Taxes Consolidation Act 1997

(a) is given in respect of past services in an office or employment or is payable under the provisions of the law of the country in which it arises which correspond to the provisions of Chapter 12, 16 or 17 of Part II of, or Chapter 4 or 6 of Part III of, the Social Welfare (Consolidation) Act, 1993, or any subsequent Act together with which that Act may be cited, and

(b) if it were received by a person who, for the purposes of tax of the country in which it arises, is resident in that country and is not resident elsewhere, would not be regarded as income for those purposes.

(3) In section 18(2), the reference in paragraph (f) of Case III to income arising from possessions outside the State shall be deemed not to include a reference to any pension, benefit or allowance to which this section applies.

201 Exemptions and reliefs in respect of tax under section 123. [ITA67 s115 and Sch3 pars 12 and 13; FA72 s13(4) and Sch1 PtIII par2; FA80 s10(1)(a) and (c); FA92 s18(2); FA93 s7(1) and s8(a); FA97 s12]

201.—(1) (a) In this section and in Schedule 3—

“the basic exemption” means £6,000 together with £500 for each complete year of the service, up to the relevant date, of the holder in the office or employment in respect of which the payment is made;

“foreign service”, in relation to an office or employment, means service such that—

(i) tax was not chargeable in respect of the emoluments of the office or employment,

(ii) the office or employment being an office or employment within Schedule E, tax under that Schedule was not chargeable in respect of the whole of the emoluments of that office or employment, or

(iii) the office or employment being regarded as a possession in a place outside the State within the meaning of Case III of Schedule D, tax in respect of the income arising from that office or employment did not fall to be computed in accordance with section 71(1);

“the relevant date”, in relation to a payment not being a payment in commutation of annual or other periodical payments, means the date of the termination or change in respect of which it is made and, in relation to a payment in commutation of annual or other periodical payments, means the date of the termination or change in respect of which those payments would have been made.

(b) In this section—

“control”, in relation to a body corporate, means the power of a person to secure—

(i) by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or

(ii) by virtue of any power conferred by the articles of association or other document regulating that or any other body corporate,

that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than 50 per cent of the assets, or of more than 50 per cent of the income, of the partnership;

references to an employer or to a person controlling or controlled by an employer include references to such employer's or such person's successors.

(c) For the purposes of this section and of Schedule 3, offices or employments in respect of which payments to which section 123 applies are made shall be treated as held under associated employers if, on the date which is the relevant date in relation to any of those payments, one of those employers is under the control of the other or of a third person who controls or is under the control of the other on that or any other such date.

(2) Income tax shall not be charged by virtue of section 123 in respect of the following payments—

(a) any payment made in connection with the termination of the holding of an office or employment by the death of the holder, or made on account of injury to or disability of the holder of an office or employment;

(b) any sum chargeable to tax under section 127;

(c) a benefit provided in pursuance of any retirement benefits scheme where under section 777 the employee (within the meaning of that section) was chargeable to tax in respect of sums paid, or treated as paid, with a view to the provision of the benefit;

(d) a benefit paid in pursuance of any scheme or fund described in section 778(1).

(3) Subsection (2)(d) shall not apply to the following payments—

(a) a termination allowance payable in accordance with section 5 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992, and any regulations made under that section,

(b) a severance allowance or a special allowance payable in accordance with Part V (inserted by the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992) of the Ministerial and Parliamentary Offices Act, 1938,

(c) a special severance gratuity payable under section 7 of the Superannuation and Pensions Act, 1963, or any analogous payment payable under or by virtue of any other enactment, or

(d) a benefit paid in pursuance of any statutory scheme (within the meaning of Chapter 1 of Part 30) established or amended after the 10th day of May, 1997, other than a payment representing normal retirement benefits, which is made in consideration or in consequence of, or otherwise in connection with, the termination of the holding of an office or employment in circumstances—

(I) of redundancy or abolition of office, or

(II) for the purposes of facilitating improvements in the organisation of the employing company, organisation, Department or other body by which greater efficiency or economy can be effected,

and, for the purposes of this paragraph, “normal retirement benefits” means recognised superannuation benefits customarily payable to an individual on retirement at normal retirement date under the relevant statutory scheme, notwithstanding that, in relation to the termination of an office or employment in the circumstances described in this paragraph, such benefits may be paid earlier than the designated retirement date or may be calculated by reference to a period greater than the individual's actual period of service in the office or employment, and includes benefits described as short service gratuities which are calculated on a basis approved by the Minister for Finance.

(4) Income tax shall not be charged by virtue of section 123 in respect of a payment in respect of an office or employment in which the holder's service included foreign service where the foreign service comprised—

(a) in any case, three-quarters of the whole period of service down to the relevant date,

(b) where the period of service down to the relevant date exceeded 10 years, the whole of the last 10 years, or

(c) where the period of service down to the relevant date exceeded 20 years, one-half of that period, including any 10 of the last 20 years.

(5) (a) Income tax shall not be charged by virtue of section 123 in respect of a payment of an amount not exceeding the basic exemption and, in the case of a payment which exceeds that amount, shall be charged only in respect of the excess.

(b) Notwithstanding paragraph (a), where 2 or more payments in respect of which tax is chargeable by virtue of section 123, or would be so chargeable apart from paragraph (a), are made to or in respect of the same person in respect of the same office or employment, or in respect of different offices or employments held under the same employer or under associated employers, that paragraph shall apply as if those payments were a single payment of an amount equal to that aggregate amount, and the amount of any one payment chargeable to tax shall be ascertained as follows:

(i) where the payments are treated as income of different years of assessment, the amount of the basic exemption shall be deducted from a payment treated as income of an earlier year before any payment treated as income of a later year, and

(ii) subject to subparagraph (i), the amount of the basic exemption shall be deducted rateably from the payments according to their respective amounts.

(6) The person chargeable to income tax by virtue of section 123 in respect of any payment may, before the expiration of 6 years after the end of the year of assessment of which that payment is treated as income, by notice in writing to the inspector claim any such relief in respect of the payment as is applicable to the payment under Schedule 3 and, where such a claim is duly made and allowed, all such repayments and assessments of income tax shall be made as are necessary to give effect to such a claim.

(7) For the purposes of any provision of the Income Tax Acts requiring income of any description to be treated as the highest part of a person's income, that income shall be calculated without regard to any payment chargeable to tax by virtue of section 123.

202 Relief for agreed pay restructuring. [FA97 s14]

202.—(1) (a) In this section—

“basic pay”, in relation to a participating employee of a qualifying company, means the employee's emoluments (other than non-pecuniary emoluments) from the company in respect of an employment held with the company;

“collective agreement” means an agreement entered into by a company with, or on behalf of, one or more than one body representative of employees of the company where each such body is either the holder of a negotiation licence under the Trade Union Act, 1941, or is an excepted body within the meaning of section 6 of that Act as amended by the Trade Union Act, 1942;

“control”, in relation to a qualifying company, means the power of a person to secure—

(i) by means of the holding of shares or the possession of voting power in or in relation to the qualifying company or any other qualifying company, or

(ii) by virtue of any power conferred by the articles of association or any other document regulating the qualifying company or any other qualifying company,

that the affairs of the first-mentioned qualifying company are conducted in accordance with the wishes of such person and, in relation to a partnership, means the right to a share of more than 50 per cent of the assets, or of more than 50 per cent of the income, of the partnership;

“emoluments” has the same meaning as in section 472;

“employment” means an office or employment of profit such that any emoluments of the office or employment of profit are to be charged to tax under Schedule E;

“the Minister” means the Minister for Enterprise, Trade and Employment;

“participating employee”, in relation to a qualifying company, means a qualifying employee who is a participant in a relevant agreement with the company;

“qualifying company” means a company to which the Minister has issued a certificate under subsection (2) which has not been withdrawn under that subsection;

“qualifying employee”, in relation to a qualifying company, means an employee of the company in receipt of emoluments from the company;

“reduced basic pay”, in relation to a participating employee, means the basic pay of the employee as reduced by the substantial reduction provided for in the relevant agreement concerned;

“relevant agreement”, in relation to a qualifying company, means a collective agreement covering all or substantially all of the qualifying employees of the company—

(a) which provides amongst other things for—

(i) a substantial reduction in the basic pay of the participating employees,

(ii) the payment of the reduced basic pay to the participating employees for the duration of the relevant period, and

(iii) the payment to the participating employees of a lump sum to compensate for that reduction,

and

(b) which is registered with the Labour Relations Commission;

“relevant date”, in relation to a relevant agreement, means the date the relevant agreement was registered with the Labour Relations Commission;

“relevant period”, in relation to a relevant agreement, means the period of 5 years commencing on the relevant date in relation to that agreement;

“specified amount”, in relation to a participating employee, means £6,000 together with £200 for each complete year of service (subject to a maximum of 20 years), up to the relevant date, of the employee in the service of the qualifying company.

(b) For the purposes of this section—

(i) a reduction in the basic pay of a participating employee shall not be regarded as substantial unless it amounts to at least 10 per cent of the average for one year of the employee's basic pay ascertained by reference to such pay for the 2 year period ending on the relevant date, and

(ii) employments in respect of which payments to which this section applies are made shall be treated as held with associated qualifying companies if, on the date of any of those payments, one of those companies is under the control of the other company or of a third person who controls or is under the control of the other company on that or any other such date.

(2) (a) The Minister, on the making of an application in that behalf by a company, may, in accordance with guidelines laid down for the purpose by the Minister with the agreement of the Minister for Finance, give a certificate to a company stating that for the purposes of this section it may be treated as a qualifying company.

(b) The Minister may not grant a certificate to a company under this subsection unless the Minister is satisfied, on advice from the Labour Relations Commission, that—

(i) the company is faced with an actual or imminent substantial adverse change to its competitive environment which will determine its survival,

(ii) to meet that change and achieve its survival, it is necessary for the company to enter into a relevant agreement with its qualifying employees, and

(iii) the relevant agreement into which it is proposed to enter is designed for the sole purpose of addressing, and can be reasonably expected to address, that change.

(c) An application under paragraph (a) shall be in such form as the Minister may direct and shall contain such information in relation to the company, its trade or business and the terms of the relevant agreement into which it proposes to enter with its qualifying employees as may be specified in the guidelines referred to in that paragraph.

(d) A certificate issued by the Minister under paragraph (a) shall contain such conditions as the Minister considers appropriate and specifies in the certificate.

(e) Any cost incurred by the Labour Relations Commission in providing advice to the Minister in accordance with paragraph (b) shall be reimbursed by the company concerned to the Commission.

(f) Where during the relevant period a qualifying company fails to comply with any of the conditions to which a certificate given to it under paragraph (a) is subject, the Minister may, by notice in writing to the company, revoke the certificate.

(g) The Minister may not give a certificate under paragraph (a) at any time on or after the 6th day of April, 2000.

(3) (a) An agreement shall not be a relevant agreement for the purposes of this section unless and until it has been registered with the Labour Relations Commission.

(b) A qualifying company shall, within the period of one month from the date of each of the first 5 anniversaries of the relevant date or such longer period as the Labour Relations Commission may in writing allow, confirm to the Commission, in such form as the Commission shall direct, that all the terms of the relevant agreement, to the extent that they are still relevant, continue to be in force.

(4) Nothing in this section shall be construed as preventing a participating employee from receiving during the relevant period an increase in basic pay—

(a) which is—

(i) provided for under the terms of the agreement known as Partnership 2000 for Inclusion, Employment and Competitiveness entered into by the Government and the Social Partners in December, 1996, or any similar increase under an agreement, whether negotiated on a national basis or otherwise, which succeeds that agreement or which succeeds an agreement which succeeds the first-mentioned agreement, or

(ii) part of an incremental scale under the terms of the employee's contract of employment and which was in place 12 months before the relevant date,

and

(b) which is determined by reference to the employee's reduced basic pay or that pay as subsequently increased as provided for in paragraph (a).

(5) (a) This section shall apply to a payment made to a participating employee by a qualifying company under a relevant agreement.

(b) A payment to which this section applies shall, to the extent that the payment does not exceed the specified amount, be exempt from any charge to income tax.

(c) Where 2 or more payments to which this section applies are made to or in respect of the same person in respect of the same employment or in respect of different employments held with the same qualifying company or an associated qualifying company, this subsection shall apply as if those payments were a single payment of an amount equal to the aggregate of those payments, and the amount of any payment chargeable to income tax shall be ascertained as follows:

(i) where the payments are treated as income of different years of assessment, the specified amount shall be deducted from a payment treated as income of an earlier year before any payment treated as income of a later year, and

(ii) subject to subparagraph (i), the specified amount shall be deducted from a payment made earlier in a year of assessment before any payment made later in that year.

(6) Where during the relevant period—

(a) the Minister revokes, in accordance with paragraph (f) of subsection (2), a certificate given to a company under paragraph (a) of that subsection,

(b) a qualifying company fails to meet the requirements of subsection (3)(b), or

(c) a participating employee receives an increase in reduced basic pay other than as provided for in subsection (4),

then, any relief granted under this section, where paragraph (a) or (b) applies, to all the participating employees of the company or, where paragraph (c) applies, to the participating employee concerned, shall be withdrawn by the making of an assessment to income tax under Case IV of Schedule D for the year of assessment for which the relief was granted.

(7) Where during the relevant period a participating employee receives a payment from a qualifying company, other than a payment to which this section applies, which is chargeable to tax by virtue of section 123, any relief from tax in respect of that payment under section 201(5) or Schedule 3 shall be reduced by the amount of any relief given under this section in respect of a payment to which this section applies made in the relevant period.

(8) Section 201 and Schedule 3 and section 480 shall not apply in relation to a payment to which this section applies.

203 Payments in respect of redundancy. [FA 68 s37(1) and (2)]

203.—(1) In this section, “lump sum” and “weekly payment” have the same meanings respectively as in the Redundancy Payments Act, 1967.

(2) Any lump sum or weekly payment and any payment to or on behalf of an employed or unemployed person in accordance with regulations under section 46 of the Redundancy Payments Act, 1967, shall be exempt from income tax under Schedule E.

204 Military and other pensions, gratuities and allowances. [ITA67 s340(1), (2)(a), (b) and (c)]

204.—(1) This section shall apply to—

(a) all wound and disability pensions, and all increases in such pensions, granted under the Army Pensions Acts, 1923 to 1980, or those Acts and any subsequent Act together with which those Acts may be cited; but, where the amount of any pension to which this paragraph applies is not solely attributable to disability, the relief conferred by this section shall extend only to such part as is certified by the Minister for Defence to be attributable to disability;

(b) all gratuities in respect of wounds or disabilities similarly granted under any enactment referred to in paragraph (a);

(c) military gratuities and demobilisation pay granted to officers of the National Forces or the Defence Forces of Ireland on demobilisation;

(d) deferred pay within the meaning of any regulations under the Defence Act, 1954, which is credited to the pay account of a member of the Defence Forces;

(e) gratuities granted in respect of service with the Defence Forces.

(2) Income to which this section applies shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.

205 Veterans of War of Independence. [FA82 s9(1) and (2)]

205.—(1) In this section—

“military service” means the performance of duty as a member of an organisation to which Part II of the Army Pensions Act, 1932, applies, but includes military service within the meaning of that Part of that Act, military service within the meaning of the Military Service Pensions Act, 1924, and service in the Forces within the meaning of the Military Service Pensions Act, 1934;

“relevant legislation” means the Army Pensions Acts, 1923 to 1980, the Military Service Pensions Acts, 1924 to 1964, the Connaught Rangers (Pensions) Acts, 1936 to 1964, any Act amending any of those Acts and any regulation (in so far as it affects a pension, allowance, benefit or gratuity under any of those Acts or any other Act amending any of those Acts) made under the Pensions (Increase) Act, 1964, or under any of those Acts or any other Act amending any of those Acts;

“relevant military service” means military service during any part of a period referred to in section 5(2) of the Army Pensions Act, 1932, or, in the case of a qualified person within the meaning of the Connaught Rangers (Pensions) Act, 1936, the circumstances referred to in paragraphs (a), (b) and (c) of section 2 of that Act;

“veteran of the War of Independence” means a person who was—

(a) a member of an organisation to which Part II of the Army Pensions Act, 1932, applies, or a qualified person within the meaning of the Connaught Rangers (Pensions) Act, 1936, and

(b) engaged in relevant military service.

(2) A pension, allowance, benefit or gratuity, in so far as it is related to the relevant military service of a veteran of the War of Independence, or to an event which happened during or in consequence of such relevant military service, which is paid under the relevant legislation to—

(a) such veteran, or

(b) the wife, widow, child or other dependant or partial dependant of such veteran,

shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.

206 Income from investments under Social Welfare (Consolidation) Act, 1993. [ITA67 s338]

206.—The Minister for Finance shall be entitled to exemption from tax in respect of the income derived from investments made under section 7 of the Social Welfare (Consolidation) Act, 1993.

207 Rents of properties belonging to hospitals and other charities. [ITA67 s333 and s339(2) and (4); F(MP)A68 s3(4) and Sch PtIII; FA69 s65(1) and Sch5 PtI; CTA76 s140(1) and Sch2 PtI par13]

207.—(1) Exemption shall be granted—

(a) from income tax chargeable under Schedule D in respect of the rents and profits of any property belonging to any hospital, public school or almshouse, or vested in trustees for charitable purposes, in so far as those rents and profits are applied to charitable purposes only;

(b) from income tax chargeable—

(i) under Schedule C in respect of any interest, annuities, dividends or shares of annuities,

(ii) under Schedule D in respect of any yearly interest or other annual payment, and

(iii) under Schedule F in respect of any distribution,

forming part of the income of any body of persons or trust established for charitable purposes only, or which, according to the rules or regulations established by statute, charter, decree, deed of trust or will, are applicable to charitable purposes only, and in so far as the same are applied to charitable purposes only;

(c) from income tax chargeable under Schedule C in respect of any interest, annuities, dividends or shares of annuities in the names of trustees applicable solely towards the repairs of any cathedral, college, church or chapel, or any building used solely for the purposes of divine worship, and in so far as the same are applied to those purposes.

(2) (a) This subsection shall apply to every gift (within the meaning of the Charities Act, 1961) made before the 1st day of July, 1961, which, if it had been made on or after that day, would by virtue of section 50 of that Act (which relates to gifts for graves and memorials) have been, to the extent provided in that section, a gift for charitable purposes.

(b) Subsection (1) shall apply in relation to a gift to which this subsection applies as if the gift had been made on or after the 1st day of July, 1961.

(3) Every claim under this section shall be verified by affidavit, and proof of the claim may be given by the treasurer, trustee or any duly authorised agent.

(4) A person who makes a false or fraudulent claim for exemption under this section in respect of any interest, annuities, dividends or shares of annuities charged or chargeable under Schedule C shall forfeit the sum of £100.

208 Lands owned and occupied, and trades carried on by, charities. [ITA67 s334(1)(a) and (c), (2A) and (3); FA69 s33(1) and Sch4 PtI and s65(1) and Sch5 PtI; FA81 s11]

208.—(1) In this section, “charity” means any body of persons or trust established for charitable purposes only.

(2) Exemption shall be granted—

(a) from income tax chargeable under Case I (b) of Schedule D by virtue of section 18(2) where the profits or gains so chargeable arise out of lands, tenements or hereditaments which are owned and occupied by a charity;

(b) from income tax chargeable under Schedule D in respect of the profits of a trade carried on by any charity, if the profits are applied solely to the purposes of the charity and either—

(i) the trade is exercised in the course of the actual carrying out of a primary purpose of the charity, or

(ii) the work in connection with the trade is mainly carried on by beneficiaries of the charity.

(3) Subsection (2)(b) shall apply in respect of the profits of a trade of farming carried on by a charity as if the words after “solely to the purposes of the charity” were deleted.

209 Bodies for the promotion of Universal Declaration of Human Rights and the implementation of European Convention for the Protection of Human Rights and Fundamental Freedoms. [FA73 s20]

209.—Where any body of persons having consultative status with the United Nations Organisation or the Council of Europe—

(a) has as its sole or main object the promotion of observance of the Universal Declaration of Human Rights or the implementation of the European Convention for the Protection of Human Rights and Fundamental Freedoms or both the promotion of observance of that Declaration and the implementation of that Convention, and

(b) is precluded by its rules or constitution from the direct or indirect payment or transfer, otherwise than for valuable and sufficient consideration, to any of its members of any of its income or property by means of dividend, gift, division, bonus or otherwise however by means of profit,

there shall, on a claim in that behalf being made to the Revenue Commissioners, be allowed, in the case of the body, such exemption from income tax as is to be allowed under section 207 in the case of a body of persons established for charitable purposes only the whole income of which is applied to charitable purposes only.

210 The Great Book of Ireland Trust. [FA91 s13]

210.—(1) In this section, “the Trust” means “The Great Book of Ireland Trust” established by trust deed dated the 12th day of December, 1990, for the purposes of—

(a) making and carrying to completion and selling a unique manuscript volume (in this section referred to as “The Great Book of Ireland”), and

(b) using the proceeds of the sale of The Great Book of Ireland for the benefit of—

(i) a company incorporated on the 5th day of August, 1986, as Clashganna Mills Trust Limited, and

(ii) a company incorporated on the 1st day of March, 1991, as Poetry Ireland Limited.

(2) Notwithstanding any provision of the Income Tax Acts—

(a) income arising to the trustees of the Trust in respect of the sale by it of The Great Book of Ireland, and

(b) payments made to the companies referred to in subsection (1)(b) under the Trust by the trustees of the Trust,

shall be disregarded for the purposes of those Acts.

211 Friendly societies. [ITA67 s335 and s339(2) and (4); FA67 s7; F(MP)A68 s3(4) and Sch PtIII; FA73 s44; CTA76 s140(1) and Sch2 PtI par14]

211.—(1) An unregistered friendly society whose income does not exceed £160 shall be entitled to exemption from income tax, and a registered friendly society which is precluded by statute or by its rules from assuring to any person a sum exceeding £1,000 by means of gross sum, or £52 a year by means of annuity, shall be entitled to exemption from income tax under Schedules C, D and F.

(2) A registered friendly society shall not be entitled to exemption from tax under this section in relation to any year of assessment if the Revenue Commissioners determine, for the purposes of entitlement to exemption for that year, that the society does not satisfy the following conditions—

(a) that it was established solely for any or all of the purposes set out in section 8(1) of the Friendly Societies Act, 1896, and not for the purpose of securing a tax advantage, and

(b) that since its establishment it has engaged solely in activities directed to achieving the purposes for which it was so established and has not engaged in trading activities, other than by means of insurance in respect of members, with a view to the realisation of profits.

(3) In making a determination under this section in relation to a registered friendly society, the Revenue Commissioners shall consider any evidence in relation to the matter submitted to them by the society.

(4) In any case where a friendly society is aggrieved by a determination of the Revenue Commissioners under this section in relation to the society, the society shall be entitled to appeal to the Appeal Commissioners against the determination of the Revenue Commissioners and the Appeal Commissioners shall hear and determine the appeal as if it were an appeal against an assessment to income tax, and the provisions of the Income Tax Acts relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

(5) Every claim under this section shall be verified by affidavit, and proof of the claim may be given by the treasurer, trustee or any duly authorised agent.

(6) A person who makes a false or fraudulent claim for exemption under this section in respect of any interest, annuities, dividends or shares of annuities charged or chargeable under Schedule C shall forfeit the sum of £100.

212 Credit unions. [FA72 s43; CTA76 s164 and Sch 3 PtII]

212.—With effect from the date of its registration under the Industrial and Provident Societies Acts, 1893 to 1978, a credit union shall be entitled to exemption from income tax.

213 Trade unions. [ITA67 s336 and s339(2) and (4); F(MP)A68 s3(4) and Sch PtIII; CTA76 s140 and Sch2 PtI par15; FA80 s11]

213.—(1) In this section, “provident benefits” includes any payment expressly authorised by the registered rules of the trade union and made to a member during sickness or incapacity from personal injury or while out of work, or to an aged member by means of superannuation, or to a member who has met with an accident, or has lost his or her tools by fire or theft, and includes a payment in discharge or aid of funeral expenses on the death of a member, or the wife of a member, or as provision for the children of a deceased member.

(2) A registered trade union which is precluded by statute or by its rules from assuring to any person a sum exceeding £2,000 by means of gross sum or £750 a year by means of annuity shall be entitled to exemption from income tax under Schedules C, D and F in respect of its interest and dividends which are applicable and applied solely for the purpose of provident benefits.

(3) Every claim under this section shall be verified by affidavit, and proof of the claim may be given by the treasurer, trustee or any duly authorised agent.

(4) A person who makes a false or fraudulent claim for exemption under this section in respect of any interest, annuities, dividends or shares of annuities charged or chargeable under Schedule C shall forfeit the sum of £100.

214 Local authorities, etc. [FA90 s13]

214.—(1) In this section, “local authority” has the meaning assigned to it by section 2(2) of the Local Government Act, 1941, and includes a body established under the Local Government Services (Corporate Bodies) Act, 1971.

(2) This section shall apply to each of the following bodies—

(a) a local authority;

(b) a health board;

(c) a vocational education committee established under the Vocational Education Acts, 1930 to 1993;

(d) a committee of agriculture established under the Agriculture Acts, 1931 to 1980.

(3) Notwithstanding any provision of the Income Tax Acts, other than Chapter 4 of Part 8, income arising to a body to which this section applies shall be exempt from income tax.

215 Certain profits of agricultural societies. [ITA67 s348]

215.—(1) In this section, “agricultural society” means any society or institution established for the purpose of promoting the interests of agriculture, horticulture, livestock breeding or forestry.

(2) Any profits or gains arising to an agricultural society from an exhibition or show held for the purposes of the society shall, if they are applied solely to the purposes of the society, be exempt from income tax.

216 Profits from lotteries. [ITA67 s350]

216.—Exemption from income tax shall be granted in respect of profits from a lottery to which a licence under Part IV of the Gaming and Lotteries Act, 1956, applies.

CHAPTER 2 Corporation tax

217 Certain income of Nítrigin Éireann Teoranta. [FA88 s39; FA92 s57]

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

(a) arising to Nítrigin Éireann Teoranta in any accounting period ending in the period commencing on the 1st day of January, 1987, and ending on the 31st day of December, 1999, from the business of supplying gas purchased from Bord Gáis Éireann to Irish Fertilizer Industries Limited under a contract between Nítrigin Éireann Teoranta and Irish Fertilizer Industries Limited, and

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

shall be exempt from corporation tax.

218 Certain income of Housing Finance Agency plc. [FA85 s24; FA90 s56]

218.—Notwithstanding any provision of the Corporation Tax Acts, income arising to the Housing Finance Agency plc—

(a) from the business of making loans and advances under section 5 of the Housing Finance Agency Act, 1981, which income would but for this section have been chargeable to corporation tax under Case I of Schedule D, and

(b) which income would but for this section have been chargeable to corporation tax under Case III of Schedule D,

shall be exempt from corporation tax.

219 Income of body designated under Irish Takeover Panel Act, 1997. [FA97 s63]

219.—Notwithstanding any provision of the Corporation Tax Acts, income arising in any accounting period ending after the 30th day of April, 1997, to the body designated by the Minister for Enterprise, Trade and Employment under section 3 of the Irish Takeover Panel Act, 1997, shall be exempt from corporation tax.

220 Profits of certain bodies corporate. [FA83 s32; FA87 s34; FA91 s41; FA95 s44(1) and (2); FA97 s49(1) and (2)]

220.—Notwithstanding any provision of the Corporation Tax Acts, profits arising to any of the bodies corporate specified in the Table to this section shall be exempt from corporation tax.

TABLE

221 Certain payments to National Co-operative Farm Relief Services Ltd and certain payments made to its members. [FA94 s52; FA95 s57]

221.—(1) In this section—

“the first agreement” means the agreement in writing dated the 4th day of July, 1991, between the Minister for Agriculture, Food and Forestry and the National Co-operative for the provision of financial support for farm relief services, together with every amendment of the agreement in accordance with Article 9.1 of that agreement;

“the second agreement” means the agreement in writing dated the 16th day of May, 1995, between the Minister for Agriculture, Food and Forestry and the National Co-operative for the provision of financial support for the development of agricultural services, together with every amendment of the agreement in accordance with Article 9.1 of that agreement;

“a member co-operative” means a society engaged in the provision of farm relief services which has been admitted to membership of the National Co-operative;

“the Minister” means the Minister for Agriculture and Food;

“the National Co-operative” means the society registered on the 13th day of August, 1980, as National Co-operative Farm Relief Services Limited;

“society” means a society registered under the Industrial and Provident Societies Acts, 1893 to 1978.

(2) Notwithstanding any provision of the Corporation Tax Acts—

(a) a grant made under Article 3.1 of the first agreement by the Minister to the National Co-operative,

(b) a transfer of moneys under Article 3.6 of the first agreement by the National Co-operative to a member co-operative,

(c) a payment made under Article 3.1(a) of the second agreement by the Minister to the National Co-operative, and

(d) a transmission of moneys under Article 3.4 in respect of payments under Article 3.1(a) of the second agreement by the National Co-operative to a member co-operative,

shall be disregarded for the purposes of those Acts.

222 Certain dividends from a non-resident subsidiary. [FA88 s41; FA91 s40]

222.—(1) (a) In this section—

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

“investment plan” means a plan of a company resident in the State which is directed towards the creation or maintenance of employment in the State in trading operations carried on, or to be carried on, in the State and which has been submitted—

(i) before the commencement of its implementation, or

(ii) where the Minister is satisfied that there was reasonable cause for it to be submitted after the commencement of its implementation, within one year from that commencement,

to the Minister by the company for the purpose of enabling it to claim relief under this section;

“the Minister” means the Minister for Finance;

“relevant dividends” means dividends, received by a company resident in the State (being the company claiming relief under this section) from a foreign subsidiary of the company, which are—

(i) specified in a certificate given by the Minister under subsection (2), and

(ii) applied within a period—

(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 2 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;

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

(b) (i) The reference in the definition of “relevant dividends” to “a foreign subsidiary” means a 51 per cent subsidiary of a company where the company is resident in the State and the subsidiary is a resident of the United States of America or of a territory with the government of which arrangements having the force of law by virtue of section 826 have been made.

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

“resident of the United States of America” has the meaning assigned to it by the Convention set out in Schedule 25;

a company shall be regarded as being a resident of a territory other than the United States of America if it is so regarded under arrangements made with the government of that territory and having the force of law by virtue of section 826.

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

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

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

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

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

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

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

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

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

CHAPTER 3 Income tax and corporation tax

223 Small enterprise grants. [FA93 s37]

223.—(1) This section shall apply to a grant made under section 10(5)(a) of the Údarás na Gaeltachta Act, 1979, or section 21(5)(a) (as amended by the Industrial Development (Amendment) Act, 1991) of the Industrial Development Act, 1986, being an employment grant—

(a) in the case of section 10(5)(a) of the Údarás na Gaeltachta Act, 1979, under the scheme known as “Deontais Fhostaíochta ó Údarás na Gaeltachta do Thionscnaimh Sheirbhíse Idir-Náisiúnta” or the scheme known as “Deontais Fhostaíochta ó Údarás na Gaeltachta do Thionscail Bheaga Dhéantúsaíochta”, or

(b) in the case of section 21(5)(a) of the Industrial Development Act, 1986 (as so amended), under the scheme known as “Scheme Governing the Making of Employment Grants to Small Industrial Undertakings”.

(2) A grant to which this section applies shall be disregarded for the purposes of the Tax Acts.

224 Grants to medium and large industrial undertakings. [FA95 s43]

224.—(1) This section shall apply to a grant made under section 10(5)(a) of the Údarás na Gaeltachta Act, 1979, or section 21(5)(a) (as amended by the Industrial Development (Amendment) Act, 1991) of the Industrial Development Act, 1986, being an employment grant—

(a) in the case of section 10(5)(a) of the Údarás na Gaeltachta Act, 1979, under the scheme known as “Deontais Fhostaíochta ó Údarás na Gaeltachta do Ghnóthais Mhóra/Mheánmhéide Thionsclaíocha”, or

(b) in the case of section 21 (5)(a) of the Industrial Development Act, 1986 (as so amended), under the scheme known as “Scheme Governing the Making of Employment Grants to Medium/Large Industrial Undertakings”.

(2) A grant to which this section applies shall be disregarded for the purposes of the Tax Acts.

225 Employment grants. [FA82 s18; FA97 s146(1) and Sch9 PtI par12(2)]

225.—(1) This section shall apply to an employment grant made under—

(a) section 25 of the Industrial Development Act, 1986, or

(b) section 12 of the Industrial Development Act, 1993.

(2) A grant to which this section applies shall be disregarded for the purposes of the Tax Acts.

226 Certain employment grants and recruitment subsidies. [FA96 s40(1) and (2); FA97 s40]

226.—(1) This section shall apply to an employment grant or recruitment subsidy made to an employer in respect of a person employed by such employer under—

(a) the Back to Work Allowance Scheme, being a scheme established on the 1st day of October, 1993, and administered by the Minister for Social, Community and Family Affairs,

(b) any scheme which may be established by the Minister for Enterprise, Trade and Employment with the approval of the Minister for Finance for the purposes of promoting the employment of individuals who have been unemployed for 3 years or more and which is to be administered by An Foras Áiseanna Saothair,

(c) paragraph 13 of Annex B to an operating agreement between the Minister for Enterprise, Trade and Employment and a County Enterprise Board, being a board specified in the Schedule to the Industrial Development Act, 1995,

(d) as respects grants or subsidies paid on or after the 6th day of April, 1997, the Employment Support Scheme, being a scheme established on the 1st day of January, 1993, and administered by the National Rehabilitation Board,

(e) as respects grants or subsidies paid on or after the 6th day of April, 1997, the Pilot Programme for the Employment of People with Disabilities, being a programme administered by a company incorporated on the 7th day of March, 1995, as The Rehab Group,

(f) the European Union Leader II Community Initiative 1994 to 1999, and which is administered in accordance with operating rules determined by the Minister for Agriculture and Food,

(g) the European Union Operational Programme for Local Urban and Rural Development which is to be administered by the company incorporated under the Companies Acts, 1963 to 1990, on the 14th day of October, 1992, as Area Development Management Limited,

(h) the Special European Union Programme for Peace and Reconciliation in Northern Ireland and the Border Counties of Ireland which was approved by the European Commission on the 28th day of July, 1995,

(i) the Joint Northern Ireland/Ireland INTERREG Programme 1994 to 1999, which was approved by the European Commission on the 27th day of February, 1995, or

(j) any initiative of the International Fund for Ireland, which was designated by the International Fund for Ireland (Designation and Immunities) Order, 1986 (S.I. No. 394 of 1986), as an organisation to which Part VIII of the Diplomatic Relations and Immunities Act, 1967, applies.

(2) An employment grant or recruitment subsidy to which this section applies shall be disregarded for the purposes of the Tax Acts.

227 Certain income arising to specified non-commercial state-sponsored bodies. [FA94 s32(1),(2),(3) and (4)]

227.—(1) In this section, “non-commercial state-sponsored body” means a body specified in Schedule 4.

(2) For the purposes of this section, the Minister for Finance may by order amend Schedule 4 by the addition to that Schedule of any body or the deletion from that Schedule of any body standing specified.

(3) Where an order is proposed to be made under subsection (2), a draft of the order shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann.

(4) Notwithstanding any provision of the Tax Acts other than the provisions (apart from section 261 (c)) of Chapter 4 of Part 8, income arising to a non-commercial state-sponsored body—

(a) which but for this section would have been chargeable to tax under Case III, IV or V of Schedule D, and

(b) from the date that such body was incorporated under the Companies Acts, 1963 to 1990, or was established by or under any other enactment,

shall be disregarded for the purposes of the Tax Acts; but a noncommercial state-sponsored body—

(i) which has paid income tax or corporation tax shall not be entitled to repayment of that tax, and

(ii) shall not be treated as—

(I) a company within the charge to corporation tax in respect of interest for the purposes of paragraph (f) of the definition of “relevant deposit” in section 256, or

(II) a person to whom section 267 applies.

228 Income arising to designated bodies under the Securitisation (Proceeds of Certain Mortgages) Act, 1995. [FA96 s39(1) and (2)]

228.—Notwithstanding any provision of the Tax Acts, income arising to a body designated under section 4(1) of the Securitisation (Proceeds of Certain Mortgages) Act, 1995, shall be exempt from income tax and corporation tax.

229 Harbour authorities and port companies. [FA97 s60(1) and (3) to (5)]

229.—(1) (a) In this section—

“relevant body” means—

(i) a harbour authority within the meaning of the Harbours Act, 1946,

(ii) a company established pursuant to section 7 of the Harbours Act, 1996, and

(iii) any other company which controls a harbour and carries on a trade which consists wholly or partly of the provision in that harbour of such facilities and accommodation for vessels, goods and passengers as are ordinarily provided by harbour authorities specified in paragraph (i), and companies specified in paragraph (ii) which control harbours, situate within the State, in those harbours;

“relevant profits or gains” means so much of the profits or gains of a relevant body controlling a harbour situate within the State as arise from the provision in that harbour of such facilities and accommodation for vessels, goods and passengers as are ordinarily provided by—

(i) harbour authorities specified in paragraph (i), and

(ii) companies specified in paragraph (ii),

of the definition of “relevant body” which control harbours, situate within the State, in those harbours.

(b) For the purposes of this section, where an accounting period falls partly in a period, the part of the accounting period falling in the period shall be regarded as a separate accounting period.

(2) Exemption shall be granted from tax under Schedule D in respect of relevant profits or gains in the period beginning on the 1st day of January, 1997, and ending on the 31st day of December, 1998.

(3) Subsection (2) shall apply to a relevant body which is a harbour authority referred to in paragraph (i) of the definition of “relevant body” as if “in the period beginning on the 1st day of January, 1997, and ending on the 31st day of December, 1998” were deleted.

(4) Where a relevant body is chargeable to tax under Schedule D in respect of relevant profits or gains, the relevant profits or gains shall be reduced by an amount equal to—

(a) as respects accounting periods falling wholly or partly in the year 1999, two-thirds of those relevant profits or gains, and

(b) as respects accounting periods falling wholly or partly in the year 2000, one-third of those relevant profits or gains.

230 National Treasury Management Agency. [FA91 s20(1) and (3)]

230.—(1) Notwithstanding any provision of the Corporation Tax Acts, profits arising to the National Treasury Management Agency in any accounting period shall be exempt from corporation tax.

(2) Notwithstanding any provision of the Tax Acts, any interest, annuity or other annual payment paid by the National Treasury Management Agency shall be paid without deduction of income tax.

231 Profits or gains from stallion fees. [FA69 s18(2)(b); CTA76 s11(6); FA85 s14(1)]

231.—The profits or gains arising—

(a) (i) to the owner of a stallion, which is ordinarily kept on land in the State, from the sale of services of mares within the State by the stallion, or

(ii) to the part-owner of such a stallion from the sale of such services or of rights to such services, or

(b) to the part-owner of a stallion, which is ordinarily kept on land outside the State, from the sale of services of mares by the stallion or of rights to such services, where the part-owner carries on in the State a trade which consists of or includes bloodstock breeding and it is shown to the satisfaction of the inspector, or on appeal to the satisfaction of the Appeal Commissioners, that the part-ownership of the stallion was acquired and is held primarily for the purposes of the service by the stallion of mares owned or partly-owned by the part-owner of the stallion in the course of that trade,

shall not be taken into account for any purpose of the Tax Acts.

232 Profits from occupation of certain woodlands. [FA69 s18(1) and (2)(c); CTA76 s11(6); FA96 s132(2) and Sch5 PtII]

232.—(1) In this section—

“occupation”, in relation to any land, means having the use of that land;

“woodlands” means woodlands in the State.

(2) Except where otherwise provided by section 75, the profits or gains arising from the occupation of woodlands managed on a commercial basis and with a view to the realisation of profits shall not be taken into account for any purpose of the Tax Acts.

233 Stud greyhound service fees. [FA96 s25(1) and (2)]

233.—(1) In this section—

“greyhound bitches” means female greyhounds registered in the Irish Greyhound Stud Book or in any other greyhound stud book recognised for the purposes of the Irish Greyhound Stud Book;

“stud greyhound” means a male greyhound registered as a sire for stud purposes in the Irish Greyhound Stud Book or in any other greyhound stud book recognised for the purposes of the Irish Greyhound Stud Book.

(2) The profits or gains arising—

(a) (i) to the owner of a stud greyhound, which is ordinarily kept in the State, from the sale of services of greyhound bitches within the State by the stud greyhound, or

(ii) to the part-owner of such a stud greyhound from the sale of such services or of rights to such services, or

(b) to the part-owner of a stud greyhound, which is ordinarily kept outside the State, from the sale of services of greyhound bitches by the stud greyhound or of rights to such services, where the part-owner carries on in the State a trade which consists of or includes greyhound breeding and it is shown to the satisfaction of the inspector, or on appeal to the satisfaction of the Appeal Commissioners, that the part-ownership of the stud greyhound was acquired and is held primarily for the purposes of the service by the stud greyhound of greyhound bitches owned or partly-owned by the part-owner of the stud greyhound in the course of that trade,

shall not be taken into account for any purpose of the Tax Acts.

234 Certain income derived from patent royalties. [FA73 s34; CTA76 s140(1) and Sch2 PtI par35; FA81 s19; FA92 s19(1); FA94 s28; FA96 s32(1) and (3)(a) and s132(1) and Sch5 PtI par7; FA97 s146(1) and Sch9 PtI par6(2)]

234.—(1) In this section—

“income from a qualifying patent” means any royalty or other sum paid in respect of the user of the invention to which the qualifying patent relates, including any sum paid for the grant of a licence to exercise rights under such patent, where that royalty or other sum is paid—

(a) for the purposes of activities which—

(i) would be regarded, otherwise than by virtue of paragraph (b) or (c) of section 445(7) or section 446, as the manufacture of goods for the purpose of relief under Part 14, or

(ii) would be so regarded if they were carried on in the State by a company,

but, as respects a royalty or other sum paid on or after the 23rd day of April, 1996, where the royalty or other sum exceeds the royalty or other sum which would have been paid if the payer of the royalty or other sum and the beneficial recipient of the royalty or other sum were independent persons acting at arm's length, the excess shall not be income from a qualifying patent,

or

(b) by a person who—

(i) is not connected (within the meaning of section 10 as it applies for the purposes of capital gains tax) with the person who is the beneficial recipient of the royalty or other sum, and

(ii) has not entered into any arrangement in connection with the royalty or other sum the main purpose or one of the main purposes of which was to satisfy subparagraph (i);

“qualifying patent” means a patent in relation to which the research, planning, processing, experimenting, testing, devising, designing, developing or similar activity leading to the invention which is the subject of the patent was carried out in the State;

“resident of the State” means any person resident in the State for the purposes of income tax and not resident elsewhere;

a company shall be regarded as a resident of the State if it is managed and controlled in the State.

(2) (a) A resident of the State who makes a claim in that behalf and makes a return in the prescribed form of his or her total income from all sources, as estimated in accordance with the Income Tax Acts, shall be entitled to have any income from a qualifying patent arising to him or her disregarded for the purposes of the Income Tax Acts.

(b) In paragraph (a), the reference to a return of total income from all sources as estimated in accordance with the Income Tax Acts shall apply for corporation tax as if it were or included a reference to a return under section 884.

(3) Notwithstanding subsection (2), an individual shall not be entitled to have any amount of income from a qualifying patent arising to him or her disregarded for any purpose of the Income Tax Acts unless the individual carried out, either solely or jointly with another person, the research, planning, processing, experimenting, testing, devising, designing, developing or other similar activity leading to the invention which is the subject of the qualifying patent.

(4) Where, under section 77 of the Patents Act, 1992, or any corresponding provision of the law of any other country, an invention which is the subject of a qualifying patent is made, used, exercised or vended by or for the service of the State or the government of the country concerned, this section shall apply as if the making, user, exercise or vending of the invention had taken place in pursuance of a licence and any sums paid in respect of the licence were income from a qualifying patent.

(5) Where any income arising to a person is by virtue of this section to be disregarded, the person shall not be treated, by reason of such disregarding, as having ceased to possess the whole of a single source within the meaning of section 70(1).

(6) For the purpose of determining the amount of income to be disregarded under this section for the purposes of the Income Tax Acts, the Revenue Commissioners may make such apportionments of receipts and expenses as may be necessary.

(7) The relief provided by this section may be given by repayment or otherwise.

(8) Subsections (3) and (4) of section 459 and paragraph 8 of Schedule 28 shall, with any necessary modifications, apply in relation to exemptions from tax under this section.

235 Bodies established for promotion of athletic or amateur games or sports. [ITA67 s349; FA84 s9; FA97 s146(1) and Sch9 PtI par1(25)]

235.—(1) In this section, “approved body of persons” means—

(a) any body of persons established for and existing for the sole purpose of promoting athletic or amateur games or sports, and

(b) (i) any body of persons that, as respects the year 1983-84 or any earlier year of assessment, was granted exemption from income tax under section 349 of the Income Tax Act, 1967, before that section was substituted by section 9 of the Finance Act, 1984, or

(ii) any company that, as respects any accounting period ending before the 6th day of April, 1984, was granted exemption from corporation tax under section 349 (before the substitution referred to in subparagraph (i)) of the Income Tax Act, 1967, as applied for corporation tax by section 11(6) of the Corporation Tax Act, 1976;

but does not include any such body of persons to which 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, give a notice in writing stating that they are satisfied that the body—

(I) was not established for the sole purpose specified in paragraph (a) or was established wholly or partly for the purpose of securing a tax advantage, or

(II) being established for the sole purpose specified in paragraph (a), no longer exists for such purpose or commences to exist wholly or partly for the purpose of securing a tax advantage.

(2) Exemption from income tax or, as the case may be, corporation tax shall be granted in respect of so much of the income of any approved body of persons as is shown to the satisfaction of the Revenue Commissioners to be income which has been or will be applied to the sole purpose specified in subsection (1)(a).

(3) Where a notice is given under subsection (1), the exemption from income tax or, as the case may be, corporation tax accorded to the body of persons to which it relates shall cease to have effect—

(a) if the notice is a notice to which paragraph (I) of that subsection applies—

(i) as respects income tax, for the year of assessment in which the body of persons was established or the year 1984-85, whichever is the later, and for each subsequent year of assessment, or

(ii) as respects corporation tax, for the first accounting period of the body of persons which commences on or after the 6th day of April, 1984, and for each subsequent accounting period;

(b) if the notice is a notice to which paragraph (II) of that subsection applies—

(i) as respects income tax, for the year of assessment in which in the opinion of the Revenue Commissioners the body of persons ceased to exist for the sole purpose specified in subsection (1)(a) or the year in which it commenced to exist wholly or partly for the purpose of securing a tax advantage, whichever is the earlier, but not being a year earlier than the year 1984-85, and for each subsequent year of assessment, or

(ii) as respects corporation tax, for the accounting period in which in the opinion of the Revenue Commissioners the body of persons ceased to exist for the sole purpose specified in subsection (1)(a) or the accounting period in which it commenced to exist wholly or partly for the purpose of securing a tax advantage, whichever is the earlier, but not being an accounting period which ends before the 6th day of April, 1984, and for each subsequent accounting period.

(4) Section 949 shall apply to a notice under subsection (1) as if the notice were a determination by the Revenue Commissioners of a claim to an exemption under the Income Tax Acts.

(5) Anything required or permitted to be done by the Revenue Commissioners or any power or function conferred or imposed on them by this section may be done, exercised or performed, as appropriate, by an officer of the Revenue Commissioners authorised by them in that behalf.

236 Loan of certain art objects. [FA94 s19(1) to (6)]

236.—(1) In this section—

“art object” has the meaning assigned to it by subsection (2)(a);

“authorised person” means—

(a) an inspector or other officer of the Revenue Commissioners authorised by them in writing for the purposes of this section, or

(b) a person authorised by the Minister in writing for the purposes of this section;

“the Minister” means the Minister for Arts, Heritage, Gaeltacht and the Islands;

“relevant building” means an approved building within the meaning of section 482;

“relevant garden” means an approved garden within the meaning of section 482.

(2) (a) In this section, “art object” means any work of art (including a picture, sculpture, print, book, manuscript, piece of jewellery, furniture or other similar object) or scientific collection which, on application to them in that behalf by a person who owns or occupies a relevant building or a relevant garden, as the case may be, is determined—

(i) by the Minister, after consideration of any evidence in relation to the matter which the individual submits to the Minister and after such consultation (if any) as may seem to the Minister to be necessary with such person or body of persons as in the opinion of the Minister may be of assistance to the Minister, to be an object which is intrinsically of significant national, scientific, historical or aesthetic interest, and

(ii) by the Revenue Commissioners, to be an object reasonable access to which is afforded, and in respect of which reasonable facilities for viewing are provided, to the public.

(b) Without prejudice to the generality of the requirement that reasonable access be afforded, and that reasonable facilities for viewing be provided, to the public, access to and facilities for the viewing of an art object shall not be regarded as being reasonable access afforded, or the provision of reasonable facilities for viewing, to the public unless—

(i) subject to such temporary removal as is necessary for the purposes of the repair, maintenance or restoration of the object as is reasonable, access to it is afforded and facilities for viewing it are provided for not less than 60 days (including not less than 40 days during the period commencing on the 1st day of May and ending on the 30th day of September) in any year and, on each such day, such access is afforded and such facilities for viewing are provided in a reasonable manner and at reasonable times for a period, or periods in the aggregate, of not less than 4 hours,

(ii) such access is afforded and such facilities are provided to the public on the same days and at the same times as access is afforded to the public to the relevant building or the relevant garden, as the case may be, in which the object is kept, and

(iii) the price, if any, paid by the public in return for such access is in the opinion of the Revenue Commissioners reasonable in amount and does not operate to preclude the public from seeking access to the object.

(c) Where the Revenue Commissioners make a determination under paragraph (a) in relation to an art object, and reasonable access to the object ceases to be afforded, or reasonable facilities for the viewing of the object cease to be provided, to the public, the Revenue Commissioners may, by notice in writing given to the owner or occupier of the relevant building or relevant garden, as the case may be, in which the object is kept, revoke the determination with effect from the date on which they consider that such access or such facilities for viewing so ceased, and—

(i) this subsection shall cease to apply to the object from that date, and

(ii) for the year of assessment in which this subsection ceases to apply to the object, subsection (3) shall cease to apply to any expense referred to in paragraph (a) of that subsection incurred or deemed to have been incurred by the body corporate concerned.

(3) Subject to this section, where—

(a) a body corporate incurs an expense solely in, or solely in connection with, or is deemed to incur an expense in connection with, the provision to an individual (being an individual who is employed by the body corporate in an employment to which Chapter 3 of Part 5 applies, or who is a director, within the meaning of that Chapter, of the body corporate) of a benefit or facility which consists of the loan of an art object of which the body corporate is the beneficial owner, and

(b) the object is kept in a relevant building or a relevant garden, as the case may be, owned or occupied by the individual,

then, section 436(3) shall not apply to any such expense and section 118(1) shall not apply to any such expense for any year of assessment for which a claim in that behalf is made by the individual to the Revenue Commissioners.

(4) (a) Where an individual makes an application under subsection (2) or a claim under subsection (3), an authorised person may at any reasonable time enter the relevant building or relevant garden concerned for the purpose of inspecting the art object to which the application or claim relates.

(b) Whenever an authorised person exercises any power conferred on him or her by this subsection, the authorised person shall on request produce his or her authorisation to any person concerned.

(c) Any person who obstructs or interferes with an authorised person in the course of exercising a power conferred on the authorised person by this subsection shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding £500.

(5) An application under subsection (2) or a claim under subsection (3)—

(a) shall be made in such form as the Revenue Commissioners may from time to time prescribe, and

(b) in the case of a claim under subsection (3), shall be accompanied by such statements in writing as may be required by the prescribed form in relation to the expense in respect of which the claim is made, including statements by the body corporate which incurred the expense.

(6) Section 606 shall not apply to an object which is an art object.

PART 8 Annual Payments, Charges and Interest

CHAPTER 1 Annual payments

237 Annual payments payable wholly out of taxed income. [ITA67 s433; FA69 s33 and Sch4 PtI; FA74 s5(1); CTA76 s164 and Sch4 PtI; FA89 s89(1); FA96 s132(1) and Sch5 PtI par1(19)]

237.—(1) Where any annuity or any other annual payment apart from yearly interest of money (whether payable in 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 income tax—

(a) the whole of those profits or gains shall be assessed and charged with income tax on the person liable to the annuity or annual payment, without distinguishing the same,

(b) 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 out of such payment a sum representing the amount of the income tax on such payment at the standard rate of income tax for the year in which the amount payable becomes due,

(c) the person to whom such payment is made shall allow such deduction on the receipt of the residue of such payment, and

(d) 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) Where any royalty or other sum is paid in respect of the user of a patent wholly out of profits or gains brought into charge to income tax, the person paying the royalty or other sum shall be entitled on making the payment to deduct and retain out of the payment a sum representing the amount of income tax on the payment at the standard rate of income tax for the year in which the royalty or other sum payable becomes due.

(3) This section shall not apply to any rents or other sums in respect of which the person entitled to them is chargeable to tax under Case V of Schedule D or would be so chargeable but for any exemption from tax.

238 Annual payments not payable out of taxed income. [ITA67 s434(1) to (5A) and (8); FA69 s33 and Sch4; FA74 s11 and Sch1 PtII; CTA76 s151(14); FA90 s51(3); FA96 s132(1) and Sch5 PtI par1(20)]

238.—(1) In this section, “the inspector” means such inspector as the Revenue Commissioners may direct.

(2) On payment of any annuity or other annual payment (apart from yearly interest of money) charged with tax under Schedule D, or of any royalty or other sum paid in respect of the user of a patent, not payable or not wholly payable out of profits or gains brought into charge, the person by or through whom any such payment is made shall deduct out of such payment a sum representing the amount of the income tax on such payment at the standard rate of tax in force at the time of the payment.

(3) Where any such payment is made by or through any person, that person shall forthwith deliver to the Revenue Commissioners an account of the payment, or of so much of the payment as is not made out of profits or gains brought into charge, and of the income tax deducted out of the payment or out of that part of the payment, and the inspector shall assess and charge the payment of which an account is so delivered on that person.

(4) The inspector may, where any person has made default in delivering an account required by this section, or where he or she is not satisfied with the account so delivered, make an assessment according to the best of his or her judgment.

(5) The provisions of the Income Tax Acts relating to—

(a) persons who are to be chargeable with income tax,

(b) income tax assessments,

(c) appeals against such assessments,

(d) the collection and recovery of income tax,

(e) the rehearing of appeals, and

(f) cases to be stated for the opinion of the High Court,

shall, in so far as they are applicable, apply to the charge, assessment, collection and recovery of income tax under this section.

(6) Subsections (3) to (5) shall apply subject to sections 239 and 241 with respect to the time and manner in which certain companies resident in the State are to account for and pay income tax in respect of—

(a) payments from which tax is deductible, and

(b) any amount deemed to be an annual payment.

(7) Except where provided by section 1041(1), this section shall not apply to any rents or other sums in respect of which the person entitled to them is chargeable to tax under Case V of Schedule D or would be so chargeable but for any exemption from tax.

239 Income tax on payments by resident companies. [CTA76 s151(1) to (13) (apart from subsection (8)(c)); FA90 s49]

239.—(1) In this section, “relevant payment” means—

(a) any payment from which income tax is deductible and to which subsections (3) to (5) of section 238 apply, and

(b) any amount which under section 438 is deemed to be an annual payment.

(2) This section shall apply for the purpose of regulating the time and manner in which companies resident in the State—

(a) are to account for and pay income tax in respect of relevant payments, and

(b) are to be repaid income tax in respect of payments received by them.

(3) A company shall make for each of its accounting periods in accordance with this section a return to the inspector of the relevant payments made by it in that period and of the income tax for which the company is accountable in respect of those payments.

(4) A return for any period for which a return is required to be made under this section shall be made within 9 months from the end of that period.

(5) Income tax in respect of any payment required to be included in a return under this section shall be due at the time by which preliminary tax (if any) for the accounting period for which the return is required to be made under subsection (3) is due and payable, and income tax so due shall be payable by the company without the making of any assessment; but income tax which has become so due may be assessed on the company (whether or not it has been paid when the assessment is made).

(6) Where it appears to the inspector that there is a relevant payment which ought to have been but has not been included in a return, or where the inspector is dissatisfied with any return, the inspector may make an assessment on the company to the best of his or her judgment, and any income tax due under an assessment made by virtue of this subsection shall be treated for the purposes 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.

(7) Where in any accounting period a company receives any payment on which it bears income tax by deduction, the company may claim to have the income tax on that payment set against any income tax which it is liable to pay under this section in respect of payments made by it in that period, and any such claim shall be included in the return made under subsection (3) for the accounting period in question, and (where necessary) income tax paid by the company under this section for that accounting period and before the claim is allowed shall be repaid accordingly.

(8) (a) Where a claim has been made under subsection (7), no proceedings for collecting tax which would be discharged if the claim were allowed shall be instituted pending the final determination of the claim, but this subsection shall not affect the date when the tax is due, and when the claim is finally determined any tax underpaid in consequence of this subsection shall be paid.

(b) Where proceedings are instituted for collecting tax assessed, or interest on tax assessed, under subsection (5) or (6), effect shall not be given to any claim under subsection (7) made after the institution of the proceedings so as to affect or delay the collection or recovery of the tax charged by the assessment or of interest on that tax.

(9) Income tax set against other tax under subsection (7) shall be treated as paid or repaid, as the case may be, and the same tax shall not be taken into account both under this subsection and under section 24(2).

(10) (a) Where a company makes a relevant payment on a date which does not fall within an accounting period, the company shall make a return of that payment within 6 months from that date, and the income tax for which the company is accountable in respect of that payment shall be due at the time by which the return is to be made.

(b) Any assessment in respect of tax payable under this subsection shall be treated as relating to the year of assessment in which the payment is made.

(c) Subsection (11) shall not apply to an assessment under this subsection.

(11) (a) Subject to subsection (10)(b), income tax payable (after income tax borne by the company by deduction has been set, by virtue of any claim under subsection (7), against income tax which it is liable to pay under subsection (5)) in respect of relevant payments in an accounting period shall, for the purposes of the charge, assessment, collection and recovery from the company making the payments of that tax and of any interest or penalties on that tax, be treated and described as corporation tax payable by that company for that accounting period, notwithstanding that for all other purposes of the Tax Acts it is income tax.

(b) Tax paid by a company which is treated as corporation tax by virtue of this subsection shall be repaid to the company if it would have been so repaid under subsection (7) had it been treated as income tax paid by the company.

(c) Any tax assessable under one or more of the provisions of this section may be included in one assessment if the tax so included is all due on the same date.

(12) Nothing in this section shall be taken to prejudice any powers conferred by the Tax Acts for the recovery of tax by means of an assessment or otherwise.

(13) (a) The Revenue Commissioners may, by regulations made for the purposes mentioned in subsection (2), modify, supplement or replace any of the provisions of this section, and references in the Corporation Tax Acts and in any other enactment to this section shall be construed as including references to any such regulations and, without prejudice to the generality of the foregoing, such regulations may, in relation to tax charged by this section, modify any provision of the Tax Acts relating to returns, assessments, claims or appeals, or may apply any such provision with or without modification.

(b) Regulations under this subsection may—

(i) make different provision for different descriptions of companies and for different circumstances, and may authorise the Revenue Commissioners, where in their opinion there are special circumstances justifying it, to make special arrangements as respects income tax for which a company is liable to account or the repayment of income tax borne by a company;

(ii) include such transitional and other supplemental provisions as appear to the Revenue Commissioners to be expedient or necessary.

(c) Every regulation made under this subsection shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

240 Provisions as to tax under section 239. [CTA76 s152; FA78 s46(1)(f), (2) and (3); FA81 s22; FA90 s50; FA97 s146(2) and Sch9 PtII]

240.—(1) Subsections (2) to (4) shall apply only in respect of a company to which section 239(10) relates.

(2) The provisions of the Income Tax Acts relating to—

(a) persons who are to be chargeable to income tax,

(b) income tax assessments,

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

(d) the collection and recovery of income tax,

shall, in so far as they are applicable, apply to the charge, assessment, collection and recovery of income tax under section 239.

(3) (a) Any tax payable in accordance with section 239 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 tax becomes due and payable until payment.

(b) Subsections (2) to (4) of section 1080 shall apply in relation to interest payable under this subsection as they apply in relation to interest payable under section 1080.

(4) In its application to any tax charged by an assessment to income tax in accordance with section 239, section 1080 shall apply as if subsection (1)(b) of that section were deleted.

(5) Section 1081(1) shall not apply where by virtue of section 438(4) there is any discharge or repayment of tax assessed under section 239.

241 Income tax on payments by non-resident companies. [FA90 s51(1) and (2)]

241.—(1) This section shall apply in relation to an accounting period of a company not resident in the State if the company is—

(a) required by virtue of section 238(3) to deliver an account to the Revenue Commissioners, and

(b) within the charge to corporation tax in respect of the accounting period.

(2) Where this section applies in relation to an accounting period of a company, then—

(a) the company shall make a return to the inspector of—

(i) payments made by the company in the accounting period and in respect of which income tax is required to be deducted by virtue of section 238(2), and

(ii) the tax deducted out of those payments by virtue of section 238(2),

and

(b) income tax in respect of which a return is to be made under paragraph (a) shall, for the purposes of the charge, assessment, collection and recovery from the company making the payments of that tax and of any interest or penalties on that tax, be treated as if it were corporation tax chargeable for the accounting period for which the return is required under paragraph (a).

242 Annual payments for non-taxable consideration. [FA89 s89(2)]

242.—(1) This section shall apply to any payment which is—

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

(i) interest,