Finance Act , 1991

Type Act

Publication 1991-05-29

State In force

Source Irish Statute Book

articles 132

(I) which begins one year before the first day on which the dividends so specified are received in the State, or at such earlier time as the Revenue Commissioners may by notice in writing allow, and

(II) which ends two years after the first day on which the dividends so specified are received in the State, or at such later time as the Revenue Commissioners may by notice in writing allow,

for the purposes of an approved investment plan;”.

41 Exemption from corporation tax of An Bord Pinsean — The Pensions Board.

41.—Notwithstanding any provision of the Corporation Tax Acts, profits arising in any accounting period ending after the 1st day of January, 1991, to An Bord Pinsean — The Pensions Board shall be exempt from corporation tax.

Chapter V Capital Gains Tax

42 Amendment of section 26 (disposal of business or farm on retirement) of Capital Gains Tax Act, 1975.

42.—Section 26 of the Capital Gains Tax Act, 1975, is hereby amended—

(a) by the substitution in subsection (1) of “£200,000” for “£50,000” in each place where it occurs, and

(b) by the substitution in subsection (6) (a) (as amended by the Finance Act, 1990) of the following definition for the definition, other than the proviso thereto, of “qualifying assets”:

“‘qualifying assets’, in relation to a disposal, includes the chargeable business assets of the individual which, apart from tangible movable property, he has owned for a period of not less than ten years ending with the disposal and the shares or securities which he has owned for a period of not less than ten years ending with the disposal, being shares or securities of a company which has been a trading or a farming company and his family company or a member of a trading group of which the holding company is that individual's family company during a period of not less than ten years ending with the disposal and of which he has been a working director for a period of not less than ten years during which period he has been a full time working director of the said company for a period of not less than five years:”.

43 Disposal of work of art, etc., loaned for public display.

43.—(1) This section applies to an object in the following category, that is to say, any picture, print, book, manuscript, sculpture, piece of jewellery or work of art—

(a) which, in the opinion of the Revenue Commissioners, after such consultation (if any) as may seem to them to be necessary with such person or body of persons as in their opinion may be of assistance to them, has a market value of not less than £25,000 at the date when it is loaned to a gallery or museum in the State, being a gallery or museum approved of by the Revenue Commissioners for the purposes of this section, and

(b) which is the subject of or included in a display to which the public is afforded reasonable access in the gallery or museum to which it has been loaned for a period (hereafter in this section referred to as the “qualifying period”) of not less than 6 years from the date it is so loaned.

(2) Where, after the end of the qualifying period, a disposal of an object to which this section applies is made by the person who had loaned it in the circumstances described in subsection (1) the disposal shall be treated for the purposes of the Capital Gains Tax Acts as being made for such consideration as to secure that neither a gain nor a loss accrues on the disposal.

(3) This section shall have effect from the 18th day of April, 1991.

44 Amendment of section 33 (exemption for Bord Fáilte Éireann and certain other bodies) of Finance Act, 1989.

44.—Section 33 of the Finance Act, 1989, is hereby amended in subsection (2):

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

“(c) Dublin City and County Regional Tourism Organisation Limited,”,

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

“(e) South-West Regional Tourism Organisation Limited,”,

and

“(g) The North-West Regional Tourism Organisation Limited,

(h) Midlands-East Regional Tourism Organisation Limited, and”.

Chapter VI Extension of Self Assessment to Capital Gains Tax and Certain Other Matters

45 Amendment of section 9 (interpretation (Chapter II)) of Finance Act, 1988.

45.—Section 9 (as amended by section 23 of the Finance Act, 1990) of the Finance Act, 1988, is hereby amended—

(a) in subsection (1)—

(i) by the insertion after “Income Tax Act, 1967”, in the definition of “appeal”, of “, or, as respects capital gains tax, an appeal under paragraph 8 of the Fourth Schedule to the Capital Gains Tax Act, 1975”, and the said definition, as so amended, is set out in the Table to this section,

(ii) by the insertion after “profits”, in paragraph (a) of the definition of “appropriate inspector”, of “or chargeable gains”, and the said definition, as so amended, is set out in the Table to this section,

(iii) by the insertion after “Corporation Tax Acts”, in the definition of “assessment”, of “or the Capital Gains Tax Acts,”, and the said definition, as so amended, is set out in the Table to this section,

(iv) by the insertion after the definition of “assessment” of the following definition:

“‘chargeable gain’ has the same meaning as in section 11 (2) of the Capital Gains Tax Act, 1975;”,

(v) by the insertion after “whether on his own account or on account of some other person, but”, in the definition of “chargeable person”, of “as respects income tax,”, and the said definition, as so amended, is set out in the Table to this section,

(vi) by the substitution of the following definition for the definition of “relevant chargeable period”:

“‘relevant chargeable period’ means—

(a) (i) where the chargeable period is a year of assessment for income tax, the year 1988-89 and any subsequent year of assessment,

(ii) where the chargeable period is a year of assessment for capital gains tax, the year 1990-91 and any subsequent year of assessment, or

(b) where the chargeable period is an accounting period of a company, an accounting period ending on or after the 1st day of October, 1989.”,

(vii) by the insertion of the following proviso after paragraph (b) of the definition of “specified return date for the chargeable period”:

“Provided that where an accounting period of a company ends on or before the date of commencement of the winding up of the company and the specified return date in respect of that accounting period would, but for this proviso, fall on a date after the date of commencement of the said winding up but not within a period of 3 months after that date, the specified return date for that accounting period of the company shall be the date which falls 3 months after the date of commencement of the winding up.”,

(viii) by the substitution for the definition of “tax”, of the following definition:

“‘tax’ means income tax, corporation tax, or capital gains tax, as the case may be.”,

and

(b) by the deletion of subsection (4).

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“appeal” means an appeal under section 416 of the Income Tax Act, 1967, or, as respects capital gains tax, an appeal under paragraph 8 of the Fourth Schedule to the Capital Gains Tax Act, 1975;

“appropriate inspector” means, in relation to a chargeable person—

(a) the inspector who has last given notice in writing to the chargeable person that he is the inspector to whom the chargeable person is required to deliver a return or statement of income or profits or chargeable gains,

(b) in the absence of such an inspector as is referred to in paragraph (a), the inspector to whom it is customary for the chargeable person to deliver such return or statement, or

“assessment” means an assessment to tax made under the Income Tax Acts or the Corporation Tax Acts or the Capital Gains Tax Acts, as the case may be;

“chargeable person” means, as respects a chargeable period, a person who is chargeable to tax for that period, whether on his own account or on account of some other person, but, as respects income tax, does not include a person—

(a) whose total income for the chargeable period consists solely of emoluments to which Chapter IV of Part V of the Income Tax Act, 1967, applies, and for this purpose a person whose total income for the chargeable period, other than emoluments to which the said Chapter IV applies, is deducted in determining the amount of his tax-free allowances for the chargeable period by virtue of Regulation 10 (1) (b) of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), shall be deemed for that chargeable period to be a person whose total income consists solely of emoluments to which the said Chapter IV applies,

(b) who, for the chargeable period, has been exempted by an inspector from the requirements of section 10 by reason of a notice given under subsection (6) of that section, or

(c) who is chargeable to tax for the chargeable period by reason only of the provisions of section 433 or 434 of the Income Tax Act, 1967, or section 151 of the Corporation Tax Act, 1976.

46 Amendment of section 10 (obligation to make a return) of Finance Act, 1988.

46.—Section 10 (as amended by section 23 of the Finance Act, 1990) of the Finance Act, 1988 is hereby amended—

(a) by the insertion in paragraph (a) of subsection (1) of “or capital gains tax” after “chargeable to income tax” in both places where it occurs, and the said paragraph (a), as so amended, is set out in the Table to this section,

(b) by the substitution for the proviso to subsection (6) of the following proviso:

“Provided that—

(i) where, before the passing of this Act, a person has been given notice by the inspector that he need not prepare and deliver a return for or until a specified chargeable period or until the happening of any event, he shall be deemed to have been given notice to that effect under this subsection;

(ii) where a person who has been given a notice under this subsection is chargeable to capital gains tax for any chargeable period, this subsection shall not operate to remove his obligation under subsection (1) to make a return of his chargeable gains for that chargeable period.”,

“(10) A certificate signed by an inspector which certifies that he has examined the relevant records and that it appears from them—

(a) that, as respects a chargeable period, a named person is a chargeable person, and

(b) that, on or before the specified return date for the chargeable period, a return in the prescribed form was not received from that chargeable person,

shall be evidence until the contrary is proved that the person so named is a chargeable person as respects that chargeable period and that that person did not, on or before the specified return date, deliver that return and a certificate certifying as provided by this subsection and purporting to be signed by an inspector may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by such inspector.”.

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(a) in the case of a chargeable person, who is chargeable to income tax or capital gains tax for a chargeable period which is a year of assessment, all such matters and particulars as would be required to be contained in a statement delivered pursuant to a notice given to the chargeable person by the appropriate inspector under section 169 of the Income Tax Act, 1967, if the period specified in such notice were the year of assessment which is the relevant chargeable period, and where the chargeable person is an individual who is chargeable to income tax or capital gains tax for a relevant chargeable period, in addition to such matters and particulars as aforesaid, all such matters and particulars as would be required to be contained in a return for the period delivered to the appropriate inspector pursuant to a notice given to the chargeable person by the appropriate inspector under section 172 of the said Act, or

47 Amendment of section 12 (notices of preliminary tax) of Finance Act, 1988.

47.—Section 12 of the Finance Act, 1988, is hereby amended—

(a) by the substitution for paragraph (a) of the proviso to subsection (7) of the following paragraph:

“(a) interest shall not be payable under this subsection—

(i) if it amounts to less than £10, or

(ii) to the extent that the said excess arises from relief provided for by subsection (4) of section 98 of the Corporation Tax Act, 1976,

and”,

and

(b) by the insertion after subsection (10) of the following subsection:

“(11) This section shall not, except for the provisions of subsection (7), apply as respects capital gains tax.”.

48 Amendment of section 13 (making of assessments) of Finance Act, 1988.

48.—Section 13 of the Finance Act, 1988, is hereby amended by the addition of the following subsection after subsection (6):

“(7) Nothing in this section shall prevent an inspector from making an assessment in accordance with the provisions of—

(a) section 5 (3) of the Capital Gains Tax Act, 1975, and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of the said section 5 (3), or

(b) subparagraph (3) or (4), as appropriate, of paragraph 11 of the Fourth Schedule to the Capital Gains Tax Act, 1975, and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of paragraph 11 (9) of the Fourth Schedule to the Capital Gains Tax Act, 1975, or

(c) paragraph 17 (2) or subparagraph (1) or (2) of paragraph 18, as appropriate, of the Fourth Schedule to the Capital Gains Tax Act, 1975, and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of section 5 (2) of the Capital Gains Tax Act, 1975.”.

49 Amendment of section 14 (amendment of and time limit for assessments) of Finance Act, 1988.

49.—Section 14 of the Finance Act, 1988, is hereby amended by the insertion in subsection (5) of “or, as respects capital gains tax, chargeable gains,” after “income, profits or gains”, and the said subsection (5), as so amended, is set out in the Table to this section.

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(5) Section 186 of the Income Tax Act, 1967, and section 144 (5) (a) of the Corporation Tax Act, 1976, shall not apply in the case of a chargeable person for any relevant chargeable period and all matters which would have been included in an additional first assessment under those sections shall be included in an amendment of the first assessment or first assessments made in accordance with this section and, for this purpose, where any amount of income, profits or gains or, as respects capital gains tax, chargeable gains, was omitted from the first assessment or first assessments or the tax stated in the first assessment or first assessments was less than the tax payable by the chargeable person for that chargeable period, there shall be made such adjustments or additions (including the addition of a further first assessment) to the first assessment or first assessments as are necessary to rectify the omission or to ensure that the tax so stated is equal to the tax so payable by the chargeable person.

50 Amendment of section 15 (inspector's right to make enquiries and amend assessments) of Finance Act, 1988.

50.—Section 15 of the Finance Act, 1988, is hereby amended by the insertion in subsection (1) of “or, as respects capital gains tax, chargeable gains,” after “income, profits or gains”, and the said subsection (1), as so amended, is set out in the Table to this section.

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(1) For the purpose of making an assessment on a chargeable person for a relevant chargeable period or for the purpose of amending such an assessment, the inspector may accept either in whole or in part any statement or other particular contained in a return delivered by the chargeable person for that chargeable period and he may assess any amount of income, profits or gains or, as respects capital gains tax, chargeable gains, or allow any deduction, allowance or relief by reference to such statement or particular; but the making of an assessment or the amendment of an assessment by reference to any such statement or particular contained in the chargeable person's return shall not preclude the inspector from making suchenquiries or taking such actions, within his powers, as he considers necessary to satisfy himself as to the accuracy or otherwise of that statement or particular and, subject to section 14 (2), shall not preclude the inspector from amending or further amending an assessment in such manner as he considers appropriate:

Provided that any such enquiries and any such actions shall not be made in the case of any chargeable person for any relevant chargeable period at any time after the expiry of the period of 6 years commencing at the end of the chargeable period in which the chargeable person has delivered a return for the relevant chargeable period unless at that time the inspector has reasonable grounds for believing that the return is insufficient due to its having been completed in a fraudulent or negligent manner.

51 Amendment of section 17 (appeals) of Finance Act, 1988.

51.—Section 17 of the Finance Act, 1988, is hereby amended by the insertion in paragraphs (b) and (c) of subsection (1) of “or, as respects capital gains tax, chargeable gains,” after “income, profits or gains” in each place where it occurs, and the said paragraphs (b) and (c), as so amended, are set out in the Table to this section.

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(b) the amount of any income, profits or gains or, as respects capital gains tax, chargeable gains, or the amount of any allowance, deduction or relief specified in an assessment or an amended assessment made on a chargeable person for a relevant chargeable period where the inspector has determined that amount by accepting without the alteration of and without departing from the statement or statements or the particular or particulars with regard to income, profits or gains or, as respects capital gains tax, chargeable gains, or allowances, deductions or reliefs specified in the return delivered by the chargeable person for that chargeable period, or

(c) the amount of any income, profits or gains or, as respects capital gains tax, chargeable gains, or the amount of any allowance, deduction or relief specified in an assessment or an amended assessment made on a chargeable person for a relevant chargeable period where that amount had been agreed between the inspector and the chargeable person, or any person authorised by the chargeable person in that behalf, prior to the making of the assessment or the amendment of the assessment, as the case may be.

52 Amendment of section 18 (date for payment of tax) of Finance Act, 1988.

52.—Section 18 (as amended by section 24 of the Finance Act, 1990) of the Finance Act, 1988, is hereby amended—

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

“(1) Preliminary tax appropriate to a relevant chargeable period shall be due and payable—

(a) where the chargeable period is a year of assessment for income tax, on or before the 1st day of November in that year of assessment,

(b) where the chargeable period is a year of assessment for capital gains tax, on or before the 1st day of November next following that year of assessment, or

(c) where the chargeable period is an accounting period of a company, within the period of 7 months from the end of the accounting period,

and references in this Chapter to the due date for the payment of an amount of preliminary tax shall, accordingly, be construed as references to the 1st day of November in the relevant year of assessment, the 1st day of November next following that year ofassessment or the last day of that period of 7 months, as the case may be.”,

and

(b) in subsection (3), by the insertion of the following additional proviso after paragraph (II) of the proviso to subparagraph (ii) of paragraph (b):

“Provided also that, for the purpose of this subparagraph, where the chargeable person is chargeable to income tax for a chargeable period being the year of assessment 1991-92 or any subsequent year of assessment, the tax payable for the immediately preceding chargeable period shall be determined without regard to any relief to which the chargeable person is, or may become, entitled for that immediately preceding chargeable period under Chapter III of Part I of the Finance Act, 1984.”.

53 Amendment of section 21 (miscellaneous) of Finance Act, 1988.

53.—Section 21 of the Finance Act, 1988, is hereby amended—

(a) by the insertion in subsection (3), after “the inspector causes to issue”, of “manually or”, and the said subsection (3), as so amended, is set out in the Table to this section, and

(b) by the addition of the following subsections after subsection (6):

“(7) The provisions of this Chapter as respects due dates for payment of tax shall apply subject to the provisions of sections 37 (4) (b) (which provides for the postponement, in certain circumstances, of the payment of capital gains tax in the case of certain beneficiaries of a non-resident trust) and 44 (which provides for the payment of tax on certain chargeable gains by instalment, in certain circumstances) of the Capital Gains Tax Act, 1975.

(8) With effect for the year of assessment 1990-91 and subsequent years of assessment, references in this Chapter to any provision of the Income Tax Acts shall, where appropriate for capital gains tax and unless the contrary intention appears, be construed as a reference to the said provisions as applied in relation to capital gains tax by paragraphs 2 and 3 of the Fourth Schedule to the Capital Gains Tax Act, 1975.”.

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(3) Where the inspector or any other officer of the Revenue Commissioners acting with the knowledge of the inspector causes to issue, manually or by any electronic, photographic or other process, a notice of preliminary tax bearing the name of the inspector or a notice of assessment or a notice of an amendment of an assessment bearing the name of the inspector, the said notice of preliminary tax shall, for all the purposes of the Tax Acts, be deemed to have been given by the inspector to the best of his opinion and the said assessment or amended assessment to which the notice of assessment or notice of amended assessment relates, as the case may be, shall, for those purposes, be deemed to have been made by the inspector to the best of his judgement.

Chapter VII Urban Renewal: Temple Bar and Other Areas

54 Preliminary and general (Chapter VII)

54.—(1) In this Chapter—

“the Temple Bar Area” means the area described in Part II of the Second Schedule;

(2) The Second Schedule shall have effect for the purposes of supplementing this Chapter.

(3) Subject to subsection (4), the provisions of the Finance Act, 1986, which are specified in section 55 as having effect in relation to the Temple Bar Area shall have such effect, as appropriate, subject to any necessary modifications—

(a) as if the Temple Bar Area were an area described in an order made by the Minister for Finance under section 27 of the Finance Act, 1987,

(b) as if the reference in paragraph (a) (ii) of subsection (1) of the said section 27 to the “31st day of May, 1991,” were a reference to the “5th day of April, 1996,”, and

(c) as if the order referred to in paragraph (a) directed that in sections 42, 44 and 45 of the Finance Act, 1986, the definition of “qualifying period” is to be construed as a reference to the period from the 6th day of April, 1991, to the 5th day of April, 1996, in relation to the Temple Bar Area.

(4) The provisions which are specified in this Chapter as having effect in relation to capital, or other, expenditure incurred or rent payable in relation to any building or premises however described in this Chapter in the Temple Bar Area shall have such effect only if the relevant building or premises in relation to which the said capital, or other, expenditure was incurred or rent is so payable, is approved for the purposes of this Chapter by the company known as Temple Bar Renewal Limited.

55 Temple Bar reliefs.

55.—(1) (a) In this subsection—

“multi-storey car-park” means a building or structure consisting of three or more storeys wholly or mainly in use for the purpose of providing, for members of the public generally without preference for any particular class of person, upon payment of an appropriate charge, parking for mechanically propelled vehicles;

“qualifying building” means a dwelling-house or other building or structure—

(i) which is constructed in the Temple Bar Area in the period from the 6th day of April, 1991, to the 5th day of April, 1996, and

(ii) which would be qualifying premises for the purposes of section 42, 44 or 45 of the Finance Act, 1986, as the case may be, in the circumstancesdescribed in section 54 (3), if paragraph (a) of the definition of “qualifying premises” in subsection (1) of the said section 42 had not been enacted.

(b) As respects any qualifying building, the following provisions shall have effect, as appropriate, in the following manner, that is to say—

(i) section 42 of the Finance Act, 1986, other than paragraph (a) of the definition of “qualifying premises” in subsection (1) of that section, shall have effect in its entirety as respects capital expenditure incurred on the construction of any such building and on the basis that subsection (4) of that section has effect as respects any qualifying building to which that section applies other than a multi-storey car-park;

(ii) section 44 of the Finance Act, 1986, shall have effect as respects any qualifying expenditure (being qualifying expenditure for the purposes of that section) incurred on the construction but not on the refurbishment of any such building;

(iii) section 45 of the Finance Act, 1986, shall have effect as respects rent payable for any such building.

(2) (a) In this subsection—

“qualifying building” means an existing dwelling-house or other building or structure in the Temple Bar Area as on the 1st day of January, 1991, which would be qualifying premises for the purposes of section 42, 44 or 45 of the Finance Act, 1986, as the case may be, in the circumstances described in section 54 (3), if paragraph (a) of the definition of “qualifying premises” in subsection (1) of the said section 42 had not been enacted;

“refurbishment” means any work of construction, reconstruction, repair or renewal, including the provision or improvement of water, sewerage or heating facilities, carried out in the course of repair or restoration, or maintenance in the nature of repair or restoration, of a building, which is consistent with the original character or fabric of the building.

(b) As respects any qualifying building, the following provisions shall have effect, as appropriate, in the following manner, that is to say—

(i) section 42 of the Finance Act, 1986, other than paragraph (a) of the definition of “qualifying premises” in subsection (1) and subsection (4), shall have effect as respects capital expenditure incurred on the refurbishment of any such building;

(ii) section 44 of the Finance Act, 1986, shall have effect as respects qualifying expenditure (being qualifying expenditure for the purposes of that section) incurred on the refurbishment of any such building—

(I) as if the definition of “refurbishment” in this subsection were substituted for the definition of“refurbishment” provided for in the said section 44, and

(II) as if the reference in subsection (2) of the said section 44 to “5 per cent.” were a reference to “10 per cent.”,

and

(iii) section 45 of the Finance Act, 1986, shall have effect as respects rent payable in respect of any such building:

Provided that capital expenditure for the purposes of subparagraph (i) and expenditure for the purposes of subparagraph (ii) of this paragraph shall be deemed to include—

(I) any expenditure incurred on the purchase of the qualifying building which is the subject of the capital expenditure referred to in the said subparagraph (i) or the expenditure on refurbishment referred to in the said subparagraph (ii), as the case may be, other than expenditure incurred on the acquisition of, or of rights in or over, any land, or

(II) an amount which is equal to the amount of the value of the said building as on the 1st day of January, 1991, other than any amount of such value as is attributable to, or to rights in or over, any land,

whichever is the lesser, if the expenditure specified at clause (I) of this proviso or the amount specified at clause (II) of this proviso, as the case may be, is not greater than the amount of the capital expenditure referred to in the said subparagraph (i) or the amount of expenditure on refurbishment referred to in the said subparagraph (ii), as the case may be.

(3) Notwithstanding any other provision of the Tax Acts, where part of a qualifying building, within the meaning of subsection (1) (a) or (2) (a), is used for commercial purposes and part is used for residential purposes, the total amount of the expenditure incurred on the construction or refurbishment of the building shall be apportioned as between the respective parts of the building in such manner as is just and reasonable for the purpose of giving effect to the provisions of this section.

56 Application of section 23 (deduction for certain expenditure on construction of rented residential accommodation) of Finance Act, 1981.

56.—(1) As respects relevant expenditure to which this section applies, section 23 of the Finance Act, 1981, shall have effect—

(a) as if for the definition of “qualifying period” (as provided for by section 27 of the Finance Act, 1988) in subsection (1) (a), there were substituted—

(i) where relevant expenditure is incurred in the designated area known as the Custom House Docks Area (as provided for by section 41 of the Finance Act, 1986), the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of section 41 of the Finance Act, 1986);”,

(ii) where relevant expenditure is incurred in any other designated area (as so provided for and subject to section 27 of the Finance Act, 1987), the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993;”,

(iii) where relevant expenditure is incurred in the area known as the Temple Bar Area, the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the 5th day of April, 1996;”, or

(iv) where relevant expenditure is incurred in any other area, the following definition:

“‘qualifying period’ means the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992;”,

(b) as if in the definition of “qualifying premises” in the said subsection (1) (a) “90 square metres” were substituted for “75 square metres”, and

(c) where relevant expenditure is incurred in any area to which subparagraph (i), (ii) or (iii) of paragraph (a) of subsection (1) relates, as if section 30 of the Finance Act, 1983, were deleted.

(2) In this section “relevant expenditure” means expenditure on the construction of a qualifying premises (being a qualifying premises within the meaning of subsection (1) (a) of section 23 of the Finance Act, 1981) incurred in the qualifying period (being the qualifying period within the meaning of subsection (1) (a) of the said section 23, subject to the provisions of subsection (1) (a) of this section):

Provided that expenditure to which section 24 of the Finance Act, 1981, applies which is incurred in the Temple Bar Area shall be construed as expenditure on refurbishment (being refurbishment within the meaning of paragraph (a) of section 55 (2)) in the course of the conversion into two or more houses of a building which, prior to the conversion, had not been in use as a dwelling or had been in use as a single dwelling.

57 Application of section 21 (rented residential accommodation: deduction for expenditure on refurbishment) of Finance Act, 1985.

57.—(1) This section applies to—

(a) expenditure incurred on refurbishment (being refurbishment within the meaning of paragraph (a) of section 55 (2)) of a specified building (being a specified building within the meaning of subsection (1) (a) of section 21 of the Finance Act, 1985) in the Temple Bar Area;

(b) relevant expenditure within the meaning of subsection (1) (a) of section 21 of the Finance Act, 1985, incurred—

(i) in the designated area known as the Custom House Docks Area (as provided for by section 41 of the Finance Act, 1986) in the period commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of the said section 41),

(ii) in any other designated area (as so provided for and subject to section 27 of the Finance Act, 1987) in the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993, and

(iii) in any other area, in the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992.

(2) As respects expenditure to which subsection (1) (a) applies, section 21 of the Finance Act, 1985, shall be deemed to have effect—

(a) as if for the definition of “refurbishment” in paragraph (1) (a) of the said section 21, there were substituted the definition of “refurbishment” in paragraph (a) of section 55(2),

(b) as if for the definition of “qualifying period” (as provided for by section 28 of the Finance Act, 1988) in subsection (2) (a) (iii) there were substituted the following definition:

“‘qualifying period’ means the period commencing on the 6th day of April, 1991, and ending on the 5th day of April, 1996;”,

and

(c) as if the proviso to subsection (2) of section 29, and subsections (3) and (4) of that section, of the Finance Act, 1983, were deleted.

(3) As respects relevant expenditure to which subsection (1) (b) applies, section 21 of the Finance Act, 1985, shall have effect—

(a) as if for the definition of “qualifying period” (as provided for by section 28 of the Finance Act, 1988) in subsection (2) (a) (iii) there were substituted—

(i) in the case of relevant expenditure within the meaning of subparagraph (i) of the said subsection (1) (b), the following definition:

(ii) in the case of relevant expenditure within the meaning of subparagraph (ii) of the said subsection (1) (b), the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993;”,

and

(iii) in the case of relevant expenditure within the meaning of subparagraph (iii) of the said subsection (1) (b), the following definition:

“‘qualifying period’ means the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992;”,

(b) as if the proviso to section 29 (2) of the Finance Act, 1983, were deleted, and

(c) in the case of relevant expenditure within the meaning of subparagraphs (i) and (ii) of the said subsection (1) (b), as if subsections (3) and (4) of section 29 of the Finance Act, 1983, were deleted.

58 Application of section 22 (extension of application of relief for conversion of certain buildings) of Finance Act, 1985.

58.—(1) This section applies to—

(a) expenditure incurred on refurbishment (being refurbishment within the meaning of paragraph (a) of section 55 (2)) in the course of conversion into a house of a building in the Temple Bar Area not previously in use as a dwelling;

(b) expenditure within the meaning of section 22 of the Finance Act, 1985, incurred—

(ii) in any other designated area (as so provided and subject to section 27 of the Finance Act, 1987) in the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993, and

(iii) in any other area in the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992.

(2) As respects expenditure to which subsection (1) (a) applies, section 22 of the Finance Act, 1985, shall be deemed to have effect, subject to any necessary modifications—

(a) in subsections (1) and (2) of the said section 22, as if for “commencing on the 27th day of January, 1988, and ending on the 31st day of March, 1991,” (as provided for by section 29 of the Finance Act, 1988) there were substituted “commencing on the 6th day of April, 1991, and ending on the 5th day of April, 1996,”,

(b) as if subsection (2) of the said section 22 were deleted,

(c) in subsection (4) of the said section 22, as if for the definition of “qualifying period” (as so provided for) there were substituted the following definition:

“‘qualifying period’ means the period commencing on the 6th day of April, 1991, and ending on the 5th day of April, 1996;”,

(d) as if the proviso to section 29 (2) and section 30 of the Finance Act, 1983, were deleted, and

(e) as if the said expenditure were expenditure within the meaning of subsection (1) of section 24 of the Finance Act, 1981.

(3) (a) As respects expenditure to which subsection (1) (b) (i) applies, section 22 of the Finance Act, 1985, shall have effect—

(i) in subsections (1) and (2) of the said section 22, as if for “commencing on the 27th day of January, 1988, and ending on the 31st day of March, 1991,” (as provided for by section 29 of the Finance Act, 1988) there were substituted “commencing on the 30th day of January, 1991, and ending on the last day of the specified period (being the specified period within the meaning of section 41 of the Finance Act, 1986),”,

(ii) in subsection (4) of the said section 22, as if for the definition of “qualifying period” (as so provided for) there were substituted the following definition:

and

(iii) as if the proviso to section 29 (2) and section 30 of the Finance Act, 1983, were deleted;

(b) as respects expenditure to which subsection (1) (b) (ii) applies, section 22 of the Finance Act, 1985, shall have effect—

(ii) in subsection (4) of the said section 22, as if for the definition of “qualifying period” (as so provided for) there were substituted the following definition:

“‘qualifying period’ means the period commencing on the 30th day of January, 1991, and ending on the 31st day of May, 1993;”,

and

(iii) as if the proviso to section 29 (2) and section 30 of the Finance Act, 1983, were deleted;

(c) as respects expenditure to which subsection (1) (b) (iii) applies, section 22 of the Finance Act, 1985, shall have effect—

(i) in subsections (1) and (2) of the said section 22, and section 30 (2) of the Finance Act, 1983, as if for “commencing on the 27th day of January, 1988, and ending on the 31st day of March, 1991,” (as provided for by section 29 of the Finance Act, 1988) there were substituted “commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992,”,

(ii) in subsection (4) of the said section 22, as if for the definition of “qualifying period” (as so provided for) there were substituted the following definition:

“‘qualifying period’ means the period commencing on the 1st day of April, 1991, and ending on the 31st day of March, 1992;”,

and

(iii) as if the proviso to section 29 (2) of the Finance Act, 1983, were deleted.

Chapter VIII Taxation of Acquisition by a Company of its Own Shares

59 Interpretation (Chapter VIII).

59.—(1) In this Chapter—

“the Act of 1975” means the Capital Gains Tax Act, 1975;

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

“chargeable period” means an accounting period of a company or a year of assessment;

“control” has the meaning given by section 158 of the Act of 1976;

“holding company” means a company whose business, disregarding any trade carried on by it, consists wholly or mainly of the holding of shares or securities of one or more companies which are its 51 per cent. subsidiaries;

“inspector”, in relation to any matter, means an inspector of taxes appointed under section 161 of the Income Tax Act, 1967, and includes such other officer as the Revenue Commissioners shall appoint in that behalf;

“personal representatives” has the meaning assigned to it by section 450 (2) (a) of the Income Tax Act, 1967;

“quoted company” means a company whose shares, or any class of whose shares, are listed in the official list of a stock exchange or dealt in on an unlisted securities market;

“relevant day” means the day on which Part XI of the Companies Act, 1990, comes into operation by order of the Minister for Industry and Commerce under section 2 of that Act;

“shares” includes stock;

“trade” does not include dealing in shares, securities, land, futures or traded options and “trading activities” shall be construed accordingly;

“trading company” means a company whose business consists wholly or mainly of the carrying on of a trade or trades;

“trading group” means a group the business of whose members, taken together, consists wholly or mainly of the carrying on of a trade or trades, and for this purpose “group” means a company which has one or more 51 per cent. subsidiaries together with those subsidiaries.

(2) References in this Chapter to the owner of shares are references to the beneficial owner except where the shares are held on trusts, other than bare trusts, or are comprised in the estate of a deceased person, and in such a case are references to the trustees or, as the case may be, to the deceased's personal representatives.

(3) References in this Chapter to a payment made by a company include references to anything else that is, or would but for section 61 be, a distribution.

(4) References in this Chapter to a company being unquoted shall be treated as references to a company which is neither a quoted company nor a 51 per cent. subsidiary of a quoted company.

60 Taxation of dealer's receipts on purchase of shares by issuing company or by its subsidiary.

60.—(1) Where on or after the relevant day—

(a) a company purchases its own shares from a dealer, or

(b) a company, which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963) of another company, purchases the other company's shares from a dealer,

the purchase price shall be taken into account in computing the profits of the dealer chargeable to tax under Case I or II of Schedule D, and accordingly—

(i) tax shall not be chargeable under Schedule F in respect of any distribution represented by any part of the price,

(ii) the dealer shall not be entitled in respect of the distribution to a tax credit under section 88 of the Act of 1976, and

(iii) sections 2, 5 and 83 (5) of the Act of 1976 shall not apply to the distribution.

(2) For the purposes of subsection (1) a person is a dealer in relation to shares of a company if the price received on their sale by him otherwise than to the company, or to a company which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963) of the company, would be taken into account in computing his profits chargeable to tax under Case I or II of Schedule D.

(3) Subject to subsection (4), in subsection (1)—

(a) the reference to the purchase of shares includes a reference to the redemption or repayment of shares and the purchase of rights to acquire shares, and

(b) the reference to the purchase price includes a reference to any sum payable on redemption or repayment.

(4) Subsection (1) shall not apply in relation to—

(a) the redemption of fixed-rate preference shares, or

(b) the redemption, on binding terms settled before the 18th day of April, 1991, of other preference shares issued before that date,

if in either case the shares were issued to and continuously held by the person from whom they are redeemed.

(5) In this section—

“fixed-rate preference shares” means shares which—

(a) were issued wholly for new consideration, and

(b) do not carry any right either to conversion into shares or securities of any other description or to the acquisition of any additional shares or securities, and

(c) do not carry any right to dividends other than dividends which are of a fixed amount or at a fixed rate per cent. of the nominal value of the shares, and

(d) carry rights in respect of dividends and capital which are comparable with those general for fixed-dividend shares quoted on a stock exchange in the State;

“new consideration” has the meaning given by section 87 of the Act of 1976.

61 Purchase of unquoted shares by issuing company or its subsidiary.

61.—(1) Notwithstanding any provision of Part IX of the Act of 1976, references in the Tax Acts to distributions of a company, other than any such references in sections 101 and 162 of the Act of 1976, shall be construed so as not to include references to a payment made on or after the relevant day by a company on the redemption, repayment or purchase of its own shares if the company is an unquoted trading company or the unquoted holding company of a trading group and either—

(a) (i) the redemption, repayment or purchase—

(I) is made wholly or mainly for the purpose of benefiting a trade carried on by the company or by any of its 51 per cent. subsidiaries, and

(II) does not form part of a scheme or arrangement the main purpose or one of the main purposes of which is to enable the owner of the shares to participate in the profits of the company or of any of its 51 per cent. subsidiaries without receiving a dividend,

and

(ii) the conditions specified in sections 62 to 66, so far as applicable, are satisfied in relation to the owner of the shares, or

(b) the person to whom the payment is made—

(i) applies the whole, or substantially the whole, of the payment (apart from any sum applied in discharging his liability to capital gains tax, if any, in respect of the redemption, repayment or purchase) to discharging,

(I) within 4 months of the valuation date of a taxable inheritance of the company's shares taken by him, a liability to inheritance tax in respect of that inheritance, or

(II) within one week of the day on which the payment is made, a debt incurred by him for the purpose of discharging the said liability to inheritance tax,

and

(ii) could not, without undue hardship, have otherwise discharged that liability to inheritance tax and, where appropriate, the debt so incurred.

(2) Where subsection (1) would apply to a payment, made on or after the relevant day by a company which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963) of another company on the acquisition of shares of the other company, if, for all the purposes of the Tax Acts other than this subsection—

(a) the payment were to be treated as a payment by the other company on the purchase of its own shares, and

(b) the acquisition by the subsidiary of the shares were to be treated as a purchase by the other company of its own shares,

then, notwithstanding any provision of Part IX of the Act of 1976, references in the Tax Acts to distributions of a company, other than references in sections 101 and 162 of the Act of 1976, shall be construed so as not to include references to the payment made by the subsidiary.

(3) In subsection (1) (b) (i) “valuation date” has the meaning assigned to it by section 21 of the Capital Acquisitions Tax Act, 1976.

62 Conditions as to residence and period of ownership.

62.—(1) In this section and sections 63 to 66—

“the purchase” means the redemption, repayment or purchase referred to in section 61 (1) (a);

“the vendor” means the owner of the shares immediately before the purchase, so defined, is made.

(2) The vendor shall be resident and ordinarily resident in the State for the chargeable period in which the purchase is made and, if the shares are held through a nominee, the nominee shall also be so resident and ordinarily resident.

(3) The residence and ordinary residence of trustees shall be determined for the purposes of this section as they are determined under section 15 of the Act of 1975 for the purposes of that Act.

(4) The residence and ordinary residence of personal representatives shall be taken for the purposes of this section to be the same as the residence and ordinary residence of the deceased immediately before his death.

(5) The references in this section to a person's ordinary residence shall be disregarded in the case of a company.

(6) The shares shall have been owned by the vendor throughout the period of 5 years ending with the date of the purchase.

(7) If at any time during that period the shares were transferred to the vendor by a person who was then his spouse living with him then, unless that person is alive at the date of the purchase but is no longer the vendor's spouse living with him, any period during which the shares were owned by that person shall be treated for the purposes of subsection (6) as a period of ownership by the vendor.

(8) Where the vendor became entitled to the shares under the will or on the intestacy of a previous owner or is the personal representative of a previous owner—

(a) any period during which the shares were owned by the previous owner or his personal representatives shall be treated for the purposes of subsection (6) as a period of ownership by the vendor, and

(b) that subsection shall have effect as if it referred to 3 years instead of 5 years.

(9) In determining whether the condition in subsection (6) is satisfied in a case where the vendor acquired shares of the same class at different times—

(a) shares acquired earlier shall be taken into account before shares acquired later, and

(b) any previous disposal by him of shares of that class shall be assumed to be a disposal of shares acquired later rather than of shares acquired earlier.

(10) If for the purposes of capital gains tax the time when a person acquired shares would be determined under any provision of Schedule 2 to the Act of 1975, then unless the person is to be treated under subparagraph (3) of paragraph 2 of the said Schedule as giving or becoming liable to give any consideration, other than the old holding, for his acquisition of those shares it shall be determined in the same way for the purposes of this section.

63 Reduction of vendor's interest as shareholder.

63.—(1) If immediately after the purchase the vendor owns shares in the company, then, subject to section 66, the vendor's interest as a shareholder must be substantially reduced.

(2) If immediately after the purchase any associate of the vendor owns shares in the company then, subject to section 66, the combined interests as shareholders of the vendor and his associates must be substantially reduced.

(3) The question whether the combined interests as shareholders of the vendor and his associates are substantially reduced shall be determined in the same way as is (under the following subsections of this section) the question whether a vendor's interest as a shareholder is substantially reduced, except that the vendor shall be assumed to have the interests of his associates as well as his own.

(4) Subject to subsection (5), the vendor's interest as a shareholder shall be taken to be substantially reduced if and only if the total nominal value of the shares owned by him immediately after the purchase, expressed as a fraction of the issued share capital of the company at that time, does not exceed 75 per cent. of the corresponding fraction immediately before the purchase.

(5) The vendor's interest as a shareholder shall not be taken to be substantially reduced where—

(a) he would, if the company distributed all its profits available for the distribution immediately after the purchase, be entitled to a share of those profits, and

(b) that share, expressed as a fraction of the total of those profits, exceeds 75 per cent. of the corresponding fraction immediately before the purchase.

(6) In determining for the purposes of subsection (5) the division of profits among the persons entitled to them, a person entitled to periodic distributions calculated by reference to fixed rates or amounts shall be regarded as entitled to a distribution of the amount or maximum amount to which he would be entitled for a year.

(7) In subsection (5) “profits available for distribution” has the same meaning as it has for the purposes of Part IV of the Companies (Amendment) Act, 1983, except that for the purposes of that subsection the amount of the profits available for distribution (whether immediately before or immediately after the purchase) shall be treated as increased—

(a) in the case of every company, by £100, and

(b) in the case of a company from which any person is entitled to periodic distributions of the kind mentioned in subsection (6), by a further amount equal to that required to make the distribution to which he is entitled in accordance with that subsection,

and where the aggregate of the sums payable by the company on the purchase and on any contemporaneous redemption, repayment or purchase of other shares of the company exceeds the amount of the profits available for distribution immediately before the purchase, that amount shall be treated as further increased by an amount equal to the excess.

(8) References in this section to entitlement are, except in the case of trustees and personal representatives, references to beneficial entitlement.

64 Conditions applicable where purchasing company is member of group.

64.—(1) Subject to section 66, where the company making the purchase is immediately before the purchase a member of a group and immediately after the purchase—

(a) the vendor owns shares in one or more other members of the group, whether or not he then owns shares in the company making the purchase, or

(b) the vendor owns shares in the company making the purchase and immediately before the purchase he owned shares in one or more other members of the group,

the vendor's interest as a shareholder in the group shall be substantially reduced.

(2) Subject to subsection (4), in subsections (5) to (7) “relevant company” means the company making the purchase and any other company—

(a) in which the vendor owns shares, and

(b) which is a member of the same group as the company making the purchase,

immediately before or immediately after the purchase.

(3) Subject to section 66, where the company making the purchase is immediately before the purchase a member of a group, and at that time an associate of the vendor owns shares in any member of the group, the combined interests as shareholders in the group of the vendor and his associates shall be substantially reduced.

(4) The question whether the combined interests as shareholders in the group of the vendor and his associates are substantially reduced shall be determined in the same way as is (under the following subsections of this section) the question whether a vendor's interest as a shareholder in a group is substantially reduced, except that the vendor shall be assumed to have the interests of his associates as well as his own, and references in subsections (5) to (7) to a relevant company shall be construed accordingly.

(5) The vendor's interest as a shareholder in the group shall be ascertained by—

(a) expressing the total nominal value of the shares owned by him in each relevant company as a fraction of the issued share capital of the company,

(b) adding together the fractions so obtained, and

(6) Subject to subsection (7), the vendor's interest as a shareholder in the group shall be taken to be substantially reduced if and only if it does not exceed 75 per cent. of the corresponding interest immediately before the purchase.

(7) The vendor's interest as a shareholder in the group shall not be taken to be substantially reduced if—

(a) he would, if every member of the group distributed all its profits available for distribution immediately after the purchase (including any profits received by it on a distribution by another member), be entitled to a share of the profits of one or more of them, and

(b) that share, or the aggregate of those shares, expressed as a fraction of the aggregate of the profits available for distribution of every member of the group which is—

(i) a relevant company, or

(ii) a 51 per cent. subsidiary of a relevant company,

exceeds 75 per cent. of the corresponding fraction immediately before the purchase.

(8) Subsections (6) and (7) of section 63 shall apply for the purposes of subsection (7) as they apply for the purposes of subsection (5) of that section.

(9) Subject to subsections (10) to (12), in this section “group” means a company which has one or more 51 per cent. subsidiaries, but is not itself a 51 per cent. subsidiary of any other company, together with those subsidiaries.

(10) Where the whole or a significant part of the business carried on by an unquoted company (hereafter in this section referred to as “the successor company”) was previously carried on by—

(a) the company making the purchase, or

(b) a company which is, apart from this subsection, a member of a group to which the company making the purchase belongs,

the successor company and any company of which it is a 51 per cent. subsidiary shall be treated as being a member of the same group as the company making the purchase, whether or not, apart from this subsection, the company making the purchase is a member of a group.

(11) Subsection (10) shall not apply if the successor company first carried on the business there referred to more than three years before the time of the purchase.

(12) For the purposes of this section a company which has ceased to be a 51 per cent. subsidiary of another company before the time of the purchase shall be treated as continuing to be such a subsidiary if at that time there exist arrangements under which it could again become such a subsidiary.

65 Additional conditions to those otherwise provided for.

65.—(1) Subject to section 66 the vendor shall not immediately after the purchase be connected with the company making the purchase or with any company which is a member of the same group as that company.

(2) In subsection (1) “group” has the same meaning as it has for the purposes of section 64.

(3) Subject to section 66, the purchase shall not be part of a scheme or arrangement which is designed or likely to result in the vendor or any associate of his having interests in any company such that, if he had those interests immediately after the purchase, any of the conditions in sections 63 and 64 and subsection (1) could not be satisfied.

(4) A transaction occurring within one year after the purchase shall be deemed for the purposes of subsection (3) to be part of a scheme or arrangement of which the purchase is also part.

66 Relaxation of conditions in certain cases.

66.—Where—

(a) any of the conditions in sections 63 to 65 which are applicable are not satisfied in relation to the vendor, but

(b) the vendor proposed or agreed to the purchase in order to produce the result that the condition in section 63 (2) or 64 (3), which could not otherwise be satisfied in respect of the redemption, repayment or purchase of shares owned by a person of whom he is an associate, could be satisfied in that respect,

then, if that result is produced by virtue of the purchase, section 61 (1) (a) shall have effect, as respects so much of the purchase as was necessary to produce the said result, as if the conditions in sections 63 to 65 were satisfied in relation to the vendor.

67 Returns.

67.—(1) (a) Where a company makes a payment which it treats as one to which subsection (1) or (2) of section 61 applies, it shall make a return in a prescribed form to the appropriate inspector of the payment, the circumstances by reason of which that subsection is regarded as applying to it and such further particulars as may be required by the prescribed form.

(b) In this subsection “appropriate inspector” and “prescribed form” shall have the meanings which are assigned to them, respectively, in Chapter II of the Finance Act, 1988.

(2) A company shall make a return under this section—

(a) within 9 months from the end of the accounting period in which it makes the payment, or

(b) if at any time after the payment is made the inspector by notice in writing requests such a form, within the time, which shall not be less than 30 days, limited by such notice.

(3) The provisions of subsection (8) of section 143 of the Act of 1976 shall, with any necessary modifications, apply in relation to a return under the provisions of this section, as they apply in relation to a return under the provisions of the said section 143.

68 Information.

68.—(1) Where a company treats a payment made by it as one to which subsection (1) (a) or (2) of section 61 applies, any person connected with the company who knows of any such scheme or arrangement affecting the payment as is mentioned in section 65 (3) shall, within 60 days after he first knows of both the payment and the scheme or arrangement, give a notice to the inspector containing particulars of the scheme or arrangement.

(2) Where the inspector has reason to believe that a payment treated by the company making it as one to which subsection (1) (a) or (2) of section 61 applies may form part of a scheme or arrangement of the kind referred to therein or in section 65 (3), he may by notice require the company or any person who is connected with the company to furnish him within such time, not being less than 60 days, as may be specified in the notice with—

(a) a declaration in writing stating whether or not, according to information which the company or that person has or can reasonably obtain, any such scheme or arrangement exists or has existed, and

(b) such other information as the inspector may reasonably require for the purposes of the provision in question and the company or that person has or can reasonably obtain.

(3) The recipient of a payment treated by the company making it as one to which subsection (1) (a) or (2) of section 61 applies, and any person on whose behalf such a payment is received, shall if so required by the inspector state whether the payment received by him or on his behalf is received on behalf of any person other than himself and, if so, the name and address of that person.

(4) Schedule 15 to the Income Tax Act, 1967, is hereby amended by the insertion in column 2 of “Finance Act, 1991, section 68”.

69 Advance corporation tax.

69.—Chapter VII of Part I of the Finance Act, 1983, is hereby amended, as respects distributions made on or after the relevant day,

(a) by the insertion after subsection (8) of section 45 of the following subsection:

“(9) References in this section to dividends shall be construed as including references to distributions on the redemption, repayment or purchase by a company of its own shares or on the acquisition of those shares by another company which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963) of the company, and references to the payment of dividends shall be construed accordingly.”,

and

(b) by the addition to subsection (1) of section 47 of the following paragraph after paragraph (b):

“(c) For the purposes of paragraph (a) the reference to a dividend paid by a company shall be construed as including a reference to a distribution made by the company on the redemption, repayment or purchase of its own shares or by another company which is a subsidiary (within the meaning of section 155 of the Companies Act, 1963) of the company on the acquisition of those shares.”.

70 Treasury shares.

70.—(1) For all the purposes of the Tax Acts and the Capital Gains Tax Acts—

(a) any shares which are—

(i) held by the company as treasury shares, and

(ii) not cancelled by the company,

shall be deemed to be cancelled immediately upon their acquisition by the company,

(b) a deemed or actual cancellation of shares shall be treated as giving rise to neither a chargeable gain nor an allowable loss, and

(2) For the purposes of this section a reference to treasury shares shall be a reference to treasury shares within the meaning of section 209 of the Companies Act, 1990.

71 Associated persons.

71.—(1) Any question whether a person is an associate of another in relation to a company shall be determined for the purposes of sections 61 to 68 and section 72 in accordance with the following provisions, that is to say:

(a) a husband and wife living together shall be associates of one another, a person under the age of 18 shall be an associate of his parents, and his parents are his associates;

(b) a person who has control of a company shall be an associate of the company and the company shall be his associate;

(c) where a person who has control of one company has control of another company, the second company shall be an associate of the first;

(d) where shares in a company are held by trustees (other than bare trustees) then in relation to that company, but subject to subsection (2), the trustees shall be associates of—

(i) any person who directly or indirectly provided property to the trustees or has made a reciprocal arrangement for another to do so,

(ii) any person who is, by virtue of paragraph (a), an associate of a person within subparagraph (i), and

(iii) any person who is or may become beneficially entitled to a material interest in the shares,

and any such person shall be an associate of the trustees;

(e) where shares in a company are comprised in the estate of a deceased person, then in relation to that company the deceased's personal representatives shall be associates of any person who is or may become beneficially entitled to a material interest in the shares, and any such person shall be an associate of the personal representatives;

(f) where one person is accustomed to act on the directions of another in relation to the affairs of a company, then in relation to that company, the two persons shall be associates of one another.

(2) Subsection (1) (d) shall not apply to shares held on trusts which—

(a) relate exclusively to an exempt approved scheme as defined in Chapter II of Part I of the Finance Act, 1972, or

(b) are exclusively for the benefit of the employees, or the employees and directors, of the company referred to in the said subsection (1) (d) or of companies in a group to which that company belongs, or their dependants, and are not wholly or mainly for the benefit of directors or their relatives,

and for the purposes of this subsection “group” means a company which has one or more 51 per cent. subsidiaries, together with those subsidiaries.

(3) For the purposes of paragraphs (d) and (e) of subsection (1), a person's interest is a material interest if its value exceeds 5 per cent. of the value of all the property held on the trusts or, as the case may be, comprised in the estate concerned, excluding any property in which he is not and cannot become beneficially entitled to an interest.

72 Connected persons.

72.—(1) Any question whether a person is connected with a company shall, notwithstanding section 33 of the Act of 1975 and section 157 of the Act of 1976, be determined for the purposes of sections 61 to 68 in accordance with the following provisions, that is to say:

(a) a person shall, subject to subsection (2), be connected with a company if he directly or indirectly possesses or is entitled to acquire more than 30 per cent. of—

(i) the issued ordinary share capital of the company, or

(ii) the loan capital and issued share capital of the company, or

(iii) the voting power in the company;

(b) a person shall be connected with a company if he directly or indirectly possesses or is entitled to acquire such rights as would, in the event of the winding up of the company or in any other circumstances, entitle him to receive more than 30 per cent. of the assets of the company which would then be available for distribution to equity holders of the company, and for the purposes of this paragraph—

(i) the persons who are equity holders of the company, and

(ii) the percentage of the assets of the company to which a person would be entitled,

shall be determined in accordance with sections 109 and 111 of the Act of 1976, but construing references in the said section 111 to the first company as references to an equity holder and references to a winding up as including references to other circumstances in which assets of the company are available for distribution to its equity holders;

(2) Where a person—

(a) acquired or became entitled to acquire loan capital of a company in the ordinary course of a business carried on by him, being a business which includes the lending of money, and

(b) takes no part in the management or conduct of the company, his interest in that loan capital shall be disregarded for the purposes of subsection (1) (a).

(3) References in this section to the loan capital of a company are references to any debt incurred by the company—

(a) for any money borrowed or capital assets acquired by the company, or

(b) for any right to receive income created in favour of the company, or

(c) for consideration the value of which to the company was, at the time when the debt was incurred, substantially less than the amount of the debt, including any premium thereon.

(4) For the purposes of this section a person shall be treated as entitled to acquire anything which he is entitled to acquire at a future date or will at a future date be entitled to acquire.

(5) For the purposes of this section a person shall be assumed to have the rights or powers of his associates as well as his own.

PART II Customs and Excise

73 Tobacco products.

73.—(1) In this section and in the Third Schedule “cigarettes”, “cigars”, “sweetened pipe tobacco”, “hard pressed tobacco”, “other pipe tobacco”, “smoking tobacco”, “chewing tobacco” and “tobacco products” have the same meanings as they have in the Finance (Excise Duty on Tobacco Products) Act, 1977, as amended by the Imposition of Duties (No. 243) (Excise Duty on Tobacco Products) Order, 1979 (S.I. No. 296 of 1979), and the Finance Act, 1988.

(2) The duty of excise on tobacco products imposed by section 2 of the Finance (Excise Duty on Tobacco Products) Act, 1977, shall, in lieu of the several rates specified in the Eighth Schedule to the Finance Act, 1990, be charged, levied and paid, as on and from—

(a) the 31st day of January, 1991, at the several rates specified in Part I of the Third Schedule, and

(b) the 1st day of March, 1991, at the several rates specified in Part II of the Third Schedule.

74 Hydrocarbons.

74.—(1) The duty of excise on gaseous hydrocarbons in liquid form imposed by section 41 (1) of the Finance Act, 1976, shall be charged, levied and paid, as on and from the 1st day of March, 1991, at the rate of £0.313 per gallon in lieu of the rate specified in section 89 (2) of the Finance Act, 1990.

(2) (a) In this subsection—

“duty” means the duty of excise imposed on gaseous hydrocarbons in liquid form by section 41 (1) of the Finance Act, 1976;

“glasshouse” means any building or structure made of glass or other transparent or translucent material, which is used for growing horticultural produce and is artificially heated from a heating unit permanently installed solely for the purpose of heating the building or structure for such use;

“horticultural produce” means fruit, vegetables (including fungi) of a kind grown for human consumption, flowers, pot plants, herbs, seeds, bulbs, trees and shrubs, and “horticultural producer” shall be construed accordingly.

(b) This subsection shall apply to gaseous hydrocarbons in liquid form delivered to a horticultural producer on or after the 1st day of July, 1991.

(c) Where a horticultural producer shows, to the satisfaction of the Revenue Commissioners, that gaseous hydrocarbons in liquid form to which this subsection applies and on which duty has been paid were used by him either—

(i) in the production of horticultural produce in one or more than one glasshouse of a total area of not less than a quarter of an acre, or

(ii) in the cultivation of mushrooms in one or more than one building or structure of a total area of not less than 3,000 square feet,

the Revenue Commissioners shall repay the duty so paid on the quantity of gaseous hydrocarbons in liquid form so used, less the sum of any rebate of duty allowed and an amount calculated at the rate of £0.02 per gallon.

(d) Except where the Revenue Commissioners otherwise allow, an application by a horticultural producer for repayment of duty under this subsection shall be in respect of deliveries of gaseous hydrocarbons in liquid form received by that producer within a period of 6 months and shall be made not later than 3 months following the end of each such period.

(3) (a) Section 21 of the Finance Act, 1935, is hereby amended in subsection (11) (inserted by section 18 of the Finance Act, 1940) by the addition thereto of the following paragraph after paragraph (l) (inserted by section 20 of the Finance Act, 1960):

“(m) prohibiting the addition to or mixing with any hydrocarbon oil of any substance and prohibiting the importation, keeping for sale, sale, transportation or delivery of any hydrocarbon oil in which such substance is present.”.

(b) Regulations made under the said section 21 shall apply and have effect as if they had been made under that section as amended by this section.

(4) Section 21 (15) (as amended by section 70 (2) of the Finance Act, 1983) of the Finance Act, 1935, is hereby amended in the definition of “motor vehicle” by the substitution of “or a vehicle referred to in paragraph 2 (b) of Part I (inserted by the Finance Act, 1991) of the Schedule to the Finance (Excise Duties) (Vehicles) Act, 1952” for “or a vehicle referred to in paragraph 4B (inserted by the Finance Act, 1983) of Part I of the Schedule to the Finance (Excise Duties) (Vehicles) Act, 1952”, and the said definition, as so amended, is set out in the Table to this subsection.

TABLE

the expression “motor vehicle” means a mechanically propelled vehicle which is designed, constructed, and suitable for use on roads, but does not include a tractor which is designed and constructed for use for agricultural purposes or a road roller or a vehicle referred to in paragraph 2 (b) of Part I (inserted by the Finance Act, 1991) of the Schedule to the Finance (Excise Duties) (Vehicles) Act, 1952.

75 Excise duty on mechanically propelled vehicles.

75.—(1) In this section “the Act of 1952” means the Finance (Excise Duties) (Vehicles) Act, 1952.

(2) Subject to subsection (4), the Act of 1952, shall, as respects licences under section 1 thereof taken out for periods beginning on or after the 1st day of April, 1991, be amended—

(a) by the substitution of “£70 or less” for “forty pounds or less” (inserted by the Finance Act, 1983) in subparagraph (b) of subsection (2) of section 1,

(b) by the addition of the following paragraph after paragraph (e) of subsection (4) of section 1:

“(f) vehicles (including any cycle with an attachment for propelling it by mechanical power) not exceeding 400 kilograms in weight unladen adapted and used for invalids.”,

“PART I

Description of Vehicle	Rate of Duty
1. Vehicles of the following descriptions not exceeding 500 kilograms in weight unladen:
(a) bicycles or tricycles (other than tricycles neither constructed nor adapted for use nor used for the carriage of a passenger) of which the cylinder capacity of the engine—
(i) does not exceed 75 cubic centimeters	£10
(ii) exceeds 75 cubic centimetres but does not exceed 200 cubic centimeters.	£20
(iii) exceeds 200 cubic centimetres	£40
(b) bicycles or tricycles which are electrically propelled	£10
(c) vehicles with 3 or more wheels neither constructed nor adapted for use nor used for the carriage of a driver or passenger	£40.
2. (a) Vehicles (commonly known as dumpers) not exceeding 3 metres cubed in capacity, level loaded, designed and constructed for use on sites of construction works (including road construction and house and other building works) for the purpose of conveying concrete, rubble, earth or other like material where the person taking out the licence shows to the satisfaction of the licensing authority that the vehicle is used mainly on such sites, and on public roads only—
(i) for the purpose of proceeding to and from the site where it is to be used, and when so proceeding neither carries nor hauls any load other than such as is necessary for its propulsion or equipment, or
(ii) for the purpose of conveying concrete, rubble, earth or like material for a distance of not more than one kilometre to and from any such site	£40.
(b) Vehicles (commonly known as off-road dumpers) exceeding 3 metres cubed in capacity, level loaded, designed and constructed primarily for use on sites of construction works (including road construction and house and other building works) for the purpose of conveying concrete, rubble, earth or other like materials and incapable by reason of their design and construction of exceeding a speed of 50 kilometres per hour on a level road under their own power and which are the subject of special permits under article 17 of the Road Traffic (Construction, Equipment and Use of Vehicles) Regulations, 1963, (S.I. No. 190 of 1963)	£300.
(c) Any vehicle (other than a vehicle constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement, by or in which goods being conveyed by such vehicle are processed or manufactured while the vehicle is in motion) constructed or adapted for use and used only for the conveyance of a machine, workshop, contrivance or implement (being a machine, workshop, contrivance or implement which is built in as part of the vehicle or otherwise permanently attached thereto) and no other load except articles used in connection with such machine, workshop, contrivance or implement or goods processed or manufactured therein	£40.
(d) Vehicles (commonly known as forklift trucks) designed and constructed for the purpose of loading and unloading goods where the person taking out the licence shows to the satisfaction of the licensing authority that the vehicle is used on public roads only—
(i) for the purpose of proceeding to and from the site where it is to be used for loading and unloading, and when so proceeding neither carries nor hauls any load other than such as is necessary for its propulsion or equipment, or
(ii) as part of the process of loading or unloading, for the purpose of conveying goods for a distance of not more than one kilometre to and from the site where it is loading or unloading	£40.
3. (a) Vehicles constructed or adapted for the carriage of more than 8 persons which are owned by a youth or community organisation and which are used exclusively by the organisation solely for the purpose of conveying persons on journeys directly related to the activities of the organisation and which have seating capacity for—
(i) more than 8 persons but not more than 20 persons	£100
(ii) more than 20 persons but not more than 40 persons	£160
(iii) more than 40 persons but not more than 60 persons	£220
(iv) more than 60 persons	£280.
(b) Vehicles (other than those referred to in subparagraph (c) of this paragraph) used as large public service vehicles within the meaning of the Road Traffic Act, 1961, and having seating capacity for—
(i) more than 8 persons but not more than 20 persons	£100
(ii) more than 20 persons but not more than 40 persons	£160
(iii) more than 40 persons but not more than 60 persons	£220
(iv) more than 60 persons	£280.
(c) Vehicles which are large public service vehicles within the meaning of the Road Traffic Act, 1961, and which are used only for the carriage of children, or children and teachers, being carried to or from school or to or from school-related physical education activities, and are either licensed under Article 60 of the Road Traffic (Public Service Vehicles) Regulations, 1963 (S.I. No. 191 of 1963), as amended, or owned or operated by a statutory transport undertaking	£50.
4. Vehicles of the following descriptions:
(a) vehicles designed, constructed and used for the purpose of trench digging or any kind of excavating or shovelling work which—
(i) are used on public roads only for that purpose or the purpose of proceeding to and from the place where they are to be used for that purpose, and
(ii) when so proceeding neither carry nor haul any load other than such as is necessary for their propulsion or equipment	£35
(b) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 50 kilometres per hour on a level road under their own power) and agricultural engines, not being tractors or engines used for hauling on roads any objects except their own necessary gear, threshing appliances, farming implements or supplies of fuel or water required for the purposes of the vehicles or agricultural purposes	£35
(c) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 50 kilometres per hour on a level road under their own power and not being tractors in respect of which a duty is chargeable at the rate specified in subparagraph (b) of this paragraph) which are used for haulage in connection with agriculture and for no other purpose	£35
Where a tractor is fitted with a detachable platform, container or implement (being a platform, container or implement used primarily for farm work), goods or burden of any other description conveyed on or in the platform, container or implement shall be regarded for the purposes of this subparagraph as being hauled by the tractor;
(d) tractors of any other description	£90.
5. Vehicles (including tricycles weighing more than 500 kilograms unladen) constructed or adapted for use and used for the conveyance of goods or burden of any other description in the course of trade or business (including agriculture and the performance by a local or public authority of its functions) and vehicles constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement by or in which goods being conveyed by such vehicles are processed or manufactured while the vehicles are in motion:
(a) being vehicles which are electrically propelled and which do not exceed 1,500 kilograms in weight unladen	£40
(b) being vehicles which are not such electrically propelled vehicles as aforesaid and which have a weight unladen—
(i) not exceeding 3,000 kilograms	£100
(ii) exceeding 3,000 kilograms but not exceeding 4,000 kilograms	£140
(iii) exceeding 4,000 kilograms but not exceeding 5,000 kilograms	£180
(iv) exceeding 5,000 kilograms but not exceeding 6,000 kilograms	£250
(v) exceeding 6,000 kilograms but not exceeding 7,000 kilograms	£340
(vi) exceeding 7,000 kilograms but not exceeding 8,000 kilograms	£430
(vii) exceeding 8,000 kilograms	£430 plus £100 for each 1,000 kilograms or part thereof in excess of 8,000 kilograms.
6. Vehicles other than those charged with duty under the foregoing provisions of this Part of this Schedule:
(a) any vehicle which is used as a hearse and for no other purpose	£50
(b) any vehicle (excluding a taxi) which is used as a small public service vehicle within the meaning of the Road Traffic Act, 1961, and for no other purpose	£50
(c) any vehicle which is fitted with a taximeter and is lawfully used as a street service vehicle within the meaning of the Road Traffic Act, 1961, and for purposes incidental to such user and for no other purpose	£50
(d) other vehicles to which this paragraph applies—
(i) with an engine cylinder capacity not exceeding 1,000 cubic centimeters	£77
(ii) with an engine cyclinder capacity exceeding 1,000 cubic centimetres but not exceeding 1,500 cubic centimetres	£10.50 per 100 cubic centimetres or part thereof
(iii) with an engine cylinder capacity exceeding 1,500 cubic centimetres but not exceeding 1,700 cubic centimetres	£12 per 100 cubic centimetres or part thereof
(iv) with an engine cylinder capacity exceeding 1,700 cubic centimetres but not exceeding 2,000 cubic centimetres	£13 per 100 cubic centimetres or part thereof
(v) with an engine cylinder capacity exceeding 2,000 cubic centimetres but not exceeding 2,500 cubic centimetres	£16 per 100 cubic centimetres or part thereof
(vi) with an engine cylinder capacity exceeding 2,500 cubic centimetres	£18 per 100 cubic centimetres or part thereof
(vii) electrically propelled	£77:
Provided that where the rate of duty so specified in any case equals a number of whole pounds and a fraction of a pound, the fraction of a pound shall be regarded as a whole pound.”.

(3) (a) Part II of the Schedule to the Act of 1952 is hereby amended by the deletion of paragraph 4 and by the substitution of the following paragraph for paragraph 5:

“5. (a) Where the applicant for a licence under section 1 of this Act satisfies the licensing authority that the vehicle in respect of which the licence is sought was constructed more than 30 years prior to the commencement of the period in respect of which the licence is sought the annual rate of duty shall, notwithstanding Part I of this Schedule, be—

(i) £10 where, apart from this paragraph, paragraph 1 of Part I of this Schedule would apply to the vehicle, and

(ii) £25 in respect of any other vehicle.

(b) This paragraph shall not be construed so as to affect the application of the provisions of section 94 (2) (inserted by the Finance Act, 1991) of the Finance Act, 1973, to vehicles to which this paragraph relates.”.

(b) This subsection shall come into operation on the 1st day of July, 1991.

(4) In respect of the provisions of Part I of the Schedule to the Act of 1952 (as amended by this section) the numeric references to volume and speed in paragraph 2 (b) thereof and to speed in paragraph 4 thereof shall, until the 1st day of July, 1991, be construed as if they were the respective numeric references in the corresponding paragraphs of that Part immediately before the 1st day of April, 1991.

(5) The Finance Act, 1973, is hereby amended, with effect from the 1st day of April, 1991, by the substitution of the following subsection for subsection (2) of section 94:

“(2) The duty imposed by subsection (1) of this section shall be at the following rates:

(a) £10 in relation to a vehicle to which paragraph 1 of Part I of the Schedule to the said Act applies;

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