No. 21/1953:

FINANCE ACT, 1953

ARRANGEMENT OF SECTIONS

PART I INCOME TAX

1 Income tax and sur tax for the year 1953-54.

2 Amendment of section 32 of Income Tax Act, 1918.

3 Relief in certain cases.

PART II EXCISE

4 Entertainments duty—rates in the case of cinematographic exhibitions.

5 Entertainments duty—exemptions.

6 Entertainments duty—repayments in the case of certain cinematographic exhibitions.

7 Entertainments duty—amendment of section 13 of Finance Act, 1949.

8 Amendment of Finance (Excise Duties) (Vehicles) Act, 1952.

PART III CORPORATION PROFITS TAX

9 Continuance of certain exemptions from corporation profits tax.

PART IV UNREMITTABLE INCOME: INCOME TAX, SUR-TAX AND CORPORATION PROFITS TAX

10 Unremittable income.

11 Construction of this Part of this Act.

PART V STAMP DUTIES

12 Exchanges.

13 Exemption for certain receipts.

14 Refund of stamp duties in certain cases.

PART VI MISCELLANEOUS AND GENERAL

15 Capital Services Redemption Account.

16 Discharge of death duties by transfer of 5 % National Loan 1962/72.

17 Amendment of section 2 of Public Revenue and Consolidated Fund Charges Act, 1854.

18 Care and management of taxes and duties.

19 Short title, construction and commencement.

AN ACT TO CHARGE AND IMPOSE CERTAIN DUTIES OF CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE), TO AMEND THE LAW RELATING TO CUSTOMS AND INLAND REVENUE (INCLUDING EXCISE) AND TO MAKE FURTHER PROVISIONS IN CONNECTION WITH FINANCE.

[28th July, 1953.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

PART I INCOME TAX

1.—(1) Income tax shall be charged for the year beginning on the 6th day of April, 1953, at the rate of seven shillings and six pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1953, shall be charged in respect of the income of any individual the total of which from all sources exceeds one 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, 1952.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1953, 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, 1953.

2.—Where, with any insurance company or friendly society, being a company or society which is registered in the State and managed and controlled therein, any person, after the 21st day of May, 1953—

( a ) makes an insurance on his life or the life of his wife, or

( b ) contracts for any deferred annuity on his own life or the life of his wife,

the amount of any relief to which he is entitled under section 32 of the Income Tax Act, 1918, as amended by subsequent enactments, shall as regards that insurance or contract be ascertained as if, in clause (A) of paragraph (i) of subsection (1) and in clause (A) of subparagraph (i) of paragraph (e)of subsection (3) of the said section, the words" two-thirds of the standard rate of tax" were substituted for the words "half the standard rate of tax".

3.—(1) Where as regards any person to whom the provisions of section 2 of the Finance Act, 1941 (No. 14 of 1941), formerly applied—

( a ) such person has income arising in a country outside the State and outside Great Britain and Northern Ireland in respect of which relief was formerly granted by virtue of those provisions, and

( b ) the Revenue Commissioners are satisfied in relation to that income that the total tax, that is to say, Irish tax (including sur-tax) in respect of the income together with the corresponding tax of the said country, is in excess of what the said corresponding tax would have been if it had been computed on the basis that such person had been taxable as a person solely resident in the said country in respect of income arising from sources therein,

the Revenue Commissioners may grant a measure of relief not exceeding the amount of the excess.

(2) This section shall be deemed to have come into force on and shall take effect as on and from the 6th day of April, 1952.

PART II EXCISE

4.—On and after the 1st of September, 1953, section 10 of the Finance Act, 1948 (No. 12 of 1948), shall have effect as if, for the rates specified in subsection (3) thereof, there were substituted the following rates, that is to say:

5.—Entertainments duty within the meaning of and chargeable under section 1 of the Finance (New Duties) Act, 1916, as amended by subsequent enactments shall not be charged or levied on payments for admission to any entertainment in respect of which it is proved to the satisfaction of the Revenue Commissioners—

( a ) that the entertainment is promoted by Cumann Peil Cise Baigheach na hEireann or by a club affiliated to or under the direct control of that association and that the entertainment consists solely of an exhibition of the game of basketball, or

( b ) that the entertainment is promoted by Cumann Rothaidheachta na hEireann or by a club affiliated to or under the direct control of that association and that the entertainment consists solely of an exhibition of the sport of cycle roller racing at or in connection with which no money is awarded or paid to any of the participants or contestants whether as a prize, remuneration or otherwise.

6.—(1) Where—

( a ) as respects payments for admission to any entertainment held on or after the 1st day of September, 1953, entertainments duty within the meaning of and chargeable under section (1) of the Finance (New Duties) Act, 1916, as amended by subsequent enactments has been paid, and

( b ) it is shown to the satisfaction of the Revenue Commissioners that the entertainment was an entertainment as respects which the conditions specified in subsection (2) of this section were satisfied,

the Revenue Commissioners shall repay to the proprietor of the entertainment an amount equal to fifty per cent of the duty so paid.

(2) The conditions, referred to in paragraph ( b ) of subsection (1) of this section are:

( a ) that the entertainment consists wholly of a cinematographic exhibition, and

( b ) that the entertainment is of educational value either—

(i) by reason of the fact that not less than thirty-three and one-third per cent. of the entertainment consists of moving pictures produced by means of a cinematograph film having a continuous sound track from which is produced speech in the Irish language, or

(ii) by reason of the fact that not less than fifty per cent. of the entertainment consists of moving pictures produced by means of a cinematograph film having a continuous sound track from which is produced speech in a language other than the official languages of the State.

(3) An entertainment shall not be regarded as being wholly of an educational character within the meaning of paragraph ( b ) of subsection (2) of section 10 of the Finance Act, 1943 (No. 16 of 1943), merely because it satisfies the condition specified in paragraph (b) of subsection (2) of this section.

7.—(1) In this section "the principal section" means section 13 of the Finance Act, 1949 (No. 13 of 1949).

(2) The principal section shall have effect subject to the proviso that—

( a ) where the census of population which is for the time being the latest such census shows that the population of a town exceeds five hundred, and

( b ) the population of the town according to the immediately preceding census of population did not exceed five hundred, the population of the town according to such latest census shall, with respect to the period of two years beginning on the day (as certified for the purposes of this proviso by the Minister for Finance by order) of publication of such latest census, be treated for the purposes of the principal section as being reduced so as not to exceed five hundred.

(3) The reference in paragraph ( b ) of subsection (2) of this section to the population of the town according to the immediately preceding census of population shall be construed, where the proviso to the principal section contained in section 10 of the Finance Act, 1951 (No. 15 of 1951), had effect in relation to that population, as a reference to that population as reduced as specified in that proviso.

(4) Where the census of population which is for the time being the latest such census is the census of population of 1951, the proviso specified in subsection (2) of this section shall have effect with the substitution of a reference to the period of two years beginning on the 1st day of September, 1953, for the reference to the period of two years beginning on the certified day of publication of such census.

8.—(1) Paragraph (3) of Part II of the Schedule to the Finance (Excise Duties) (Vehicles) Act, 1952 (No. 24 of 1952), is hereby amended by the addition thereto of the following provision:

"Where a farm is carried on as part of or in connection with—

( a ) a hospital, sanatorium, convalescent home or similar institution,

( b ) a mental institution within the meaning of the Mental Treatment Act, 1945 (No. 19 of 1945),

( c ) a monastery, convent or similar institution, or

( d ) a college, school or similar institution,

the person carrying on the farm shall be regarded for the purposes of this paragraph as being a person whose chief occupation is farming."

(2) Subsection, (1) of this section shall be deemed to have come into operation on the passing of the Finance (Excise Duties) (Vehicles) Act, 1952 .

(3) The appropriate repayments shall be made having regard to the foregoing provisions of this section and the repayments shall be made in accordance with such directions as may be given by the Minister for Local Government.

PART III CORPORATION PROFITS TAX

9.—The exemptions from corporation profits tax specified in subsection (1) of section 33 of the Finance Act, 1929 (No. 32 of 1929), as amended by section 30 of the Finance Act, 1931 (No. 31 of 1931), paragraph (b) of subsection (1) of section 47 of the Finance Act, 1932 (No. 20 of 1932), and subsection (2) of section 11 of the Finance Act, 1950 (No. 18 of 1950), shall be given in respect of the period beginning on the 1st day of January, 1953, and ending on the 31st day of December, 1955.

PART IV UNREMITTABLE INCOME: INCOME TAX, SUR-TAX AND CORPORATION PROFITS TAX

10.—(1) In this section—

"tax" means income tax, sur-tax or corporation profits tax, as the case may be;

"particular income" means income arising outside the State, the amount of which is, or is included in, the amount (in this section referred to as the said amount) on which, in accordance with the relevant statute, the tax is computed.

(2) Subject to the other subsections of this section, the provisions of this section shall have effect where—

( a ) tax is charged by an assessment for any period, whether beginning before the date of the passing of this Act or otherwise, and whether the assessment has been made before that date or otherwise, and

( b ) the tax has not been paid.

(3) In any case in which, on or after the date on which the tax has become payable, such proof is given to the Revenue Commissioners as renders them satisfied that particular income cannot, by reason of legislation in the country in which it arises or of executive action of the Government of that country, be remitted to the State, the Revenue Commissioners may, for the purposes of collection, treat the assessment as if the said amount did not include the particular income, but such treatment shall terminate on the Revenue Commissioner ceasing to be satisfied as aforesaid,

(4) The Revenue Commissioners may, for the purposes of this section, call for such information as they consider necessary.

(5) Any person who is dissatisfied with a decision of the Revenue Commissioners under subsection (3) of this section may, by giving notice in writing to the Revenue Commissioners within twenty-one days after the notification on of the decision to him, apply to have the matter referred to the Special Commissioners, whose decision shall be final.

11.—This Part of this Act shall, so far as relating to income tax (including sur-tax), be read and construed together with the Income Tax Acts and shall, so far as relating to corporation profits tax, be read and construed together with Part V of the Finance Act, 1920, as amended or extended by subsequent enactments.

PART V STAMP DUTIES

12.—(1) In this section "the principal Act" means the Stamp Act, 1891.

(2) ( a ) Where upon the exchange of any property for any other property the properties exchanged are not of equal value, the principal or only instrument (in this subsection referred to as the said instrument) whereby the exchange is effected shall be charged with the same stamp duty, and be subject to the provisions of the principal Act (as amended by subsequent enactments), as if, instead of being such instrument, it were a conveyance on sale of the property which is of the greater value—

(i) which was made in consideration of a sum equal to the difference between the values of the properties exchanged,

(ii) which was made to the person or persons in whom there vests the property which is of the greater value,

(iii) under which the entire beneficial interest passed to the person becoming entitled to the entire beneficial interest in the property which is of the greater value, or, where more than one person becomes entitled to a beneficial interest therein, under which a beneficial interest passed to each of them, and

(iv) which contained any statements and certificates such as are referred to in section 13 of the Finance (No. 2) Act, 1947 (No. 33 of 1947), as amended by subsequent enactments, and section 21 of the Finance Act, 1952 (No. 14 of 1952), that might properly be contained therein if it were in fact such a conveyance on sale.

( b ) Where there are several instruments for completing the title of either party to the exchange, the principal instrument is to be ascertained and the other instruments are to be charged with duty in the manner provided in the principal Act in the case of several instruments of conveyance.

( c ) The said instrument shall be deemed not to be duly stamped unless the Revenue Commissioners have expressed their opinion thereon in accordance with section 12 of the principal Act.

( d ) In this subsection "property" means lands, tenements or hereditaments and "value", where used in relation to property, means the value of the property free from all charges and incumbrances.

(3) Section 73 of the principal Act shall not apply in relation to an exchange in relation to which subsection (2) of this section applies and the references to the said section 73 contained under the heading "Exchange or Excambion" in the First Schedule to the principal Act shall, in the case of any such exchange, be construed as references to that subsection.

13.—The following exemption shall be substituted for exemption numbered (6) under the heading "Receipt given for, or upon the payment of, money amounting to £2 or upwards" in the First Schedule to the Stamp Act, 1891:

"(6) Receipt given for or on account of any salary, pay or wages, or for or on account of any other like payment made to or for the account or benefit of any person, being the holder of an office or an employee, in respect of his office or employment, or for or on account of money paid in respect of any pension, superannuation allowance, compassionate allowance or other like allowance"

(2) Subsection (2) of section 38 of the Finance Act, 1926 (No. 35 of 1926), and section 36 of the Finance Act, 1935 (No, 28 of 1935) are hereby repealed.

14.—(1) In this section—

"the 1947 section" means section 13 of the Finance (No. 2) Act, 1947 (No. 33 of 1947), as amended by subsequent enactments;

"the 1949 section" means section 24 of the Finance Act, 1949 (No. 13 of 1949), as amended by subsequent enactments.

(2) Where—

( a ) an instrument has (whether before or after the passing of this Act) been charged with stamp duty in accordance with subsection (5) of the 1947 section,

( b ) a person requires under section 12 of the Stamp Act, 1891, the Revenue Commissioners to express their opinion with reference to the instrument, and

( c ) it is shown to the satisfaction of the Revenue Commissioners that the person who became entitled under the instrument to the entire beneficial interest in the property conveyed or transferred (or, where more than one person became entitled to a beneficial interest therein, each of them) was, at the date of the execution of the instrument, an Irish citizen,

the instrument shall be deemed to have contained any such statements as are referred to in the 1947 section that could properly have been contained therein, and to have been chargeable with duty accordingly, whether or not it has previously been stamped with a particular stamp denoting that it is duly stamped.

(3) Where—

( a ) an instrument has (whether before or after the passing of this Act) been charged with stamp duty in accordance with subsection (5) of the 1949 section,

( b ) a person requires under section 12 of the Stamp Act, 1891, the Revenue Commissioners to express their opinion with reference to the instrument, and

( c ) it is shown to the satisfaction of the Revenue Commissioners that the person who became entitled to the entire beneficial interest in the lessee's interest under the instrument (or, where more than one person became entitled to a beneficial interest therein, each of them) was, at the date of the execution of the instrument, an Irish citizen, the instrument shall be deemed to have contained any such statements as are referred to in the 1949 section that could properly have been contained therein, and to have been chargeable with duty accordingly, whether or not it has previously been stamped with a particular stamp denoting that it is duly stamped.

(4) In any such case as is referred to in subsection (2) or subsection (3) of this section, the Revenue Commissioners may repay the difference between the amount of duty actually charged on the instrument and the amount deemed to be chargeable thereon by virtue of this section, provided that the application for repayment is made within two years after the date of the passing of this Act or the date of the instrument (whichever date is the later).

(5) The reference in paragraph (a) of subsection (1) of section 19 of the Finance Act, 1951 (No. 15 of 1951), to the enactments in force immediately before the passing of that Act shall be construed as including a reference to the foregoing subsections of this section.

PART VI MISCELLANEOUS AND GENERAL

15.—(1) In this section—

"the principal section" means section 22 of the, Finance Act, 1950 (No. 18 of 1950);

"the 1952 amending section" means section 23 of the Finance Act, 1952 (No. 14 of 1952);

"the third 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 1952 amending section shall, in relation to the twenty-nine successive financial years commencing with the financial year ending on the 31st day of March, 1954, have effect with the substitution of "£463,805" for" £501,922".

(3) Subsection (6) of the 1952 amending section shall have effect with the substitution of "£292,755" for "£323,127".

(4) A sum of £767,274 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, 1954.

(5) The third 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 third additional annuity, not exceeding £493,955 in any financial year, may be applied towards defraying the interest on the public debt.

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

16.—(1) In this section—

"the Minister" means the Minister for Finance;

"the Loan" means 5% National Loan, 1962/72;

"the Account" means such account as is, prescribed pursuant to subsection (3) of this section.

(2) The Minister may by regulations provide that stock of the Loan shall, subject to the regulations, be accepted in payment of any death duty.

(3) Where regulations are made under subsection (2) of this section, a person from whom any sum is due on account of any death duty may, subject to the regulations, pay the sum or any part thereof by means of a transfer, to such account of the Minister as is prescribed by the regulations, of so much of the stock of the Loan as is equal in value at the date of the transfer to the sum or part.

(4) Holdings of stock of the Loan transferred to the Account may be held therein or sold, cancelled or otherwise dealt with as the Minister directs.

(5) The transfer of a holding of stock of the Loan to the Account shall be accepted by the Revenue Commissioners as a cash payment to them of a sum equal to the value of the holding at the date of the transfer.

(6) The Minister shall pay out of the Account to the Revenue Commissioners the values at the dates of transfer of holdings of stock of the Loan transferred to the Account.

(7) Sums paid by way of interest on or redemption of holdings of stock of the Loan held in the Account and sums derived from sales of or other dealings with such holdings shall be paid into the Account.

(8) Sums paid into the Account pursuant to subsection (7) of this section shall be applied in or towards meeting payments which the Minister is required by this section to make to the Revenue Commissioners out of the Account, and any balance shall, as and when the Minister directs, be paid into the Exchequer in repayment of moneys advanced to the Account from the Central Fund or the growing produce thereof, and, if the balance is in excess of the sum required for repaying moneys advanced to the Account from the Central Fund or the growing produce thereof, the excess amount shall be disposed of for the benefit of the Exchequer in such manner as the Minister directs.

(9) There shall be advanced out of the Central Fund or the growing produce thereof to the Account such sums as may be required to meet any payments under this section by the Minister to the Revenue Commissioners out of the Account which are not met under subsection (8) of this section.

(10) For the purpose of providing for advances out of the Central Fund or the growing produce thereof under this section, the Minister may borrow from any person any sum or sums, and for the purpose of such borrowing he may create and issue securities bearing such rates of interest and subject to such conditions as to repayment, redemption or any other matter as he thinks fit, and he shall pay any moneys so borrowed into the Exchequer.

(11) The principal of and interest on any securities issued under this section and the expenses incurred in connection with the issue of such securities shall be charged on and payable out of the Central Fund or the growing produce thereof.

(12) For the purposes of this section—

( a ) the value at the date of transferred of any holding of stock of the Loan transferred to the Account shall be the nominal face value with the addition of any interest accrued due at the date of the transfer but then remaining unpaid, after deducting any interest which may be receivable by the transferor after that date, and

( b ) interest on any such holding of stock of the Loan shall be deemed to accrue from day to day.

17.—Section 2 of the Public Revenue and Consolidated Fund Charges Act, 1854, is hereby amended by the substitution of the words "the thirtieth day of September" for the words "the thirtieth day of June, if Parliament be sitting, or if Parliament be not sitting then within fourteen days after the next meeting of Parliament".

18.—All taxes and duties imposed by this Act are hereby placed under the care and management of the Revenue Commissioners.

19.—(1) This Act may be cited as the Finance Act, 1953 .

(2) Part I of this Act shall be construed together with the Income Tax Acts.

(3) Part II of this Act shall be construed together with the Statutes which relate to the duties of excise and the management of those duties.

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

(5) Part I of this Act shall, save as is otherwise expressly provided therein, be deemed to come into force on and shall take effect as on and from the 6th day of April, 1953.