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17 1966

FINANCE ACT, 1966

PART VII

Miscellaneous

Capital Services Redemption Account.

27. —(1) In this section—

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

the 1965 amending section” means section 61 of the Finance Act, 1965 ;

the sixteenth additional annuity” means the sum charged on the Central Fund under subsection (4) of this section;

the Minister”, “the Account” and “capital services” have the same meanings respectively as they have in the principal section.

(2) Subsection (4) of the 1965 amending section shall, in relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of March, 1967, have effect with the substitution of “£1,739,171” for “£1,819,122”.

(3) Subsection (6) of the 1965 amending section shall have effect with the substitution of “£1,103,334” for “£1,176,735”.

(4) A sum of £1,819,988 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 March, 1967.

(5) The sixteenth 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 sixteenth additional annuity, not exceeding £1,177,295 in any financial year, may be applied towards defraying the interest on the public debt.

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

Allowances in respect of certain buildings or structures used for market gardening.

28. —(1) Section 17 of the Finance (Miscellaneous Provisions) Act, 1956 , is hereby amended by the insertion at the end of subsection (1) of “or” and the following paragraph :

“(d) for the purposes of growing fruit, vegetables or other produce in the course of a trade of market gardening within the meaning of section 2 of the Finance Act, 1958 .”

(2) Section 11 of the Finance Act, 1962, is hereby amended by the insertion in subsection (2) of “in respect of which an allowance under Part IV of the Finance (Miscellaneous Provisions) Act, 1956 , falls to be made by virtue of section 17 (1) (d) of that Act or” after “other than capital expenditure”.

(3) In relation to a building or structure which falls to be regarded as an industrial building or structure by virtue of subsection (1) of this section, Part V of the Finance Act, 1959 , shall have effect as if—

(a) “one-tenth” were substituted for “one-fiftieth” in section 25 (1) and section 27 (4) of that Act, and

(b) “tenth year” were substituted for “fiftieth year” in section 25 (3) and section 26 (1) of that Act.

(4) The foregoing provisions of this section shall have effect—

(a) as from the 7th day of April, 1964, in so far as they are relevant to allowances under Part IV of the Finance (Miscellaneous Provisions) Act, 1956 , and

(b) as from the 6th day of April, 1965, in so far as they are relevant to allowances or balancing charges under Part V of the Finance Act, 1959,

but no allowance under the said Part IV or the said Part V shall be made by virtue of this section for any year of assessment prior to the year 1966-67.

Amendment of Part III of Finance (Miscellaneous Provisions) Act, 1956 .

29. —(1) In the case of a body corporate carrying on a trade which consists of or includes the rendering to another person of services by way of subjecting commodities or materials belonging to that person to any process of manufacture, the following provisions shall, if the body corporate so elects, apply for the purposes of relief from income tax and corporation profits tax under Part III of the Finance (Miscellaneous Provisions) Act, 1956 :

(a) the body corporate shall be regarded as being a company where it would not otherwise be so regarded;

(b) the rendering in the State of such services shall be regarded as the manufacture of goods and any amount receivable in payment therefor shall be regarded as an amount receivable from the sale of goods, and

(c) where—

(i) such services are rendered to a person who is not resident in the State in relation to commodities or materials which have been imported into the State, and

(ii) after the services have been rendered, the commodities or materials, or the products or articles into which they have been converted, are exported out of the State while continuing to belong to that person,

the body corporate shall be regarded as having exported goods out of the State and any payment receivable by it for the services shall be regarded as an amount receivable from the sale of goods so exported.

(2) Any election under subsection (1) of this section shall be made by notice in writing delivered to the inspector of taxes and shall have effect as respects every year of claim and every accounting period for which relief under Part III of the Finance (Miscellaneous Provisions) Act, 1956 , is, or has been, claimed by the body corporate by which it is made.

(3) The Revenue Commissioners may by notice in writing require a body corporate claiming relief from tax by virtue of subsection (1) of this section to furnish them with such information or particulars as may be necessary for the purpose of giving effect to that subsection, and section 12 (1) and section 13 (1) of the Finance (Miscellaneous Provisions) Act, 1956 , shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this subsection.

(4) Subsection (1) of this section shall have effect as from the passing of the Finance (Miscellaneous Provisions) Act, 1956 , and relief from tax in relation to the period between such passing and the passing of this Act may be given accordingly by repayment or otherwise as the Revenue Commissioners think proper:

Provided that where, before an election was made by it under this section, a body corporate has paid a dividend and the amount of income tax which it was entitled to deduct from the dividend exceeds the amount which, under section 15 (2) of the Finance (Miscellaneous Provisions) Act, 1956 , it would have been entitled to deduct if the election had been made before the dividend was paid, any relief from income tax which would otherwise have been allowable shall be reduced by the amount of the excess.

(5) Where for any year of assessment the income of any person consists of, or includes, a dividend in relation to which the proviso to subsection (4) of this section has had effect, the person shall be entitled to claim such repayment, if any, of income tax and sur-tax as will reduce his total liabilities to those taxes to what those liabilities would have been if income tax had been deducted from the dividend at the rate at which it would have been deductible if subsection (1) of this section had had effect in relation to the body corporate at the time when the dividend was paid.

Amendment of section 19 of Finance Act, 1937 .

30. —(1) Section 19 of the Finance Act, 1937 , is hereby amended by the insertion at the end of the section of “and subject to the exception of the Bank Act, 1892, shall also apply and be deemed always to have applied, with those modifications, to the management by the Central Bank of Ireland of those stocks, funds and securities subject to the exception of National Bonds”.

(2) Regulation 3 of the Government Stock (Management) Regulations, 1937, is hereby amended by the insertion of “National Bonds or” before “Land Bonds” and of “the Central Bank of Ireland,” before “the Bank of Ireland”.

Care and management of taxes and duties.

31. —All taxes and duties (except the excise duties on mechanically propelled vehicles) imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

Short title, construction and commencement.

32. —(1) This Act may be cited as the Finance Act, 1966.

(2) Part I and (so far as relating to income tax, including surtax) sections 28 and 29 of this Act, and the First Schedule to this Act, shall be construed together with the Income Tax Acts.

(3) Part II of this Act, so far as it relates to customs, shall be construed together with the Customs Acts and, so far as it relates to duties of excise, shall be construed together with the Statutes which relate to the duties of excise and the management of those duties.

(4) Part IV of this Act shall be construed together with the Stamp Act, 1891, and the enactments amending or extending that Act.

(5) Part V and (so far as relating to corporation profits tax) sections 28 and 29 of this Act shall be construed together with Part V of the Finance Act, 1920, and the enactments amending or extending that Part.

(6) Part VI of this Act shall be construed together with Part VI of the Finance Act, 1963 , and Part VI of the Finance Act, 1965 .

(7) Part I of this Act and the First Schedule thereto shall be deemed to have come into force and shall take effect as on and from the 6th day of April, 1966.

(8) 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.