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6 1967

INCOME TAX ACT, 1967

PART XXV

Temporary Relief from Taxation

Chapter I

Profits from Trading Within Shannon Airport

Definitions.

373. —In this Chapter—

the airport” has the same meaning as in the Customs-free Airport Act, 1947 ;

company” means any body corporate carrying on a trade;

the Minister” means the Minister for Finance.

Exempted trading operations.

374. —(1) In this section “qualified company” means a company the whole or part of the trade of which is carried on within the airport.

(2) Subject to subsections (5) and (6), the Minister may give a certificate certifying that such trading operations of a qualified company as are specified in the certificate are, with effect as from their commencement, exempted trading operations for the purposes of this Chapter, and any certificate so given shall, unless it is revoked under subsection (4), remain in force until the expiration of the period of twenty-five years from the 25th day of November, 1958.

(3) A certificate under subsection (2) may be given either without conditions or subject to such conditions as the Minister considers proper and specifies therein.

(4) Where, in the case of a company in relation to which a certificate under subsection (2) has been given—

(a) the trade of the company ceases or becomes carried on wholly outside the airport, or

(b) the Minister is satisfied that the company has failed to comply with any condition subject to which the certificate was given,

the Minister may, by notice in writing served by registered post on the company, revoke the certificate.

(5) The Minister shall not certify, under subsection (2), that a trading operation is an exempted trading operation unless it falls within one or more of the following classes of trading operations:

(a) the sale of goods exported, or to be exported, out of the State by the qualified company (whether acting as principal or agent), being goods which have been produced, manufactured or processed within the airport by the qualified company,

(b) the sale of goods exported, or to be exported, out of the State by the qualified company, being goods which have been imported into the State and which have been packaged or handled within the airport by the qualified company,

(c) the repair or maintenance, within the airport, of aircraft,

(d) the rendering, within the airport or outside the State, of services entailing the use of aircraft or air transport,

(e) other trading operations in regard to which the Minister is of opinion, after consultation with the Minister for Transport and Power, that they contribute to the use or development of the airport,

(f) trading operations which are ancillary to any of those described in the foregoing paragraphs of this subsection.

(6) The Minister shall not certify, under subsection (2), that any of the following trading operations is an exempted trading operation:

(a) the sale of goods brought, or to be brought, from the airport into any other part of the State otherwise than in the course of being exported out of the State,

(b) the rendering, to persons resident in the State outside the airport, of services,

(c) the production or manufacture of goods outside the airport,

(d) the operation of an air transport service other than an air transport service which—

(i) is operated between the airport and a place outside the State, and

(ii) is not so operated under an international bilateral agreement to which the Government is a party,

(e) the rendering within the State of—

(i) services to embarking or disembarking aircraft passengers, including hotel, catering, money changing or transport (other than air transport) services, or

(ii) services in connection with the landing, departure, loading or unloading of aircraft,

(f) the sale of goods by retail,

(g) the sale of consumable goods for the fuelling of aircraft or for shipment as aircraft stores,

(h) a trading operation carried on in the course of trading in Northern Ireland or Great Britain.

Disregard of profits or losses in the case of exempted trading operations.

375. —(1) Profits or gains arising from, or losses sustained in, exempted trading operations shall not be taken into account for any purpose of this Act in relation to the company by which such operations are carried on.

(2) Where the trade carried on by a company consists partly of exempted trading operations and partly of other trading operations, the amount of the profits or gains arising from, or of the loss sustained in, such other trading operations shall, for any purpose of this Act, be computed as it would have been computed for that purpose if the company were carrying on two distinct trades consisting respectively of the exempted trading operations and of the other trading operations.

Transactions between associated persons.

376. —(1) Where, in the course of exempted trading operations, the company carrying on the operations (hereafter in this subsection referred to as the buyer) buys goods from another person (hereafter in this subsection referred to as the seller) and—

(a) the seller has control over the buyer or, the seller being a body corporate or partnership, the buyer has control over the seller or some other person has control over both the seller and the buyer, and

(b) the goods are sold at a price less than the price which they might have been expected to fetch if the parties to the transaction had been independent parties dealing at arm's length,

then, a computation of the profits or gains or losses of the seller, for any purpose of this Act, shall be made as if the goods had been sold for the price which they would have fetched if the transaction had been a transaction between independent persons dealing as aforesaid.

(2) In this section “control” has the meaning assigned to it by section 299 (6).

Delivery of statements, etc.

377. —Where the Minister has given a certificate under section 374—

(a) the provisions of this Act relating to the delivery of statements or returns of profits or gains shall continue to have effect in relation to the company concerned as if the certificate had not been given, and

(b) the Revenue Commissioners may by notice in writing require the company concerned to furnish them, within such time as they may direct, with such accounts and other particulars as the Revenue Commissioners think necessary for the purposes of this Chapter.

Exemption from Chapter IV.

378. —Notwithstanding anything in Chapter IV of this Part no amount receivable from the sale of goods exported out of the State in the course of exempted trading operations shall be taken into account for any purpose of the said Chapter IV.

Reduction of certain deductions.

379. —(1) Where the trade carried on by a company consists partly of exempted trading operations and partly of other trading operations, the amount of any deduction, being a deduction to which this section applies, to which, but for this section, the company would have been entitled shall be reduced by such amount, if any, as the Special Commissioners consider just having regard to section 375.

(2) The deductions to which this section applies are deductions in respect of any allowance under sections 241, 244 (3), Chapter III of Part XIV, or Part XV or any annual allowances under Chapter 1, III or IV of Part XVI.

Dividends.

380. —(1) Where a dividend is paid in part out of profits from exempted trading operations and in part out of other profits, sections 456 and 457 shall apply as if the dividend consisted of two dividends respectively paid out of profits from exempted trading operations and out of other profits.

(2) So much of any dividend as has been paid out of profits from exempted trading operations shall not be regarded as income or profits for any purpose of this Act.

(3) In relation to every warrant, cheque or order drawn or made by a company for the payment of a dividend payable wholly or in part out of profits from exempted trading operations, section 458 shall apply to the company so that the statement required by that section shall show, in addition to the particulars required to be given apart from this section, either (as the case may require)—

(a) that the whole of the sum for which the warrant, cheque or order is drawn or made is a payment of a dividend of profits from exempted trading operations, or

(b) that a part of such sum is a payment out of profits from exempted trading operations and that a part (the gross amount of which, before any deduction in respect of income tax, is separately stated) of such sum is a payment out of other profits.

Provision for annual payments and patent royalties.

381. —(1) Where any payment to which this section applies is payable out of the profits or gains of a trade consisting partly of exempted trading operations and partly of other trading operations, there shall be treated as paid out of profits or gains brought into charge to tax only the portion of the payment which bears to the total amount thereof the same proportion as the amount of the profits or gains of the trade actually charged to tax bears to the amount of such profits or gains which would have been actually charged to tax if this Chapter had not been enacted.

(2) This section applies to any payment of interest of money, annuity, or other annual payment charged with tax under Schedule D, or of any royalty or other sum paid in respect of the user of a patent.