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23 1963

FINANCE ACT, 1963

PART I.

Income Tax.

Income tax and sur-tax for the year 1963-64.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1963, at the rate of six shillings and four pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1963, shall be charged in respect of the income of any individual the total of which from all sources exceeds two thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1962.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1963, in relation to income tax and sur-tax shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1963.

Exemption of bodies established for promotion of athletic or amateur games or sports.

2. —Exemption shall be granted from income tax in respect of so much of the income of any body of persons established for the sole purpose of promoting athletic or amateur games or sports as is shown to the satisfaction of the Revenue Commissioners to be income which has been or will be applied to that purpose.

Amendment of section 34 of Income Tax Act, 1918.

3. —As respects tax for the year 1963-64 or a subsequent year of assessment—

(a) the following section shall be substituted for section 34 of the Income Tax Act, 1918:

“34.—(1) Subject to the provisions of this section, where in any year of assessment any person has sustained a loss in any trade, profession, employment or vocation, carried on by him either solely or in partnership, or in the occupation of lands for the purposes of husbandry only, or in the occupation of woodlands in respect of which he has elected to be charged to tax under Schedule D, he shall be entitled, on making a claim in that behalf, to such repayment of tax as is necessary to secure that the aggregate amount of tax for the year ultimately borne by him will not exceed the amount which would have been borne by him if his income had been reduced by the amount of the loss.

(2) (a) For the purposes of subsection (1) of this section the amount of tax which would have been borne if income had been reduced by the amount of a loss shall be computed—

(i) where the loss has been sustained by an individual, on the basis of treating the loss as reducing first the appropriate income of the individual, then the other income of the individual, then the appropriate income of the individual's wife or husband and then the other income of the individual's wife or husband, and

(ii) where the loss has been sustained in a trade carried on by a body corporate, on the basis of treating the loss as reducing first the income of the body corporate from profits or gains of the trade in which the loss was sustained and then the other income of the body corporate.

(b) For the purposes of subparagraph (i) of paragraph (a) of this subsection, ‘appropriate income’ means either earned or unearned income according as income arising during the same period as the loss to the person sustaining it from the same activity would have been that person's earned or unearned income.

(3) Except as is otherwise provided by paragraph (2) of Rule 15 of the Rules applicable to Cases I and II of Schedule D, the amount of a loss sustained in an activity shall, for the purposes of this section, be computed in like manner as profits or gains arising or accruing from the activity would be computed under the relevant provisions of the Income Tax Acts.

(4) Where repayment has been made to a person for any year under this section—

(a) no portion of the loss which, in the computation of the repayment, was treated as reducing his income shall be taken into account in computing the amount of an assessment for any subsequent year, and

(b) so much of the loss as was required, by subsection (2) of this section, to be treated as reducing income of a particular class or income from a particular source shall, for all the purposes of the Income Tax Acts, be regarded as a deduction to be made from income of that class or from income from that source, as the case may be, in computing the person's total income for the year.

(5) Any claim to repayment under this section shall be made, in a form prescribed by the Revenue Commissioners, not later than two years after the end of the year of assessment and shall be made to, and determined by, the inspector of taxes; but any person aggrieved by any determination of the inspector of taxes on any such claim may, on giving notice in writing to the said inspector within twenty-one days after notification to him of the determination, appeal to the Special Commissioners.

(6) The Special Commissioners shall hear and determine an appeal to them under subsection (5) of this section as if it were an appeal to them against an assessment to income tax and the provisions of the Income Tax Acts relating to the re-hearing of an appeal or the statement of a case for the opinion of the High Court on a point of law, shall, with the necessary modifications, apply accordingly.”;

(b) paragraph (2) of Rule 15 of the Rules applicable to Cases I and II of Schedule D shall have effect subject to the substitution of “repayment of tax under section 34 of” for “an adjustment of its liability by reference to the loss and to the aggregate amount of its income under the provisions contained in”;

(c) section 4 of the Finance Act, 1943 , shall not have effect;

(d) subsection (1) of section 52 of the Finance Act, 1958 , and subsection (1) of section 9 of the Finance Act, 1959 , shall have effect subject to the deletion of “and the aggregate amount of his income” in each subsection.

Amendment of section 39 of Income Tax Act, 1918.

4. —Subsection (2) of section 39 of the Income Tax Act, 1918, is hereby amended by the substitution of “six hundred pounds by way of gross sum” and “two hundred and fifty pounds a year by way of annuity” for “three hundred pounds by way of gross sum” and “one hundred and thirty pounds a year by way of annuity”, respectively.

Option to treat capital allowances as creating or augmenting loss in trade, etc.

5. —(1) In this section—

balancing charges” means balancing charges under Part V of the Finance Act, 1959 ;

capital allowances” means allowances, other than allowances falling to be made in computing profits or gains, under Rule 6 of the Rules applicable to Cases I and II of Schedule D, section 5 or section 6 of the Finance Act, 1946 , Part V of the Finance Act, 1956 , Part IV of the Finance (Miscellaneous Provisions) Act, 1956 , Part V of the Finance Act, 1957 , or Part V or section 74 of the Finance Act, 1959 ;

year of claim” means, in relation to any claim under section 34 of the Income Tax Act, 1918, the year of assessment for which the claim is made.

(2) Subject to the provisions of this section, any claim made under section 34 of the Income Tax Act, 1918, for relief in respect of a loss sustained in any trade, being a claim in the case of which the year of claim is the year 1963-64 or a subsequent year of assessment, may require the amount of the loss to be determined as if an amount equal to the capital allowances for the year of assessment for which the year of claim is the basis year were to be deducted in computing the profits or gains or losses of the trade in the year of claim and a claim may be so made notwithstanding that apart from those allowances a loss has not been sustained in the trade in the year of claim.

(3) Where on any claim made by virtue of this section relief is not given under the said section 34 for the full amount of the loss determined as aforesaid, the relief shall be referred as far as may be to the loss sustained in the trade rather than to the capital allowances in respect of the trade.

(4) For the purposes of this section—

(a) where the end of the basis period for a year of assessment falls in or coincides with the end of any year of assessment, that year is the basis year for the first mentioned year of assessment, but so that if a year of assessment would under the foregoing provision be the basis year both for that year itself and another year of assessment, it shall be the basis year for the year itself and not for the other year;

(b) any reference to capital allowances or balancing charges for a year of assessment shall be construed as a reference to those falling to be made in charging the profits or gains of the trade for that year, excluding, in the case of allowances, amounts carried forward from an earlier year;

(c) effect shall be deemed to be given in charging the profits or gains of the trade for a year of assessment to allowances carried forward from an earlier year before it is given to allowances for the year of assessment; and

(d) any reference to an amount of capital allowances non-effective in a year of assessment shall be construed as referring to the amount to which by reason of an insufficiency of profits or gains effect cannot be given in charging the profits or gains of the trade for that year.

In paragraph (a) of this subsection “the basis period for a year of assessment” means in relation to any trade the period on the profits or gains of which income tax for that year falls to be finally computed under Case I of Schedule D in respect of the trade or, where, by virtue of any Act, the profits or gains of any other period are to be taken to be the profits or gains of the said period, that other period.

(5) The capital allowances for any year of assessment shall be taken into account under subsection (2) of this section only if and so far as they are not required to offset balancing charges for the year; and, where the capital allowances taken into account are allowances for the year of claim, relief shall not be given by reference to those allowances in respect of an amount greater than the amount non-effective in the year of claim.

(6) For the purposes of subsection (5) of this section, the capital allowances for any year of assessment shall be treated as required to offset balancing charges for the year up to the amount on which the balancing charges fall to be made after deducting from that amount the amount, if any, of capital allowances for earlier years which is carried forward to that year and would, without the balancing charges, be non-effective in that year.

(7) Subject to subsection (8) of this section, where for any year of claim relief is given under the said section 34 by reference to any capital allowances, then, for all the purposes of the Income Tax Acts, effect shall be deemed to have been given to those allowances up to the amount in respect of which relief is so given, and any relief previously given for a subsequent year on the basis that effect had not been given to the allowances as aforesaid shall be adjusted, where necessary, by additional assessment.

(8) Where in any year of assessment a trade is permanently discontinued, or is treated, for the purposes of Rule 11 of the Rules applicable to Cases I and II of Schedule D, as permanently discontinued, and immediately before the discontinuance the trade was being carried on in partnership, then, notwithstanding the last foregoing subsection, for the purposes of any claim for relief made by virtue of section 4 of the Finance Act, 1960 , and relating to that discontinuance, effect shall not be deemed to have been given either—

(a) to any part of the capital allowances falling to be made in charging the profits or gains of the trade for that year by reason of relief given under the said section 34 by reference to those allowances; or

(b) to any part of the capital allowances falling to be made in charging the profits or gains of the trade for the preceding year by reason of relief so given by reference to them, in so far as that relief must be referred to the part of the allowances apportionable to the part of the year within twelve months of the discontinuance on an apportionment made by reference to the comparative lengths of the two parts of the year;

but, where the same partner claims relief both under the said section 34 and under the said section 4 in respect of the same allowances, the total amount for which relief is to be given to him by reference thereto shall not exceed the greater of the amounts for which, apart from any deficiency of income, relief might have been given under either section separately, and the total amount for which relief is to be given to all the partners under those sections in respect of any allowances shall not in any event exceed the amount of the allowances to which effect has not been given apart from those sections.

(9) Where a person claiming relief under the said section 34 has, since the end of the year of claim, carried on the trade in question in partnership, effect shall not be given to this section in relation to that claim, except with the written consent of, or of the personal representatives of, every other person who has been engaged in carrying on the trade between the end of that year and the making of the claim:

Provided that where the claim is for a loss sustained before an event treated as the permanent discontinuance of the trade, this subsection shall not require the consent of any person as having been so engaged since that discontinuance or as the personal representative of such a person.

(10) Relief from tax may be given by virtue of subsection (2) of this section by reference to capital allowances for a year of assessment before the passing of any Act imposing income tax for that year, as if income tax had been imposed for the year without alteration; but if relief given to a person by virtue of that subsection for any year of claim is affected by a subsequent alteration of the law, or by any discontinuance of the trade or other event occurring after the end of the year, any necessary adjustment may be made, and so much of any repayment of tax as exceeded the amount repayable in the events that happened shall, if not otherwise made good, be recovered from the person by assessment under Case VI of Schedule D; and for the purpose of such assessment the amount of capital allowances by reference to which the repayment was made, or an appropriate part of that amount, shall be deemed to be income chargeable under the said Case VI for the year of claim.

(11) This section applies, with any necessary adaptations, in relation to a profession, employment or vocation and in relation to the occupation of lands for the purposes of husbandry only or of woodlands, where, in either case, profits or gains arising from the occupation are, for the year of claim and the year of assessment for which the year of claim is the basis year, chargeable under Schedule D, as it applies in relation to a trade.

Assessment of profits from occupation of land under Schedule D in certain cases.

6. —(1) Where, for any year of assessment, a person to whom this section applies is chargeable to tax under Schedule B in respect of the occupation for the purposes of husbandry of any lands—

(a) the person shall when required to do so by a notice in writing served on him by an inspector of taxes prepare and deliver to the inspector, within the time limited by the notice, a statement of the profits or gains on which he would have been chargeable for the year of assessment if he had made an election in relation to the lands under Rule 5 of the Rules applicable to Schedule B;

(b) where the person fails to deliver the statement, or where the Revenue Commissioners are not satisfied with the statement delivered by the person, the Revenue Commissioners may serve on the person a notice in writing or notices in writing requiring him to do any of the following things, that is to say—

(i) to deliver to an inspector of taxes copies of such accounts (including balance sheets) relating to the occupation of the lands as may be specified or described in the notice within such period as may be therein specified, including, where the accounts have been audited, a copy of the auditor's certificate,

(ii) to make available, within such time as may be specified in the notice, for inspection by an inspector of taxes or by any officer authorised by the Revenue Commissioners, all such books, accounts and documents in his possession or power as may be specified or described in the notice, being books, accounts and documents which contain information as to transactions related to the occupation of the lands;

(c) the inspector of taxes or other officer may take copies of, or extracts from, any books, accounts or documents made available for his inspection under the foregoing paragraph;

(d) where the person fails to do anything which he is required to do by a notice under paragraph (b) of this subsection, the Income Tax Acts shall apply as if he had duly made, under Rule 5 of the Rules applicable to Schedule B, an election in relation to the lands by notice delivered immediately after the commencement of the year of assessment;

(e) where the person has delivered copies of accounts relating to the occupation of the lands and the Revenue Commissioners are of opinion that the accounts overstate the profits or gains arising from such occupation, the Revenue Commissioners may certify accordingly;

(f) where the Revenue Commissioners have given a certificate under the foregoing paragraph—

(i) the Income Tax Acts shall, subject to the next subparagraph, apply as if the person had duly made, under Rule 5 of the Rules applicable to Schedule B, an election in relation to the lands by notice delivered immediately after the commencement of the year of assessment,

(ii) an appeal against the certificate shall, within twenty-one days after notification to the person of the giving of the certificate, lie to the Special Commissioners in like manner as an appeal would lie against an assessment to income tax and the provisions of the Income Tax Acts relating to appeals shall have effect accordingly.

(2) (a) This section applies to—

(i) a person carrying on in the year of assessment a trade, profession or vocation,

(ii) a person who, in the year of assessment, is a married person whose wife or husband carries on in that year a trade, profession or vocation, or

(iii) a person who, in the year of assessment, is a director of a company carrying on in that year a trade and is either the beneficial owner of, or able, either directly or through the medium of other companies or by any other means, to control, more than twenty-five per cent. of the ordinary share capital of the company,

subject to the proviso that a person who, apart from this proviso, would, by virtue of subparagraph (ii) of this paragraph, be a person to whom this section applies shall not be such a person in a case in which the wife is not to be treated for income tax purposes as living with her husband.

(b) For the purposes of subparagraph (iii) of paragraph (a) of this subsection, ordinary share capital which is owned or controlled as referred to in the subparagraph by a person being the wife, the husband or an infant child of a director, or by the trustee of a trust for the benefit of a person or persons being or including any such person or such director, shall be deemed to be owned or controlled by such director and not by any other person.

(c) In this subsection—

company” means a company within the meaning of the Companies Acts, 1908 to 1959;

director” includes a person holding any office or employment under a company;

ordinary share capital” means all the issued capital (by whatever name called) of a company, other than capital the holders whereof have a right to a dividend at a fixed rate or a rate fluctuating in accordance with the rate of income tax, but have no other right to share in the profits of the company.

Deductions in relation to the establishment or alteration of superannuation schemes.

7. —Where a superannuation scheme is established in connection with a trade or undertaking or a superannuation scheme so established is altered and the person by whom the trade or undertaking is carried on makes, on or after the 6th day of April, 1963, a payment in respect of expenses (including a payment in respect of professional fees, but not including a payment by way of contribution towards the cost of providing the benefits payable under the scheme) in connection with such establishment or alteration, then, if the scheme or, as the case may be, the altered scheme is—

(a) operated through a fund approved, whether in whole or in part, by the Revenue Commissioners for the purposes of section 32 of the Finance Act, 1921,

(b) approved, whether in whole or in part, by the Revenue Commissioners under section 34 of the Finance Act, 1958 , or

(c) an excepted scheme within the meaning of subsection (2) of section 33 of the Finance Act, 1958 ,

the amount of the payment shall be allowed to be deducted in the computation, for the purposes of assessment to income tax, of the profits or gains of the trade or undertaking as an expense incurred when the payment is made:

Provided that where, in a case falling within paragraph (a) or paragraph (b) of this section, a part only of the relevant fund or scheme is approved as therein mentioned, the deduction shall be restricted to so much of the payment as is referable to that part.

Annual payment payable out of dividend from which income tax is not deductible or is deductible at reduced rate.

8. —(1) Where the whole or any part of any annual payment is payable out of a dividend from which, by virtue of section 7 of the Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 , or section 9 or section 15 of the Finance (Miscellaneous Provisions) Act, 1956 , income tax either is not deductible or is deductible at a reduced rate—

(a) a payment of the annual payment, or that part thereof, as the case may be, shall be treated as not having been paid out of profits or gains brought into charge to tax and, subject to the next paragraph, Rule 21 of the General Rules shall apply accordingly,

(b) the amount of tax recoverable from the payer shall be tax on the payment which he has made calculated—

(i) if income tax was not deductible from the dividend—at the standard rate of income tax, and

(ii) if income tax was deductible from the dividend at a reduced rate—at a rate arrived at by deducting from the standard rate of income tax the rate of tax deductible from the dividend.

(2) In the foregoing subsection “annual payment” means any payment from which, apart from any insufficiency of profits or gains of the person making it, tax is deductible under Rule 19 of the General Rules.

Amendment of Rule 21 of General Rules.

9. —(1) Rule 21 of the General Rules is hereby amended by the substitution of the following paragraphs for paragraph (2):

“(2) Where any such payment as aforesaid is made by or through any person, that person shall forthwith deliver to the Revenue Commissioners an account of the payment, or of so much thereof as is not made out of profits or gains brought into charge, and of the tax deducted out of the payment or out of that part thereof, and the inspector shall assess and charge the payment of which an account is so delivered on that person.

(2A) The inspector may, where any person has made default in delivering an account required by this Rule, or where he is not satisfied with the account so delivered, make an assessment according to the best of his judgment.

(2B) In paragraph (2) and (2A) of this Rule “the inspector” means such inspector of taxes as the Revenue Commissioners may direct.

(2C) All the provisions of the Income Tax Acts relating—

(a) to persons who are to be chargeable with income tax and to income tax assessments;

(b) to appeals against such assessments;

(c) to the collection and recovery of income tax; and

(d) to cases to be stated for the opinion of the High Court;

shall, so far as they are applicable, apply to the charge, assessment, collection and recovery of income tax under this Rule.”

(2) The provisions of the said Rule 21 as amended by subsection (1) of this section shall, subject to any necessary modifications, apply in the case of a payment which has been made before the passing of this Act unless at such passing the tax deducted out of the payment stands paid to the Revenue Commissioners.

Amount of assessment under Rule 21 to be allowed as a loss for certain purposes.

10. —(1) Subject to the provisions of this section, where a person has been assessed to tax for the year 1963-64 or a subsequent year of assessment under Rule 21 of the General Rules, in respect of a payment made wholly and exclusively for the purposes of a trade, profession or vocation, the amount on which tax has been paid under that assessment shall, for the purposes of section 14 of the Finance Act, 1929 , and section 4 of the Finance Act, 1960 , be treated as though it were a loss sustained in that trade, profession or vocation and relief in respect thereof shall be allowed accordingly:

Provided that no relief shall be allowed under this section in respect of any such payment or any part of such payment which is not ultimately borne by the person assessed or which is charged to capital.

(2) This section shall not apply to any sum assessed under the said Rule 21 by virtue of section 13 of the Finance Act, 1950 , Part V of the Finance Act, 1958 , or section 50 of the Finance Act, 1959 , or section 8 or paragraph (b) of subsection (3) of section 71 of this Act.

Amendment of section 21 of Finance Act, 1920.

11. —(1) Subsection (3) of section 21 of the Finance Act, 1920, is hereby amended by the substitution of “of two hundred pounds a year or more and, where the child in respect of whom the deduction is to be allowed is entitled in his own right to an income exceeding eighty pounds a year, the deduction, instead of being one hundred and twenty pounds, shall be that amount reduced by the amount of the excess” for “exceeding eighty pounds a year”.

(2) Subsection (1) of this section shall come into operation on the 6th day of April, 1964.

Amendment of section 22 of Finance Act, 1920.

12. —(1) Subsection (1) of section 22 of the Finance Act, 1920, is hereby amended by the substitution of “one hundred and twenty pounds” for “one hundred and ten pounds”.

(2) (a) Subsection (1) of section 22 of the Finance Act, 1920, is hereby amended—

(i) by the substitution of “is less than one hundred and eighty pounds” for “does not exceed one hundred and twenty pounds”,

(ii) by the insertion of “a person whose total income from all sources is less than one hundred and eighty pounds a year and being” before “a son or daughter”,

(iii) by the addition of the following proviso: “Provided that each of the foregoing provisions of this subsection shall have effect, in a case in which the total income from all sources of the person in respect of whom the deduction is to be made exceeds one hundred and twenty pounds a year, as if, instead of specifying a deduction of sixty pounds, it specified a deduction of that amount reduced by the amount of the excess.”

(b) Paragraph (a) of this subsection shall come into operation on the 6th day of April, 1964.

Amendment of section 8 of Finance Act, 1924.

13. —(1) Section 8 of the Finance Act, 1924 , and that section as applied by subsection (9) of section 17 of the Finance Act, 1929 , shall have effect subject to the substitution in subsection (1) of “six years after the end of the year of assessment within” for “three years after the end of the year of assessment for”.

(2) Subsection (1) of this section shall not apply in relation to an assessment for a year earlier than the year 1960-61 if it was made before the 6th day of April, 1963.

Amendment of section 227 of Income Tax Act, 1918.

14. —Section 227 of the Income Tax Act, 1918, is hereby amended by the insertion at the end of the section of “and any person shall also be liable as aforesaid if he knowingly and wilfully aids, abets, assists, incites or induces another person to make or deliver a false or fraudulent account, return, list, declaration or statement with reference to property, profits or gains or to tax”.

Time for certain summary proceedings.

15. —Notwithstanding subsection (4) of section 10 of the Petty Sessions (Ireland) Act, 1851, summary proceedings under section 227 of the Income Tax Act, 1918, section 7 of the Finance (No. 2) Act, 1959 , or section 9 or section 31 of the Finance Act, 1960 , may be instituted within three years from the date of the committing of the offence or incurring of the penalty (as the case may be).

Power to require production of accounts and books.

16. —(1) Where a person who has been duly required to deliver a statement of the profits or gains arising to him from any trade, profession or vocation fails to deliver the statement, or where the Revenue Commissioners are not satisfied with the statement delivered by any such person, the Revenue Commissioners may serve on that person a notice in writing or notices in writing requiring him to do any of the following things, that is to say—

(a) to deliver to an inspector of taxes copies of such accounts (including balance sheets) relating to the trade, profession or vocation as may be specified or described in the notice within such period as may be therein specified, including, where the accounts have been audited, a copy of the auditor's certificate;

(b) to make available, within such time as may be specified in the notice, for inspection by an inspector of taxes or by any officer authorised by the Revenue Commissioners, all such books, accounts and documents in his possession or power as may be specified or described in the notice, being books, accounts and documents which contain information as to transactions of the trade, profession or vocation.

(2) The inspector of taxes or other officer may take copies of, or extracts from, any books, accounts or documents made available for his inspection under this section.

Power to obtain information as to interest paid or credited without deduction of tax.

17. —(1) Every person carrying on a trade or business who, in the ordinary course of the operations thereof, receives or retains money in such circumstances that interest becomes payable thereon which is paid or credited without deduction of income tax, and, in particular, every person carrying on the trade or business of banking, shall, if required to do so, by notice from an inspector of taxes, make and deliver to the said inspector of taxes, within the time specified in the notice, a return of all interest paid or credited by him as aforesaid during a year specified in the notice in the course of his trade or business or any such part of his trade or business as may be so specified, giving the names and addresses of the persons to whom the interest was paid or credited and stating, in each case, the amount of the interest:

Provided that—

(a) no interest paid or credited to any person shall be required to be included in any such return if the total amount of the interest paid or credited to that person which would otherwise have fallen to be included in the return does not exceed £15; and

(b) the year specified in a notice under this subsection shall not be a year ending more than three years before the date of the service of the notice.

(2) Without prejudice to the generality of so much of subsection (1) of this section as enables different notices to be served thereunder in relation to different parts of a trade or business, separate notices may be served under that subsection as respects the transactions carried on at any branch or branches respectively specified in the notices, and any such separate notice shall, if served on the manager or other person in charge of the branch or branches in question, be deemed to have been duly served on the person carrying on the trade or business; and where such a separate notice is so served as respects the transactions carried on at any branch or branches, any notice subsequently served under the said subsection (1) on the person carrying on the trade or business shall not be deemed to extend to any transaction to which the said separate notice extends.

(3) This section shall, with any necessary adaptations, apply in relation to the Post Office Savings Bank as if it were a trade or business carried on by the Minister for Posts and Telegraphs.

This subsection shall have effect notwithstanding anything in section 4 of the Post Office Savings Bank Act, 1861, but save as aforesaid that section shall remain in full force and effect.

(4) The foregoing provisions of this section shall apply to interest paid or credited on or at any time after the 6th day of April, 1962, and only to money received or retained in the State, and, if a person to whom any interest is paid or credited in respect of any money received or retained in the State by notice in writing served on the person paying or crediting the interest—

(a) declares that the person who was beneficially entitled to that interest when it was paid or credited was not then ordinarily resident in the State, and

(b) requests that the interest shall not be included in any return under this section,

the person paying or crediting the interest shall not be required to include the interest in any such return.

Amendment of Rule 18(2) of General Rules and section 8(4) of Finance Act, 1925.

18. —(1) Paragraph (2) of Rule 18 of the General Rules is hereby amended by the insertion at the end of the paragraph of “in a case in which the grant of probate or letters of administration was made in that year, and no such assessment shall be made later than two years after the expiration of the year of assessment in which such grant was made in any other case, but the foregoing provisions of this paragraph shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year of assessment in which the deceased person died, such assessment may be made at any time before the expiration of two years after the end of the year of assessment in which the corrective affidavit was lodged”.

(2) Subsection (4) of section 8 of the Finance Act, 1925 , is hereby amended by the insertion at the end of the subsection of “in a case in which the grant of probate or letters of administration was made in that year, and none of such acts and things may be done later than the end of the second year after the year of assessment in which such grant was made in any other case, but the foregoing provisions of this subsection shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year of assessment in which the deceased person died, any such act or thing may be done at any time before the expiration of two years after the end of the year of assessment in which the corrective affidavit was lodged”.

(3) Neither of the foregoing subsections of this section shall apply in a case in which the deceased person died before the 6th day of April, 1960, and the executor or administrator had fully administered the estate and distributed the assets of the deceased person before the 23rd day of April, 1963.

Amendment of section 7 of Finance Act, 1935.

19. —In relation to a company licensed under the Insurance Act, 1936 , to carry on assurance business, section 7 of the Finance Act, 1935 , shall have effect as if paragraph (e) contained in subsection (1) thereof were amended by the deletion of subparagraph (ii).

Amendment of section 12 of Finance (Miscellaneous Provisions) Act, 1956.

20. —Subsection (6) of section 12 of the Finance (Miscellaneous Provisions) Act, 1956 , shall apply to each of the five consecutive years of assessment, the first of which is the year of assessment immediately following the company's last year of claim for the purposes of that subsection within the meaning of section 10 of that Act, as if—

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

(b) for “reduced by twenty-five per cent.” in paragraph (a) of the said subsection (6) there were substituted—

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

(ii) in the case of the second of those years, “reduced by fifteen per cent.”,

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

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

Aggregation of assessments.

21. —(1) Where two or more assessments fall to be made on a person under Schedule A, B, D or E, or under two or more of those Schedules,—

(a) the tax in the assessments may be stated in one sum,

(b) as regards Schedule A or B in a case in which there are two or more tenements or rateable hereditaments, one assessment may be made on the total of the annual or assessable values,

and the notice of assessment may be stated correspondingly, but particulars of the annual or assessable values comprised in one assessment made pursuant to paragraph (b) of this subsection shall, on request, be given by the inspector of taxes.

(2) A notice of appeal in a case in which subsection (1) of this section applies must, to be valid, indicate each assessment appealed against.

(3) Pending the determination of an appeal against any one or more of such assessments as are referred to in subsection (1) of this section, an amount of tax being a portion of the one sum referred to in that subsection shall be payable on the due date or dates and shall be the amount which results when the appropriate personal reliefs are deducted from the assessments not under appeal or allowed from the tax charged in those assessments (as may be appropriate).

(4) The tax stated in one sum under subsection (1) or the amount payable under subsection (3) of this section shall for the purposes of section 14 of the Finance Act, 1962 , be deemed to be tax charged by an assessment to income tax.

(5) If for any of the purposes of the Income Tax Acts, other than subsection (3) of this section, it becomes necessary to determine what amount of the tax charged is applicable to any one of two or more assessments referred to in subsection (1) of this section—

(a) a certificate from the inspector of taxes indicating the manner in which the deductions, allowances or reliefs were allocated and stating the separate amounts of tax, if any, and the instalments thereof applicable to any one or more assessments or to each assessment shall be sufficient evidence of the charge to tax in and by each such assessment,

(b) where an assessment to which that certificate relates is made under paragraph (b) of subsection (1) of this section, the inspector of taxes may further certify what portion of the amount of the tax charged in and by that assessment is applicable to any of the annual or assessable values, and for the purposes of the Income Tax Acts that portion shall be deemed to be tax charged in and by an assessment.

(6) Notwithstanding the making of one assessment pursuant to paragraph (b) of subsection (1) of this section, the provisions of the Income Tax Acts, other than this section, relating to assessments under Schedule A or B (as the case may be) shall continue to apply as if the tenements or rateable hereditaments had been assessed separately.

(7) In this section “personal reliefs” means any relief under section 32 of the Income Tax Act, 1918, under sections 16, 18, 19, 20, 21 and 22 of the Finance Act, 1920, under section 4 of the Finance Act, 1951 , or under section 17 of the Finance (No. 2) Act, 1959 .

Particulars of sums to be collected.

22. —(1) After assessments to income tax and sur-tax have been made, the inspectors of taxes shall transmit particulars of the sums to be collected to the Collector-General for collection, and references in the Income Tax Acts to duplicates of assessments delivered to collectors shall be construed as including references to particulars so transmitted.

(2) Subsection (1) of this section shall not apply to sums to be collected in respect of assessments to income tax made before the 6th day of April, 1964, where particulars of the sums are contained in duplicates of assessments delivered to the collectors of taxes appointed under section 7 of the Finance Act, 1934 .

Collector-General.

23. —(1) A collector, to be known as the Collector-General, shall be appointed by the Revenue Commissioners from their officers and shall hold office as the Collector-General at their will and pleasure.

(2) The Collector-General shall collect and levy the tax from time to time charged in all assessments to income tax and sur-tax of which particulars have been transmitted to him under the preceding section.

(3) (a) The Revenue Commissioners may nominate persons to exercise on behalf of the Collector-General and at his direction the powers contained in sections 162, 164 and 199 of the Income Tax Act, 1918.

(b) Those powers, as well as being exercisable by the Collector-General, shall also be exercisable on his behalf and at his direction by persons nominated under this subsection.

(c) A person shall not be nominated under this subsection unless he is an officer or employee of the Revenue Commissioners.

(4) Paragraph (c) of subsection (1) of section 190 of the Income Tax Act, 1918, and subsection (3) of section 7 of the Finance Act, 1934 , are each hereby amended by the insertion of “or Revenue Commissioners” after “Special Commissioners”.

(5) Subsection (1) of this section shall have effect notwithstanding section 7 of the Finance Act, 1934 , but shall not affect the operation of that section.

(6) Sections 172, 175, 176, 177, 178, 179, 180 and 184 of the Income Tax Act, 1918, shall not apply to the Collector-General.

(7) If and so long as the office created by subsection (1) of this section is vacant or the holder of that office is unable through illness, absence or other cause to fulfil his duties, a person nominated in that behalf by the Revenue Commissioners from their officers shall act as the Collector-General, and any reference in this or any other Act to the Collector-General shall be construed as including, where appropriate, a reference to a person nominated under this subsection.

(8) The Revenue Commissioners may revoke a nomination under this section.

Amendment of section 187(2) and section 196(1) of Income Tax Act, 1918.

24. —(1) Subsection (2) of section 187 of the Income Tax Act, 1918, is hereby amended by the substitution of “inspector of taxes” for “special commissioners”.

(2) Subsection (1) of section 196 of the Income Tax Act, 1918, is hereby amended by the substitution of “judge of the Circuit Court in whose circuit is situate, in the case of (a) a person who is not resident in the State, (b) the estate of a deceased person, (c) an incapacitated person, or (d) a trust, the place where the assessment was made and, in any other case, the place to which the notice of assessment was addressed” for “recorder or county court judge, as the case may be, having jurisdiction in the place where the assessment was made”.

Change of date on which sur-tax is due and payable.

25. —(1) Subsection (2) of section 3 of the Finance Act, 1928 , is hereby amended by the substitution of “on the first day of January in the year of assessment” for “on or before the first day of January next after the end of the year of assessment” and by the substitution of “made” for “signed and allowed” in both places where the latter words occur in the subsection.

(2) (a) Subsections (2) and (3) of section 11 of the Finance Act, 1961 , are hereby amended by the substitution of “year of assessment” for “preceding year” wherever the latter words occur.

(b) Accordingly—

(i) notices given before the commencement of this Act for the purposes of that section stating that income tax will be deductible from emoluments paid in the year 1963-64, and

(ii) notices so given stating that it is not practicable to give effect to an election for such deductions,

shall have effect as if they were notices given for the purposes of that section as amended by this section.

(3) Where sur-tax is payable by a person for the year 1962-63 and for the year 1963-64, the amount of the sur-tax for the year 1962-63 shall, if it exceeds the sur-tax payable for the year 1963-64, be reduced by an amount equal to the sur-tax payable for the year 1963-64, and shall, if less than, or equal to, the sur-tax payable for the year 1963-64, be remitted.

Assessment and charge of sur-tax by inspectors of taxes.

26. —(1) References in subsections (1), (2) and (5) of section 7 of the Income Tax Act, 1918, and subsection (1) of section 22 of the Finance Act, 1922, to the special commissioners shall be construed as references to an inspector of taxes and the reference in subsection (3) of the said section 7 to the special commissioners shall be construed as a reference to the Revenue Commissioners.

(2) The following subsection is hereby substituted for subsection (7) of section 7 of the Income Tax Act, 1918:

“(7) An inspector of taxes may amend any assessment made under this section (including an assessment made before the 6th day of April, 1963) or make an assessment or an additional assessment at any time in respect of any year of assessment (including a year of assessment earlier than the year 1963-64, but not earlier than the year 1922-23).”

(3) Subsection (5) of section 54 of the Finance Act, 1958 , is hereby amended by the insertion in paragraph (a) of “or sur-tax” after “income tax”.

(4) Subsection (6) of section 14 of the Finance Act, 1962 , is hereby amended by the insertion after “income tax” of “or sur-tax” and by the deletion of “sur-tax or”.

Estimation of certain amounts.

27. —(1) Where—

(a) the total income of an individual from all sources includes income from any source or sources which is to be computed on the basis of the actual amounts receivable in the year of assessment or where any deductions allowable on account of any annual sums paid out of the property or profits of an individual are to be allowed as deductions in respect of the year in which they are payable, and

(b) an assessment to sur-tax is being made before the end of the year of assessment to which such assessment to sur-tax relates,

the inspector of taxes in making the assessment shall, in computing the total amount of income assessable to sur-tax, estimate the amount of income from each such source or the amount of any such allowable deductions and, in making any such estimate, he shall have due regard to any corresponding amount of income or allowable deductions in the year immediately preceding the year of assessment.

(2) Where—

(a) an estimate has been made under subsection (1) of this section,

(b) notice of an appeal against the assessment to sur-tax has not been given, and

(c) the person assessed gives to the inspector of taxes within a period of one year from the end of the year of assessment particulars of the correct amount of the income or deductions in respect of which the estimate was made,

the inspector of taxes shall adjust the assessment by reference to the difference between the correct amount of income assessable to sur-tax and the amount of the assessment, and any amount of sur-tax overpaid shall be repaid.

Payment of reduced amount of sur-tax pending determination of appeal.

28. —Where an appeal relating to sur-tax is taken and the Special Commissioners are of opinion that the amount of sur-tax charged in any assessment exceeds the amount of sur-tax which will be payable when the appeal is finally determined—

(a) the Special Commissioners shall order payment of such reduced amount of sur-tax as in their opinion is just, having regard to the information available,

(b) that reduced amount of sur-tax shall be collected and paid in all respects as if it was sur-tax charged in an assessment which had become final and conclusive,

(c) when the amount of sur-tax correctly chargeable has been finally determined, any balance of sur-tax chargeable in accordance with the determination shall be payable or any tax overpaid shall be repaid, as the case may require.