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10 1985

FINANCE ACT, 1985

PART VI

Miscellaneous

Capital Services Redemption Account.

66. —(1) In this section—

the principal section” means section 22 of the Finance Act, 1950 ;

the 1984 amending section” means section 114 of the Finance Act, 1984 ;

the thirty-fifth additional annuity” means the sum charged on the Central Fund under subsection (4);

the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of December, 1985, subsection (4) of the 1984 amending section shall have effect with the substitution of “£31,351,760” for “£32,706,344”.

(3) Subsection (6) of the 1984 amending section shall have effect with the substitution of “£22,604,148” for “£23,973,750”.

(4) A sum of £40,369,034 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on the 31st day of December, 1985.

(5) The thirty-fifth additional annuity shall be paid into the Account in such manner and at such times in the relevant financial year as the Minister may determine.

(6) Any amount of the thirty-fifth additional annuity, not exceeding £31,028,550 in any financial year, may be applied towards defraying the interest on the public debt.

(7) The balance of the thirty-fifth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

Payment of certain interest under State Financial Transactions (Special Provisions) Act, 1984.

67. —Payments in respect of interest which arise or have arisen under section 3 (2) of the State Financial Transactions (Special Provisions) Act, 1984 , shall be made out of the Central Fund or the growing produce thereof.

Financial arrangements relating to, Bord Telecom Éireann.

68. —(1) Notwithstanding anything in the Postal and Telecommunications Services Act, 1983 , the Minister for Finance may, after consultation with the Minister for Communications and Bord Telecom Éireann (in this section referred to as “the company”), require payments to be made to him by the company, at such times and in such manner as he may appoint, in respect of moneys to be repaid by the company for the benefit of the Exchequer under that Act, and the company may, with the consent of the Minister for Finance and the Minister for Communications, make any arrangements necessary to finance such payments.

(2) (a) The Minister for Finance may, after consultation with the Minister for Communications, purchase shares in the company to finance capital works, and any shares so purchased shall be issued to the Minister for Communications.

(b) Any moneys required for any such purchase, up to an amount not exceeding £170,000,000, shall be advanced out of the Central Fund or the growing produce thereof.

(3) The Postal and Telecommunications Services Act, 1983 , is hereby amended—

(a) by the insertion, after subparagraph (ii) of section 10 (3) (b), of the following:

“and

(iii) the amount of shares issued to the Minister under section 68 of the Finance Act, 1985” and

(b) by the insertion in section 21 after “31” of “, and in section 68 of the Finance Act, 1985”.

Securities issued by the Minister for Finance.

69. —(1) In this section—

control” shall be construed in accordance with subsections (2) to (6) of section 102 of the Corporation Tax Act, 1976 , with the substitution in subsection (6) for “five or fewer participators” of “persons resident in a relevant territory”;

foreign company” means a company—

(a) which is not resident in the State, and

(b) which is under the control of a person or persons resident in a relevant territory;

relevant territory” means the United States of America or a territory with the government of which arrangements having the force of law by virtue of section 361 of the Income Tax Act, 1967 , have been made;

relevant trade” means a trade carried on wholly or mainly in the State, but does not include a trade consisting wholly or partly of banking within the meaning of the Central Bank Act, 1971 , assurance business within the meaning of section 3 of the Insurance Act, 1936 , selling goods by retail or dealing in securities:

Provided that goods shall be deemed for the purposes of this definition not to be sold by retail if they are sold—

(a) to a person who carries on a trade of selling goods of the class to which the goods so sold to him belong, or

(b) to a person who uses goods of that class for the purposes of a trade carried on by him, or

(c) to a person, other than an individual, who uses goods of that class for the purposes of an undertaking carried on by him;

qualifying company” means a company—

(a) (i) which is resident in the State and not resident elsewhere,

(ii) whose business consists wholly or mainly of—

(I) the carrying on of a relevant trade or relevant trades, or

(II) the holding of stocks, shares or securities of a company which exists wholly or mainly for the purpose of the carrying on of a relevant trade or relevant trades,

and

(iii) of which not less than 90 per cent. of its issued share capital is held by a foreign company or foreign companies, or by a person or persons who are directly or indirectly controlled by a foreign company or foreign companies;

or

(b) which is a foreign company carrying on a relevant trade through a branch or agency in the State.

(2) Any security which the Minister for Finance has power to issue for the purpose of raising any money or loan may be issued with a condition that any interest arising on such security shall not be liable to corporation tax so long as the security is held continuously from the date of issue in the beneficial ownership of a qualifying company to which the security was issued.

Care and management of taxes and duties.

70. —All taxes and duties (except the excise duties on mechanically propelled vehicles imposed by sections 32 and 33 ) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

Short title, construction and commencement.

71. —(1) This Act may be cited as the Finance Act, 1985.

(2) Part I and section 69 (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(3) Part II (so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties.

(4) Part III shall be construed together with the Value-Added Tax Acts, 1972 to 1984, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1985.

(5) Part IV shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6) Part V shall be construed together with the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act and (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(7) Part I shall, save as is otherwise expressly provided therein, be deemed to have come into force and shall take effect as on and from the 6th day of April, 1985.

(8) Part III (other than sections 42 , 45 , 47 and 52 ) shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1985.

(9) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment including this Act.

(10) In this Act, a reference to a Part, section or Schedule is to a Part or section of, or Schedule to, this Act, unless it is indicated that reference to some other enactment is intended.

(11) In this Act, a reference to a subsection, paragraph or subparagraph is to the subsection, paragraph or subparagraph of the provision (including a Schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.