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19 1972

FINANCE ACT, 1972

PART I

Income Tax

Chapter I

General

Charge of income tax and sur-tax.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1972, and for each subsequent year beginning on the 6th day of April, and shall be so charged at the rate of 35 per cent.

(2) The following subsections are hereby substituted for subsection (1) of section 522 of the Income Tax Act, 1967 :

“(1) In addition to the income tax charged by section 1 (1) of the Finance Act, 1972, an additional duty of income tax (in this Act referred to as sur-tax) shall be charged for the year beginning on the 6th day of April, 1972, and for each subsequent year beginning on the 6th day of April.

(IA) Sur-tax shall be charged in respect of the income for any such year of any individual the total of which from all sources for that year exceeds the aggregate of—

(a) £2,500, and

(b) the amount of any deductions to which the individual is entitled for that year under section 523,

and shall be so charged in respect of the excess at the following rates, that is to say:

for every pound of the first £2,000 of the excess

15 per cent.

for every pound of the next £2,000 of the excess

30 per cent.

for every pound of the remainder of the excess

45 per cent.”.

Amendment of sections 127 and 128 of Income Tax Act, 1967.

2. —(1) Section 127 (1) of the Income Tax Act, 1967 , is hereby amended by the insertion, after paragraph (e), of the following paragraph:

“(ee) for requiring any employer making any payment of emoluments to which this Chapter applies, when making a deduction or repayment of tax in accordance with this Chapter and the regulations thereunder, to make such deduction or repayment as would require to be made if the amount of the emoluments were the emoluments reduced by the amount of any contributions payable by the employee and deductible by the employer from the emoluments being paid and which, by virtue of Chapters I and II of Part XII of the Income Tax Act, 1967 , or Chapter II of Part I of the Finance Act, 1972, are for the purposes of assessment under Schedule E allowed as a deduction from the emoluments;”.

(2) Section 128 (1) of the Income Tax Act, 1967 , is hereby amended by the insertion, after “documents”, of “or fails to make any deduction or repayment in accordance with any regulation made pursuant to section 127 (1) (ee)”.

Amendment of section 135 of Income Tax Act, 1967.

3. Section 135 of the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution in paragraph (d) of the proviso (inserted by the Finance Act, 1970 ) to subsection (1) of “£299” for “£249”, of “£324” for “£274”, of “£700” for “£600” (inserted by the Finance Act, 1971 ) in both places where it occurs and of “£175” for “£150” (inserted by the said Finance Act, 1971 ) in both places where it occurs,

(b) by the substitution in paragraph (e) of the said proviso of “£494” for “£424”, of “£594” for “£524”, of “£1,200” for “£1,000” (inserted by the said Finance Act, 1971 ) in both places where it occurs and of “£300” for “£250” (inserted by the said Finance Act, 1971 ) in both places where it occurs, and

(c) by the addition to the said proviso of the following paragraph:

“(f) where the income of an individual is wholly earned income, he shall be entitled to claim under this section such a deduction as will, when added to the deduction to which he is entitled under section 134, be not less in the aggregate than the deduction to which he would have been entitled under this section if his income were wholly unearned income.”.

Amendment of section 138 of Income Tax Act, 1967.

4. Section 138 of the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution in subsection (1) of “£494” for “£424” (inserted by the Finance Act, 1969 ) in each place where it occurs, of “£299” for “£249” (inserted by the said Finance Act, 1969 ) and of “£594” for “£524” (inserted by the said Finance Act, 1969 ); and

(b) by the substitution in subsection (2) of “£299” for “£249” (inserted by the said Finance Act, 1969 ) in both places where it occurs and of “£324” for “£274” (inserted by the said Finance Act, 1969 ).

Amendment of section 141 of Income Tax Act, 1967.

5. Section 141 of the Income Tax Act, 1967 , is hereby amended—

(a) by the insertion in subsection (1) (inserted by the Finance Act, 1969 ) after paragraph (a) of the following paragraph:

“(aa) who is under the age of 16 years and is permanently incapacitated by reason of mental or physical infirmity, or”,

(b) by the substitution for the portion of paragraph (a) of subsection (1A) (inserted by the said Finance Act, 1969 ) that precedes the proviso to the said paragraph (a) of the following:

“(a) (i) in the case of a child to whom paragraph (a) of that subsection applies and who is shown by the claimant to have been over the age of 11 years at the commencement of the year of assessment, £170, and in the case of any other such child, £155, or

(ii) in the case of a child to whom paragraph (aa) of that subsection applies and who is shown by the claimant to have been over the age of 11 years at the commencement of the year of assessment, £220, and in the case of any other such child, £205,”,

(c) by the substitution in paragraph (b) of the said subsection (1A) of “£170” for “£150”, and

(d) by the substitution in paragraph (c) of the said subsection (1A) of “£220” for “£150” in each place where it occurs.

Amendment of section 142 of Income Tax Act, 1967.

6. Section 142 (1) of the Income Tax Act, 1967 , is hereby amended by the substitution of “£355” for “£303” (inserted by the Finance Act, 1971 ) in both places where it occurs and by the substitution of “£295” for “£243” (inserted by the said Finance Act, 1971 ).

Amendment of section 485 of Income Tax Act, 1967.

7. Section 485 (5) of the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution in paragraphs (a) and (b) of “£2,000” for “£600”, and

(b) by the substitution in paragraphs (b) and (c) of “£250” for “£50”.

Amendment of section 486 of Income Tax Act, 1967.

8. Section 486 of the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution in subsection (1) of “£2,000” for “£600”, and

(b) by the substitution in subsection (2) of “£250” for “£50”.

Amendment of section 12 of Finance Act, 1967.

9. Section 12 (2) of the Finance Act, 1967 , is hereby amended—

(a) by the substitution in paragraph (a) of “the amount of which in the aggregate exceeds £50” for “which amount in the aggregate to more than £50” and of “the amount of the excess” for “the appropriate amount”,

(b) by the deletion of paragraph (b), and

(c) by the deletion in paragraph (c) (inserted by the Finance Act, 1969 ) of “but excluding from the computation of that aggregate any such expenses in excess of £500 for any one qualified person,”.

Cesser of section 1 of Finance (No. 2) Act, 1970.

10. Section 1 of the Finance (No. 2) Act, 1970 , shall cease to have effect with respect to the computation of income for the purposes of income tax for the year 1972-73 or for any subsequent year.

Payment of interest on Central Bank Reserve Bonds without deduction of tax.

11. —Central Bank Reserve Bonds issued under section 48 of the Central Bank Act, 1971 , shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 466 of the Income Tax Act, 1967 , and that section shall apply accordingly.

Amendment of certain enactments.

12. —Each enactment mentioned in column (2) of the Third Schedule is, in relation to tax for the year 1973-74 and subsequent years, hereby amended as specified in column (3) of that Schedule.