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10 1989

FINANCE ACT, 1989

PART VII

Miscellaneous

Capital Services Redemption Account.

91. —(1) In this section—

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

the 1988 amending section” means section 67 of the Finance Act, 1988 ;

the thirty-ninth 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, 1989, subsection (4) of the 1988 amending section shall have effect with the substitution of “£44,924,133” for “£44,807,298”.

(3) Subsection (6) of the 1988 amending section shall have effect with the substitution of “£34,009,980” for “£34,439,900”.

(4) A sum of £48,206,431 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, 1989.

(5) The thirty-ninth 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-ninth additional annuity, not exceeding £37,052,550 in any financial year, may be applied towards defraying the interest on the public debt.

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

Tax concessions for disabled drivers, etc.

92. —(1) Notwithstanding anything to the contrary contained in any enactment, the Minister for Finance may, after consultation with the Minister for Health and the Minister for the Environment, make regulations providing for—

(a) the repayment of excise duty and value-added tax and the remission of road tax in respect of a motor vehicle used by, and

(b) the repayment of excise duty relating to hydrocarbon oil used for combustion in the engines of vehicles, to be specified in the regulations, by,

a severely and permanently disabled person—

(i) as a driver, where the disablement is of such a nature that the person concerned could not drive any vehicle unless it is specially constructed or adapted to take account of that disablement, or

(ii) as a passenger, where the vehicle has been specially constructed or adapted to take account of the passenger's disablement, and where the vehicle is adapted, the cost of such adaptation consists of not less than 30 per cent. of the value of the vehicle excluding tax and excise duty, or such lesser percentage in respect of certain cases as may be specified by regulations in respect of the repayment of any tax relating to adaptation costs only.

(2) Regulations under this section shall provide for—

(a) the criteria for eligibility for the remission of the taxes specified in subsection (1), including such further medical criteria in relation to disabilities as may be considered necessary,

(b) subject to subsection (3) (b), the procedures to be used in relation to the primary medical certification of a disabled person and to appeals against such certification,

(c) the procedures in relation to the certification of vehicles to which the regulations relate,

(d) the amount of value-added tax and excise duty repayable in respect of a vehicle to which the regulations relate,

(e) the maximum engine size or sizes to which the regulations relate,

(f) the limits on the frequency of renewal of a vehicle, for the purposes of obtaining a refund of tax or excise duty, and

(g) in the case of the driver concerned, evidence that the vehicle is for his personal use and evidence of his driving capacity,

and the regulations may provide for such other matters as the Minister for Finance considers necessary or expedient for the purposes of giving effect to this section.

(3) (a) Upon the first coming into operation of regulations under this section, section 43 (1) of the Finance Act, 1968 , shall cease to have effect.

(b) Any person who, at the passing of this Act, was the registered owner of a motor vehicle, being a motor vehicle in respect of which such person was entitled to and had received a refund of tax or excise duty by reference to section 43 (1) of the Finance Act, 1968 , shall be deemed to be a person who possesses a primary medical certificate which, subject to compliance with the non-medical requirements set out in the regulations, entitles him to a similar repayment of tax or excise duty by reference to this section.

(4) Regulations made under this section shall be laid before Dáil Éireann as soon as may be after they are made, and if a resolution annulling the regulations is passed by Dáil Éireann within the next subsequent 21 days on which Dáil Éireann has sat after the regulations have been so laid, the regulations shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

(5) In this section—

medical practitioner” means a medical practitioner registered under the Medical Practitioners Act, 1978 ;

primary medical certification” means medical certification by a medical practitioner who is the holder of a post in a health board, being the post commonly known as the post of Director of Community Care and Medical Officer of Health, in the area in which the person to whom the certification relates ordinarily resides and “primary medical certificate” shall be construed accordingly.

Winding up of Savings Certificates Reserve Fund.

93. —The Minister may, by order, designate a date upon which the Savings Certificates Reserve Fund shall be wound up and upon that date—

(a) that Fund shall cease to exist,

(b) the balances remaining to the credit of the Principal Reserve Account and the Interest Reserve Account of that Fund shall be paid into the Capital Services Redemption Account and shall be applied towards defraying the principal and interest on the public debt, and

(c) section 34 of the Finance Act, 1929 , and section 17 of the Finance Act, 1943 , shall cease to have effect.

Charging of expenses incurred in connection with management of prize bonds.

94. —(1) (a) Section 22 of the Finance (Miscellaneous Provisions) Act, 1956 , is hereby amended—

(i) in subsection (2), by the insertion of “and management” after “issue”, and

(ii) by the deletion of subsection (4),

and the said subsection (2), as so amended, is set out in the Table to this section.

(b) Section 65 of the Finance Act, 1958 , is hereby amended by the deletion of subsection (1).

(2) Subsection (1) shall come into operation on the 1st day of January, 1990.

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(2) The principal of prize bonds, the prizes in respect of them and the expenses incurred with their issue and management shall be charged on the Central Fund or the growing produce thereof.

Securities of Radio Telefís Éireann and Industrial Credit Corporation p.l.c.

95. —(1) Part XXXII of the Income Tax Act, 1967 , is hereby amended—

(a) by the insertion after section 467A of the following section:

“467B.—(1) Any debentures, debenture stock, bonds, notes, certificates of charge or other forms of security issued after the passing of the Finance Act, 1989, by a company to which this section applies shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 466 and that section shall apply accordingly.

(2) Notwithstanding anything contained in this Act, in computing for the purposes of assessment under Schedule D the amount of the profits or gains of a company to which this section applies, for any period for which accounts are made up, there shall be allowed as a deduction the amount of the interest on debentures, debenture stock, bonds, notes, certificates of charge or other forms of security which, by direction of the Minister for Finance given under section 466 as applied by this section, is paid by the company without deduction of tax for such period.

(3) The companies to which this section applies are Radio Telefís Éireann and the Industrial Credit Corporation p.l.c.”

and

(b) by the insertion in section 474 (1) after “467A,” (inserted by the Finance Act, 1988 ) of “467B,” and the said section 474 (1), as so amended, is set out in the Table to this subsection.

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(1) This section applies to any stock or other security on which interest is payable without deduction of income tax by virtue of a direction given by the Minister for Finance in pursuance of section 467 , 467A , 467B , 471 , 472 or 473 or section 59 of the Finance Act, 1970 or section 92 of the Finance Act, 1973 .

(2) Section 19 (d) of the Capital Gains Tax Act, 1975 , is hereby amended, as on and from the passing of this Act, by the insertion after “the Electricity Supply Board,” of “Radio Telefís Éireann, the Industrial Credit Corporation p.l.c.,” and the said section 19 (d), as so amended, is set out in the Table to this subsection.

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(d) debentures, debenture stock, certificates of charge or other forms of security issued by the Electricity Supply Board, Radio Telefís Éireann, the Industrial Credit Corporation p.l.c., Bord Telecom Éireann, Irish Telecommunications Investments p.l.c., Córas Iompair Éireann, The Agricultural Credit Corporation, Limited, Bord na Móna, Aerlínte Éireann, Teoranta, Aer Lingus, Teoranta or Aer Rianta, Teoranta.

Financial arrangements relating to Bord Telecom Éireann.

96. —Payments (being payments by virtue of an agreement entered into under subsection (1) of section 100 of the Postal and Telecommunications Services Act, 1983 , and subsection (1) of section 68 of the Finance Act, 1985 ) amounting to the sum of £208,127,767, made to the Minister for Finance by Bord Telecom Éireann by way of prepayments of moneys payable under the said section 100, shall be deemed to be payments thereunder.

Post Office Savings Bank Fund.

97. —Section 17 of the Customs, Inland Revenue, and Savings Banks Act, 1877, is hereby amended by the substitution of the following paragraph for the paragraph numbered (1.):

“(1.) An account in the form of a balance sheet as at the thirty-first day of December, showing assets, liabilities and the accumulated reserve of the Post Office Savings Bank Fund, with notes thereto which shall include (where appropriate) particulars of interest accrued in respect of the securities standing to the credit of that Fund and of the interest paid and credited to depositors in pursuance of any enactment relating to the Post Office Savings Bank, and a note further thereto of the expenses incurred in the execution of those enactments.”.

Securities of European Economic Community.

98. —(1) Subsection (1) of section 92 of the Finance Act, 1973 , is hereby amended by the insertion after “State by” of “the European Economic Community,” and the said subsection, as so amended, is set out in the Table to this section.

(2) Paragraph (a) of section 66 of the Finance Act, 1984 , is hereby amended by the insertion after “the Minister for Finance, by” of “the European Economic Community,” and the said paragraph, as so amended, is set out in the Table to this section.

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(1) This section applies to any stock or other form of security issued in the State by the European Economic Community, the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank.

(a) in the State, with the approval of the Minister for Finance, by the European Economic Community, the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank as it applies to the forms of security specified in paragraph (a) of that section, and

Care and management of taxes and duties.

99. —All taxes and duties (except the excise duty on driving licences) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

Short title, construction and commencement.

100. —(1) This Act may be cited as the Finance Act, 1989.

(2) Parts I and VII (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 1988, and may be cited together therewith as the Value-Added Tax Acts, 1972 to 1989.

(5) Part IV and (so far as relating to stamp duties) Part VII shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(6) Part V and (so far as relating to gift tax or inheritance tax) Part VII shall be construed together with the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act.

(7) Part VI (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 and (so far as relating to value-added tax) shall be construed together with the Value-Added Tax Acts, 1972 to 1989, and (so far as relating to stamp duties) shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act and (so far as relating to gift tax or inheritance tax) 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 residential property tax) shall be construed together with Part VI of the Finance Act, 1983 .

(8) 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, 1989.

(9) Part III , other than sections 54 , 55 , 56 (a) and 5 8 to 6 3, shall be deemed to have come into force and shall take effect as on and from the 1st day of March, 1989, paragraphs (a) and (d) of section 61 and section 63 (a) shall take effect as on and from the 1st day of July, 1989, and paragraphs (b) and (c) of section 61 and sections 62 and 63 (b) shall take effect as on and from the 1st day of November, 1989.

(10) Chapter II of Part V shall come into force and shall take effect as on and from the 1st day of September, 1989.

(11) 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.

(12) 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.

(13) 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.