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19 1960

FINANCE ACT, 1960

PART IV.

Amendment of Finance (Miscellaneous Provisions) Act, 1956.

Interpretation (Part IV).

26. —In this Part of this Act “the Act” means the Finance (Miscellaneous Provisions) Act, 1956.

Amendment of “goods” in Part III of the Act.

27. —(1) (a) In section 10 of the Act the definition of “goods” shall include goods manufactured within the State which do not come within the definition already contained in the said section 10 and which are exported by the person who in relation to the relevant basis period or the relevant accounting period is the company claiming relief under Part III of the Act, where the selling by such person of the goods so exported is selling by wholesale.

(b) “Selling by wholesale” in the foregoing paragraph means selling goods of any class to a person who carries on a business of selling goods of that class or who uses goods of that class for the purposes of a trade or undertaking carried on by him.

(2) In a case in which section 12 of the Act applies and the export out of the State in the relevant basis period consisted of or included goods with respect to which subsection (1) of this section provides for the inclusion thereof in the definition of “goods”, Part III of the Act shall have effect subject to the insertion, in subsections (2) and (4) and in paragraph (b) of subsection (6) of the said section 12, of “and of merchandise (whether exported or not) other than such goods” after “goods (whether exported or not)” wherever the latter words occur.

(3) In a case in which section 13 of the Act applies and the export out of the State in the relevant accounting period consisted of or included goods with respect to which subsection (1) of this section provides for the inclusion thereof in the definition of “goods”, Part III of the Act shall have effect subject to the insertion, in subsections (2) and (4) and in paragraph (c) of subsection (10) of the said section 13, of “and of merchandise (whether exported or not) other than such goods” after “goods (whether exported or not)” wherever the latter words occur.

(4) This section shall have effect—

(a) in relation to income tax, for any year of assessment beginning on or after the 6th day of April, 1960, and

(b) in relation to corporation profits tax, for any accounting period or part of an accounting period subsequent to the 5th day of April, 1960,

and, in the case of corporation profits tax, the Revenue Commissioners may, for the purposes of this section, in relation to any such part of an accounting period, make such apportionments as may be appropriate.

Extension of periods for relief under Part III of the Act.

28. —(1) Subsection (2) of section 56 of the Finance Act, 1958 shall, except in relation to subsection (6) of section 12 of the Act, have effect as if the following paragraph were substituted for paragraph (b):

“(b) in relation—

(i) to a company which exports goods on or after the 6th day of April, 1960, and has not exported goods before that date, the following definition shall be substituted for the definition of ‘year of claim’:

year of claim’ means each of ten consecutive years of assessment of which the first is either the earliest year of assessment for which income tax under Case I of Schedule D in respect of the company's trade is finally computed on the profits or gains of a period in which the company exports goods or the next succeeding year of assessment, as the company elects, or, in default of election, the said succeeding year of assessment, but the year 1975-76 or any subsequent year of assessment shall in no case be a year of claim, and

(ii) to a company which—

(I) exports goods,

(II) is not a company referred to in subparagraph (i) of this paragraph,

(III) has not made and would not have been entitled to make a claim under section 12 of the Act in respect of the year 1959-60 or any earlier year of assessment, and

(IV) would not, but for the provisions of section 27 of the Finance Act, 1960, be entitled to make a claim under section 12 of the Act,

the following definition shall be substituted for the definition of ‘year of claim’:

year of claim’ means each of ten consecutive years of assessment of which the first is either the year 1960-61 or the year 1961-62, as the company elects, or in default of election, the year 1961-62.”

(2) Except in relation to subsection (10) of section 13 of the Act, the following definition is hereby substituted in section 10 of the Act for the definition of “accounting period”:

“‘accounting period’ means an accounting period or part of an accounting period of a company within the period of ten years from the later of the two following days, that is to say:

(a) the 1st day of October, 1956, or

(b) the first day of the basis period for the year of assessment which, for the purposes of relief under section 12 of the Act, is the company's first year of claim or the 6th day of April, 1965, whichever of those days is the earlier;”.

Additional years of claim and accounting periods for Part III of the Act.

29. —(1) In relation to a company which has obtained relief under subsection (1) or subsection (3) of section 12 of the Act, subsections (1) to (5) of the said section 12 shall apply as respects the five consecutive years of assessment the first of which is the year of assessment immediately following the company's last year of claim within the meaning of section 10 of the Act as if—

(a) each of those years were a year of claim, and

(b) for “shall be reduced to nil” in paragraphs (a) and (b) of the said subsection (5) there were substituted—

(i) in the case of the first of those years, “shall be reduced by eighty per cent.”,

(ii) in the case of the second of those years, “shall be reduced by sixty-five per cent.”,

(iii) in the case of the third of those years, “shall be reduced by fifty per cent.”,

(iv) in the case of the fourth of those years, “shall be reduced by thirty-five per cent.”, and

(v) in the case of the fifth of those years, “shall be reduced by fifteen per cent.”

(2) In relation to a company which has obtained relief under subsection (1) or subsection (3) of section 13 of the Act, subsections (1) to (9) of the said section 13 shall apply as respects any accounting period or part of an accounting period of the company within the period of five years commencing on the expiration of the period comprising the company's accounting periods within the meaning of section 10 of the Act, as if—

(a) “accounting period”, wherever occurring in those subsections, referred to it, and

(b) for “shall be reduced to nil” in paragraphs (a) and (b) of the said subsection (9) there were substituted—

(i) in case it is an accounting period or part of an accounting period within the first of those years, “shall be reduced by eighty per cent.”,

(ii) in case it is an accounting period or part of an accounting period within the second of those years, “shall be reduced by sixty-five per cent.”,

(iii) in case it is an accounting period or part of an accounting period within the third of those years, “shall be reduced by fifty per cent.”,

(iv) in case it is an accounting period or part of an accounting period within the fourth of those years, “shall be reduced by thirty-five per cent.”, and

(v) in case it is an accounting period or part of an accounting period within the fifth of those years, “shall be reduced by fifteen per cent.”

Transactions between associated persons and company succeeding to trade of another company.

30. —(1) This section shall apply to a company claiming relief under Part III of the Act by virtue of the foregoing sections of this Part of this Act.

(2) Where, after the passing of this Act, a company (hereafter in this subsection referred to as the buyer) buys 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 price in the transaction is less than that which might have been expected to obtain if the parties to the transaction had been independent parties dealing at arm's length,

then, the profits of the buyer which are attributable to sales shall, for the purposes of Part III of the Act, be computed as if the price in the transaction had been that which would have obtained if the transaction had been a transaction between independent persons dealing as aforesaid.

(3) In subsection (2) of this section “control”, in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership.

(4) Where a company (hereafter in this subsection referred to as the succeeding company) succeeds to a trade or a part of a trade which, on or after the 6th day of April, 1960, was carried on by another company (hereafter in this subsection referred to as the original company) and the original company has or could have made a claim to relief under Part III of the Act, then, relief by virtue of the foregoing sections of this Part of this Act, in so far as such relief relates to the trade or the part of the trade in question, shall be granted to the succeeding company only as respects the remaining years of claim and the remaining accounting periods for which relief under Part III of the Act might have been claimed by the original company if it had continued to carry on the trade or the part of the trade in question.

(5) The Revenue Commissioners may by notice in writing require the company to furnish them with such information or particulars as may be necessary for the purposes of this section, and subsections (1) and (3) of section 12 and subsections (1) and (3) of section 13 of the Act shall have effect as if the matters of which proof is required by those subsections included the information or particulars specified in a notice under this subsection.

Production of documents and records.

31. —(1) Upon request made to him by an authorised officer at any premises of a company claiming relief under Part III of the Act, any person employed by the company at the premises shall produce to the authorised officer all such invoices, accounts, books and other documents and records whatsoever relating to purchase and sale of goods by the company as may be in such person's power, possession and procurement and, on production thereof, shall permit the authorised officer to examine them and take copies thereof or extracts therefrom.

(2) If a person requested under subsection (1) of this section does not comply with the requirements of that subsection, he shall be liable to a penalty of fifty pounds.

(3) All penalties under this section may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any fine or penalty under any Act relating to the excise.

(4) Where, in pursuance of this section, an authorised officer requests production of any documents or records, he shall, on request, show his authorisation for the purposes of this section to the person concerned.

(5) In this section, “authorised officer” means an officer of the Revenue Commissioners authorised by them in writing for the purposes of this section.

Extension of Part II of the Act.

32. —(1) In this section—

specified minerals” means gypsum and anhydrite;

specified mining operations” means mining operations (by underground or opencast excavation) within the State, whether before or after the passing of this Act, but only in so far as the production of specified minerals results or has resulted therefrom.

(2) Part II of the Act shall apply to specified mining operations as if—

(a) “coal-mining operations”, wherever occurring in that Part (including wherever occurring after “new” or “existing”), referred to specified mining operations,

(b) “production of coal”, wherever occurring in that Part, referred to production of specified minerals,

(c) “output of coal”, wherever occurring in that Part (including wherever occurring after “standard”), referred to output of specified minerals,

(d) “or the year of assessment beginning on the 6th day of April, 1960 (whichever year is the later)” were inserted after “year of assessment in which the commencement day occurs” in subsection (1) of section 7 of the Act,

(e) “or the 6th day of April, 1960 (whichever is the later)” were inserted after “commencement day” in paragraph (a) of subsection (2) of section 7 of the Act,

(f) “the 6th day of April, 1960” were substituted in paragraph (a) of subsection (2) of section 8 of the Act for “the 1st day of October, 1956”,

(g) the following definition were substituted in paragraph (a) of subsection (3) of section 8 of the Act for the definition of “relevant year of assessment”:

“‘relevant year of assessment’ means each of the seven consecutive years of assessment of which the first is the year of assessment commencing on the 6th day of April, 1960”.

Amendment of Part IV of the Act.

33. —For the purposes of Part IV of the Act, a building or structure in use as a holiday camp shall be deemed to be a building or structure in use for the purposes of the trade of hotel-keeping, but no allowance under the said Part IV shall be made by virtue of this section for any year of assessment prior to the year 1960-61.