Finance Act , 1989

(ii) as and when all appeals made under the said subsection (7) against any such matter or matters have been finally determined and none of the appeals has been so determined by an order directing that the opinion of the Revenue Commissioners to the effect that the transaction is a tax avoidance transaction is void.

(6) (a) Where, pursuant to subsections (2) and (4), the Revenue Commissioners form the opinion that a transaction is a tax avoidance transaction, they shall immediately thereupon give notice in writing of the opinion to any person from whom a tax advantage would be withdrawn or to whom a tax advantage would be denied or to whom relief from double taxation would be given, if the opinion became final and conclusive, and the notice shall specify or describe—

(i) the transaction which in the opinion of the Revenue Commissioners is a tax avoidance transaction,

(ii) the tax advantage, or part thereof, calculated by the Revenue Commissioners which would be withdrawn from or denied to the person to whom the notice is given,

(iii) the tax consequences of the transaction determined by the Revenue Commissioners, in so far as they would refer to the person, and

(iv) the amount of any relief from double taxation calculated by the Revenue Commissioners which they would propose to give to the person in accordance with subsection (5) (c).

(b) Section 542 of the Income Tax Act, 1967, shall, with any necessary modifications, apply for the purposes of a notice given under this subsection, or subsection (10), as if it were a notice given under that Act.

(7) Any person aggrieved by an opinion formed or, in so far as it refers to the person, a calculation or determination made by the Revenue Commissioners pursuant to subsection (4) may, by notice in writing given to the Revenue Commissioners within 30 days of the date of the notice of opinion, appeal to the Appeal Commissioners on the grounds and, notwithstanding any other provision of the Acts, only on the grounds that, having regard to all of the circumstances, including any fact or matter which was not known to the Revenue Commissioners when they formed their opinion or made their calculation or determination, and to the provisions of this section—

(a) the transaction specified or described in the notice of opinion is not a tax avoidance transaction, or

(b) the amount of the tax advantage, or the part thereof, specified or described in the notice of opinion which would be withdrawn from or denied to the person is incorrect, or

(c) the tax consequences specified or described in the notice of opinion, or such part thereof as shall be specified or described by the appellant in the notice of appeal, would not be just and reasonable in order to withdraw or to deny the tax advantage, or part thereof, specified or described in the notice of opinion, or

(d) the amount of relief from double taxation which the Revenue Commissioners propose to give to the person is insufficient or incorrect.

(8) The Appeal Commissioners shall hear and determine an appeal made to them under subsection (7) as if it were an appeal against an assessment to income tax and, subject to subsection (9), all the provisions of the Income Tax Act, 1967, relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications:

Provided that on the hearing or rehearing of the appeal—

(a) it shall not be lawful to go into any grounds of appeal other than those specified in subsection (7), and

(b) at the request of the appellants, two or more appeals made by two or more persons pursuant to the same opinion, calculation or determination formed or made by the Revenue Commissioners pursuant to subsection (4) may be heard or reheard together.

(9) (a) On the hearing of an appeal made under subsection (7) the Appeal Commissioners shall have regard to all matters to which the Revenue Commissioners may or are required to have regard under the provisions of this section and—

(i) in relation to an appeal made on the grounds referred to in paragraph (a) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering, if they, or a majority of them—

(I) consider that the transaction specified or described in the notice of opinion, or any part of that transaction, is a tax avoidance transaction, that the opinion, or the opinion in so far as it relates to that part, is to stand good, or

(II) consider that, subject to such amendment or addition thereto as the Appeal Commissioners, or the said majority of them, deem necessary and as they shall specify or describe the transaction, or any part of it, specified or described in the notice of opinion, is a tax avoidance transaction, that the transaction, or that part of it, be so amended or added to and that, subject to the amendment or addition, the opinion, or the opinion in so far as it relates to that part, is to stand good, or

(III) do not so consider as referred to in clause (I) or (II), that the opinion is void,

or

(ii) in relation to an appeal made on the grounds referred to in paragraph (b) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering that the amount of the tax advantage, or the part thereof, specified or described in the notice of opinion be increased or reduced by such amount as they shall direct or that it shall stand good,

or

(iii) in relation to an appeal made on the grounds referred to in paragraph (c) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering that the tax consequences specified or described in the notice of opinion shall be altered or added to in such manner as they shall direct or that they shall stand good,

or

(iv) in relation to an appeal made on the grounds referred to in paragraph (d) of subsection (7), they shall determine the appeal, in so far as it is made on those grounds, by ordering that the amount of the relief from double taxation specified or described in the notice of opinion shall be increased or reduced by such amount as they shall direct or that it shall stand good.

(b) The provisions of this subsection shall, subject to any necessary modifications, apply to the rehearing of an appeal by a judge of the Circuit Court and, to the extent necessary, to the determination by the High Court of any question or questions of law arising on the statement of a case for the opinion of the High Court.

(10) The Revenue Commissioners may, at any time, amend, add to or withdraw any matter specified or described in a notice of opinion by giving notice (hereafter in this subsection referred to as the “notice of amendment”) in writing of the amendment, addition or withdrawal to each and every person affected thereby, in so far as the person is so affected, and the foregoing provisions of this section shall apply in all respects as if the notice of amendment were a notice of opinion and any matter specified or described in the notice of amendment were specified or described in a notice of opinion:

Provided that no such amendment, addition or withdrawal may be made so as to set aside or alter any matter which has become final and conclusive on the determination of an appeal made with regard to that matter under subsection (7).

(11) Where pursuant to subsections (2) and (4), the Revenue Commissioners form the opinion that a transaction is a tax avoidance transaction and, pursuant to that opinion, notices are to be given under subsection (6) to two or more persons, 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 with respect to the giving of the notices as aforesaid or to the performance of any acts or the discharge of any functions authorised by this section to be performed or discharged by them or to the performance of any act or the discharge of any functions, including any act or function in relation to an appeal made under subsection (7), which is directly or indirectly related to the acts or functions so authorised.

(12) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions, including the forming of an opinion, authorised by this section to be performed or discharged by the Revenue Commissioners and references in this section to the Revenue Commissioners shall, with any necessary modifications, be construed as including references to an officer so nominated.

(13) This section shall apply as respects any transaction where the whole or any part of the transaction is undertaken or arranged on or after the 25th day of January, 1989, and as respects any transaction undertaken or arranged wholly before that date in so far as it gives rise to, or would, but for this section, give rise to—

(a) a reduction, avoidance or deferral of any charge or assessment to tax, or part thereof, where the charge or assessment arises by virtue of any other transaction carried out wholly on or after a date, or

(b) a refund or a payment of an amount, or of an increase in an amount, of tax, or part thereof, refundable or otherwise payable to a person where that amount, or increase in the amount, would otherwise become first so refundable or otherwise payable to the person on a date,

which could not fall earlier than the said 25th day of January, 1989, as the case may be.

87 Amendment of section 33 (connected persons) of Capital Gains Tax Act, 1975.

87.—Section 33 of the Capital Gains Tax Act, 1975, is hereby amended by the insertion after subsection (5) of the following subsection:

“(5A) (a) Where a person disposes of an asset to another person in such circumstances that—

(i) the proviso to subsection (5) would, but for this subsection, apply in determining the market value of the asset, and

(ii) the person is not chargeable to capital gains tax under section 4 in respect of any gain accruing on his disposal of the asset,

then, as respects any subsequent disposal of the asset by the other person, that other person's acquisition of the asset shall, for the purposes of this Act, be deemed to be for an amount equal to the market value of the asset determined as if the said proviso to subsection (5) had not been enacted.

(b) This subsection shall—

(i) apply to disposals made on or after the 25th day of January, 1989, and

(ii) have effect for the purposes of the determination of any deduction to be made from a chargeable gain accruing on or after the 25th day of January, 1989, in respect of an allowable loss, notwithstanding that the loss accrued, or, but for this section, would have accrued, on a disposal made before that day.”.

88 Schemes to avoid liability to tax under Schedule F.

88.—(1) This section is for the purposes of counteracting any scheme or arrangement undertaken or arranged by a close company, or to which the close company is a party, being a scheme or arrangement the purpose of which, or one of the purposes of which, is to secure that any shareholder in the close company avoids or reduces a charge or assessment to income tax under Schedule F by converting into a capital receipt of the shareholder any amount which would otherwise be available for distribution by the close company to the shareholder by way of a dividend.

(2) Subject to subsection (6), this section shall apply to a disposal of shares in a close company by a shareholder if, following the disposal or the carrying out of a scheme or arrangement of which the disposal is a part, the interest of the shareholder in any trade or business (hereafter in this section referred to as the “specified business”) which was carried on by the close company at the time of the disposal, whether or not the specified business continues to be carried on by the close company after the disposal, is not significantly reduced.

(3) Subject to subsection (4) and notwithstanding subsection (1) of section 84 of the Act of 1976 or any provision of the Capital Gains Tax Acts, the amount of—

(a) the proceeds in either or both money and money's worth received by a shareholder in respect of a disposal of shares in a close company to which this section applies, or

(b) if it is less than those proceeds, the excess of those proceeds over any consideration, being consideration which—

(i) is new consideration received by the close company for the issue of those shares, and

(ii) has not previously been taken into account for the purposes of this subsection,

shall, for all the purposes of the Tax Acts, be treated as a distribution (within the meaning of the Act of 1976) made, at the time of the disposal, by the close company to the shareholder.

(4) (a) The amount which at any time may be treated, under subsection (3), as a distribution made by a close company to a shareholder in respect of any disposal of shares in the close company shall not exceed the amount of the capital receipt, or the aggregate of the amounts of the capital receipts, which at such time has, or have, been received by the shareholder—

(i) in respect of the disposal, or

(ii) by reason of any act done pursuant to a scheme or arrangement of which the disposal is a part:

Provided that—

(I) a capital receipt received by a shareholder at any time on or after the disposal shall in respect of such time result in so much of the amount mentioned in subsection (3) being treated as a distribution (which is made by the close company to the shareholder at the time of the disposal) as does not exceed the amount of the capital receipt, or the aggregate of the amounts of such capital receipts, which at such time on or after the disposal has or have been received by the shareholder, and

(II) if, as a result of a shareholder having received a capital receipt, a close company is treated as having made a distribution to him under subsection (3), any provision of the Income Tax Acts in respect of interest on unpaid tax shall apply, for the purposes of tax due in respect of that distribution, as if the tax were due and payable only from the day on which the shareholder received the capital receipt.

(b) For the purposes of this subsection, “capital receipt” means, as appropriate in the circumstances, any amount of either or both money and money's worth (other than shares issued by a close company carrying on the specified business) which—

(i) is received by a shareholder in respect of a disposal of shares or by reason of any act done pursuant to a scheme or arrangement of which the disposal is a part, and

(ii) is not, apart from this section, chargeable to income tax in the hands of the shareholder.

(5) Notwithstanding the provisions of section 88 (1) of the Act of 1976, where a shareholder in a close company is treated under this section as having received a distribution from the close company, the shareholder shall only be entitled to a tax credit in respect of the distribution to the extent that the close company has paid advance corporation tax in respect of the distribution in accordance with Chapter VII of Part I of the Finance Act, 1983:

Provided that where a close company would but for the application of the provisions of section 41 of the said Finance Act, 1983, have paid an amount or an additional amount of advance corporation tax in respect of a distribution, then the close company shall be treated as having paid such an amount or additional amount of advance corporation tax in respect of that distribution for the purposes of this subsection.

(6) This section shall not apply as respects a disposal of shares in a close company by a shareholder where it is shown to the satisfaction of the inspector or, on the hearing, or the rehearing, of an appeal, to the satisfaction of the Appeal Commissioners, or the judge of the Circuit Court, as the case may be, that the disposal was made for bona fide commercial reasons and not as part of a scheme or arrangement the purpose, or one of the purposes, of which was the avoidance of tax.

(7) (a) In this section—

“the Act of 1976” means the Corporation Tax Act, 1976;

“appeal” means an appeal made pursuant to the provisions of section 416 of the Income Tax Act, 1967;

“close company” has the same meaning as it has, by reason of sections 94 and 95 of the Act of 1976, for the purposes of that Act;

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

“new consideration” has the meaning assigned to it by section 87 of the Act of 1976;

“shares” includes loan stock, debentures and any interest or rights in or over, or any option in relation to, shares, loan stock or debentures, and references to “shareholder” shall be construed accordingly.

(b) (i) For the purposes of this section, there shall be a disposal of shares by a shareholder where the shareholder disposes of shares, or is treated under the provisions of the Capital Gains Tax Acts as disposing of shares, and references to a disposal of shares shall include references to a part disposal of shares within the meaning of those Acts.

(ii) Where under any arrangement between a close company (hereafter in this subparagraph referred to as “the first-mentioned company”) and its, or some of its, shareholders (being any arrangement similar to an arrangement entered into for the purposes of or in connection with a scheme of reconstruction or amalgamation) another close company issues shares to those shareholders in respect of or in proportion to (or as nearly as may be in proportion to) their holdings of shares in the first-mentioned company, but the shares in the first-mentioned company are either retained by the shareholders or are cancelled, then those shareholders shall, for the purposes of this section, be treated as making a disposal, or a part disposal, as the case may be, of the shares in the first-mentioned company in exchange for those shares held by them in consequence of such arrangement.

(c) For the purposes of this section, the interest of a shareholder in a trade or business is not significantly reduced following a disposal of shares or the carrying out of a scheme or arrangement of which the disposal is a part, if, but only if, at any time after the disposal, the percentage—

(i) of the ordinary share capital of the close company carrying on the trade or business at such time which is beneficially owned by the shareholder at such time, or

(ii) of any profits, which are available for distribution to equity holders, of the close company carrying on the trade or business at such time to which the shareholder is beneficially entitled at such time, or

(iii) of any assets, available for distribution to equity holders on a winding up, of the close company carrying on the trade or business at such time to which the shareholder would be beneficially entitled at such time on a winding up of the close company,

is not significantly less than the percentage of the said ordinary share capital, profits or assets, as the case may be, of the close company carrying on the trade or business at any time prior to the disposal—

(I) which the shareholder beneficially owned, or

(II) to which the shareholder was beneficially entitled,

at such time prior to the disposal, and sections 109 to 111 and section 114 of the Act of 1976 shall apply, but without regard to section 107 (7) of the Act of 1976 in so far as it relates to those sections, with any necessary modifications, to the determination, for the purposes of this paragraph, of the percentage of share capital, or other amount, which a shareholder beneficially owns or is beneficially entitled to, as they apply to the determination for the purposes of Part XI of the Act of 1976 of the percentage of any such amount which a company so owns or is so entitled to.

(d) The value of any amount received in money's worth shall, for the purposes of this section, be the market value of the money's worth at the time of its receipt.

(8) This section shall apply to any disposal of shares made on or after the 25th day of January, 1989.

89 Annual payments for non-taxable consideration.

89.—(1) Section 433 of the Income Tax Act, 1967, is hereby amended, as respects any yearly interest of money, annuity or other annual payment paid on or after the 9th day of May, 1989, by the deletion in subsection (1) of the words “>no assessment shall be made upon the person entitled to such interest, annuity, or annual payment, but” and the said subsection (1), as so amended, is set out in the Table to this subsection.

TABLE

(1) Where any yearly interest of money, annuity, or any other annual payment (whether payable within or outside the State, either as a charge on any property of the person paying the same by virtue of any deed or will or otherwise, or as a reservation thereout, or as a personal debt or obligation by virtue of any contract, or whether payable half-yearly or at any shorter or more distant periods), is payable wholly out of profits or gains brought into charge to tax, the whole of those profits or gains shall be assessed and charged with tax on the person liable to the interest, annuity, or annual payment, without distinguishing the same, and the person liable to make such payment, whether out of the profits or gains charged with tax or out of any annual payment liable to deduction, or from which a deduction has been made, shall be entitled, on making such payment, to deduct and retain thereout a sum representing the amount of the tax thereon at the rate or rates of tax in force during the period through which the said payment was accruing due. The person to whom such payment is made shall allow such deduction upon the receipt of the residue of the same, and the person making such deduction shall be acquitted and discharged of so much money as is represented by the deduction, as if that sum had been actually paid.

(2) (a) Any payment to which this subsection applies—

(i) shall be made without deduction of income tax,

(ii) shall not be allowed as a deduction in computing the income or total income of the person by whom it is made, and

(iii) shall not be a charge on income for the purposes of corporation tax.

(b) This subsection applies to any payment made on or after the 9th day of May, 1989, which is—

(i) an annuity or other annual payment charged with tax under Case III of Schedule D, other than—

(I) interest,

(II) an annuity granted in the ordinary course of a business of granting annuities, or

(III) a payment made to an individual under a liability incurred in consideration of his surrendering, assigning or releasing an interest in settled property to or in favour of a person having a subsequent interest,

and

(ii) made under a liability incurred for consideration in money or money's worth, where all or any part of such consideration is not required to be brought into account in computing for the purposes of income tax or corporation tax the income of the person making the payment.

90 Arrangements reducing value of company shares.

90.—(1) In this section—

“arrangement” includes—

(a) any act or omission by a person or by the trustees of a disposition;

(b) any act or omission by any person having an interest in shares in a company;

(c) the passing by any company of a resolution; or

(d) any combination of acts, omissions or resolutions referred to in paragraphs (a), (b) and (c);

“company” means a private company within the meaning assigned by section 16(2) of the Principal Act;

“company controlled by a donee or successor” has the same meaning as is assigned to “company controlled by the donee or the successor” by section 16 of the Principal Act;

“event” includes—

(a) a death; and

(b) the expiration of a specified period;

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

“related shares” means the shares in a company, the market value of which shares is increased by any arrangement;

“related trust” has the meaning assigned to it by subsections (2) and (4);

“specified amount” means an amount equal to the difference between—

(a) the market value of shares in a company immediately before an arrangement is made, and ascertained under the provisions of section 16 or 17 of the Principal Act as if each share were a share in a company controlled by a donee or successor; and

(b) the market value of those shares, or of property representing those shares, immediately after the arrangement is made, and ascertained under the provisions of section 15 of the Principal Act,

and such specified amount shall be deemed to be situate where the company is incorporated.

(2) Where—

(a) a person has an absolute interest in possession in shares in a company; and

(b) any arrangement results in the market value of those shares, or of property representing those shares, immediately after that arrangement is made, being less than it would be but for that arrangement,

then, tax shall be payable in all respects as if a specified amount which relates to that arrangement were a benefit taken, immediately after that arrangement is made, from that person, as disponer, by—

(i) the beneficial owners of the related shares in that company; and

(ii) so far as the related shares in that company are held in trust (in this section referred to as the “related trust”) and have no ascertainable beneficial owners, by the disponer in relation to that related trust as if, immediately after that arrangement is made, that disponer was the absolute beneficial owner of those related shares,

in the same proportions as the market value of the related shares, which are beneficially owned by them or are deemed to be so beneficially owned, is increased by that arrangement.

(3) Where—

(a) an interest in property is limited by the disposition creating it to cease on an event;

(b) immediately before the making of an arrangement to which paragraph (c) relates, the property includes shares in a company; and

(c) the arrangement results in the market value of those shares, or of property representing those shares, immediately after that arrangement is made, being less than it would be but for that arrangement,

then, tax shall be payable under that disposition in all respects—

(i) where the interest in property is an interest in possession, as if such property included a specified amount which relates to that arrangement;

(ii) where the interest in property is not an interest in possession, as if it were an interest in possession and such property included a specified amount which relates to that arrangement; and

(iii) as if the event on which the interest was limited to cease under that disposition had happened, to the extent of the specified amount, immediately before that arrangement is made.

(4) Where—

(a) shares in a company are, immediately before the making of an arrangement to which paragraph (b) relates, subject to a discretionary trust under or in consequence of any disposition; and

(b) the arrangement results in those shares, or property representing those shares, remaining subject to that discretionary trust but, immediately after that arrangement is made, the market value of those shares, or of property representing those shares, is less than it would be but for that arrangement,

then, tax shall be payable under that disposition in all respects as if a specified amount, which relates to that arrangement, were a benefit taken immediately after that arrangement is made—

(i) by the beneficial owners of the related shares in that company; and

(ii) so far as the related shares in that company are held in trust (in this section referred to as the “related trust”) and have no ascertainable beneficial owners, by the disponer in relation to that related trust as if, immediately after that arrangement is made, that disponer was the absolute beneficial owner of those related shares,

in the same proportions as the market value of the related shares, which are beneficially owned by them or are deemed to be so beneficially owned, is increased by that arrangement.

(5) The provisions of subsections (2), (3) and (4) shall not prejudice any charge for tax in respect of any gift or inheritance taken under any disposition on or after the making of an arrangement referred to in those subsections and comprising shares in a company, or property representing such shares.

(6) Where shares in a company, which are held in trust under a disposition made by any disponer, are related shares by reason of any arrangement referred to in this section, any gift or inheritance taken under the disposition on or after the arrangement is made and comprising those related shares, or property representing those related shares, shall be deemed to be taken from that disponer.

(7) In relation to the tax due and payable in respect of any gift or inheritance taken under the provisions of paragraph (ii) of subsection (2) or paragraph (ii) of subsection (4), and notwithstanding the provisions of the Principal Act—

(a) the disponer in relation to the related trust shall not be a person primarily accountable for the payment of such tax; and

(b) a person who is a trustee of the related trust concerned for the time being at the date of the gift or at the date of the inheritance, or at any date subsequent thereto, shall be so primarily accountable.

(8) A person who is accountable for the payment of tax in respect of any specified amount, or part of a specified amount, taken as a gift or an inheritance under this section shall, for the purpose of paying the tax, or raising the amount of the tax when already paid, have power, whether the related shares are or are not vested in him, to raise the amount of such tax and any interest and expenses properly paid or incurred by him in respect thereof, by the sale or mortgage of, or a terminable charge on, the related shares in the relevant company.

(9) Tax due and payable in respect of a taxable gift or a taxable inheritance taken under this section shall be and remain a charge on the related shares in the relevant company.

(10) Where related shares are subject to a discretionary trust immediately after an arrangement is made in accordance with the provisions of this section, the amount by which the market value of such shares is increased by such arrangement shall be property for the purposes of a charge for tax arising by reason of the provisions of section 106 of the Finance Act, 1984.

(11) This section shall apply only as respects a gift or an inheritance taken as a result of an arrangement which is made on or after the 25th day of January, 1989.

PART VII Miscellaneous

91 Capital Services Redemption Account.

91.—(1) In this section—

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

“the 1988 amending section” means section 67 of the Finance Act, 1988;

“the thirty-ninth 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, 1989, subsection (4) of the 1988 amending section shall have effect with the substitution of “£44,924,133” for “£44,807,298”.

(3) Subsection (6) of the 1988 amending section shall have effect with the substitution of “£34,009,980” for “£34,439,900”.

(4) A sum of £48,206,431 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, 1989.

(5) The thirty-ninth 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-ninth additional annuity, not exceeding £37,052,550 in any financial year, may be applied towards defraying the interest on the public debt.

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

92 Tax concessions for disabled drivers, etc.

92.—(1) Notwithstanding anything to the contrary contained in any enactment, the Minister for Finance may, after consultation with the Minister for Health and the Minister for the Environment, make regulations providing for—

(a) the repayment of excise duty and value-added tax and the remission of road tax in respect of a motor vehicle used by, and

(b) the repayment of excise duty relating to hydrocarbon oil used for combustion in the engines of vehicles, to be specified in the regulations, by,

a severely and permanently disabled person—

(i) as a driver, where the disablement is of such a nature that the person concerned could not drive any vehicle unless it is specially constructed or adapted to take account of that disablement, or

(ii) as a passenger, where the vehicle has been specially constructed or adapted to take account of the passenger's disablement, and where the vehicle is adapted, the cost of such adaptation consists of not less than 30 per cent. of the value of the vehicle excluding tax and excise duty, or such lesser percentage in respect of certain cases as may be specified by regulations in respect of the repayment of any tax relating to adaptation costs only.

(2) Regulations under this section shall provide for—

(a) the criteria for eligibility for the remission of the taxes specified in subsection (1), including such further medical criteria in relation to disabilities as may be considered necessary,

(b) subject to subsection (3) (b), the procedures to be used in relation to the primary medical certification of a disabled person and to appeals against such certification,

(c) the procedures in relation to the certification of vehicles to which the regulations relate,

(d) the amount of value-added tax and excise duty repayable in respect of a vehicle to which the regulations relate,

(e) the maximum engine size or sizes to which the regulations relate,

(f) the limits on the frequency of renewal of a vehicle, for the purposes of obtaining a refund of tax or excise duty, and

(g) in the case of the driver concerned, evidence that the vehicle is for his personal use and evidence of his driving capacity,

and the regulations may provide for such other matters as the Minister for Finance considers necessary or expedient for the purposes of giving effect to this section.

(3) (a) Upon the first coming into operation of regulations under this section, section 43 (1) of the Finance Act, 1968, shall cease to have effect.

(b) Any person who, at the passing of this Act, was the registered owner of a motor vehicle, being a motor vehicle in respect of which such person was entitled to and had received a refund of tax or excise duty by reference to section 43 (1) of the Finance Act, 1968, shall be deemed to be a person who possesses a primary medical certificate which, subject to compliance with the non-medical requirements set out in the regulations, entitles him to a similar repayment of tax or excise duty by reference to this section.

(4) Regulations made under this section shall be laid before Dáil Éireann as soon as may be after they are made, and if a resolution annulling the regulations is passed by Dáil Éireann within the next subsequent 21 days on which Dáil Éireann has sat after the regulations have been so laid, the regulations shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(5) In this section—

“medical practitioner” means a medical practitioner registered under the Medical Practitioners Act, 1978;

“primary medical certification” means medical certification by a medical practitioner who is the holder of a post in a health board, being the post commonly known as the post of Director of Community Care and Medical Officer of Health, in the area in which the person to whom the certification relates ordinarily resides and “primary medical certificate” shall be construed accordingly.

93 Winding up of Savings Certificates Reserve Fund.

93.—The Minister may, by order, designate a date upon which the Savings Certificates Reserve Fund shall be wound up and upon that date—

(a) that Fund shall cease to exist,

(b) the balances remaining to the credit of the Principal Reserve Account and the Interest Reserve Account of that Fund shall be paid into the Capital Services Redemption Account and shall be applied towards defraying the principal and interest on the public debt, and

(c) section 34 of the Finance Act, 1929, and section 17 of the Finance Act, 1943, shall cease to have effect.

94 Charging of expenses incurred in connection with management of prize bonds.

94.—(1) (a) Section 22 of the Finance (Miscellaneous Provisions) Act, 1956, is hereby amended—

(i) in subsection (2), by the insertion of “and management” after “issue”, and

(ii) by the deletion of subsection (4),

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

(b) Section 65 of the Finance Act, 1958, is hereby amended by the deletion of subsection (1).

(2) Subsection (1) shall come into operation on the 1st day of January, 1990.

TABLE

(2) The principal of prize bonds, the prizes in respect of them and the expenses incurred with their issue and management shall be charged on the Central Fund or the growing produce thereof.

95 Securities of Radio Telefís Éireann and Industrial Credit Corporation p.l.c.

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

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

“467B.—(1) Any debentures, debenture stock, bonds, notes, certificates of charge or other forms of security issued after the passing of the Finance Act, 1989, 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 Radio Telefís Éireann and the Industrial Credit Corporation p.l.c.”

and

(b) by the insertion in section 474 (1) after “467A,” (inserted by the Finance Act, 1988) of “467B,” 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, 467B, 471, 472 or 473 or section 59 of the Finance Act, 1970 or section 92 of the Finance Act, 1973.

(2) 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 “Radio Telefís Éireann, the Industrial Credit Corporation p.l.c.,” and the said section 19 (d), as so amended, is set out in the Table to this subsection.

TABLE

(d) debentures, debenture stock, certificates of charge or other forms of security issued by the Electricity Supply Board, Radio Telefís Éireann, the Industrial Credit Corporation p.l.c., 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.

96 Financial arrangements relating to Bord Telecom Éireann.

96.—Payments (being payments by virtue of an agreement entered into under subsection (1) of section 100 of the Postal and Telecommunications Services Act, 1983, and subsection (1) of section 68 of the Finance Act, 1985) amounting to the sum of £208,127,767, made to the Minister for Finance by Bord Telecom Éireann by way of prepayments of moneys payable under the said section 100, shall be deemed to be payments thereunder.

97 Post Office Savings Bank Fund.

97.—Section 17 of the Customs, Inland Revenue, and Savings Banks Act, 1877, is hereby amended by the substitution of the following paragraph for the paragraph numbered (1.):

“(1.) An account in the form of a balance sheet as at the thirty-first day of December, showing assets, liabilities and the accumulated reserve of the Post Office Savings Bank Fund, with notes thereto which shall include (where appropriate) particulars of interest accrued in respect of the securities standing to the credit of that Fund and of the interest paid and credited to depositors in pursuance of any enactment relating to the Post Office Savings Bank, and a note further thereto of the expenses incurred in the execution of those enactments.”.

98 Securities of European Economic Community.

98.—(1) Subsection (1) of section 92 of the Finance Act, 1973, is hereby amended by the insertion after “State by” of “the European Economic Community,” and the said subsection, as so amended, is set out in the Table to this section.

(2) Paragraph (a) of section 66 of the Finance Act, 1984, is hereby amended by the insertion after “the Minister for Finance, by” of “the European Economic Community,” and the said paragraph, as so amended, is set out in the Table to this section.

TABLE

(1) This section applies to any stock or other form of security issued in the State by the European Economic Community, the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank.

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

99 Care and management of taxes and duties.

99.—All taxes and duties (except the excise duty on driving licences) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

100 Short title, construction and commencement.

100.—(1) This Act may be cited as the Finance Act, 1989.

(2) Parts I and VII (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 1988, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1989.

(5) Part IV and (so far as relating to stamp duties) Part VII shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6) Part V and (so far as relating to gift tax or inheritance tax) Part VII shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act.

(7) Part VI (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts and (so far as relating to value-added tax) shall be construed together with the Value-Added Tax Acts, 1972 to 1989, and (so far as relating to stamp duties) shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act and (so far as relating to gift tax or inheritance tax) shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act and (so far as relating to residential property tax) shall be construed together with Part VI of the Finance Act, 1983.

(8) Part I shall, save as is otherwise expressly provided therein, be deemed to have come into force and shall take effect as on and from the 6th day of April, 1989.

(9) Part III, other than sections 54, 55, 56 (a) and 58 to 63, shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1989, paragraphs (a) and (d) of section 61 and section 63 (a) shall take effect as on and from the 1st day of July, 1989, and paragraphs (b) and (c) of section 61 and sections 62 and 63 (b) shall take effect as on and from the 1st day of November, 1989.

(10) Chapter II of Part V shall come into force and shall take effect as on and from the 1st day of September, 1989.

(11) 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.

(12) 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.

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

FIRST SCHEDULE Accounting for and Payment of Tax Deducted from Relevant Payments and Undistributed Relevant Income

Time and manner of payment

(2) A collective investment undertaking, which is not a specified collective investment undertaking, shall, with effect from the 5th day of April, 1990, make, within 15 days from the 5th day of April each year, a return to the Collector-General of all amounts from which it was required, by reason of section 18 (5) to deduct tax in the year ending on that date and the amount of appropriate tax which it was required to deduct from those amounts.

(3) The appropriate tax required to be included in a return shall be due and payable at the time by which the return is to be made and shall be paid by the collective investment undertaking to the Collector-General, and the appropriate tax so due shall be payable by the collective investment undertaking without the making of an assessment; but the appropriate tax which has become due as aforesaid may be assessed on the collective investment undertaking (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.

(4) If it appears to the inspector that there is an amount of appropriate tax which ought to have been and has not been included in a return, or the inspector is dissatisfied with any return, he may make an assessment on the collective investment undertaking to the best of his judgment; and any amount of appropriate tax due under an assessment made by virtue of this subparagraph shall be treated for the purpose of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.

(5) Where any item has been incorrectly included in a return, the inspector may make such assessments, adjustments or set-offs as may in his judgment be required for securing that the resulting liabilities to tax (including interest on unpaid tax) whether of the collective investment undertaking or any other person are, so far as possible, the same as they would have been if the item had not been so included.

(6) (a) Any appropriate tax assessed on a collective investment undertaking under this Schedule shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under subparagraph (3)) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under the said subparagraph (3), and

(b) on the determination of an appeal against an assessment under this Schedule any appropriate tax overpaid shall be repaid.

(7) (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, with any necessary modifications, apply to the assessment, collection and recovery of appropriate tax.

(b) Any amount of appropriate tax payable in accordance with this Schedule 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 clause (b) as they apply in relation to interest payable under the said section 550.

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

(e) Notwithstanding anything in the Income Tax Acts, the provisions of section 419 of the Income Tax Act, 1967, and section 30 of the Finance Act, 1976, shall not apply in relation to any appropriate tax which is charged by an assessment made in accordance with this Schedule.

(8) Every return shall be in a form prescribed by the Revenue Commissioners and shall include a declaration to the effect that the return is correct and complete.

Statement to be given on making of relevant payment

(a) the amount of the relevant payment,

(b) the amount equal to the aggregate of the appropriate tax deducted from the relevant payment and any amount or amounts deducted pursuant to the provisions of the said paragraphs (a) and (b) in arriving at the appropriate tax, or, if, by reason of the said provisions, there was no appropriate tax to deduct from the amount of the relevant payment, the aggregate of the amounts referred to in the said provisions in so far as they refer to the relevant payment,

(c) the net amount of the relevant payment,

(d) the date of the relevant payment, and

(e) such other information with regard to the relevant payment as shall be necessary to enable the correct amount of tax, if any, payable by or repayable to the unit holder in respect of the relevant payment to be determined.

Penalties

(a) in column 2 of “Finance Act, 1989, paragraph 1 (2) of the First Schedule”, and

(b) in column 3 of “Finance Act, 1989, section 18 (5)”.

(2) Section 94 (2) of the Finance Act, 1983, is hereby amended by the insertion after paragraph (dd) (inserted by the Finance Act, 1986) of the following paragraph:

“(ddd) (i) fails to make any deduction required to be made by him under section 18 (5) of the Finance Act, 1989, or

(ii) fails, having made the deduction, to pay the sum deducted to the Collector-General within the time specified in paragraph 1 (3) of the First Schedule to that Act.”.

SECOND SCHEDULE Rates of Excise Duty on Spirits

Description of Spirits	Rate of Duty
Spirits of any description not mentioned here in after and imported mixtures and preparations containing spirits.	£20.085 per litre of alcohol in the spirits
Imported perfumed spirits entered in such manner as to indicate that the strength is not to be tested	£18.277 per litre
Imported liqueurs, cordials, mixtures and other preparations in bottle entered in such manner as to indicate that the strength is not to be tested	£15.464 per litre

THIRD SCHEDULE Rates of Excise Duty on Wine and Made Wine

Description of Wine and Made Wine	Rate of Duty
Still:
Of an actual alcoholic strength by volume not exceeding 15 vol	£2.04 per litre
Of an actual alcoholic strength by volume exceeding 15 vol	£2.96 per litre
Sparkling	£4.08 per litre
Wine and Made Wine whether still or sparkling of an actual alcoholic strength by volume exceeding 22 vol:
An additional duty for every 1 vol or fraction of 1 vol above 22 vol	£0.23 per litre

FOURTH SCHEDULE Rates of Excise Duty on Cider and Perry

Description of Cider and Perry	Rate of Duty
Of an actual alcoholic strength by volume not exceeding 6 vol	£0.93 the gallon
Of an actual alcoholic strength by volume exceeding 6 vol but not exceeding 8.7 vol	£4.03 the gallon
Of an actual alcoholic strength by volume exceeding 8.7 vol	£9.27 the gallon

FIFTH SCHEDULE Rates of Excise Duty on Tobacco Products

Description of Product	Rate of Duty
Cigarettes	£40.70 per thousand together with an amount equal to 13.56 per cent. of the price at which the cigarettes are sold by retail
Cigars	£60.217 per kilogram
Sweetened pipe tobacco	£60.851 per kilogram
Hard pressed tobacco	£38.914 per kilogram
Other pipe tobacco	£48.916 per kilogram
Other smoking or chewing tobacco	£50.814 per kilogram

SIXTH SCHEDULE Rates of Excise Duty on Certain Licences

PART I Intoxicating Liquor Licences

(1)	(2)	(3)
Reference Number	Description of Licence	Rate of Duty
	MANUFACTURERS' LICENCES
	Licence to be taken out annually by:
1.	Rectifier or compounder of spirits	£100
2.	Maker for sale of sweets	£100
3.	Maker of cider or perry for sale	£100
	WHOLESALE DEALERS' LICENCES
	Licence to be taken out annually by:
4.	Wholesale dealer in spirits	£100
5.	Wholesale dealer in beer	£100
6.	Wholesale dealer in wine	£100
7.	Wholesale dealer in spirits of wine	£100
	RETAILERS' ON-LICENCES
	Licence to be taken out annually by:
8.	Retailer of spirits	£100
9.	Retailer of beer	£100
10.	Retailer of wine	£100
11.	Retailer of sweets	£100
12.	Retailer of cider	£100
	RETAILERS' OFF-LICENCES
	Licence to be taken out annually by:
13.	Retailer of spirits	£100
14.	Retailer of beer	£100
15.	Retailer of cider	£50
16.	Retailer of wine	£100
17.	Retailer of sweets	£100
	PASSENGER VESSEL LICENCES
18.	Licence to be taken out annually in respect of a passenger vessel by the master or other person belonging to the vessel nominated by the owner of the vessel.	£100
19.	Licence to be taken out in respect of a passenger vessel by the master or other person belonging to the vessel nominated by the owner of the vessel, and to be in force for one day only.	£20
	RAILWAY RESTAURANT CAR LICENCES
20.	Licence to be taken out annually in respect of a railway restaurant car by the railway company or other person owning the car.	£100
	PASSENGER AIRCRAFT LICENCES
21.	Licence to be taken out annually by an air transport concern in respect of an aircraft in flight owned or hired by that concern.	£100

PART II Firearm Certificates

Description of Certificate	Rate of Duty
For a firearm certificate for a pistol, including an air pistol, or revolver	£25
For a firearm certificate for a rifle, including a miniature rifle	£25
For a firearm certificate for an airgun, including an air rifle	£25
For a firearm certificate for a prohibited weapon	£3
For a firearm certificate for a shot-gun to which the provisions of section 12 of the Firearms Act, 1964, apply	£4
For any other firearm certificate—
For one such certificate	£17
Where two or more such certificates are granted to the same person (not necessarily at the same time) and expire on the same date—
For the first such certificate	£17
For the second and every subsequent such certificate	£4

PART III Gaming Licences

Description of Licence	Rate of Duty
Where the period for which the licence is to be issued as specified in the certificate under the Gaming and Lotteries Act, 1956, authorising the issue of the licence—
(a) does not exceed three months	£100
(b) exceeds three months but does not exceed six months	£200
(c) exceeds six months but does not exceed nine months	£300
(d) exceeds nine months	£400

PART IV Other Licences

(1)	(2)	(3)	(4)	(5)
Reference Number	Description of licence	Enactment imposing the duty	Operative date	Rate of Duty
1.	Auctioneer's licence	Section 11 of Finance Act, 1947	6th day of July, 1989	£160
2.	Auction permit	Section 12 of Finance Act, 1947	6th day of July, 1989	£160
3.	House agent's licence	Section 13 of Finance Act, 1947	6th day of July, 1989	£80
4.	Bookmaker's licence	Section 17 of Finance Act, 1931	1st day of December, 1989	£160
5.	Bookmaker's premises registration certificate	Section 18 of Finance Act, 1931	1st day of December, 1989	£160
6.	Hydrocarbon oil refiner's licence	Section 1 (4) of Finance (Miscellaneous Provisions) Act, 1935	1st day of February, 1990	£100
7.	Match manufacturer's licence	Section 3 (2) of Finance (New Duties) Act, 1916	1st day of April, 1990	£100
8.	Methylated spirits maker's licence	Section 27 of Revenue Act, 1889	1st day of October, 1989	£100
9.	Methylated spirits retailer's licence	Section 27 of Revenue Act, 1889	1st day of October, 1989	£5
10.	Moneylender's licence	Section 18 (1) of Finance Act, 1933	1st day of August, 1989	£200
11.	Pawnbroker's licence	Section 18 of Finance Act, 1965	1st day of August, 1989	£200
12.	Table waters manufacturer's licence	Section 9 of Finance Act, 1916	1st day of May, 1990	£100
13.	Tobacco products manufacturer's licence	Section 10 (1) of Finance (Excise Duty on Tobacco Products) Act, 1977	1st day of January, 1990	£100

SEVENTH SCHEDULE

PART I Repeal of Provisions relating to Hawkers' Licences

Session and Chapter or Number and Year	Short Title	Extent of Repeal
(1)	(2)	(3)
51 & 52 Vict., c. 33.	Hawkers Act, 1888.	The whole Act.
No. 20 of 1930.	Finance Act, 1930.	Section 12.
No. 31 of 1931.	Finance Act, 1931.	Section 24.
No. 25 of 1938.	Finance Act, 1938.	Section 21.
No. 25 of 1958.	Finance Act, 1958.	Section 19.
No. 19 of 1960.	Finance Act, 1960.	Section 16 (4).

PART II Repeal of Provisions relating to Refreshment House Licences

Session and Chapter or Number and Year	Short Title	Extent of Repeal
(1)	(2)	(3)
23 & 24 Vict., c. 107.	Refreshment Houses (Ireland) Act, 1860.	Sections 1, 2 and 9. Section 10 and Form No. 1 contained in the Schedule. Sections 11, 12, 18 and 34.
24 & 25 Vict., c. 91.	Revenue (No. 2) Act, 1861.	Section 9.
25 & 26 Vict., c. 22.	Revenue Act, 1862.	Section 15.
27 & 28 Vict., c. 18.	Revenue (No. 1) Act, 1864.	Section 5.
No. 15 of 1946.	Finance Act, 1946.	Section 21.
No. 14 of 1980.	Finance Act, 1980.	Section 77 (5).
No. 16 of 1981.	Finance Act, 1981.	Section 38.