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22 1965

FINANCE ACT, 1965

PART I.

Income Tax.

Income tax and sur-tax for the year 1965-66.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1965, at the rate of six shillings and four pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1965, shall be charged in respect of the income of any individual the total of which from all sources exceeds two thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1964.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1965, in relation to income tax and sur-tax and any such provisions which came into operation on the 6th day of April, 1965, in relation thereto shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1965.

Amendment of section 5 of Finance Act, 1946.

2. —In relation to capital expenditure on scientific research incurred on or after the 6th day of April, 1965—

(a) section 5 of the Finance Act, 1946 , shall have effect—

(i) as if in subsection (3) thereof the words “and for each of the four following years of assessment,” and “one-fifth of” were omitted,

(ii) as if paragraphs (a), (b) and (e) of subsection (4) were omitted and the following paragraph were substituted for paragraph (c)—

“(c) an amount equal to the allowance made under this section in respect of that expenditure, or, if the value of the asset immediately before the cessation is less than that allowance, equal to that value, shall be treated as a trading receipt of the trade accruing immediately before the cessation;”,

(iii) as if “the amount of the allowance effectively granted” were substituted for “the total of the allowances granted” in paragraph (d) of subsection (4);

(b) section 33 of the Finance Act, 1959 , shall have effect as if the following definition were substituted for the definition of “scientific research allowance”:

“‘scientific research allowance’ means, in relation to any expenditure, the amount of any allowance made in respect of that expenditure under subsection (3) of section 5 of the Finance Act, 1946 , reduced by any amount treated as a trading receipt pursuant to paragraph (c) of subsection (4) of the said section as it applies to expenditure incurred on or after the 6th day of April, 1965;”.

Separate assessments under Schedule A or Schedule B in certain cases.

3. —(1) Where a person—

(a) during any part of a year of assessment, whether alone or jointly with another person or persons in the circumstances set out in subsection (2) of this section, or

(b) during the whole of any year of assessment, jointly as aforesaid,

is entitled to any estate or interest in property in respect of which he would be assessable separately or with the other person or persons under Schedule A or Schedule B, if he, or he and the other person or persons, were entitled to that estate or interest for the whole of the year, he shall be separately assessed under Schedule A or under Schedule B, as the case may be, in respect of his estate or interest, or his part of the estate or interest, in the property for the part or whole of the year on the appropriate proportion of the annual or assessable value.

(2) The circumstances in which subsection (1) of this section is to apply to a person being entitled to an estate or interest in property jointly with another person or persons are that he has that estate or interest as a coparcener, joint tenant, tenant in common or tenant of lands or tenements in partnership.

(3) Where a person to whom this section applies is liable to bear part of an annual payment reserved out of or charged on the relevant property, that part shall, for the purposes of Rule 19 of the General Rules, be regarded as being payable as a reservation out of or charge on the estate or interest, or the part of the estate or interest, in respect of which he is assessed under this section.

(4) Subsection (1) of section 162 of the Income Tax Act, 1918, is hereby amended by the addition thereto of the following proviso:

“Provided that no distraint shall be made on the lands, tenements and premises in respect of which the tax is charged if such lands, tenements and premises have been sold for valuable consideration and the person on whom the tax is charged is no longer the occupier thereof.”

(5) Subsection (1) of section 199 of the Income Tax Act, 1918, is hereby amended by the addition thereto of the following proviso:

“Provided that no distress may be levied on the occupier of the property charged or upon the premises in respect of which the assessment is made if such property or premises has or have been sold for valuable consideration and the tax is in respect of a period prior to the sale.”

(6) In this section—

annual payment” means any payment from which, apart from any insufficiency of profits or gains of the person making it, tax is deductible under Rule 19 of the General Rules;

property” means lands, tenements and hereditaments.

Making of claims, etc., and appeals and rehearings.

4. —(1) Notwithstanding any other provision of the Income Tax Acts—

(a) all claims of exemption or for any allowance or deduction under those Acts,

(b) all claims for repayment of tax under those Acts, and

(c) (i) all claims to relief under those Acts where the relief is measured in the provision under which it is given, and

(ii) all matters and questions relating to any relief so measured,

in relation to which a right of appeal from a decision of the Special Commissioners is, otherwise than by this section, not specifically provided,

shall be stated in such manner and form as the Revenue Commissioners may prescribe and shall be submitted to and determined by the Revenue Commissioners or such officer of the Revenue Commissioners (including an inspector of taxes) as they may authorise in that behalf, but any person aggrieved by any determination on any such claim, matter or question may, on giving notice in writing to the Revenue Commissioners or the officer within twenty-one days after notification to the person aggrieved of the determination, appeal to the Special Commissioners.

(2) The Special Commissioners shall hear and determine an appeal to them under subsection (1) of this section 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 the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

(3) Where—

(a) a right of appeal to the Special Commissioners is given by any provision (other than Rule 8 or 9 of the General Rules or paragraph 2 of the First Schedule to the Finance Act, 1922) of the Income Tax Acts, and

(b) such provision, while applying the provisions of the Income Tax Acts relating to appeals against assessments, does not apply the provisions of those Acts relating to rehearing of appeals,

such provision shall be deemed to apply the said provisions relating to rehearing of appeals.

(4) In a case in which—

(a) a notice of appeal is not given within the time limited by subsection (1) of this section, or

(b) a person who has given notice of appeal does not attend before the Special Commissioners at the time and place appointed for the hearing of his appeal,

the provisions of subsections (5), (7), (8) and (8A) of section 5 of the Finance Act, 1929 , shall apply, with any necessary modifications.

(5) Subparagraph (d) of paragraph (2C) of Rule 21 of the General Rules is hereby amended by the insertion of “the rehearing of appeals and to” before “cases”.

(6) Subsection (5) of section 8 of the Finance Act, 1924 , subsection (2) of section 12 of the Finance Act, 1925 , and subparagraph (3) of paragraph 4 of Part II of the First Schedule to the Finance Act, 1926 , are each hereby amended by the insertion of “rehearing of an appeal and to the” before “statement of a case” and the deletion of “but excluding the provisions of section 196 of the Income Tax Act, 1918”.

(7) Subsection (5) of section 10 of the Finance Act, 1953 , is hereby amended by the substitution of “as if it were an appeal against an assessment, and the provisions of the Income Tax Acts relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications” for “, whose decision shall be final”.

(8) Where a claim which was made before the passing of this Act and to which section 202 of the Income Tax Act, 1918, applied has not been finally determined at such passing, it shall be treated as having been made in accordance with this section.

(9) This section shall come into operation on the passing of this Act.

Amendment of section 5 of Finance Act, 1929.

5. Section 5 of the Finance Act, 1929 , is hereby amended by—

(a) the addition at the end of subsection (5) of “and the powers conferred on the Special Commissioners by subsections (7) and (8) of this section may be exercised by one Special Commissioner”;

(b) the substitution for subsections (7) and (8) of the following subsections—

“(7) (a) A notice of appeal not given within the time limited by subsection (1) of this section shall be regarded as having been so given where, on an application in writing having been made to him in that behalf, the inspector of taxes or such other officer as aforesaid, being satisfied that, owing to absence, sickness or other reasonable cause, the applicant was prevented from giving notice of appeal within the time limited and that the application was made thereafter without unreasonable delay, notifies the applicant in writing that his application has been allowed.

(b) If on an application under paragraph (a) of this subsection the inspector or other officer is not satisfied as aforesaid, he shall by notice in writing inform the applicant that his application has been refused.

(c) Within fifteen days after the date of a notice under paragraph (b) of this subsection the applicant may by notice in writing require the inspector or other officer to refer his application to the Special Commissioners and, in relation to any application so referred, paragraphs (a) and (b) of this subsection shall have effect as if for every reference therein to the inspector or other officer there was substituted a reference to the Special Commissioners.

(8) In a case in which a person who has given notice of appeal does not attend before the Special Commissioners at the time and place appointed for the hearing of his appeal, subsection (6) of this section shall not have effect if—

(a) at the said time and place another person attends on behalf of the appellant and the Special Commissioners consent to hear that person, or

(b) on an application in that behalf having been made to them in writing or otherwise at or before the said time, the Special Commissioners, postpone the hearing, or

(c) on an application in writing having been made to them after the said time the Special Commissioners, being satisfied that, owing to absence, sickness or other reasonable cause, the appellant was prevented from appearing before them at the said time and place and that the application was made without unreasonable delay, direct that the appeal be treated as one the time for the hearing of which has not yet been appointed.

(8A) (a) Where action for the recovery of tax charged by an assessment, being action by way of the institution of proceedings in any court or the issue of a certificate under section 7 of the Finance Act, 1923 , has been taken, neither subsection (7) nor subsection (8) of this section shall, unless the Revenue Commissioners otherwise direct, apply in relation to that assessment until the said action has been completed.

(b) Where, in a case coming within the foregoing paragraph, an application under paragraph (a) of the said subsection (7) is allowed or, on an application under paragraph (c) of the said subsection (8), the Special Commissioners direct as therein provided, the applicant shall in no case be entitled to repayment of any sum paid or borne by him in respect of costs of any such court proceedings as aforesaid or, as the case may be, of any fees or expenses charged by the county registrar or sheriff executing a certificate under the said section 7 of the Finance Act, 1923 .”

Exports relief.

6. —(1) In this section “the Act” means the Finance (Miscellaneous Provisions) Act, 1956 .

(2) In subparagraph (i) of paragraph (b) of subsection (2) of section 56 of the Finance Act, 1958 (as substituted in subsection (1) of section 28 of the Finance Act, 1960 ) “1980-81” shall be substituted for “1975-76”.

(3) Where, apart from the provisions of this section, a company is entitled to claim relief under Part III of the Act, by virtue of subsection (1) of section 29 of the Finance Act, 1960 , in respect of the year 1974-75 or any earlier year of assessment, the company may, in lieu of such relief, claim relief under subsection (1) or subsection (3) of section 12 of the Act as if that year of assessment were a year of claim within the meaning of section 10 of the Act.

(4) Where a company has obtained relief under Part III of the Act by virtue of subsection (3) of this section and is subsequently entitled to relief under subsection (1) of section 29 of the Finance Act, 1960 , the last-mentioned relief shall be granted as if the last year of assessment in respect of which relief is due by virtue of subsection (3) of this section was the company's last year of claim within the meaning of section 10 of the Act:

Provided that no relief shall be given in respect of any year of assessment after the fourteenth year of assessment after the first year of claim or in respect of any year of assessment after the year 1979-80.

Amendment of Rule 7 (1) of Miscellaneous Rules applicable to Schedule D.

7. —(1) Paragraph (1) of Rule 7 of the Miscellaneous Rules applicable to Schedule D is hereby amended—

(i) by the substitution in subparagraph (a) of “body of persons not resident in the State” for “foreign or colonial company, society, adventure, or concern; or”, and

(ii) by the deletion of subparagraph (b).

(2) The said paragraph (1) shall not extend to any payment to which Rule 19 or Rule 21 of the General Rules applies.

(3) Any reference in any provision of the Income Tax Acts to the said Rule 7 shall be construed as a reference to the said Rule 7 as amended by the foregoing subsections of this section.

(4) Subsection (1) of section 10 of the Finance Act, 1923 , is hereby amended by the substitution therein of “body of persons not resident in the State” for “foreign company, society, adventure or concern”.

(5) Subsection (1) of section 6 of the Finance Act, 1924 , is hereby amended by the substitution therein of “body of persons not resident in the State” for “foreign company, society, adventure, or concern”.

(6) This, section shall have effect as on and from the 11th day of May, 1965.

Amendment of section 2 (3) of Finance Act, 1924.

8. —Subsection (3) of section 2 of the Finance Act, 1924 , is hereby amended by the substitution therein of “every person by whom” for “every person to whom”.

Amendment of Rule (2) of Part II of First Schedule, Finance Act, 1929.

9. —Rule (2) of Part II of the First Schedule to the Finance Act, 1929 , is hereby amended by the insertion in paragraph (b) of “and possessions” after “securities”.

Amendment of section 3 (1) (2) of Finance Act, 1956.

10. —Subsections (1) and (2) of section 3 of the Finance Act, 1956 , are each hereby amended by the substitution of “fifty pounds” for “twenty-five pounds”.

Amendment of paragraph (a) of proviso to section 17 of Finance Act, 1963.

11. —Paragraph (a) of the proviso to subsection (1) of section 17 of the Finance Act, 1963 , shall have effect, where the return is of interest paid or credited during a year beginning on or after the 6th day of April, 1965, as if the reference to £15 were a reference to £50.