PART VI.

Turnover Tax.

36. —The following subsection is hereby, with effect as on and from the 12th day of May, 1965, substituted for subsection (4) of section 47 of the Finance Act, 1963 :

“(4) Where goods are supplied or services are provided by a club or other body of persons in respect of a payment of money by any of its members, then, for the purposes of this Part of this Act,—

(a) in the case of supply of goods, the supply shall be treated as being a sale of the goods in the course of business, the money as being money received in respect of the sale and the club or other body of persons as being the seller, and

(b) in the case of provision of services, the provision shall be treated as being in the course of business.”

37. —(1) The following subsection is hereby, with effect as on and from the 12th day of May, 1965, inserted in section 48 of the Finance Act, 1963 , after subsection (1):

“(1A) Where in any of the cases mentioned in subsection (1) of this section, the right to receive the whole or any part of the moneys payable in respect of the relevant activity is or becomes vested in a person other than the person specified in that subsection as the accountable person, the person in whom such right is or becomes vested shall be accountable for and liable to pay tax on such moneys as he may receive in respect of the activity.”

(2) In paragraph (c) and in paragraph (f) of subsection (3) of section 48 of the Finance Act, 1963 , “£150” is hereby substituted for “£100”.

(3) The following paragraph is hereby inserted in subsection (3) of section 48 of the Finance Act, 1963 , after paragraph (f):

“(g) Where a farmer or fisherman sells his own produce or any part thereof by retail, otherwise than in connection with the carrying on of the business of a shop or similar retail business, tax shall not be chargeable and he shall not be accountable for tax in respect of such retail sales unless or until the moneys received by him in respect thereof exceed £150 in each of two successive months and he shall then become accountable for tax immediately on the expiration of the second month; but in the meantime those moneys shall be disregarded for the purposes of paragraph (c) of this subsection.”

(4) The amendments specified in subsections (2) and (3) of this section shall come into operation—

(a) if this Act is passed before or in July, 1965—on the 1st day of August, 1965, and

(b) if it is passed in or after August, 1965—on the 1st day of the month next following that in which it is passed.

38. —(1) In the second paragraph of the First Schedule to the Finance Act, 1963 , “other than retail sales” is hereby substituted for “otherwise than in connection with the carrying on of the business of a shop or similar retail business”.

(2) The amendment specified in subsection (1) of this section shall come into operation—

(a) if this Act is passed before or in July, 1965—on the 1st day of August, 1965, and

(b) if it is passed in or after August, 1965—on the 1st day of the month next following that in which it is passed.

39. —(1) Where—

(a) it appears to the Revenue Commissioners (whether upon disclosure to them of information which in accordance with the relevant regulations has been furnished to them for the ascertainment of liability to tax of the person concerned or otherwise) that, in computing the taxable turnover of an accountable person in respect of any month, a deduction of moneys has been made on the basis that the activity in relation to which the moneys were received is an exempted activity within the meaning of subsection (2) of section 48 of the Finance Act, 1963 , and

(b) the Revenue Commissioners are of opinion that that activity is not such an exempted activity,

the Revenue Commissioners may, at their discretion and without prejudice to any other action which may be taken, serve notice on the person specifying—

(i) the deduction which in their opinion should not have been made in computing taxable turnover for the month in question, and

(ii) the additional tax which would be payable if that deduction had not been made.

(2) Where a notice is served on an accountable person under subsection (1) of this section—

(a) the person may, if he claims that the deduction specified in the notice relates to an exempted activity within the meaning of subsection (2) of section 48 of the Finance Act, 1963 , by notice in writing given to the Revenue Commissioners within the period of fourteen days from the service of the notice, require the claim to be referred for decision to the Special Commissioners of Income Tax,

(b) on the expiration of the said period, if no such claim is required to be so referred, or, if such claim is required to be so referred, on determination by the Special Commissioners of Income Tax against the claim, the additional tax specified in the notice shall be recoverable in the same manner and by the like proceedings as if the person had sent, in accordance with the relevant regulations, particulars showing such tax as due by him.

(3) A notice served under subsection (1) of this section may relate to two or more months and to two or more deductions in any month.

40. —(1) The following provisions shall have effect in relation to claims required to be referred to the Special Commissioners of Income Tax under paragraph (a) of subsection (2) of section 54 of the Finance Act, 1963 , or under paragraph (a) of subsection (2) of section 39 of this Act:

(a) the Special Commissioners of Income Tax shall from time to time appoint times and places for the hearing of claims and the Clerk to the Special Commissioners shall give notice of those times and places to the Revenue Commissioners;

(b) the Revenue Commissioners shall give notice in writing to each person (other than a person whose claim has been treated as determined in accordance with subsection (2) of this section) who has given notice of claim of the time and place appointed for the hearing of his claim;

(c) a claim may be heard and determined by one Special Commissioner;

(d) in the case of the neglect or refusal of a person who has given notice of claim to attend before the Special Commissioners at the time and place appointed for the purpose of hearing claims, the claim shall be treated as if the Special Commissioners of Income Tax had determined against it at the time so appointed;

(e) if it is shown by application in writing to the satisfaction of the Special Commissioners of Income Tax that, owing to absence, sickness or other reasonable cause, any person has been prevented from giving notice of claim in due time or from attending at the hearing of the claim on the day fixed for that purpose, they may extend the time for giving notice of claim or postpone the hearing of his claim for such reasonable time as they think necessary or may admit the claim to be made by any agent authorised on his behalf;

(f) an inspector of taxes or such other officer as the Revenue Commissioners shall appoint in that behalf may attend every hearing of claim and shall be entitled—

(i) to be present during all the time of the hearing and at the determination of the claim,

(ii) to produce any lawful evidence against the claim, and

(iii) to give reasons against the claim;

(g) the Special Commissioners of Income Tax shall permit any barrister or solicitor to plead before them on behalf of the claimant or the Revenue Commissioners, either viva voce or in writing, and shall hear any accountant, being any person who has been admitted a member of an incorporated society of accountants;

(h) if it appears to the Special Commissioners of Income Tax by whom the claim is heard, or to a majority of such Commissioners, by examination of the claimant on oath or affirmation, or by other lawful evidence that the claim is justified, they shall determine in favour of the claim but otherwise they shall determine against the claim;

(i) where the Special Commissioners of Income Tax have entertained a claim and, after hearing argument on the claim, have postponed giving their determination either for the purpose of considering the argument or for the purpose of affording to the claimant an opportunity of submitting in writing further evidence or argument, the Special Commissioners may, unless they consider a further hearing to be necessary, cause their determination to be sent by post to the claimant and to the Revenue Commissioners;

(j) where the Special Commissioners have determined a claim, their determination shall be final and conclusive, save that the provisions of the Income Tax Acts relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall, with the necessary modifications, apply in the same manner as in the case of an appeal against an assessment to income tax.

(2) If a person has made a claim under paragraph (a) of subsection (2) of section 39 of this Act and, at any time before the time fixed for hearing his claim by the Special Commissioners of Income Tax, he, or a person acting on his behalf in relation to the claim, notifies the Revenue Commissioners in writing that he desires not to proceed with his claim, the claim shall be treated as if the Special Commissioners of Income Tax had determined against it on the date upon which he so notifies the Revenue Commissioners.