IE-1983-act-15 — Finance Act, 1983

Amendment of section 1 (exemption from income tax) of Finance Act, 1980. 1. — Section 1 of the Finance Act, 1980 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, by the substitution in subsection (2) of “£4,800” for “£4,400” (inserted by the Finance Act, 1982 ) and of “£2,400” for “£2,200” (inserted by the Finance Act, 1982 ), and the said subsection (2), as so amended, is set out in the Table to this section. TABLE (2) In this section “the specified amount” means— ( a ) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 ( a ) of the Income Tax Act, 1967 , £4,800, and ( b ) in any other case, £2,400. Alteration of rates of income tax. 2. — Section 8 of the Finance Act, 1980 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, by the substitution of the following Table for the Table to the said section: “TABLE PART I Part of taxable income Rate of tax Description of rate (1) (2) (3) The first £1,000 25 per cent. the reduced rate The next £3,000 35 per cent. the standard rate The next £2,000 45 per cent. } The next £2,000 55 per cent. the higher rates The next £2,000 60 per cent. The remainder 65 per cent. PART II Part of taxable income Rate of tax Description of rate (1) (2) (3) The first £2,000 25 per cent. the reduced rate The next £6,000 35 per cent. the standard rate The next £4,000 45 per cent. } The next £4,000 55 per cent. the higher rates The next £4,000 60 per cent. The remainder 65 per cent. ” Maintenance in the case of separated spouses. 3. —(1) ( a ) (i) In this section— “maintenance arrangement” means an order of a court, rule of court, deed of separation, trust, covenant, agreement, arrangement, or any other act, giving rise to a legally enforceable obligation and made or done in consideration or in consequence of the dissolution or annulment of a marriage or of such separation of the parties to a marriage as is referred to in section 192 (1) (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , and a maintenance arrangement relates to the marriage in consideration or in consequence of the dissolution or annulment of which or of the separation of the parties to which the maintenance arrangement was made or arises; “payment” means a payment or part of a payment, as the case may be. (ii) A reference in this section to a child of a person includes a child in respect of whom the person was, at any time before the making of the maintenance arrangement concerned, entitled to a deduction under section 141 of the Income Tax Act, 1967 . ( b ) (i) This section applies to payments made, directly or indirectly, by a party to a marriage under or pursuant to a maintenance arrangement relating to the marriage for the benefit of a child of his, or for the benefit of the other party to the marriage, being payments— (I) which are made at a time on or after the passing of this Act when the wife is not living with the husband, (II) the making of which is legally enforceable, and (III) which are annual or periodical: Provided that this section shall not apply to such payments made under a maintenance arrangement made before the passing of this Act unless and until such time as one of the following events occurs, or the earlier of such events occurs where both occur, that is to say— (A) the maintenance arrangement is replaced by another maintenance arrangement or varied, (B) both parties to the marriage to which the maintenance arrangement relates, by notice in writing to the inspector, jointly elect that this section shall apply, and where such an event occurs in either of the circumstances aforesaid, this section shall apply to all such payments made after the date on which it occurs. (ii) For the purposes of this section and of section 4 , a payment, whether conditional or not, which is made, directly or indirectly, by a party to a marriage under or pursuant to a maintenance arrangement relating to the marriage (other than a payment of which the amount, or the method of calculating the amount, is specified in the maintenance arrangement and from which, or from the consideration for which, neither a child of the party to the marriage making the payment nor the other party to the marriage derives any benefit) shall be deemed to be made for the benefit of the other party to the marriage: Provided that, where the payment, in accordance with the maintenance arrangement, is made or directed to be made for the use and benefit of a child of the party to the marriage making the payment, or for the maintenance, support, education or other benefit of such a child, or in trust for such a child, and the amount, or the method of calculating the amount, of such payment so made or directed to be made is specified in the maintenance arrangement, the said payment shall be deemed to be made for the benefit of such child, and not for the benefit of any other person. (2) Notwithstanding anything contained in the Income Tax Acts, but subject to section 4 , as respects any payment to which this section applies which is made directly or indirectly by one party to the marriage to which the maintenance arrangement concerned relates for the benefit of the other party to the marriage— ( a ) the person making the payment shall not be entitled, on making the payment, to deduct and retain thereout any sum representing any amount of income tax thereon, ( b ) the payment shall be deemed for all purposes of the Income Tax Acts to be profits or gains arising to the said other party to the marriage and income tax shall be charged on that other party under Case IV of Schedule D in respect of those profits or gains, and ( c ) the party to the marriage by whom the payment is made, having made a claim in that behalf in the manner prescribed by the Income Tax Acts, shall be entitled for all purposes of the Income Tax Acts to deduct the payment in computing his total income for the year of assessment in which the payment is made. (3) Notwithstanding anything in the Income Tax Acts, as respects any payment to which this section applies which is made directly or indirectly by a party to the marriage to which the maintenance arrangement concerned relates for the benefit of any child of his— ( a ) the person making the payment shall not be entitled on making the payment, to deduct and retain thereout any sum representing any amount of income tax thereon, ( b ) the payment shall be deemed for all purposes of the Income Tax Acts not to be income of the child, ( c ) the total income for any year of assessment of the party to the marriage who makes the payment shall be computed for all purposes of the Income Tax Acts as if the payment had not been made, and ( d ) for the purposes of section 141 (6) of the Income Tax Act, 1967 , the payment shall be deemed to be an amount expended on the maintenance of the child by the party to the marriage who makes the payment and, notwithstanding that the payment is made to the other party to the marriage to be applied for or towards the maintenance of the child and is so applied, it shall be deemed for the aforementioned purposes not to be an amount expended by that other party on the maintenance of the child. (4) ( a ) The provisions of sections 146 and 149 of the Income Tax Act, 1967 , shall apply to a deduction under subsection (2) (c) as they apply to any allowance, deduction or relief under sections 138 to 145 of that Act. ( b ) The provisions of Schedule 4 to the Income Tax Act, 1967 , and of paragraph IX of Schedule 18 to that Act shall, with any necessary modifications, apply in relation to a deduction under subsection (2) (c) . Separated spouses: adaptation of special provisions as to married persons. 4. —(1) Where a payment to which section 3 applies is made in a year of assessment by a party to a marriage (being a marriage which has not been dissolved or annulled) and both parties to the marriage are resident in the State for that year, section 195 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , shall have effect in relation to the parties to the marriage for that year of assessment as if— ( a ) in subsection (1), “, where the wife is living with the husband,” were deleted, and ( b ) subsection (4) were deleted. (2) Where, by virtue of subsection (1) , the parties to a marriage elect as provided for in section 195 (1) of the Income Tax Act, 1967 , then, as respects any year of assessment for which the election has effect— ( a ) subject to subsection (1) and paragraphs (b) and (c) , all the provisions of the Income Tax Acts shall apply in the case of the parties to the marriage as they apply in the case of a husband and wife who have elected under the said section 195 (1) and whose election has effect for that year of assessment, ( b ) the total income or incomes of the parties to the marriage shall be computed for all purposes of the Income Tax Acts as if any payments to which section 3 applies made in that year of assessment by one party to the marriage for the benefit of the other party to the marriage had not been made, and ( c ) income tax shall be assessed, charged and recovered on the total income or incomes of the parties to the marriage as if an application under section 197 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , had been made by one of the parties and that application had effect for that year of assessment. Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982. 5. — Section 6 of the Finance Act, 1982 , shall have effect, for the purpose of ascertaining the amount of income on which an individual referred to therein is to be charged to income tax for the year 1983-84, as if in subsection (2)— ( a ) “1983-84” were substituted for “1982-83”, and ( b ) “£286” were substituted for “£312”, in each place where it occurs. Amendment of Part IX (special provisions relating to year of marriage) of Income Tax Act, 1967. 6. — Part IX of the Income Tax Act, 1967 , is hereby amended in Chapter I (inserted by the Finance Act, 1980 ) by the insertion after section 195 of the following section: “Special provisions relating to year of marriage. 195A.—(1) In this section— ‘income tax month’ has the meaning assigned to it by section 124; ‘year of marriage’, in relation to a husband and his wife, means the year of assessment in which their marriage took place. (2) Section 195 shall not apply or have effect in relation to a husband and his wife for the year of marriage. (3) Where, on making a claim in that behalf, a husband and his wife prove that the amount equal to the aggregate of the tax paid and payable by the husband on his total income for the year of marriage and the tax paid and payable by his wife on her total income for the year of marriage is in excess of the tax which would have been payable by the husband on his total income and the total income of his wife for the year of marriage if— ( a ) he had been charged to tax for the year of marriage in accordance with section 194, and ( b ) he and his wife had been married to each other throughout the year of marriage, they shall be entitled, subject to subsection (4) , to repayment of tax of an amount determined by the formula— B A ×__ 12 Where— A is the amount of the aforementioned excess, and B is the number of income tax months in the period between the date on which the marriage took place and the end of the year of marriage, part of an income tax month being treated for this purpose as an income tax month in a case where the period consists of part of an income tax month or of one or more income tax months and part of an income tax month. (4) Any repayment of tax under subsection (3) shall be allocated to the husband and to the wife concerned in proportion to the amounts of tax paid and payable by them, having regard to subsection (2), on their respective total incomes for the year of marriage. (5) Any claim for a repayment of tax under the provisions of subsection (3) shall be made in writing to the inspector after the end of the year of marriage and shall be made by the husband and wife concerned jointly. (6) All such provisions of the Income Tax Acts as apply in relation to deductions specified in sections 138 to 143 shall apply in relation to any repayment of tax under this section. (7) This section shall have effect in relation to tax for the year 1983-84 and subsequent years of assessment.”. Cesser of Part XX (relief to investors in Irish securities) of Income Tax Act, 1967. 7. —Part XX of the Income Tax Act, 1967 , shall not apply or have effect in relation to any distribution or payment of interest referred to in that Part that is made on or after the 9th day of February, 1983. Amendment of section 344 (exemption of interest on certain deposits) of Income Tax Act, 1967. 8. — Section 344 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment— ( a ) by the substitution in subsection (1) (inserted by the Finance Act, 1980 ) of “£120” for “£150”, in each place where it occurs, and of “£50” for “£70”, ( b ) by the substitution in subsection (2) (inserted by the Finance Act, 1980 ) of “£120” for “£150” and of “£50” for “£70”, and ( c ) by the substitution in subsection (4) of the following definition for the definition of “the commercial banks”: “‘the commercial banks’ means Allied Irish Banks Limited, the Bank of Ireland, the Northern Bank Limited, the Ulster Bank Limited, Ansbacher & Company Limited, Barclays Commercial Bank Limited, Guinness & Mahon Limited, Chase Bank (Ireland) Limited and the Agricultural Credit Corporation, Limited;”, and the said subsections (1) and (2), as so amended, are set out in the Table to this section. TABLE (1) Where the total income of an individual for the year of assessment includes, or would but for this section include, any sums (in this section referred to as “the said sums”) paid or credited in respect of interest on— ( a ) deposits with a trustee savings bank or with the Post Office Savings Bank, or ( b ) deposits with any of the commercial banks, the said sums shall be disregarded for all the purposes of the Income Tax Acts if or in so far as the said sums do not exceed— (i) in the case of sums representing interest on deposits mentioned in paragraph ( a ), £120, or (ii) in the case of sums representing interest on deposits mentioned in paragraph ( b ), £50: Provided that the total sums to be so disregarded shall not exceed £120: Provided also that the provisions of this Act as regards the making by the individual of a return of his total income shall apply as if this section had not been enacted. (2) For the purposes of subsection (1) the question whether or how far the said sums exceed £120 or £50, as the case may be, shall, where by virtue of section 194, a woman's income is deemed to be her husband's, be determined separately as regards the part of his income which is his by virtue of that section and the part which is his apart from that section. Amendment of Part XXVI (appeals) of Income Tax Act, 1967. 9. —Part XXVI of the Income Tax Act, 1967 , is hereby amended— ( a ) as respects appeals against assessments made after the passing of this Act— (i) in section 416— (I) by the substitution of the following subsection for subsection (6): “(6) ( a ) In default of notice of appeal by a person to whom notice of assessment has been given the assessment made on him shall be final and conclusive. ( b ) Where a person who has given notice of appeal against an assessment does not attend before the Appeal Commissioners at the time and place appointed for the hearing of his appeal, the assessment made on him shall, subject to subsection (8), have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given. ( c ) Where on the hearing of an appeal against an assessment— (i) no application is or has been made to the Appeal Commissioners before or during the hearing of the appeal by or on behalf of the appellant for an adjournment of the proceedings on the appeal or such an application is or has been made and is or was refused (but such an application shall not be refused before the expiration of a period of 9 months from the end of the year of assessment to which the assessment appealed against relates or from the date on which the notice of the assessment was given to the appellant, whichever is the earlier) and (ii) (A) a return of his income for the relevant year of assessment has not been made by the appellant, or (B) such a return has been made but all the statements of profits and gains, schedules and other evidence relating to such return have not been furnished by or on behalf of the appellant, the Appeal Commissioners shall make an order dismissing the appeal against the assessment and thereupon the assessment shall have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given: Provided that this paragraph shall not apply if, on the hearing of the appeal, the Appeal Commissioners are satisfied that sufficient information has been furnished by or on behalf of the appellant to enable them to determine the appeal at that hearing.”, (II) in subsection (7)— (A) by the insertion in paragraph ( a ) after “behalf” of “within 12 months after the date of the notice of assessment”, and (B) by the insertion of the following paragraphs after paragraph ( c ): “( d ) Notwithstanding the provisions of paragraph ( a ), an application made after the expiration of the time specified in that paragraph which, but for that expiration, would have been allowed under the said paragraph ( a ) may be allowed under that paragraph if at the time of the application— (i) there has been submitted to the inspector or other officer a return of income, statements of profits and gains and such other information as in his opinion would enable the appeal to be settled by agreement under subsection (3), and (ii) the tax charged by the assessment in respect of which the application is made has been paid together with any interest thereon chargeable under the provisions of section 550. ( e ) If on an application referred to in paragraph ( d ) the inspector or other officer is not satisfied that the information submitted would be sufficient to enable the appeal to be settled by agreement under subsection (3) or if the tax and interest mentioned in paragraph ( d ) (ii) have not been paid, he shall by notice in writing inform the applicant that his application has been refused. ( f ) Within 15 days after the date of a notice under paragraph ( e ) the applicant may by notice in writing require the inspector or other officer to refer his application to the Appeal Commissioners and, in relation to an application so referred, if— (i) the application is one which, but for the expiration of the period specified in paragraph ( a ), would have been allowed under paragraph ( c ) if the application had been referred to the Appeal Commissioners under that paragraph, (ii) at the time the application is referred to the Appeal Commissioners the tax charged by the assessment in respect of which the application is made, together with any interest thereon chargeable under section 550, has been paid, and (iii) the information submitted to the inspector or other officer is such that in the opinion of the Appeal Commissioners the appeal is likely to be determined on the first occasion on which it comes before them for hearing, the Appeal Commissioners may allow the application. ( g ) Where an application in relation to an appeal against an assessment has been allowed under paragraph ( d ) or ( f ) and an overpayment of tax arises by reason of the determination of the appeal, the provisions of section 30 (4) of the Finance Act, 1976 , shall not apply to the amount or amounts giving rise to the overpayment.”, (III) in subsection (8), by the insertion before “subsection (6)” of “paragraph ( b ) of”, (IV) by the deletion of subsection (8A) (inserted by the Finance Act, 1968 ), and (V) in subsection (9), by the deletion in paragraph ( a ) of “unless the Revenue Commissioners otherwise direct”, (ii) in section 421, by the insertion of the following subsection after subsection (6): “(7) Every determination of an appeal by the Commissioners shall be recorded by them in the prescribed form at the time the determination is made and the Commissioners shall, within 10 days after the determination, transmit that form to the inspector or other officer.”, (iii) in section 428, by the substitution in subsection (3) of “£20” for “twenty shillings”, (iv) in section 429, by the insertion of the following subsection after subsection (1): “(1A) At or before the time of the rehearing of the appeal by the said judge the inspector or other officer shall transmit to the judge the prescribed form in which the Appeal Commissioners' determination of the appeal is recorded.”, and (v) in section 430, by the insertion in subsection (1) after “Commissioners” of “and any case stated by a judge pursuant to the said section 428 shall set forth the facts, the determination of the Appeal Commissioners and the determination of the judge”, and ( b ) as respects every hearing after the passing of this Act by the High Court or Supreme Court of a case stated under section 428 or 430— (i) in section 416 (10), by the deletion of “, and every hearing by the High Court or the Supreme Court of a case stated under section 428 or 430 shall, if the person whose chargeability to tax is the subject of the case stated so desires, be held in camera”, and (ii) by the deletion of section 420, and the said subsections (7)( a ), (8), (9)( a ) and (10) of section 416, the said subsection (3) of section 428 and the said subsection (1) of section 430, as so amended, are set out in the Table to this section. TABLE (7) ( a ) A notice of appeal not given within the time limited by subsection (1) shall be regarded as having been so given where, on an application in writing having been made to him in that behalf within 12 months after the date of the notice of assessment, the inspector or such other officer as aforesaid, being satisfied that, owing to absence, sickness or other reasonable cause, the applicant was prevented from giving notice of appeal within the time limited and that the application was made thereafter without unreasonable delay, notifies the applicant in writing that his application has been allowed. (8) In a case in which a person who has given notice of appeal does not attend before the Appeal Commissioners at the time and place appointed for the hearing of his appeal, paragraph ( b ) of subsection (6) shall not have effect if— ( a ) at the said time and place another person attends on behalf of the appellant and the Appeal Commissioners consent to hear that person, or ( b ) on an application in that behalf having been made to them in writing or otherwise at or before the said time, the Appeal Commissioners postpone the hearing, or ( c ) on an application in writing having been made to them after the said time the Appeal Commissioners being satisfied that, owing to absence, sickness or other reasonable cause, the appellant was prevented from appearing before them at the said time and place and that the application was made without unreasonable delay, direct that the appeal be treated as one the time for the hearing of which has not yet been appointed. (9) ( a ) Where action for the recovery of tax charged by an assessment, being action by way of the institution of proceedings in any court or the issue of a certificate under section 485 has been taken, neither subsection (7) nor subsection (8) shall apply in relation to that assessment until the said action has been completed. (10) Every rehearing of an appeal by the Circuit Court under section 429 shall be held in camera. (3) The party requiring the case shall pay to the Clerk to the Commissioners a fee of £20 for and in respect of the same, before he is entitled to have the case stated. (1) Section 428 shall, subject to the provisions of this section, apply to a determination given by a judge pursuant to section 429 in like manner as it applies to a determination by the Appeal Commissioners and any case stated by a judge pursuant to the said section 428 shall set forth the facts, the determination of the Appeal Commissioners and the determination of the judge. Amendment of section 496 (repayment for interest paid to banks, discount houses, etc.) of Income Tax Act, 1967. 10. — Section 496 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, in subsection (2A) (inserted by the Finance Act, 1980 )— ( a ) by the substitution of “the 6th day of April, 1983” for “the 6th day of April, 1980”, and ( b ) by the substitution of “£4,000” for “£4,800”, of “£2,900” for “£3,500” and of “£2,000” for “£2,400”, and the said subsection (2A), as so amended, is set out in the Table to this section. TABLE (2A) In relation to any interest paid in respect of any period beginning on or after the 6th day of April, 1983, notwithstanding the provisions of subsection (1), no repayment of tax shall be made under this section for any year of assessment— ( a ) in the case of a husband, who is assessed to tax for the year of assessment in accordance with the provisions of section 194, on the excess of the interest over £4,000, ( b ) in the case of a widowed person, on the excess of the interest over £2,900, or ( c ) in any other case, on the excess of the interest over £2,000. Chapter II Taxation of Farming Profits Charge of farming profits under Schedule D. 11. — Part I of the Finance Act, 1974 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, by the substitution for section 15 of the following section: “Farming profits to be charged under Schedule D. 15.—(1) All farming in the State shall be treated as the carrying on of a trade or, as the case may be, of part of a trade, and the profits or gains thereof shall be charged to tax under Case I of Schedule D accordingly. (2) Notwithstanding anything to the contrary in Chapter III of Part IV of the Income Tax Act, 1967 , all farming carried on by any person whether solely or in partnership shall be treated as the carrying on of a single trade: Provided that this subsection shall not prejudice or restrict the operation of section 58 of the Income Tax Act, 1967 , where a partnership trade of farming is set up and commenced or is permanently discontinued.”. Application for 1983-84 of section 20A (optional basis of assessment) of Finance Act, 1974. 12. —Section 20A (inserted by the Finance Act, 1978 ) of the Finance Act, 1974 , shall have effect for the year 1983-84 as if— ( a ) in paragraph ( a )— (i) “1983-84” were substituted for “1978-79” in each place where it occurs, (ii) “ section 15 of the Finance Act, 1974 (inserted by section 11 of the Finance Act, 1983 )” were substituted for “ section 13 of the Finance Act, 1978 ” in subparagraph (ii), and (iii) “1983” were substituted for “1978” in subparagraph (II), and ( b ) in paragraph ( b ), “1983-84” were substituted for “1978-79” in each place where it occurs. Farming: provision relating to relief in respect of increase in stock values. 13. — Section 13 (1) of the Finance Act, 1982 , is hereby amended by the substitution of “1982-83 or any subsequent year of assessment” for “1982-83”, and the said section 13 (1), as so amended, is set out in the Table to this section. TABLE (1) Where, in computing profits from the trade of farming for an accounting period, a deduction allowed by virtue of section 12 of the Finance Act, 1976 , has effect for the year 1982-83 or any subsequent year of assessment— ( a ) section 31 (4) ( a ) of the Finance Act, 1975 (as applied by section 12 (2) ( a ) of the Finance Act, 1976 ), shall apply and have effect as if “less 20 per cent. of its trading profits for that period” were deleted, ( b ) the said section 12 shall have effect as if subsection (2) ( c ) (inserted by the Finance Act, 1979 ) had not been enacted, and ( c ) the amount of the said deduction shall, subject to the provisions of subparagraph (i) of the said section 31 (4) ( a ), be eleven-tenths of the amount of the deduction for that accounting period computed in accordance with paragraphs ( a ) and ( b ) of this subsection. Amendment of section 307 (relief for losses) of Income Tax Act, 1967. 14. — Section 307 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment, by the substitution of the following subsection for subsection (1A) (inserted by the Finance Act, 1974 ): “(1A) This section applies in any case where farming is carried on other than in the case of an individual who has sustained a loss in the carrying on of farming and who is not chargeable to tax in respect of profits or gains from farming for the year of assessment in which the loss is sustained.”. Amendment of section 22 (farm buildings: capital allowances) of Finance Act, 1974. 15. — Section 22 (inserted by the Corporation Tax Act, 1976 ) of the Finance Act, 1974 , is hereby amended, as respects the year 1983-84 and subsequent years of assessment,— ( a ) in subsection (1), by the substitution of “section 15” for “section 15(1)”, and ( b ) by the substitution of the following subsection for subsection (2B): “(2B) Where, for any year of assessment, an individual is not chargeable to tax in respect of profits or gains from farming in accordance with the provisions of section 58 of the Income Tax Act, 1967 , and that year is a year of assessment in respect of which, if he had been so chargeable, he could have claimed a farm buildings allowance under this section, that allowance shall, for the purposes of this section, be deemed to have been made for that year of assessment and shall not be carried forward and set off against profits or gains chargeable for any subsequent year of assessment.”, and the said subsection (1), as so amended, is set out in the Table to this section. TABLE (1) This section applies to any person carrying on farming, the profits or gains of which are chargeable to tax in accordance with the provisions of section 15. Chapter III Income Levy Income levy. 16. —(1) With effect from the 6th day of April, 1983, there shall be paid, subject to and in accordance with the provisions of subsection (2) , by or in respect of an individual who is over the age of sixteen years, a levy (which shall be known as “income levy”). (2) The provisions of— ( a ) sections 1 , 16 to 18 , 20 to 23 , 25 , 26 , 27 (2), 28 and 30 of the Youth Employment Agency Act, 1981 (referred to in this subsection as “the Act”), and ( b ) the Youth Employment Levy Regulations, 1982 (S.I. No. 84 of 1982), and the Youth Employment Levy (Amendment) Regulations, 1983 (S.I. No. 52 of 1983), (referred to in this subsection as “the Regulations”), shall, with the following modifications and with any other necessary modifications, apply in relation to income levy as they apply in relation to Youth Employment Levy— (i) in section 1(1) of the Act, the definition of “the Agency” shall be deleted, (ii) in sections 16, 17 and 18 of the Act, references to an individual referred to in section 15 of the Act shall be construed as references to an individual mentioned in subsection (1) of this section, (iii) references in the Act and in the Regulations (other than Regulation 21 of the Youth Employment Levy Regulations, 1982) to the Minister for Labour shall be construed as references to the Revenue Commissioners, (iv) references in the Act and in the Regulations to Youth Employment Levy shall be construed as references to income levy, (v) references in the Act and in the Regulations to a contribution year shall be construed as references to the year beginning on the 6th day of April, 1983, and ending on the 5th day of April, 1984, and (vi) in Regulation 21 of the Youth Employment Levy Regulations, 1982, the reference to the Minister for Labour shall be construed as a reference to the Collector-General, and Regulation 22 of those Regulations shall be deleted. Chapter IV Anti-avoidance and Anti-evasion Amendment of section 175 (power to obtain information as to interest paid or credited without deduction of tax) of Income Tax Act, 1967. 17. —For the purpose of preventing the evading by persons ordinarily resident in the State of liability to tax— ( a ) by the placing of money on deposit with different branches or offices maintained by or in connection with a trade or business in the ordinary course of which interest becomes payable or creditable in respect of that money and which is carried on by a person who is required by notice from the inspector given under section 175 of the Income Tax Act, 1967 , to make a return of interest paid or credited by him in respect of money received or retained by him, or ( b ) by the making of false declarations under subsection (4) of the said section 175, it is hereby enacted as follows:— (1) Section 13 of the Finance Act, 1968 , shall not apply or have effect, in relation to any return of interest paid or credited referred to in the said section 175, where the return is of interest paid or credited during a year beginning on or after the 10th day of February, 1982. (2) The said section 175 is hereby amended, as respects any interest paid or credited at any time after the passing of this Act— ( a ) by the substitution in subsection (4) for “the person paying or crediting the interest shall not be required to include the interest in any such return.” of “the person paying or crediting the interest shall not be required to include the interest in any such return: Provided that: (i) if the person on whom the notice is served is not satisfied that the person who served the notice was ordinarily resident outside the State when the interest was paid or credited— (A) there shall be given to the person on whom the notice is served an affidavit, made by the person who served the notice, stating his name and address and the country in which he was ordinarily resident when the interest was paid or credited, and (B) if the person who served the notice was not beneficially entitled to that interest when it was paid or credited, the affidavit shall state, in addition to the particulars specified in paragraph (A), the name and address of the person who was so entitled and the country in which he was ordinarily resident when the interest was paid or credited, and (ii) if the person on whom the notice is served is satisfied that the person who served the notice was not ordinarily resident in the State when the interest was paid or credited and, if the latter person declares in the notice, or in a subsequent notice served on the person on whom the first-mentioned notice was served, that he was not beneficially entitled to the interest when it was paid or credited, he shall, if the person so entitled (hereafter referred to as the ‘beneficial owner’) is ordinarily resident in the State, state in one of the notices aforesaid, or in a subsequent notice served on the person on whom the first-mentioned notice was served, the name and address of the beneficial owner.”, and ( b ) by the insertion after the said subsection (4) of the following subsection: “(5) A person to whom subsection (1) applies— ( a ) shall keep and retain any notice served upon him in accordance with subsection (4), and any affidavit that accompanied the notice, for a period of six years from the date of the service of the notice, ( b ) shall, if requested in writing by the Revenue Commissioners to do so, inform the Revenue Commissioners, within the time specified in the request, whether a notice has been served upon him in accordance with subsection (4) by such person as is named, and whose address is stated, in the request, and ( c ) shall, if requested in writing by the Revenue Commissioners to do so, furnish to the Revenue Commissioners, within the time specified in the request, such notice served upon him in accordance with subsection (4) as is specified in the request and the affidavit that accompanied that notice.”, and the said subsection (4), as so amended, is set out in the Table to this subsection. TABLE (4) The foregoing provisions of this section shall apply to interest paid or credited on or at any time after the 6th day of April, 1962, and only to money received or retained in the State, and, if a person to whom any interest is paid or credited in respect of any money received or retained in the State by notice in writing served on the person paying or crediting the interest— ( a ) declares that the person who was beneficially entitled to that interest when it was paid or credited was not then ordinarily resident in the State, and ( b ) requests that the interest shall not be included in any return under this section, the person paying or crediting the interest shall not be required to include the interest in any such return: Provided that: (i) if the person on whom the notice is served is not satisfied that the person who served the notice was ordinarily resident outside the State when the interest was paid or credited— (A) there shall be given to the person on whom the notice is served an affidavit, made by the person who served the notice, stating his name and address and the country in which he was ordinarily resident when the interest was paid or credited, and (B) if the person who served the notice was not beneficially entitled to that interest when it was paid or credited, the affidavit shall state, in addition to the particulars specified in paragraph (A), the name and address of the person who was so entitled and the country in which he was ordinarily resident when the interest was paid or credited, and (ii) if the person on whom the notice is served is satisfied that the person who served the notice was not ordinarily resident in the State when the interest was paid or credited and, if the latter person declares in the notice, or in a subsequent notice served on the person on whom the first-mentioned notice was served, that he was not beneficially entitled to the interest when it was paid or credited, he shall, if the person so entitled (hereafter referred to as the “beneficial owner”) is ordinarily resident in the State, state in one of the notices aforesaid, or in a subsequent notice served on the person on whom the first-mentioned notice was served, the name and address of the beneficial owner. Information to be furnished by financial institutions. 18. —(1) In this section— “authorised officer” means an inspector or other officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section; “books” means— ( a ) bankers' books, within the meaning of the Bankers' Books Evidence Acts, 1879 and 1959, and ( b ) records and documents of persons referred to in section 7 (4) of the Central Bank Act, 1971 ; “financial institution” means— ( a ) a person who holds or has held a licence under section 9 of the Central Bank Act, 1971 , and ( b ) a person referred to in section 7 (4) of that Act; “judge” means a judge of the High Court; “person” (other than in the definition of “financial institution”) means an individual who is ordinarily resident in the State. (2) Where— ( a ) a person who, for the purposes of tax, has been duly required by an inspector to deliver a statement of the profits or gains arising to him from any trade or profession or to deliver to the inspector a return of income, fails to deliver that statement or that return to the inspector, or ( b ) the inspector is not satisfied with such a statement or return so delivered, an authorised officer may, if he is of opinion that that person maintains or maintained an account or accounts, the existence of which has not been disclosed to the Revenue Commissioners, with a financial institution or that there is likely to be information in the books of that institution indicating that the said statement of profits or gains or the said return of income is false to a material extent, apply to a judge for an order requiring that financial institution to furnish the authorised officer— (i) with full particulars of all accounts maintained by that person, either solely or jointly with any other person or persons, in that institution during a period not exceeding ten years immediately preceding the date of the application, and (ii) with such information as may be specified in the order relating to the financial transactions of that person, being information recorded in the books of that institution which would be material in determining the correctness of the statement of profits or gains or the return of income delivered by that person or, in the event of failure to deliver such statement or return, would be material in determining the liability of that person to tax. (3) Where the judge to whom an application is made under subsection (2) is satisfied that there are reasonable grounds for making the application, he may, subject to such conditions as he may consider proper and specify in the order, make an order requiring the financial institution to furnish the authorised officer with such particulars and information as may be specified in the order. (4) Where a judge makes an order under this section, he may also, upon the application of the authorised officer concerned, make a further order prohibiting for such period as the judge may consider proper and specify in the order, any transfer of, or any dealing with, without the consent of the judge, any assets or moneys of the person to whom the order relates that are in the custody of the financial institution at the time the order is made. (5) Every hearing of an application for an order under this section and of any appeal in connection therewith shall be held in camera. Chargeability of certain profits or gains. 19. —(1) Profits or gains shall be chargeable to tax notwithstanding that at the time an assessment to tax in respect of those profits or gains was made— ( a ) the source from which those profits or gains arose was not known to the inspector, ( b ) the profits or gains were not known to him to have arisen wholly or partly from a lawful source or activity, or ( c ) the profits or gains arose and were known to him to have arisen from an unlawful source or activity, and any question whether those profits or gains arose wholly or partly from an unknown or unlawful source or activity shall be disregarded in determining the chargeability to tax of the said profits or gains. (2) Notwithstanding anything in the Tax Acts, any profits or gains which are charged to tax by virtue of subsection (1) — ( a ) shall be charged under Case IV of Schedule D, and ( b ) shall be described in the assessment to tax concerned as “miscellaneous income”, and the assessment shall not be discharged by the Appeal Commissioners or by a court by reason only of the fact that the income should, apart from this section, have been described in some other manner or by reason only of the fact that the profits or gains arose wholly or partly from an unknown or unlawful source or activity. (3) In this section “tax” means income tax, corporation tax or corporation profits tax, as appropriate. (4) This section shall apply and have effect in respect of assessments to tax made on or after the passing of this Act. Return of property. 20. —(1) ( a ) In this section— “asset” includes any interest in an asset; “limited interest” means— (i) an interest (other than a leasehold interest) for the duration of a life or lives or for a period certain; or (ii) any other interest which is not an absolute interest; “minor child” means a child who has not attained the age of 21 years on the specified date and who has not married on or before that date; “prescribed” means prescribed by the Revenue Commissioners; “property” includes interests and rights of any description, and, without prejudice to the generality of the foregoing, includes— (i) in the case of a limited interest, the property in which the limited interest subsists or on which it is charged or secured or on which there exists a right to have it charged or secured, (ii) an interest in expectancy, (iii) an interest or share in a partnership, joint tenancy or estate of a deceased person, (iv) stock or shares in a company which is in course of liquidation, (v) an annuity, and (vi) property comprised in a settlement which the person concerned is empowered to revoke; “settlement” has the meaning assigned to it by section 447 of the Income Tax Act, 1967 ; “specified date”, in relation to a notice under subsection (2) , means the date specified in the notice; “tax” means income tax. ( b ) For the purposes of this section the cost of acquisition to a person of an asset shall include— (i) the amount or value of the consideration, in money or money's worth, given by him or on his behalf for the acquisition of the asset, together with the incidental costs to him of the acquisition or, if the asset was not acquired by him, any expenditure incurred by him in providing the asset, and (ii) the amount of any expenditure incurred on the asset by him or on his behalf for the purpose of enhancing the value of the asset, being expenditure reflected in the state or nature of the asset at the specified date and any expenditure incurred by him in establishing, preserving or defending his title to, or to a right over, the asset. (2) Where, for the purposes of tax, a person delivers to an inspector a return of income and the inspector is not satisfied with that return of income, the inspector may require— ( a ) that person, by notice in writing given to him, and ( b ) where that person and his spouse are, for the year of assessment to which the return of income relates, treated as living together for the purpose of section 192 of the Income Tax Act, 1967 , his spouse, by notice in writing given to the spouse, to deliver to the inspector, within the period specified in the notice or within such further period as the inspector may allow, a return in the prescribed form of property which on the date specified in the notice is relevant property in relation to that notice and that person or his spouse shall, if required by further notice or notices in writing by the inspector, deliver to the inspector within such time, not being less than 30 days, as may be specified in such further notice or notices, a statement verifying such return of property together with such evidence, statement or documents required by the inspector in respect of such property or in respect of any property which the inspector has reason to believe to form part of the relevant property. (3) ( a ) Relevant property in relation to a notice under subsection (2) means where the person to whom the notice is given— (i) is an individual and the return of income concerned relates to income in respect of which he is chargeable to tax otherwise than in a representative capacity or as a trustee, all the property to which that individual is beneficially entitled on the specified date, (ii) is the spouse of an individual by whom the return of income concerned was delivered, all the property to which the said spouse is beneficially entitled on the specified date, (iii) is a person chargeable to tax in a representative capacity and the return of income concerned relates to income of a person in respect of which he is so chargeable, all the property to which that last-mentioned person is beneficially entitled and which gives rise to income in respect of which the first-mentioned person is chargeable to tax in a representative capacity or is property in relation to which the first-mentioned person performs functions or duties in such a capacity on the specified date, and (iv) is a person chargeable as a trustee of a trust and the return of income concerned relates to income of the trust, all the property comprised in the trust on the specified date. ( b ) Property to which a minor child of an individual referred to in subparagraph (i) or (ii) of paragraph (a) is beneficially entitled shall be included in that individual's return under this section where— (i) the said property at any time prior to its acquisition by the minor child was disposed of by that individual whether to the minor child or not, or (ii) the consideration for the acquisition of the said property by the minor child was provided directly or indirectly by that individual. (4) ( a ) A return under this section shall contain particulars of the relevant property, including in relation to each asset comprised therein— (i) a full description, (ii) its location on the specified date, (iii) the cost of acquisition to the person beneficially entitled thereto, (iv) the date of acquisition, and (v) if it was acquired otherwise than through a bargain at arm's length, the name and address of the person from whom it was acquired and the consideration, if any, given to that person in respect of the acquisition. ( b ) A return under this section shall, in the case of an interest which is not an absolute interest, contain particulars of the title under which the beneficial entitlement arises. ( c ) A return under this section shall be signed by the person by whom it is to be delivered and shall include a declaration by that person that it is, to the best of his knowledge, information and belief, correct and complete. ( d ) The Revenue Commissioners may require the declaration mentioned in paragraph (c) to be made on oath. (5) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column 2 thereof of “ Finance Act, 1983, section 20 ”. Return by nominee holders of securities. 21. —(1) If, for any purpose of the Tax Acts, any person in whose name any securities are registered is so required by notice in writing given to him by an inspector, he shall, within the time specified in the notice, state whether or not he is the beneficial owner of the securities and, if he is not the beneficial owner of the securities or any of them, he shall furnish in respect of each person on whose behalf the securities are registered in his name— ( a ) the name and address of such person, ( b ) the nominal value of the securities so registered on behalf of the person and, in so far as the securities consist of shares in a company, the number and class of such shares, and ( c ) the date on which each security was so registered in his name on behalf of the person. (2) In this section “securities” includes— ( a ) shares, stocks, bonds, debentures and debenture stock of a company (within the meaning of section 1 (5) of the Corporation Tax Act, 1976 ) and also any promissory note or other instrument evidencing indebtedness issued to a loan creditor (within the meaning of section 103 (7) of the Corporation Tax Act, 1976 ) of a company, ( b ) securities created and issued by the Minister for Finance under the Central Fund (Permanent Provisions) Act, 1965 , or any other powers in that behalf him enabling, and any stock, debenture, debenture stock, certificate of charge, or other security, which is issued with the approval of the Minister for Finance given under any Act of the Oireachtas and in respect of which the payment of interest and the repayment of capital is guaranteed by the Minister for Finance under that Act, and ( c ) securities of the government of any country or territory outside the State. (3) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column 2 thereof of “ Finance Act, 1983, section 21 ”. Obligation to show tax reference number on receipts, etc. 22. —(1) In this section— “business” means— ( a ) a profession, or ( b ) a trade consisting solely of the supply (which word has in this paragraph the same meaning as in the Value-Added Tax Acts, 1972 to 1983) of a service and includes, in the case of a trade part of which consists of the supply of a service, that part, and also includes, in the case of a trade the whole or part of which consists of the supply of a service which incorporates the supply of goods in the course of the supply of that service, that trade or that part, as the case may be; “specified person”, in relation to a business, means— ( a ) in case the business is carried on by an individual, that individual, and ( b ) in case the business is carried on by a partnership, the precedent partner; “tax reference number”, in relation to a specified person, means each of the following: ( a ) the Revenue and Social Insurance (RSI) Number stated on any certificate of tax-free allowances issued to that person by an inspector, not being a certificate issued to an employer in respect of an employee of that employer, ( b ) the reference number stated on any return of income form or notice of assessment issued to that person by an inspector, and ( c ) the registration number of that person for the purposes of value-added tax. (2) The specified person in relation to a business shall ensure that his tax reference number or, if he has more than one tax reference number, one of his tax reference numbers or, if he has not got a tax reference number, his full names and his address is or are stated on any document (being an invoice, credit note, debit note, receipt, account, statement of account, voucher or estimate relating to an amount of £5 or more) issued on or after the 1st day of September, 1983, in the course of that business. (3) Schedule 15 to the Income Tax Act, 1967 , is hereby amended by the insertion in column (3) thereof of “ Finance Act, 1983, section 22 ”. Publication of names of tax defaulters. 23. —(1) In this section “the Acts” means— ( a ) the Tax Acts, ( b ) the Capital Gains Tax Acts, ( c ) the Value-Added Tax Act, 1972 , and the enactments amending or extending that Act, ( d ) the Capital Acquisitions Tax Act, 1976 , and the enactments amending or extending that Act, ( e ) the statutes relating to stamp duty and to the management of that duty, and ( f ) Part VI , and any instruments made thereunder. (2) The Revenue Commissioners shall, as respects each year (being the year 1984 or a subsequent year), compile a list of the names and addresses and the occupations or descriptions of every person— ( a ) upon whom a fine or other penalty was imposed by a court under any of the Acts during that year, ( b ) upon whom a fine or other penalty was otherwise imposed by a court during that year in respect of an act or omission by the person in relation to tax, or ( c ) in whose case the Revenue Commissioners, pursuant to an agreement made with the person in that year, refrained from initiating proceedings for recovery of any fine or penalty of the kind mentioned in paragraphs (a) and (b) and, in lieu of initiating such proceedings, accepted, or undertook to accept, a specified sum of money in settlement of any claim by the Revenue Commissioners in respect of any specified liability of the person under any of the Acts for— (i) payment of any tax, (ii) payment of interest thereon, and (iii) a fine or other monetary penalty in respect thereof. (3) Notwithstanding any obligation as to secrecy imposed on them by the Acts or the Official Secrets Act, 1963 — ( a ) the Revenue Commissioners shall include in their annual report to the Minister for Finance, commencing with the report for the year 1984, the list referred to in subsection (2) for the year in respect of which the report is made, and ( b ) the Revenue Commissioners may, at any time, cause any such list as is referred to in subsection (2) to be published in Iris Oifigiúil . (4) Paragraph (c) of subsection (2) does not apply in relation to a person in whose case— ( a ) the Revenue Commissioners are satisfied that, before any investigation or inquiry had been commenced by them or by any of their officers into any matter occasioning a liability referred to in the said paragraph of the person, the person had voluntarily furnished to them complete information in relation to and full particulars of the said matter, or ( b ) the specified sum referred to in the said paragraph (c) does not exceed £10,000 or was paid on or before the 31st day of December, 1983. (5) Any such list as is referred to in subsection (2) shall specify in respect of each person named in the list such particulars as the Revenue Commissioners think fit— ( a ) of the matter occasioning the fine or penalty of the kind referred to in subsection (2) imposed on the person or, as the case may be, the liability of that kind to which the person was subject, and ( b ) of any interest, fine or other monetary penalty, and of any other penalty or sanction, to which that person was liable, or which was imposed on him by a court, and which was occasioned by the said matter. (6) In this section “tax” means income tax, capital gains tax, corporation tax, value-added tax, gift tax, inheritance tax, residential property tax and stamp duty. Chapter V Income Tax and Corporation Tax Amendment of section 58 (Schedule D deduction of payments to trustees) of Finance Act, 1982. 24. — Section 58 (1) of the Finance Act, 1982 , is hereby amended with effect as on and from the 6th day of April, 1982— ( a ) by the insertion after “the company concerned” of “or, in the case of a group scheme, by a participating company”, and ( b ) by the insertion after the proviso of the following additional proviso: “Provided also that the deduction to be allowed under this section or under any other provision of the Tax Acts in respect of any sum or the aggregate amount of any sums so expended in that accounting period shall not exceed such sum as is, in the opinion of the Revenue Commissioners, reasonable, having regard to the number of employees or directors of the company making the payment who have agreed to participate in the scheme, the services rendered by them to that company, the levels of their remuneration, the length of their service or similar factors.”, and so much of the said section 58(1), as so amended, as precedes paragraph ( a ) thereof is set out in the Table to this section. TABLE 58.—(1) As respects any accounting period, any sum expended in that accounting period by the company concerned or, in the case of a group scheme, by a participating company in making a payment or payments to the trustees of an approved scheme shall be included— Amendment of provisions relating to restriction of relief for interest. 25. —(1) Section 21 of the Finance Act, 1982 , is hereby amended by the substitution of the following subsection for subsection (3)— “(3) ( a ) Notwithstanding the provisions of subsection (2), the principal sections shall apply— (i) in relation to a loan or loans made after the operative date but on or before the 9th day of February, 1983, to interest paid or payable on such loan or loans on or before the 5th day of April, 1985, and (ii) in relation to a loan or loans made after the 9th day of February, 1983, to interest paid or payable on such loan or loans on or before the 5th day of April, 1983, to the extent that the amount of the loan or the aggregate amount of the loans on which such interest is paid or payable in a year of assessment does not exceed the specified limit for the year of assessment and, if the said amount or the said aggregate amount on which interest is paid or payable on the loan or loans exceeds the specified limit for the year of assessment, the principal sections shall apply only to so much of that interest as bears to the whole of that interest the same proportion as that part of the said amount or the said aggregate amount which does not exceed the specified limit bears to the whole of the said amount or the said aggregate amount. ( b ) In this su