PART IV

Wealth Tax

49. — Section 1 of the Wealth Tax Act, 1975 , is hereby amended by the substitution of the following definition for the definition of “discretionary trust” in subsection (1)—

“‘discretionary trust’ means any disposition whereby, or by virtue or in consequence of which, property is held on trust to accumulate the income or part of the income of the property, or any disposition whereby, or by virtue or in consequence of which, property is held on trust to apply, or with a power to apply, the income or capital or part of the income or capital of the property to or for the benefit of any person or persons or of any one or more of a number or of a class of persons whether at the discretion of trustees or any other person and notwithstanding that there may be a power to accumulate all or any part of the income or that the income or capital or part of the income or capital of the property is limited to any person for any period of time other than the life of such person and for the purposes of this definition ‘disposition’ includes any disposition whether by deed or will and any covenant, agreement or arrnagement whether effected with or without writing;”.

50. — Section 6 of the Wealth Tax Act, 1975 , is hereby amended by the substitution for subsection (5) of the following subsection—

“(5) (a) A body corporate to which this subsection applies shall not be a private non-trading company for the purposes of this Act.

(b) This subsection applies to a body corporate (in this paragraph referred to as the first body corporate)—

(i) of which a body corporate which is not a private non-trading company has control, or

(ii) in respect of which the market value on the valuation date of the property to which it is beneficially entitled in possession on that date is represented as to not less than 90 per cent. thereof by the market value of shares in or debentures of a body corporate which is not a private non-trading company and of which the first body corporate has control.”.

51. —(1) Section 28 of the Wealth Tax Act, 1975 , is hereby amended by the addition of the following subsection—

“(6) (a) Where the Commissioners are satisfied that a tax of a similar character to wealth tax was paid in a territory outside the State in respect of any property (other than real property in the State) by reference to any date prior to but within twelve months of a valuation date, they may make an allowance by way of credit against the wealth tax due and payable on that date in respect of such property or grant exemption in respect of such property for that valuation date.

(b) This subsection shall have effect in respect of wealth tax due and payable on a valuation date but it shall not have effect in relation to a foreign tax in respect of which there is, for the time being, an order in force under this section providing for double taxation relief.”.

(2) Subsection (1) of this section shall be deemed to have come into operation on the 5th day of April, 1975.