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6 1967

INCOME TAX ACT, 1967

Chapter II

Schedule B

Schedule B.

30. —The Schedule referred to in this Act as Schedule B is as follows:—

1. Tax under this Schedule shall be charged in respect of the occupation of all lands, tenements and hereditaments in the State chargeable to tax under Schedule A, except—

(a) any dwelling-house, or the domestic offices thereunto belonging, unless occupied, by virtue of one and the same demise, together with a farm of lands, or with a farm of tithes, for the purpose of farming the same; or

(b) any warehouse or other building occupied for the purpose of carrying on a trade or profession.

2. Tax under this Schedule shall be charged for every twenty shillings of the assessable value of the lands, tenements or hereditaments concerned.

In this Act “assessable value” means in relation to tax under this Schedule an amount equal to the annual value of the lands, tenements and hereditaments, or, in any case in which it is proved to the satisfaction of the Special Commissioners that any person occupying any lands and assessed to tax in respect thereof is not occupying those lands for the purpose of husbandry only, or mainly for those purposes, and the Minister for Agriculture and Fisheries on a reference to him by the Revenue Commissioners does not certify that the use of the lands by the occupier thereof for a purpose other than the purpose of husbandry is unreasonable, an amount equal to one-third of the annual value.

3. The tax to be charged under this Schedule shall be in addition to the tax to be charged under Schedule A.

Annual value for Schedule B.

31. —(1) The annual value of lands for the purposes of Schedule B shall, subject to subsection (2), be the rateable valuation of the lands for the time being.

(2) The said annual value shall be taken to be—

(a) the judicial rent fixed under the Land Law (Ireland) Acts or any of them; or

(b) the annual interest or payment payable to the Irish Land Commission in lieu of rent under the Land Purchase Acts or any of them; or

(c) the purchase annuity payable under the Land Purchase Acts or any of them,

in any case in which it is shown that the said judicial rent, annual interest or payment, or purchase annuity, as the case may be, is less than the rateable valuation.

(3) Section 13 (1) shall apply in relation to an assessment under Schedule B as it applies to Schedule A.

(4) In this section “purchase annuity” means the first or original annuity payable before any redemption or statutory reduction.

Persons chargeable.

32. —(1) Tax under Schedule B shall be charged upon the occupier of the property.

(2) Every person having the use of any property shall be deemed to be the occupier thereof.

Assessment of certain profits derived from the keeping of a stallion.

33. —Where a person who is the occupier of land in respect of the occupation of which he is assessed under Schedule B is also the owner or part owner of a stallion which is ordinarily kept on such land, profits derived by such person from fees received or receivable for the service by such stallion on such land of mares owned by other persons shall be deemed, for the purposes of this Act, to arise from the occupation of such land.

Husbandry: election to be charged under Schedule D.

34. —(1) Any person occupying lands for the purposes of husbandry only may elect to be assessed and charged under Schedule D, and in accordance with the provisions applicable thereto, instead of under this Schedule.

(2) The election of any such person shall be signified by notice in writing delivered personally or sent by post in a registered letter to the inspector within two months after the commencement of the year of assessment; and from and after the receipt of the notice the charge upon him for that year shall be under Schedule D, and the profits or gains arising to him from the occupation of the lands shall for all purposes be deemed to be profits or gains of a trade chargeable under that Schedule.

Husbandry: profits falling short of assessable value.

35. —If a person who occupies, either as owner or otherwise, any lands for the purposes of husbandry only, shows within a period of one year after the end of any year of assessment to the satisfaction of the Special Commissioners that the profits or gains arising from that occupation during that year fell short of the assessable value of the lands under this Schedule, the income arising from that occupation shall be taken at the actual amount of those profits or gains, and if the whole of the tax has been paid, the amount overpaid shall be certified and repaid in like manner as tax is repaid under section 22 (2).

Woodlands.

36. —(1) Any person occupying woodlands, who proves to the satisfaction of the Special Commissioners that those woodlands are managed by him on a commercial basis and with a view to the realisation of profits, may elect to be assessed and charged to tax in respect of those woodlands under Schedule D instead of under this Schedule in the same manner as a person occupying lands for the purposes of husbandry only, and section 34 shall apply accordingly.

(2) Any such election shall extend to all woodlands so managed on the same estate:

Provided that woodlands shall be treated for this purpose as being woodlands on a separate estate, if the person occupying those woodlands gives notice to the Special Commissioners within ten years after the time when they are planted or replanted.

(3) The election shall have effect, not only as respects the year of assessment, but also as respects all future years of assessment, so long as the woodlands are occupied by the person making the election.

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

37. —(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 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 section 34;

(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 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 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 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), this Act shall apply as if he had duly made, under section 34, 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) this Act shall, subject to the next subparagraph, apply as if the person had duly made, under section 34, 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 this Act 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 or profession,

(ii) a person who, in the year of assessment, is a married person whose wife or husband carries on in that year a trade or profession, 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 25 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), 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), 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 Act, 1963 ;

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.

Relief under Schedule B in case of loss by flood or tempest.

38. —Section 26, relating to relief in the case of losses caused by flood or tempest, shall apply in the case of Schedule B as in the case of Schedule A, and as respects land the proprietor of which is shown to the satisfaction of the Special Commissioners to be an incapacitated person, or to be otherwise incapable of consenting to an abatement of the rent, an abatement and discharge of tax under Schedule B may be allowed by the Special Commissioners on proof to them of the loss in respect of the abatement of rent which in their opinion ought to have been made.