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6 1967

INCOME TAX ACT, 1967

PART XXVIII

Special Provisions for Taxation of Settlors, etc., in Respect of Settled or Transferred Income

Chapter I

Revocable Dispositions, Dispositions for Short Periods and Certain Dispositions in Favour of Children

Income under revocable dispositions.

438. —(1) Any income of which any person is able, or has, at any time since the 5th day of April, 1922, been able, without the consent of any other person by means of the exercise of any power of appointment, power of revocation or otherwise howsoever by virtue or in consequence of a disposition made directly or indirectly by himself, to obtain for himself the beneficial enjoyment shall be deemed for the purposes of this Act to be the income of the person who is or was able to obtain the beneficial enjoyment thereof, and not to be the income of any other person.

(2) Where any such power as aforesaid can be exercised by a person with the consent of the wife or the husband of that person, the power shall, for the purposes of subsection (1), be deemed to be exercisable without the consent of another person, except where the husband and wife are living apart either by agreement or under an order of a court of competent jurisdiction.

(3) Where any such power as aforesaid is exercisable by the wife or the husband of the person who made the disposition, the power shall, for the purposes of subsection (1), be deemed to be exercisable by the person who made the disposition.

Income under dispositions for short periods.

439. —(1) Any income which, by virtue of or in consequence of any disposition made, directly or indirectly, by any person (other than a disposition made for valuable and sufficient consideration) is payable to or applicable for the benefit of any other person, but excluding any income which—

(i) arises from capital of which the disponor by the disposition has divested absolutely himself in favour of or for the benefit of the said other person, or

(ii) being payable to any university or college, being a university or college in the State, for the purpose of enabling such university or college to carry on research, is so payable for a period which is or may be three years or longer, or

(iii) being payable to a person who is an individual for his own use, is so payable for a period which exceeds or may exceed six years, or

(iv) being applicable for the benefit of a named person who is an individual, is so applicable for a period which exceeds or may exceed six years,

shall be deemed for the purposes of this Act to be the income of the person, if living, by whom the disposition was made and not to be the income of any other person.

(2) (a) The reference in subsection (1) to income payable to any university or college, being a university or college in the State, for the purpose of enabling such university or college to carry on research shall include references to income payable—

(i) to any university, college or school, being a university, college or school in the State for the purpose of assisting such university, college or school to teach the natural sciences or any of them, or

(ii) to a fund, being a fund within the meaning of this subsection.

(b) For the purposes of this subsection “fund” means a fund—

(i) held upon irrevocable trusts under the law of the State,

(ii) administered in the State, and

(iii) having for its sole purpose the granting of financial or other aid to universities, colleges or schools in the State in order to assist such universities, colleges or schools to teach the natural sciences or any of them.

Income of dispositions in favour of infants.

440. —(1) Subject to the provisions of this section, any income which, by virtue or in consequence of any disposition made, directly or indirectly, by any person after the 5th day of April, 1914, is payable to or applicable for the benefit of a child of that person for some period less than the life of the child shall, if and so long as the child is an infant and unmarried, be deemed for the purposes of this Act to be the income of the person, if living, by whom the disposition was made and not to be the income of any other person.

(2) This section shall not apply in respect of any settlement to which Chapter II applies.

(3) This section shall not apply as regards any income which is derived from capital which, at the end of the period during which that income is payable to or applicable for the benefit of the child, is required by the disposition to be held on trust absolutely for, or to be transferred to, the child, or any income which is payable to or applicable for the benefit of a child during the whole period of the life of the person by whom the disposition was made.

(4) Income shall not be deemed for the purposes of this section to be payable to or applicable for the benefit of a child for some period less than its life by reason only that the disposition contains a provision for the payment to some other person of the income in the event of the bankruptcy of the child, or of an assignment thereof, or a charge thereon being executed by the child.

Recovery of tax from trustee and payment to trustee of excess tax recoupment.

441. —(1) Where by virtue of section 439 or 440 any income tax or sur-tax becomes chargeable on and is paid by the person by whom the disposition was made, that person shall be entitled to recover from any trustee or other person to whom the income is payable by virtue or in consequence of the disposition the amount of the tax so paid, and for that purpose to require the Revenue Commissioners to furnish to him a certificate specifying the amount of the income in respect of which he has so paid tax and the amount of the tax so paid, and any certificate so furnished shall be conclusive evidence of the facts appearing thereby.

(2) Where any person obtains in respect of any allowance or relief a repayment of income tax in excess of the amount of the repayment to which he would, but for the provisions of section 439 or 440 have been entitled, an amount equal to the excess shall be paid by him to the trustee or other person to whom the income is payable by virtue or in consequence of the disposition, or where there are two or more such persons shall be apportioned among those persons as the case may require.

If any question arises as to the amount of any payment or as to any apportionment to be made under this subsection, that question shall be decided by the Special Commissioners whose decision thereon shall be final.

(3) Any income which is deemed by virtue of this Chapter to be the income of any person shall be deemed to be the highest part of his income.

Definitions.

442. —In this Chapter, unless the context otherwise requires—

child” includes a stepchild or illegitimate child;

disposition” includes any trust, covenant, agreement or arrangement.