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22 1954

FINANCE ACT, 1954

PART IV.

Death Duties.

Discharge of death duties by transfer of securities.

22. —(1) In this section—

the Minister” means the Minister for Finance;

the Account” means such account as is prescribed pursuant to subsection (4) of this section.

(2) This section applies to the following securities:

(a) the 4½% National Loan, 1973/78;

(b) any security which—

(i) after the passing of this Act is created and issued by the Minister on terms that, subject to specified conditions, it will be accepted in payment of any death duty, and

(ii) is charged on the Central Fund.

(3) For the purposes of this section—

(a) the value at the date of transfer of any security 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 security shall be deemed to accrue from day to day.

(4) A person from whom any sum is due on account of any death duty may, subject to the relevant regulations under this section, 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 any security to which this section applies as is equal in value, at the date of the transfer to the sum or part, and the transfer shall be accepted by the Revenue Commissioners as a cash payment to them of the sum or part.

(5) The Minister may make regulations prescribing the conditions under which any security to which this section applies shall be accepted in payment of any death duty.

(6) Securities transferred to the Account may be held therein or sold, cancelled or otherwise dealt with as the Minister directs.

(7) The Minister shall pay out of the Account to the Revenue Commissioners the values at the dates of transfer of all securities transferred to the Account.

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

(9) Sums paid into the Account 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 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.

(10) There shall be issued 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 (9) of this section, and so much of the sums issued as is not authorised by this section to be met by borrowing by the Minister shall be charged on the Central Fund and the growing produce thereof.

(11) For the purpose of providing, wholly or partly, for so much of the issues authorised by this section to be made out of the Central Fund or the growing produce thereof as is equal to the price at which the relevant security was issued for public subscription, 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.

(12) The principal of and interest on any securities issued under subsection (11) of 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.

(13) (a) Where stock of the 4½ per cent. National Loan, 1973/78, has been accepted by the Revenue Commissioners in payment of death duties pursuant to the Prospectus of that Loan and has been transferred to them before the passing of this Act, the stock shall be deemed to have been a cash payment to them of a sum equal to the value of the stock at the date of the transfer, such value being the nominal face value of the stock with the addition of any interest accrued due (on the basis of interest accruing from day to day) at the date of the transfer but then remaining unpaid, after deducting any interest which may be receivable by the transferor after that date.

(b) As soon as may be after the passing of this Act, the Revenue Commissioners shall, as respects any stock so transferred and held by them, transfer the stock to such account as is prescribed by the regulations under this section relating to the 4½ per cent. National Loan, 1973/78, and shall pay into that account any interest which has been paid to them on the stock, but the payment to be made under subsection (7) of this section in relation to the stock shall be the value referred to in paragraph (a) of this subsection.