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TAXES CONSOLIDATION ACT, 1997
The Charge to Tax
The charge to income tax.
[ITA67 s4; FA80 s55]
12. — Income tax shall, subject to the Income Tax Acts, be charged in respect of all property, profits or gains respectively described or comprised in the Schedules contained in the sections enumerated below—
Schedule C— Section 17 ;
Schedule D— Section 18 ;
Schedule E— Section 19 ;
Schedule F— Section 20 ;
and in accordance with the provisions of the Income Tax Acts applicable to those Schedules.
Extension of charge to income tax to profits and income derived from activities carried on and employments exercised on the Continental Shelf.
[FA73 s33(1)(a), (b) and (c), (2) to (5) and (7)]
13. —(1) In this section and in Schedule 1 —
“designated area” means an area designated by order under section 2 of the Continental Shelf Act, 1968 ;
“exploration or exploitation activities” means activities carried on in connection with the exploration or exploitation of so much of the sea bed and subsoil and their natural resources as is situated in the State or in a designated area;
“exploration or exploitation rights” means rights to assets to be produced by exploration or exploitation activities or to interests in or to the benefit of such assets.
(2) Any profits or gains from exploration or exploitation activities carried on in a designated area or from exploration or exploitation rights shall be treated for income tax purposes as profits or gains from activities or property in the State.
(3) Any profits or gains arising to any person not resident in the State from exploration or exploitation activities carried on in the State or in a designated area or from exploration or exploitation rights shall be treated for income tax purposes as profits or gains of a trade carried on by that person in the State through a branch or agency.
(4) Where exploration or exploitation activities are carried on by a person on behalf of the holder of a licence granted under the Petroleum and Other Minerals Development Act, 1960, the holder of the licence shall, for the purpose of any assessment to income tax, be deemed to be the agent of that person.
(5) Any emoluments from an office or employment in respect of duties performed in a designated area in connection with exploration or exploitation activities shall be treated for income tax purposes as emoluments in respect of duties performed in the State.
(6) Schedule 1 shall apply for the purpose of supplementing this section.
Fractions of a pound and yearly assessments.
[ITA67 s5 and s6; FA70 s3]
14. —(1) The due proportion of income tax shall be charged for every fractional part of one pound, but no income tax shall be charged on a lower denomination than one penny.
(2) Every assessment and charge to income tax shall be made for a year commencing on the 6th day of April and ending on the following 5th day of April.
Rate of charge.
[FA91 s2; FA97 s2(1) and (2)]
15. —(1) Subject to subsection (2), income tax shall be charged for each year of assessment at the rate of tax specified in the Table to this section as the standard rate.
(2) Where a person who is charged to income tax for any year of assessment is an individual (other than an individual acting in afiduciary or representative capacity), such individual shall, notwithstanding anything in the Income Tax Acts but subject to section 16 (2), be charged to tax on such individual's taxable income—
(a) in a case in which such individual is assessed to tax otherwise than in accordance with section 1017 , at the rates specified in Part 1 of the Table to this section, or
(b) in a case in which such individual is assessed to tax in accordance with section 1017 , at the rates specified in Part 2 , of that Table,
and the rates in each Part of that Table shall be known respectively by the description specified in column (3) in each such Part opposite the mention of the rate or rates, as the case may be, in column (2) of that Part.
Income tax charged by deduction.
[FA74 s5(2) and (3)]
16. —(1) In estimating under the Income Tax Acts the total income of any person, any income chargeable with tax by means of deduction at the standard rate in force for any year shall be deemed to be income of that year, and any deductions allowable on account of sums payable under deduction of tax at the standard rate in force for any year out of the property or profits of that person shall be allowed as deductions in respect of that year, notwithstanding that the income or sums, as the case may be, accrued or will accrue in whole or in part before or after that year.
(2) Where a person is required to be assessed and charged with tax in respect of any property, profits or gains out of which such person makes any payment in respect of any annual interest, annuity or other annual sum, or any royalty or other sum in respect of the user of a patent, such person shall, in respect of so much of the property, profits or gains as is equal to that payment and may be deducted in computing such person's total income, be charged at the standard rate only.
[ITA67 s47 and s51]
17. —(1) The Schedule referred to as Schedule C is as follows:
1. Tax under this Schedule shall be charged in respect of all profits arising from public revenue dividends payable in the State in any year of assessment.
2. Where a banker or any other person in the State, by means of coupons received from another person or otherwise on that other person's behalf, obtains payment of any foreign public revenue dividends, tax under this Schedule shall be charged in respect of the dividends.
3. Where a banker in the State sells or otherwise realises coupons for any foreign public revenue dividends and pays over the proceeds of such realisation to or carries such proceeds to the account of any person, tax under this Schedule shall be charged in respect of the proceeds of the realisation.
4. Where a dealer in coupons in the State purchases coupons for any foreign public revenue dividends otherwise than from a banker or another dealer in coupons, tax under this Schedule shall be charged in respect of the price paid on the purchase.
5. Nothing in paragraph 1 shall apply to any annuities which are not of a public nature.
6. The tax under this Schedule shall be charged for every one pound of the annual amount of the profits, dividends, proceeds of realisation or price paid on purchase charged.
(2) Section 32 shall apply for the interpretation of Schedule C.
[ITA67 s52 and s53; FA69 s33(1) and Sch4 Pt I, s65(1) and Sch5 Pt I]
18. —(1) The Schedule referred to as Schedule D is as follows:
1. Tax under this Schedule shall be charged in respect of—
(a) the annual profits or gains arising or accruing to—
(i) any person residing in the State from any kind of property whatever, whether situate in the State or elsewhere,
(ii) any person residing in the State from any trade, profession, or employment, whether carried on in the State or elsewhere,
(iii) any person, whether a citizen of Ireland or not, although not resident in the State, from any property whatever in the State, or from any trade, profession or employment exercised in the State, and
(iv) any person, whether a citizen of Ireland or not, although not resident in the State, from the sale of any goods, wares or merchandise manufactured or partly manufactured by such person in the State,
(b) all interest of money, annuities and other annual profits or gains not charged under Schedule C or Schedule E, and not specially exempted from tax,
in each case for every one pound of the annual amount of the profits or gains.
2. Profits or gains arising or accruing to any person from an office, employment or pension shall not by virtue of paragraph 1 be chargeable to tax under this Schedule unless they are chargeable to tax under Case III of this Schedule.
(2) Tax under Schedule D shall be charged under the following Cases:
Case I— Tax in respect of—
(a) any trade;
(b) profits or gains arising out of lands, tenements and hereditaments in the case of any of the following concerns—
(i) quarries of stone, slate, limestone or chalk, or quarries or pits of sand, gravel or clay,
(ii) mines of coal, tin, lead, copper, pyrites, iron and other mines, and
(iii) ironworks, gasworks, salt springs or works, alum mines or works, waterworks, streams of water, canals, inland navigations, docks, drains or levels, fishings, rights of markets and fairs, tolls, railways and other ways, bridges, ferries and other concerns of the like nature having profits from or arising out of any lands, tenements or hereditaments;
Case II— Tax in respect of any profession not contained in any other Schedule;
Case III— Tax in respect of—
(a) any interest of money, whether yearly or otherwise, or any annuity, or other annual payment, whether such payment is payable in or outside the State, either as a charge on any property of the person paying the same by virtue of any deed or will or otherwise, or as a reservation out of it, or as a personal debt or obligation by virtue of any contract, or whether the same is received and payable half-yearly or at any shorter or more distant periods, but not including any payment chargeable under Case V of Schedule D;
(b) all discounts;
(c) profits on securities bearing interest payable out of the public revenue other than those charged under Schedule C;
(d) interest on any securities issued, or deemed within the meaning of section 36 to be issued, under the authority of the Minister for Finance, in cases where such interest is paid without deduction of tax;
(e) income arising from securities outside the State except such income as is charged under Schedule C;
(f) income arising from possessions outside the State;
Case IV— Tax in respect of any annual profits or gains not within any other Case of Schedule D and not charged by virtue of any other Schedule;
Case V— Tax in respect of any rent in respect of any premises or any receipts in respect of any easement;
and subject to and in accordance with the provisions of the Income Tax Acts applicable to those Cases respectively.
(3) This section is without prejudice to any other provision of the Income Tax Acts directing tax to be charged under Schedule D or under one or other of the Cases mentioned in subsection (2), and tax so directed to be charged shall be charged accordingly.
[ITA67 s109 and Sch2 rule2]
19. —(1) The Schedule referred to as Schedule E is as follows:
1. In this Schedule, “annuity” and “pension” include respectively an annuity which is paid voluntarily or is capable of being discontinued and a pension which is so paid or is so capable.
2. Tax under this Schedule shall be charged in respect of every public office or employment of profit, and in respect of every annuity, pension or stipend payable out of the public revenue of the State, other than annuities charged under Schedule C, for every one pound of the annual amount thereof.
3. Tax under this Schedule shall also be charged in respect of any office, employment or pension the profits or gains arising or accruing from which would be chargeable to tax under Schedule D but for paragraph 2 of that Schedule.
4. Paragraphs 1 to 3 are without prejudice to any other provision of the Income Tax Acts directing tax to be charged under this Schedule, and tax so directed to be charged shall be charged accordingly.
5. Subsection (2) and sections 114 , 115 and 925 shall apply in relation to the tax to be charged under this Schedule.
(2) Tax under Schedule E shall be paid in respect of all public offices and employments of profit in the State or by the officers respectively described below—
(a) offices belonging to either House of the Oireachtas;
(b) offices belonging to any court in the State;
(c) public offices under the State;
(d) officers of the Defence Forces;
(e) offices or employments of profit under any ecclesiastical body;
(f) offices or employments of profit under any company or society, whether corporate or not corporate;
(g) offices or employments of profit under any public institution, or on any public foundation of whatever nature, or for whatever purpose established;
(h) offices or employments of profit under any public corporation or local authority, or under any trustees or guardians of any public funds, tolls or duties;
(i) all other public offices or employments of profit of a public nature.
[CTA76 s83(2) and (3)]
20. —(1) The Schedule referred to as Schedule F is as follows:
1. In this Schedule, “distribution” has the meaning assigned to it by Chapter 2 of Part 6 and sections 436 and 437 .
2. Income tax under this Schedule shall be chargeable for any year of assessment in respect of all dividends and other distributions in that year of a company resident in the State which are not specially excluded from income tax and, for the purposes of income tax, all such distributions shall be regarded as income however they are to be dealt with in the hands of the recipient.
3. For the purposes of the Tax Acts, any such distribution in respect of which a person is entitled to a tax credit shall be treated as representing income equal to the aggregate of the amount or value of that distribution and the amount of that credit, and accordingly income tax under this Schedule shall be charged on that aggregate.
(2) No distribution chargeable under Schedule F shall be chargeable under any other provision of the Income Tax Acts.