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15 1964

FINANCE ACT, 1964

PART V

Corporation Profits Tax

Relief in respect of certain losses.

25. —(1) Subject to the provisions of this section, where the company carrying on a business has, in any accounting period ending on or after the 1st day of January, 1962, sustained a loss in the business (to be computed in like manner as profits arising in an accounting period are computed for the purpose of corporation profits tax), the company may claim that the loss, in so far as it is not otherwise taken into account so as to reduce or relieve any charge to corporation profits tax, shall be carried forward and, as far as may be, deducted from or set off against the profits arising from the business in the next accounting period and, if and so far as it exceeds the profits so arising in that period, against the profits so arising in the next accounting period, and so on.

(2) Where, of an accounting period in which a loss has been sustained, part is before and part after the beginning of the 1st day of January, 1962, the loss shall be apportioned between the period up to and the period beginning on that date in proportion to the respective lengths of those periods, and so much of the loss as is apportioned to the period up to that date shall be disregarded for the purposes of subsection (1) of this section.

(3) In this section “business” means any trade or business or any undertaking of a similar character the profits whereof are profits to which Part V of the Finance Act, 1920, applies.

(4) The purposes imported by the reference in subsection (3) of section 53 of the Finance Act, 1920, to the purposes of Part V of that Act shall, notwithstanding subsection (5) of section 35 of this Act, not include the purposes of the foregoing subsections of this section.

Amendment of section 52 of Finance Act, 1920.

26. —(1) With effect as on and from the 1st day of January, 1964, subsection (3) of section 52 of the Finance Act, 1920, shall be construed and have effect as if, in the definition of the word “company” contained in that subsection, the words “nor a private company the liability of whose members is unlimited” were omitted.

(2) For the purpose of giving effect to subsection (1) of this section, where part of an accounting period is before and part after the beginning of the 1st day of January, 1964, the total profits of the accounting period shall be apportioned between the period up to and the period beginning on that date in proportion to the respective lengths of those periods, and corporation profits tax shall be charged only on so much of the profits as are apportioned to the period beginning on that date, and that period shall be deemed to be an accounting period.

Deductions for directors' remuneration.

27. —In respect of every accounting period ending after the 31st day of December, 1963, proviso (c) to subsection (2) of section 53 of the Finance Act, 1920, and subsection (4) of section 36 of the Finance Act, 1941 , shall be construed and have effect as if for the words “one thousand five hundred pounds” there were substituted the words “two thousand five hundred pounds”.

Assessment and collection of corporation profits tax.

28. —(1) Assessments to corporation profits tax shall, notwithstanding subsection (1) of section 56 of the Finance Act, 1920, and subsection (1) of section 24 of the Finance Act, 1946 , be made by inspectors of taxes and the tax shall be collected by the Collector-General.

(2) Accordingly—

(a) after assessments to corporation profits tax have been made, the inspectors of taxes shall transmit particulars of the sums to be collected to the Collector-General and he shall collect and levy those sums,

(b) references to the Revenue Commissioners in subsection (3) of section 54, subsection (1) of section 55 and subsection (6) of section 56 of the Finance Act, 1920, shall be construed as references to an inspector of taxes,

(c) “or corporation profits tax” shall be inserted in paragraph (a) of subsection (5) of section 54 of the Finance Act, 1958 , after “income tax or sur-tax”,

(d) the reference to the Accountant General of Revenue in subsection (6) of section 14 of the Finance Act, 1962 , shall be construed as a reference to the Collector-General.

(3) The words “by the Commissioners” in subsection (2) of section 55 of the Finance Act, 1920, and subsection (7) of section 54 of the Finance Act, 1958 , shall cease to have effect.