage or compensation moneys, or consideration of the type referred to in paragraph (d) of subsection (1), or where the residue of the expenditure immediately before the event exceeds those moneys or that consideration, a balancing allowance shall be made and the amount thereof shall be the amount of the said residue or, as the case may be, of the excess thereof over the said moneys or the said consideration.”,

and

“(3) If the sale, insurance, salvage or compensation moneys, or consideration of the type referred to in paragraph (d) of subsection (1), exceed the residue, if any, of the expenditure immediately before the event, a balancing charge shall be made and the amount on which it is made shall be an amount equal to the excess, or, where the residue is nil, to the said moneys or the said consideration.”.

46 Amendment of section 11 (wear and tear allowances for certain machinery and plant in undeveloped areas) of Finance Act, 1967.

46.—Section 11 (inserted by the Corporation Tax Act, 1976) of the Finance Act, 1967, is hereby amended by the substitution for subsection (2) of the following subsection:

“(2) (a) Subject to the provisions of this section, where for any chargeable period an allowance falls to be made under section 241 of the Income Tax Act, 1967, for wear and tear of any qualifying machinery or plant, the allowance shall, subject to subsection (6) of that section, be increased by such amount as is specified by the person to whom the allowance is to be made; and, in relation to a case in which this subsection has had effect, any reference in the Income Tax Acts to an allowance made under the said section 241 shall be construed as a reference to that allowance as increased under this subsection.

(b) As respects any machinery or plant provided for use on or after the 1st day of April, 1988, any allowance made under section 241 of the Income Tax Act, 1967, and increased under paragraph (a) of this subsection, in respect of that machinery or plant, whether claimed in one chargeable period or more than one such period, shall not, in the aggregate, exceed—

(i) if the machinery or plant is provided for use before the 1st day of April, 1989, 75 per cent., or

(ii) if the machinery or plant is provided for use on or after the 1st day of April, 1989, 50 per cent.,

of the capital expenditure incurred on the provision of that machinery or plant.”.

47 Amendment of section 26 (increase of wear and tear allowances for certain machinery and plant) of Finance Act, 1971.

47.—Section 26 (inserted by the Corporation Tax Act, 1976) of the Finance Act, 1971, is hereby amended by the substitution for subsection (2) of the following subsection:

(i) if the machinery or plant is provided for use before the 1st day of April, 1989, 75 per cent., or

(ii) if the machinery or plant is provided for use on or after the 1st day of April, 1989, 50 per cent.,

of the capital expenditure incurred on the provision of that machinery or plant.”.

48 Amendment of section 25 (increase of writing-down allowances for certain industrial buildings) of Finance Act, 1978.

48.—Section 25 (as amended by section 25 of the Finance Act, 1979) of the Finance Act, 1978, is hereby amended by the substitution for subsection (2) of the following subsection:

“(2) (a) Where for any chargeable period an allowance falls to be made under the said section 264 in respect of qualifying expenditure, the allowance shall, subject to subsection (4) of that section, be increased by such amount as is specified by the person to whom the allowance is to be made and, in relation to a case in which this subsection has had effect, any reference in the Income Tax Acts to an allowance made under the said section 264 shall be construed as a reference to that allowance as increased under this section.

(b) As respects any qualifying expenditure incurred on or after the 1st day of April, 1988, any allowance made under section 264 of the Income Tax Act, 1967, and increased under paragraph (a) of this subsection, in respect of that expenditure, whether claimed in one chargeable period or more than one such period, shall not, in the aggregate, exceed—

(i) if the qualifying expenditure is incurred before the 1st day of April, 1989, 75 per cent., or

(ii) if the qualifying expenditure is incurred on or after the 1st day of April, 1989, 50 per cent.,

of the amount of that qualifying expenditure.”.

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

49.—Section 25 (as amended by section 51 of the Finance Act, 1986) of the Finance Act, 1981, is hereby amended by the substitution in subsection (1) of “1991” for “1988”.

50 Continuation of certain allowances.

50.—The provisions (inserted by the Corporation Tax Act, 1976, and amended by section 20 of the Finance Act, 1985) of the Income Tax Act, 1967, specified in the Table to this section shall have effect as if the references to the 1st day of April, 1988 (as provided for in section 20 of the Finance Act, 1985) were references to the 1st day of April, 1991.

TABLE

Subsection (2A) (a) of section 254 (industrial building allowance),

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

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

51 Application of certain allowances in relation to certain areas and certain expenditure.

51.—(1) This section applies to—

(a) machinery or plant or an industrial building provided for use for the purposes of trading operations which are relevant trading operations within the meaning of section 39A (inserted by the Finance Act, 1981) or section 39B (inserted by the Finance Act, 1987) of the Finance Act, 1980;

(b) a premises which is a qualifying premises, within the meaning of section 42 of the Finance Act, 1986;

(i) the expenditure on the provision of which was incurred under a binding contract entered into on or before the 27th day of January, 1988, or

(ii) which is provided for the purposes of a project approved by an industrial development agency on or before the 31st day of December, 1988;

and

(d) machinery or plant provided before the 1st day of April, 1991, for the purposes of a trade or part of a trade of hotel-keeping carried on in a building or structure or part thereof (including machinery or plant provided by a lessor to a lessee for use in such a trade or part thereof) where a binding contract for the provision of the said building or structure was entered into after the 27th day of January, 1988, and before the 1st day of June, 1988.

(2) Section 251 (as amended by the Finance Act, 1988) of the Income Tax Act, 1967, shall have effect in relation to capital expenditure incurred on the provision of machinery or plant to which this section applies as if paragraph (bb) of subsection (4) and subsection (7) were deleted and as if “1991” were substituted for “1988” in subsection (4) (d).

(3) Section 11 (as amended by the Finance Act, 1988) of the Finance Act, 1967, and section 26 (as amended by the Finance Act, 1988) of the Finance Act, 1971, shall have effect in relation to an allowance which falls to be made under section 241 of the Income Tax Act, 1967, for wear and tear of any machinery or plant to which this section applies as if—

(a) paragraph (b) of subsection (2) of the said section 11, and

(b) paragraph (b) of subsection (2) of the said section 26,

were deleted.

(4) Section 254 (as amended by the Finance Act, 1988) of the Income Tax Act, 1967, and section 25 (as amended by the Finance Act, 1988) of the Finance Act, 1978, shall have effect in relation to capital expenditure on the construction of an industrial building or a premises to which this section applies as if—

(a) subsection (7) of the said section 254, and

(b) paragraph (b) of subsection (2) of the said section 25,

were deleted.

(5) Section 265 of the Income Tax Act, 1967, shall have effect as respects the relevant interest in a building or structure to which subsection (1) (d) applies as if section 45 had not been enacted.

(6) In this section “industrial development agency” means the Industrial Development Authority, Shannon Free Airport Development Company Limited or Údarás na Gaeltachta.

52 Farming.

52.—(1) Section 22 (as amended by section 15 of the Finance Act, 1983) of the Finance Act, 1974, is hereby amended—

(a) as respects expenditure incurred on or after the 1st day of April, 1989, by the insertion in subsection (2) after “fences” of “roadways, holding yards, drains or land reclamation”, and the said subsection (2) (apart from the proviso) as so amended, is set out in the Table to this subsection,

and

(b) by the substitution for paragraph (b) in the proviso to subsection (2) of the following paragraph:

“(b) the maximum farm buildings allowance to be made under this section for any chargeable period—

(i) in relation to capital expenditure incurred before the 1st day of April, 1989, shall not exceed three-tenths of that capital expenditure, and

(ii) in relation to capital expenditure incurred on or after the 1st day of April, 1989, shall not exceed one-half of that capital expenditure.”.

TABLE

(2) Where a person to whom this section applies incurs, for the purpose of a trade of farming land occupied by him, any capital expenditure on the construction of farm buildings (excluding a building or part of a building used as a dwelling), fences, roadways, holding yards, drains or land reclamation, or other works, there shall be made to him during a writing-down period of ten years beginning with the chargeable period related to that expenditure, writing-down allowances (in this section referred to as “farm building allowances”) in respect of that expenditure and such allowances shall be made in taxing the trade:

(2) Section 14 of the Finance Act, 1977, is hereby amended by the insertion in subsection (1) after “the 6th day of April, 1977,” of “and before the 1st day of April, 1989,”.

(3) Section 26 of the Finance Act, 1980, shall not have effect for any chargeable period commencing after the 5th day of April, 1989.

Chapter VI Pension Fund Levy

53 Pension fund levy.

53.—(1) In this section—

“assets” means, in relation to a scheme, investments, deposits and any other property (including any debt and any contract of assurance) held for the purposes of the scheme, other than excluded assets;

“administrator” means, in relation to a scheme, the trustees or other persons having the management of the assets of the scheme;

“chargeable person” means, in relation to the assets of a scheme—

(a) where the assets are not contracts of assurance, the administrator in relation to the scheme, and

(b) where the assets are contracts of assurance, the insurer in relation to such a contract;

“contract of assurance” means any contract of a type described in section 50 (4) of the Corporation Tax Act, 1976;

“excluded assets” means, in relation to a scheme, assets representing—

(a) the liabilities of a scheme which are attributable to the provision of relevant benefits (within the meaning of section 13 of the Finance Act, 1972) in respect of employees whose employment is exercised wholly outside the State, or

(b) liabilities under any contract other than a contract in respect of business in class VII of the Annex to Council Directive 79/267/EEC of 5 March 1979[^(1)];

“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 that is deemed by those Regulations to be an authorisation;

“pension fund”, in relation to an insurer, has the same meaning as it has in section 50 (3) of the Corporation Tax Act, 1976;

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

“scheme” means a retirement benefits scheme within the meaning of

section 14 of the Finance Act, 1972, or a retirement annuity contract or a trust scheme to which section 235 or section 235A of the Income Tax Act, 1967, applies.

(2) For the purposes of this section, “the chargeable amount” in relation to any assets shall be an amount determined by the formula

(A 9) ______ 100	P

where—

A is the aggregate market value on the 1st day of January, 1988, of the assets, and

P is the total amount of any pensions (including annuities) paid in the year 1988 in respect of liabilities of the scheme represented by any asset included in determining the amount of A:

Provided that, in the case of a chargeable person other than an insurer, the chargeable amount shall be the amount determined by the above formula less—

(a) the amount of any interest received in the year 1988 (being relevant interest within the meaning of section 31 (1) of the Finance Act, 1986) in respect of any deposit included in determining the amount of A, and

(b) if it would have the effect of reducing the chargeable amount to nil, £5,000 or such lesser amount as would have that effect.

(3) For the year 1988, there shall be charged, in accordance with the provisions of this section, on the chargeable person in relation to any assets of a scheme, a levy (hereafter in this section referred to as “the levy”) at the rate of 6 per cent. on the chargeable amount in respect of the assets.

(4) The chargeable person shall make on or before the 30th day of June, 1989, a return to the Collector-General showing—

(a) the chargeable amount for the year 1988,

(b) the amount of the levy chargeable under this section in respect of that amount, and

(5) The amount of the levy required to be included in a return under this section shall be due and payable on the 30th day of June, 1989, and shall be paid by the chargeable person to the Collector-General and the amount of the levy so due shall be payable without the making of an assessment; but the amount of the levy which has become so due and payable may be assessed on the chargeable person if that amount or any part of it is not paid on or before that day.

(6) Notwithstanding subsection (5), the chargeable person shall pay to the Collector-General on or before the 30th day of November, 1988, an amount on account of the amount of the levy payable for the year 1988 and the amount so payable on account shall be not less than 90 per cent. of the amount of the levy due in accordance with subsection (5) and the amount so paid on account shall be treated as a payment of an equal amount of the levy due in accordance with subsection (5).

(7) Any amount on account of the levy payable by a chargeable person under subsection (6) shall be so payable without the making of an assessment and the provisions of this section relating to the collection and recovery of the levy shall apply, with any necessary modifications, to the collection and recovery of an amount on account of the levy.

(8) If it appears to the inspector that there is any amount of the levy payable which ought to have been and has not been included in a return under subsection (4), or if the inspector is dissatisfied with any such return, he may make an assessment on the chargeable person to the best of his judgment to recover any unpaid amount; and any amount of the levy due under an assessment made by virtue of this subsection shall be treated for the purposes of interest on the unpaid levy as having been payable at the time when it would have been payable if a return had been made.

(9) (a) Any amount of the levy assessed on a chargeable person under this section shall be due within one month after the issue of the notice of assessment (unless that amount or any amount treated as an amount on account of it is due earlier under subsection (5) or (6)), subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under subsection (5) or (6).

(b) On the determination of an appeal against an assessment under this section, any amount of the levy overpaid shall be repaid.

(10) (a) All the provisions of the Income Tax Acts relating to—

(i) assessments to income tax,

(ii) appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and

(iii) the collection and recovery of income tax,

shall, so far as they are applicable, apply to the assessment, collection and recovery of any amount of the levy.

(b) Any amount of the levy or amount on account of the levy payable in accordance with this section without the making of an assessment shall carry interest at the rate of 1.25 per cent. for each month or part of a month from the date when the amount becomes due and payable until payment.

(c) The provisions of subsections (3) to (5) of section 550 of the Income Tax Act, 1967, shall apply in relation to interest payable under paragraph (b) as they apply in relation to interest payable under the said section 550.

(d) In its application to any amount of the levy charged by any assessment made in accordance with this Chapter, section 550 of the Income Tax Act, 1967, shall have effect with the omission of the proviso to subsection (1) and of subsections (2) and (2A).

(e) Notwithstanding anything in the Income Tax Acts, the provisions of section 30 of the Finance Act, 1976, shall not apply in relation to any amount of the levy which is charged by an assessment made in accordance with this Chapter.

(11) Every return for the purposes of this section shall be in a form prescribed by the Revenue Commissioners and shall include a declaration to the effect that it is complete.

(12) Schedule 15 to the Income Tax Act, 1967, is hereby amended by the insertion in column 2 of “Finance Act, 1988, section 53 (4)”.

(13) The levy charged by this section shall not be allowed as a deduction or as a credit for the purpose of the computation or charge of any tax or duty under the care and management of the Revenue Commissioners.

(14) If under this section—

(a) a chargeable person who is an insurer pays an amount in respect of the levy in relation to a contract of assurance, the amount shall be deemed to be a necessary disbursement from the pension fund of the insurer and the insurer may adjust accordingly any benefits under the contract, and

(b) a chargeable person who is an administrator pays an amount in respect of the levy in relation to the assets of a scheme, the amount shall be deemed to be a necessary disbursement from those assets and any benefits payable under the scheme may be adjusted accordingly.

PART II Customs and Excise

54 Interpretation (Part II).

54.—In this Part “the Order of 1987” means the Imposition of Duties (No. 285) (Excise Duties) Order, 1987 (S.I. No. 19 of 1987).

55 Tobacco products.

55.—(1) (a) In this section “the Act of 1977” means the Finance (Excise Duty on Tobacco Products) Act, 1977.

(b) In this section and in the Fourth Schedule “cigarettes”, “cigars”, “hard pressed tobacco”, “other pipe tobacco”, “smoking tobacco”, “chewing tobacco” and “tobacco products” have the same meanings as they have in the Act of 1977, as amended by the Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979 (S.I. No. 296 of 1979), and by this section.

(2) The Act of 1977 is hereby amended—

(a) in section 1 (1)—

(i) by the deletion of the definition of “cavendish or negrohead”, and

(ii) by the substitution of “sweetened pipe tobacco” for “cavendish or negrohead” in the definitions of “hard pressed tobacco” and “other pipe tobacco”,

and

(b) in the First Schedule, by the substitution of “Sweetened pipe tobacco” for “Cavendish or negrohead”.

(3) The duty of excise on tobacco products imposed by section 2 of the Act of 1977 shall, in lieu of the several rates specified in the Schedule to the Order of 1987, be charged, levied and paid, as on and from the 28th day of January, 1988, at the several rates specified in the Fourth Schedule.

56 Hydrocarbons.

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

(2) The duty of excise on mineral hydrocarbon light oil imposed by paragraph 11 (1) of the Order of 1975 shall, in lieu of the rate specified in paragraph 5 (1) of the Order of 1987, be charged, levied and paid, as on and from the 28th day of January, 1988, at the rate of £29.47 per hectolitre.

(3) (a) For the purposes of this subsection—

(i) mineral hydrocarbon light oil shall be deemed to be unleaded if it contains not more than 0.013 grammes of lead per litre or, where such oil is delivered for home use before the 1st day of April, 1990, if it contains not more than 0.020 grammes of lead per litre, and

(ii) the lead content of mineral hydrocarbon light oil shall be established in accordance with the provisions of Council Directive No. 85/210/EEC of 20th March, 1985[^(1)].

(b) Subject to compliance with such conditions as the Revenue Commissioners may think fit to impose, a rebate of the duty of excise imposed by paragraph 11 (1) of the Order of 1975 on mineral hydrocarbon light oil shall be allowed at the rate of £0.80 per hectolitre in respect of such oil (not being aviation gasoline within the meaning of section 73 of the Finance Act, 1984) which is deemed to be unleaded by virtue of paragraph (a) and on which the said duty is paid on or after the 28th day of January, 1988.

(4) The duty of excise on hydrocarbon oil imposed by paragraph 12 (1) of the Order of 1975 shall, in lieu of the rate specified in paragraph 5 (2) of the Order of 1987, be charged, levied and paid, as on and from the 28th day of January, 1988, at the rate of £22.31 per hectolitre.

57 Removal of substances mixed with goods liable to excise duty.

57.—(1) This section applies to any goods liable to a duty of excise which are mixed with some other substance or substances for purposes connected with a rebate of excise duty on the said goods or the exemption of the said goods from excise duty.

(2) Any person who, without the consent in writing of the Revenue Commissioners, removes or attempts to remove or is knowingly concerned in removing or attempting to remove a substance or substances mentioned in subsection (1) from goods to which this section applies, or knowingly deals in any manner with such goods from which a substance or substances mentioned in subsection (1) has or have, without the consent aforesaid, been removed, shall be guilty of an offence.

(3) A person guilty of an offence under subsection (2) shall be liable—

(a) on summary conviction, to an excise penalty not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months or to both, or

(b) on conviction on indictment, to an excise penalty not exceeding £10,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years or to both.

(4) Section 13 of the Criminal Procedure Act, 1967, as amended by section 17 of the Criminal Justice Act, 1984, shall apply in relation to an offence under subsection (2) as if the references in subsection (3) (a) of the said section 13 to a fine were references to an excise penalty.

(5) Where an offence under subsection (2) is committed by a body corporate and the offence is shown to have been committed with the consent or connivance of any person who, when the offence was committed, was a director, manager, secretary or other officer of the body corporate, or a member of the committee of management or other controlling authority of the body corporate, that person shall also be deemed to be guilty of the offence and may be proceeded against and punished accordingly.

58 Confirmation of an Order.

58.—The Imposition of Duties (No. 287) (Excise Duty on Table Waters) Order, 1987 (S.I. No. 338 of 1987), is hereby confirmed.

PART III Value-Added Tax

59 Interpretation (Part III).

59.—In this Part “the Principal Act” means the Value-Added Tax Act, 1972.

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

60.—Section 1 (2) of the Principal Act is hereby amended by the insertion after paragraph (b) of the following:

“(bb) money due to the person which, in accordance with the provisions of section 73 of the Finance Act, 1988, is paid to the Revenue Commissioners by another person and has thereby ceased to be due to the person by that other person, and”.

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

61.—Section 11 (1) (inserted by the Finance Act, 1985) of the Principal Act is hereby amended—

(a) by the insertion in paragraph (a) after “in paragraphs (b)” of “, (bb)”,

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

“(bb) 5 per cent. of the amount on which tax is chargeable in relation to the supply of electricity,”, and

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

62.—Section 12A (inserted by the Value-Added Tax (Amendment) Act, 1978) of the Principal Act is hereby amended by the substitution in subsection (1) of “1.4 per cent.” for “1.7 per cent.” (inserted by the Finance Act, 1987).

63 Amendment of Second Schedule to Principal Act.

63.—The Second Schedule (inserted by the Finance Act, 1976) to the Principal Act is hereby amended by the deletion of paragraph (xx) (a) (inserted by the Finance Act, 1983).

PART IV Stamp Duties

64 Levy on banks.

64.—(1) In this section—

“assessable amount” means the amount arrived at by dividing the specified amount by 12 and deducting £10,000,000 from the quotient;

“bank” means a person who, on the 1st day of September, 1987, 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 21st day of January, 1987, the 18th day of February, 1987, the 31st day of March, 1987, the 15th day of April, 1987, the 20th day of May, 1987, the 30th day of June, 1987, the 15th day of July, 1987, the 19th day of August, 1987, the 30th day of September, 1987, the 21st day of October, 1987, the 18th day of November, 1987, and the 31st day of December, 1987;

“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 14th day of September, 1988, 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) 0.325 per cent. of that part of the assessable amount shown therein that does not exceed £102,000,000 and

(b) 0.45 per cent. of that part of the assessable amount shown therein that exceeds £102,000,000:

Provided that, in a case where the assessable amount shown in the statement does not exceed £102,000,000, stamp duty of an amount equal to 0.325 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 14th day of September, 1988, 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.

65 Amendment of First Schedule to Stamp Act, 1891.

65.—(1) The First Schedule (as amended by the Finance Act, 1970, and subsequent enactments) to the Stamp Act, 1891, is hereby amended by the insertion after paragraph (8) under the heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities” of the following paragraph—

“(8A) Where the amount or value of the consideration for the sale exceeds fifty thousand pounds but does not exceed sixty thousand pounds and the instrument contains a statement certifying that the transaction thereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value, or the aggregate amount or value, of the consideration exceeds sixty thousand pounds:

For every £50, or fractional part of £50, of the consideration	£2.50”

(2) The Imposition of Duties (No. 288) (Stamp Duty on Certain Instruments) Order, 1988 (S.I. No. 8 of 1988), is hereby revoked.

PART V Capital Acquisitions Tax

66 Amendment of section 63 (allowance for capital gains tax on the same event) of Finance Act, 1985.

66.—(1) Section 63 (1) of the Finance Act, 1985, is hereby amended by the substitution for “the same, up to the net amount of the same” of—

“the same:

Provided that, in relation to each asset, or to a part of each asset, so disposed of, the amount deducted shall be the lesser of—

(a) an amount equal to the amount of the capital gains tax attributable to such asset, or to the part of such asset, or

(b) an amount equal to the amount of the gift tax or inheritance tax attributable to the property which is that asset, or that part of that asset”,

and the said subsection 63 (1), as so amended, is set out in the Table to this section.

(2) This section shall apply where gift tax or inheritance tax is charged in respect of property on an event happening on or after the 6th day of April, 1988.

TABLE

63.—(1) Where gift tax or inheritance tax is charged in respect of property on an event happening on or after the 30th day of January, 1985, and the same event constitutes for capital gains tax purposes a disposal of an asset (being the same property or any part of the same property), the capital gains tax, if any, chargeable on the disposal shall not be deducted in ascertaining the taxable value for the purposes of the gift tax or inheritance tax but, in so far as it has been paid, shall be deducted from the net gift tax or inheritance tax as a credit against the same:

Provided that, in relation to each asset, or to a part of each asset, so disposed of, the amount deducted shall be the lesser of—

(a) an amount equal to the amount of the capital gains tax attributable to such asset, or to the part of such asset, or

(b) an amount equal to the amount of the gift tax or inheritance tax attributable to the property which is that asset, or that part of that asset.

PART VI Miscellaneous

67 Capital Services Redemption Account.

67.—(1) In this section—

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

“the 1987 amending section” means section 51 of the Finance Act, 1987;

“the thirty-eighth 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, 1988, subsection (4) of the 1987 amending section shall have effect with the substitution of “£44,473,927” for “£45,510,049”.

(3) Subsection (6) of the 1987 amending section shall have effect with the substitution of “£33,669,150” for “£34,980,050”.

(4) A sum of £44,807,298 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, 1988.

(5) The thirty-eighth 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-eighth additional annuity, not exceeding £34,439,900 in any financial year, may be applied towards defraying the interest on the public debt.

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

(8) The Minister shall pay into the Account and shall apply any sum (including interest received by him on temporary deposits held abroad under section 4 (2) (b) (inserted by the Appropriation Act, 1969) of the Appropriation Act, 1965, and interest received on the Exchequer's accounts with the Central Bank of Ireland or with the holder of a licence under the Central Bank Act, 1971) received by him arising out of transactions entered into under section 54 (7) (inserted by the Finance Act, 1983) of the Finance Act, 1970, towards defraying the interest and expenses arising on the public debt.

68 Amendment of section 54 of Finance Act, 1970.

68.—Section 54 of the Finance Act, 1970, is hereby amended by—

(a) the insertion in subsection (5) (inserted by section 49 of the Finance Act, 1978) after “Post Office Savings Bank Fund” of “or from any other Departmental Fund under his control”, and the said subsection, as so amended, is set out in the Table to this section, and

(b) the insertion after subsection (7) (inserted by the Finance Act, 1983) of the following subsection:

“(8) The Minister may, for the purposes of the better management of the indebtedness incurred by him under this section, do such things and take such steps (including the employment of specialists and specialised services) as he considers necessary or expedient for those purposes, and the expenses and other costs incurred by the Minister for Finance under this subsection or otherwise in relation to such management shall be charged on the Central Fund or the growing produce thereof.”.

TABLE

(5) Securities created and issued by the Minister for Finance either under this section or under any other provision of an Act of the Oireachtas may, whenever and so often as he thinks fit, be purchased by him from the Post Office Savings Bank Fund or from any other Departmental Fund under his control and cancelled.

69 Provisions relating to sums advanced to Local Loans Fund.

69.—(1) Where any sum is, or, before the passing of this Act, has been, advanced, pursuant to section 5 (2) of the Local Loans Fund Act, 1935, out of the Central Fund to the Local Loans Fund, the Minister for Finance may, if it seems to him desirable so to do, waive the repayment of the whole, or such part as the Minister may specify, of—

(a) such sum, or

(b) any balance thereof not repaid,

together with the whole, or such part as may be so specified, of any unpaid interest on such sum or balance.

(2) The Minister for Finance shall, in respect of each sum or balance the repayment of which or of part of which, or of the interest or part of the interest on which, has been waived pursuant to subsection (1), lay before each House of the Oireachtas, a statement specifying the following matters:

(a) the total amount of the sum advanced out of the Central Fund;

(b) the total amount of principal, the repayment of which has been waived pursuant to subsection (1); and

70 Securities of Bord Telecom Éireann and Irish Telecommunications Investments p.l.c.

70.—(1) Part XXXII of the Income Tax Act, 1967, is hereby amended—

(a) by the insertion after section 467 of the following section:

“467A.—(1) Any debentures, debenture stock, bonds, notes, certificates of charge or other forms of security issued after the passing of the Finance Act, 1988, by a company to which this section applies shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 466 and that section shall apply accordingly.

(2) Notwithstanding anything contained in this Act, in computing for the purposes of assessment under Schedule D the amount of the profits or gains of a company to which this section applies, for any period for which accounts are made up, there shall be allowed as a deduction the amount of the interest on debentures, debenture stock, bonds, notes, certificates of charge or other forms of security which, by direction of the Minister for Finance given under section 466 as applied by this section, is paid by the company without deduction of tax for such period.

(3) The companies to which this section applies are Bord Telecom Éireann and Irish Telecommunications Investments p.l.c.”, and

(b) by the insertion in section 474 (1) after “section 467,” of “467A,” and the said section 474 (1), as so amended, is set out in the Table to this subsection.

TABLE

(1) This section applies to any stock or other security on which interest is payable without deduction of income tax by virtue of a direction given by the Minister for Finance in pursuance of section 467, 467A, 471, 472 or 473 or section 59 of the Finance Act, 1970 or section 92 of the Finance Act, 1973.

(2) (a) Section 19 (d) of the Capital Gains Tax Act, 1975, is hereby amended, as on and from the passing of this Act, by the insertion after “the Electricity Supply Board,” of “Bord Telecom Éireann, Irish Telecommunications Investments p.l.c.,” and the said section 19 (d), as so amended, is set out in the Table to this subsection.

(b) As on and from the passing of this Act, section 54 of the Finance Act, 1983, and paragraph (b) of section 66 of the Finance Act, 1984, shall not apply or have effect.

TABLE

(d) debentures, debenture stock, certificates of charge or other forms of security issued by the Electricity Supply Board, Bord Telecom Éireann, Irish Telecommunications Investments p.l.c., Córas Iompair Éireann, The Agricultural Credit Corporation, Limited, Bord na Móna, Aerlínte Éireann, Teoranta, Aer Lingus, Teoranta or Aer Rianta, Teoranta.

71 Poundage and certain other fees.

71.—(1) (a) 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 the enactments amending or extending that Part,

and any instruments made thereunder;

“certificate” means a certificate issued under section 485 of the Income Tax Act, 1967;

“county registrar” means a person appointed to be a county registrar under section 35 of the Court Officers Act, 1926;

“defaulter” means a person specified or certified in an execution order or certificate upon whom a relevant amount specified or certified in the order or certificate is leviable;

“execution order” has the same meaning as in the Enforcement of Court Orders Act, 1926;

“fees” means the fees known as poundage fees payable under section 14 (1) of the Enforcement of Court Orders Act, 1926, and orders made thereunder for services in or about the execution of an execution order directing or authorising the execution of an order of a court by the seizure and sale of a person's property or, as may be appropriate, the fees, corresponding to the fees aforesaid, payable under section 485 of the Income Tax Act, 1967, for the execution of a certificate;

“interest on unpaid tax” means interest that has accrued under any provision of the Acts providing for the charging of interest in respect of unpaid tax including interest on an undercharge of tax which is attributable to fraud or neglect;

“relevant amount” means an amount of tax or interest on unpaid tax;

“tax” means any tax, duty, levy or charge which, in accordance with any provision of the Acts, is placed under the care and management of the Revenue Commissioners.

(b) References, as respects an execution order, to a relevant amount include references to any amount of costs specified in the order.

(2) (a) Where—

(i) an execution order or certificate specifying or certifying a defaulter and relating to a relevant amount is lodged, whether before or after the passing of this Act, with the appropriate sheriff or county registrar for execution,

(ii) the sheriff or, as the case may be, the county registrar gives notice to the defaulter of the lodgment or of his intention to execute the execution order or certificate by seizure of the property of the defaulter to which it relates, or demands payment by the defaulter of the relevant amount, and

(iii) the whole or part of the relevant amount is paid to the sheriff or, as the case may be, the county registrar or to the Collector-General, after the giving of the notice or the making of the demand, aforesaid,

then, for the purpose of the liability of the defaulter for the payment of fees and of the exercise of any rights or powers in relation to the collection of fees for the time being vested by law in sheriffs and county registrars—

(I) the sheriff or, as the case may be, the county registrar shall be deemed to have entered, in the execution of the execution order or certificate, into possession of the property aforesaid, and

(II) the payment mentioned in subparagraph (iii) shall be deemed to have been levied, in the execution of the execution order or certificate, by the sheriff or, as the case may be, the county registrar,

and fees shall be payable by the defaulter to such sheriff or, as the case may be, county registrar accordingly in respect of the payment mentioned in subparagraph (iii).

(b) Paragraph (a) shall, with any necessary modifications, apply also in a case in which such a notice or demand as is mentioned in subparagraph (ii) of that paragraph was given or made before the passing of this Act if the fees concerned were paid to the sheriff or county registrar concerned before such passing.

72 Incentive to bring tax affairs up to date.

72.—(1) (a) In this section—

“the Acts” means—

(i) the Tax Acts,

(ii) Part V of the Finance Act, 1920, and the enactments amending or extending that Part,

(iii) the Capital Gains Tax Acts, and

(iv) the Value-Added Tax Act, 1972, and the enactments amending or extending that Act,

and any instruments made thereunder;

“arrears of tax” has the meaning assigned to it by subsection (2) (a);

“the due date” means, in relation to an amount of tax, the date on which a person becomes liable to interest under any of the specified provisions in respect of the late payment of that tax;

“estimate” means an estimate of tax made in accordance with the provisions of—

(i) section 7 or 8 of the Finance Act, 1968,

(ii) section 17 of the Finance Act, 1970, and the regulations made thereunder, or

(iii) section 22 or 23 of the Value-Added Tax Act, 1972,

as the case may be;

“judgment” includes any order or decree;

“relevant interest” means interest (other than interest to which subsection (4) applies) payable in accordance with the specified provisions in respect of arrears of tax;

“the specified provisions” means any provision of the Acts pursuant to which a person may be liable—

(i) to interest in respect of unpaid tax including interest on an undercharge of tax which is attributable to fraud or neglect, or

(ii) to a fine or other penalty in respect of an offence;

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

(b) The reference in subsection (2) (b) to an amount of tax due and payable shall, in a case where tax is assessed or estimated in an assessment or estimate against which an appeal has been made, be construed as a reference to the amount of tax which becomes due and payable on the determination of the appeal (within the meaning of section 550 (2A) (c) of the Income Tax Act, 1967) or, pending such determination, the tax as assessed or estimated.

(2) This section applies to a person—

(a) who had not paid or remitted before the due date tax (in this section referred to as “arrears of tax”) which was due and payable by him on or before the 31st day of December, 1987, in accordance with any provision of the Acts, including tax which would have been so due and payable if any return, statement or declaration (being a return, statement or declaration, as the case may be, which should have, but had not, been made by him in accordance with the Acts) had been so made and if that tax had been contained in an assessment or estimate made before that date,

and

(b) who, at any time during the period from the 27th day of January, 1988, to the 30th day of September, 1988—

(i) had paid or remitted all amounts of tax due and payable by him before or during that period in accordance with the provisions of the Acts including such arrears of tax as are referred to in paragraph (a), and

(ii) had paid or remitted all amounts he was liable to pay or remit before or during that period in accordance with the provisions of—

(I) the Social Welfare Acts, 1981 to 1987, and the regulations made thereunder,

(II) the Health Contributions Act, 1979, and the regulations made thereunder,

(III) the Youth Employment Agency Act, 1981, and the regulations made thereunder, and

(IV) section 16 of the Finance Act, 1983.

(3) Notwithstanding any other provision of the Acts, in the case of a person to whom this section applies—

(a) relevant interest which is owed by him and is unpaid on the expiration of the period referred to in subsection (2) (b) shall be waived, and

(b) proceedings shall not be initiated or continued for the recovery of any fine or penalty which the person may have incurred, directly or indirectly, under any of the specified provisions in relation to arrears of tax, nor shall the Revenue Commissioners seek or demand from the person payment of any sum in lieu of such fine or penalty.

(4) This subsection applies to interest chargeable for any month, or part of a month, commencing on—

(a) the 1st day of March, 1988, in respect of tax which a person was liable to remit pursuant to—

(i) Chapter IV of Part V of the Income Tax Act, 1967, and the regulations made thereunder or section 7 of the Finance Act, 1968, and the said regulations, or which a person was liable to pay in accordance with the provisions of section 8 of the Finance Act, 1968,

(ii) section 17 of the Finance Act, 1970, and the regulations made thereunder, or

(iii) the Value-Added Tax Act, 1972, and the regulations made thereunder,

(b) the 1st day of May, 1988, in respect of tax other than tax to which paragraph (a) refers.

(5) Notwithstanding the provisions of subsection (3) or any other provision of the Acts, relevant interest which is paid by a person on or after the 27th day of January, 1988—

(a) if he is a person to whom this section applies, shall be refunded to him, or

(b) if he is not such a person, may be treated as a payment in respect of any amount (which, if he were such a person, would have been paid or remitted by him in accordance with subsection (2) (b)), if, but only if, he would by reason of such treatment, be a person to whom this section applies; and any relevant interest paid in excess of the amount aforesaid shall be refunded to him.

(6) This section shall not apply to any interest, fine or other penalty that—

(a) in the case of a fine or other penalty, is imposed by a court under any of the Acts,

(b) in the case of interest, is ordered by a court in any proceedings for the recovery of tax or interest to be paid by a person, or

(c) in any case, is included in a specified sum such as is referred to in subsection (2) (c) of section 23 of the Finance Act, 1983, where, pursuant to an investigation by an inspector, the specified sum was accepted by the Revenue Commissioners on or before the 27th day of January, 1988.

(7) Section 23 (4) of the Finance Act, 1983, is hereby amended by the insertion after paragraph (a) of the following paragraph:

“(aa) the provisions of section 72 of the Finance Act, 1988, apply, or”.

73 Deduction from payments due to defaulters of amounts due in relation to tax.

73.—(1) (a) This section shall apply and have effect as on and from the 1st day of October, 1988.

(b) In this section, except where the context otherwise requires—

“the Acts” means—

(i) the Tax Acts,

(ii) the Capital Gains Tax Acts, and

(iii) the Value-Added Tax Act, 1972, and the enactments amending or extending that Act,

and any instruments made thereunder;

“additional debt” means, in relation to a relevant person who has received a notice of attachment in respect of a taxpayer, any amount which, at any time after the time of the receipt by the relevant person of the notice of attachment but before the end of the relevant period in relation to the notice, would be a debt due by him to the taxpayer if a notice of attachment were received by him at that time;

“debt” means, in relation to a notice of attachment given to a relevant person in respect of a taxpayer and in relation to the said relevant person and taxpayer, the amount or aggregate amount of any money which, at the time the notice of attachment is received by the relevant person, is due by the relevant person (whether on his own account, or as an agent or trustee) to the taxpayer, irrespective of whether the taxpayer has applied for the payment (to himself or any other person) or for the withdrawal of all or part of the money:

Provided that—

(i) where a relevant person is a financial institution, any amount or aggregate amount of money, including interest thereon, which at that time is a deposit held by the relevant person to the credit of the taxpayer for his sole benefit, shall be regarded as a debt due by the relevant person to the taxpayer at that time,

(ii) any amount of money due by the relevant person to the taxpayer as emoluments under a contract of service shall not be so regarded, and

(iii) where there is a dispute as to an amount of money which is due by the relevant person to the taxpayer, the amount in dispute shall be disregarded for the purposes of determining the amount of the debt;

“deposit” means a sum of money paid to a financial institution on terms under which it will be repaid with or without interest and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person to whom it is made;

“emoluments” means anything assessable to income tax under Schedule E;

“financial institution” means a holder of a licence issued under section 9 of the Central Bank Act, 1971, or a person referred to in section 7 (4) of that Act and includes a branch of a financial institution that records deposits in its books as liabilities of the branch;

“further return” means a return made by a relevant person under subsection (4);

“interest on unpaid tax” means, in relation to a specified amount specified in a notice of attachment, interest, that has accrued to the date on which the notice of attachment is given, under any provision of the Acts providing for the charging of interest in respect of unpaid tax including interest on an undercharge of tax which is attributable to fraud or neglect;

“notice of attachment” means a notice under subsection (2);

“notice of revocation” means a notice under subsection (10);

“penalty” means a monetary penalty imposed on a taxpayer under a provision of the Acts;

“relevant period”, in relation to a notice of attachment, means, as respects the relevant person to whom the notice of attachment is given, the period commencing at the time at which the notice is received by the relevant person and ending on—

(i) the date on which he completes the payment to the Revenue Commissioners out of the debt, or the aggregate of the debt and any additional debt, due by him to the taxpayer named in the notice, of an amount equal to the specified amount in relation to the taxpayer,

(ii) the date on which he receives a notice of revocation of the notice of attachment, or

(iii) where he or the taxpayer named in the notice is—

(I) declared bankrupt, the date he or the taxpayer is so declared, or

(II) a company which commences to be wound up, the “relevant date” within the meaning of section 285 of the Companies Act, 1963, in relation to the winding up,

whichever is the earliest;

“relevant person” means, in relation to a taxpayer, a person in respect of whom the Revenue Commissioners have reason to believe that he may have, at the time a notice of attachment is received by him in respect of a taxpayer, a debt due to the taxpayer;

“return” means a return made by a relevant person under subsection (2) (a) (iii);

“specified amount” has the meaning assigned to it by subsection (2) (a) (ii);

“tax” means any tax, duty, levy or charge which, in accordance with any provision of the Acts, is placed under the care and management of the Revenue Commissioners;

“taxpayer” means a person who is liable to pay, remit or account for tax to the Revenue Commissioners under the Acts.

(2) (a) Subject to subsection (3), where a taxpayer has made default, whether before or after the passing of this Act, in paying, remitting, or accounting for, any tax, interest on unpaid tax, or penalty to the Revenue Commissioners, the Revenue Commissioners may, if the taxpayer has not made good the default, give to a relevant person in relation to the taxpayer a notice in writing (in this section referred to as “the notice of attachment”) in which is entered—

(i) the taxpayer's name and address,

(ii) the amount or aggregate amount (in this section referred to as “the specified amount”) of the taxes, interest on unpaid taxes and penalties in respect of which the taxpayer is in default at the time of the giving of the notice of attachment, and

(iii) a direction to the relevant person—

(I) to deliver to the Revenue Commissioners, within the period of 10 days from the time at which the notice of attachment is received by him, a return in writing specifying whether or not any debt is due by him to the taxpayer at the time the notice is received by him, and if any debt is so due, specifying the amount of the debt:

Provided that where the amount of the debt due by the relevant person to the taxpayer is equal to or greater than the specified amount in relation to the taxpayer, the amount of the debt specified in the return shall be an amount equal to the specified amount,

and

(II) if the amount of any debt is so specified to pay to the Revenue Commissioners within the period aforesaid a sum equal to the amount of the debt so specified.

(b) A relevant person to whom a notice of attachment has been given shall comply with the direction in the notice.

(3) An amount in respect of tax, interest on unpaid tax or a penalty, as respects which a taxpayer is in default as specified in subsection (2), shall not be entered in a notice of attachment unless—

(a) a period of one month has expired from the date on which such default commenced, and

(b) the Revenue Commissioners have given the taxpayer a notice in writing (whether or not the document containing the notice also contains other information being communicated by the Revenue Commissioners to the taxpayer), not later than 10 days before the date of the receipt by the relevant person concerned of the notice of attachment, stating that, if the amount is not paid, it may be specified in a notice of attachment and recovered under this section from a relevant person in relation to the taxpayer.

(4) If, when a relevant person receives a notice of attachment, the amount of the debt due by him to the taxpayer named in the notice is less than the specified amount in relation to the taxpayer or no debt is so due and, at any time thereafter before the end of the relevant period in relation to the notice, an additional debt becomes due by the relevant person to the taxpayer, the relevant person shall, within 10 days of that time—

(a) if the aggregate of the amount of any debt so due and the additional debt so due is equal to or less than the specified amount in relation to the taxpayer—

(i) deliver a further return to the Revenue Commissioners specifying the additional debt, and

(ii) pay to the Revenue Commissioners the amount of the additional debt,

and so on for each subsequent occasion during the relevant period in relation to the notice of attachment on which an additional debt becomes due by the relevant person to the taxpayer until the aggregate amount of the debt and the additional debt or debts so due equals the specified amount in relation to the taxpayer or the provisions of paragraph (b) apply in relation to an additional debt, and

(b) if the aggregate amount of any debt and the additional debt or debts so due to the taxpayer is greater than the specified amount in relation to the taxpayer—

(i) deliver a further return to the Revenue Commissioners specifying such portion of the latest additional debt as when added to the aggregate of the debt and any earlier additional debts is equal to the specified amount in relation to the taxpayer, and

(ii) pay to the Revenue Commissioners the said portion of the additional debt.

(5) Where a relevant person delivers, either fraudulently or negligently, an incorrect return or further return that purports to be a return or further return made in accordance with this section, he shall be deemed to be guilty of an offence under section 94 of the Finance Act, 1983.

(6) (a) Where a notice of attachment has been given to a relevant person in respect of a taxpayer, the relevant person shall not, during the relevant period in relation to the notice, make any disbursements out of the debt, or any additional debt, due by him to the taxpayer save to the extent that any such disbursement—

(i) will not reduce the debt or the aggregate of the debt and any additional debts so due to an amount that is less than the specified amount in relation to the taxpayer, or

(ii) is made pursuant to an order of a court.

(b) For the purposes of this section, a disbursement made by a relevant person contrary to paragraph (a) shall be deemed not to reduce the amount of the debt or any additional debts due by him to the taxpayer.

(7) (a) Sections 500 and 503 of the Income Tax Act, 1967, shall apply to a failure by a relevant person to deliver a return required by a notice of attachment within the time specified in the notice or to deliver a further return within the time specified in subsection (4) as they apply to a failure to deliver a return referred to in the said section 500 and Schedule 15 to the said Act is hereby amended by the insertion in Column 1 of “Finance Act, 1988, paragraph (a) (iii) (I) of subsection (2) and paragraphs (a) (i) and (b) (i) of subsection (4) of section 73”.

(b) A certificate signed by an officer of the Revenue Commissioners which certifies that he has examined the relevant records and that it appears from them that, during a specified period, a specified return was not received from a relevant person shall be evidence until the contrary is proved that the relevant person did not deliver the return during that period and a certificate certifying as provided by this paragraph and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been so signed.

(8) Where a relevant person to whom a notice of attachment in respect of a taxpayer has been given—

(a) delivers the return required to be delivered by the said notice but fails to pay to the Revenue Commissioners, within the time specified in the notice, the amount specified in the return or any part of that amount, or

(b) delivers a further return under subsection (4) but fails to pay to the Revenue Commissioners, within the time specified in the said subsection (4), the amount specified in the further return or any part of that amount,

the amount specified in the return or further return, or the part of that amount, as the case may be, which he has failed to pay to the Revenue Commissioners may, if the notice of attachment has not been revoked by a notice of revocation, be sued for and recovered by action, or other appropriate proceedings, at the suit of an officer of the Revenue Commissioners in any court of competent jurisdiction.

(9) Nothing in this section shall be construed as rendering any failure by a relevant person to make a return or further return required by this section, or pay to the Revenue Commissioners the amount or amounts required by this section to be paid by him, liable to be treated as a failure to which section 94 of the Finance Act, 1983, applies.

(10) (a) A notice of attachment given to a relevant person in respect of a taxpayer may be revoked by the Revenue Commissioners, at any time, by notice in writing given to the relevant person and shall be revoked forthwith if the taxpayer has paid the specified amount to the Revenue Commissioners.

(b) Where, in pursuance of this section, a relevant person pays any amount to the Revenue Commissioners out of a debt or an additional debt due by him to the taxpayer and, at the time of the receipt by the Revenue Commissioners of the said amount, the taxpayer has paid the specified amount to the Revenue Commissioners, the first-mentioned amount shall be refunded by the Revenue Commissioners forthwith to the taxpayer.

(11) If a notice of attachment or a notice of revocation is given to a relevant person in relation to a taxpayer a copy thereof shall be given by the Revenue Commissioners to the taxpayer forthwith.

(12) (a) If, in pursuance of this section, any amount is paid to the Revenue Commissioners by a relevant person, the relevant person shall forthwith give the taxpayer concerned a notice in writing specifying the payment, its amount and the reason for which it was made.

(b) On the receipt by the Revenue Commissioners of an amount paid in pursuance of this section, the Revenue Commissioners shall forthwith notify the taxpayer and the relevant person in writing of such receipt.

(13) If, in pursuance of this section, a relevant person pays to the Revenue Commissioners the whole or part of the amount of a debt, or an additional debt, due by him to a taxpayer, or any portion of such an amount, the taxpayer shall allow such payment and the relevant person shall be acquitted and discharged of the amount of the payment as if it had been paid to the taxpayer.

(14) If, in pursuance of this section, a relevant person is prohibited from making any disbursement out of a debt, or an additional debt, due to a taxpayer, no action shall lie against the relevant person in any court by reason of a failure to make any such disbursement.

(15) Any obligation on the Revenue Commissioners to maintain secrecy or any other restriction upon the disclosure of information by the Revenue Commissioners shall not apply in relation to information contained in a notice of attachment.

(16) A notice of attachment in respect of a taxpayer shall not be given to a relevant person at a time when the relevant person or the taxpayer is an undischarged bankrupt or a company being wound up.

(17) Where the Revenue Commissioners have given a notice of attachment to a relevant person in respect of a taxpayer, they shall not, during the relevant period in relation to the notice, give a notice of attachment in respect of the taxpayer to any other relevant person.

(18) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this section to be performed or discharged by the Revenue Commissioners.

74 Construction of certain Acts in accordance with Status of Children Act, 1987.

74.—(1) In this section “the Acts” means—

(i) the Tax Acts,

(ii) the Capital Gains Tax Acts,

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

(iv) the statutes relating to stamp duty,

and any instruments made thereunder.

(2) Notwithstanding any provision of the Acts or the dates on which they were passed, in deducing any relationship between persons for the purposes of the Acts, the Acts shall be construed in accordance with section 3 of the Status of Children Act, 1987.

(3) This section shall have effect—

(i) in relation to the Tax Acts, as respects the year 1987-88 and subsequent years of assessment or accounting periods ending on or after the 14th day of January, 1988, as the case may be,

(ii) in relation to the Capital Gains Tax Acts, as respects disposals made on or after the 14th day of January, 1988,

(iii) in relation to the Capital Acquisitions Tax Act, 1976, as respects gifts and inheritances taken on or after the 14th day of January, 1988, and

(iv) in relation to the statutes relating to stamp duties, as respects any instrument executed on or after the 14th day of January, 1988.

75 Guarantee of deposits with Agricultural Credit Corporation plc and Industrial Credit Corporation plc.

75.—The power of the Minister to guarantee—

(a) under section 14 of the Agricultural Credit Act, 1978, the repayment of any money raised or borrowed by the Agricultural Credit Corporation plc, and

(b) under section 3 of the Industrial Credit (Amendment) Act, 1958, the repayment of any money raised or borrowed by the Industrial Credit Corporation plc,

shall include, and be deemed always to have included, the power to guarantee the repayment of moneys (including money in a currency other than the currency of the State) deposited with the Agricultural Credit Corporation plc., and the Industrial Credit Corporation plc.

76 Care and management of taxes and duties.

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

77 Short title, construction and commencement.

77.—(1) This Act may be cited as the Finance Act, 1988.

(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 1987, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1988.

(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 and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(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 value-added tax) shall be construed together with the Value-Added Tax Acts, 1972 to 1988, 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 the Local Loans Fund) shall be construed together with the Local Loans Fund Acts, 1935 to 1987, and may be cited together therewith as the Local Loans Fund Acts, 1935 to 1988.

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