PART II.

Excess Sur-Tax.

4. —In this Part of this Act—

the expression “accounting year” means the period of twelve months for which the accounts of the trade or business in relation to which the said expression is used are customarily made up or, where in any year beginning on a 6th day of April no accounts have been made up for a period of twelve months ending on a day in that year, such period of twelve months as the Revenue Commissioners shall determine;

the expression “total income” means (save as is otherwise provided in this Part of this Act) the total income from all sources without regard to the provisions of section 34 of the Income Tax Act, 1918, and as if the profits from a trade or business to which this Part of this Act applies included in such total income from all sources were computed without regard to the provisions of paragraph (3) of Rule 6 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, or the provisions of section 14 of the Finance Act, 1929 (No. 32 of 1929).

5. —(1) Notwithstanding anything contained in sub-section (2) of section 1 of this Act, and subject to the provisions of this Part of this Act, where the total income of any individual for the year beginning on the 6th day of April, 1941, exceeds one thousand five hundred pounds and includes profits from any trade or business to which this Part of this Act applies carried on by him either solely or in partnership with another person or other persons, an additional duty of sur-tax (in this Part of this Act referred to as excess sur-tax) shall be charged for that year at the rate of seven shillings and sixpence in the pound in respect of so much of the said income as is equal to whichever of the following amounts is the lesser, that is to say:—

(a) the amount by which the said profits exceed the standard profits calculated in accordance with this Part of this Act, or

(b) the amount by which the said total income exceeds the standard total income calculated in accordance with this Part of this Act.

(2) Excess sur-tax for the year beginning on the 6th day of April, 1941, may be assessed and recovered notwithstanding that sur-tax has already been assessed for that year.

(3) Excess sur-tax shall be a sur-tax, and accordingly all enactments for the time being in force in relation to sur-tax shall, so far as they are not inconsistent with this Part of this Act, apply and have effect in relation to excess sur-tax.

6. —This Part of this Act applies to every trade or business carried on (whether continuously or discontinuously) in the State, either solely or in partnership with another person or other persons, by an individual resident in the State, excepting and excluding husbandry and any office or employment, and also excepting and excluding any profession the profits of which are dependent wholly or mainly on the personal qualifications of the person or persons by whom the profession is carried on and in which either no capital expenditure or only capital expenditure of a comparatively small amount is required, but including the business of a person taking commissions in respect of transactions effected or services rendered, and also including the business of an agent of any description other than a commercial traveller or other agent whose remuneration consists wholly of a fixed and definite sum not depending on the amount of business done or any other contingency.

7. —(1) The standard profits of an individual from a trade or business to which this Part of this Act applies carried on by him during the whole of the year beginning on the 6th day of April, 1941, either solely or in partnership with another person or other persons shall (subject to the subsequent provisions of this section) be computed for the purposes of this Part of this Act in accordance with whichever of the following paragraphs is' applicable, that is to say:—

(a) if the said trade or business has been so carried on for three or more complete accounting years ending on or before the 5th day of April, 1939, the standard profits of such individual shall be the amount of his profits from the said trade or business for one (to be selected by him or (in default of such selection) by the Revenue Commissioners) of the last three accounting years so ending or the sum of two thousand five hundred pounds, whichever is the greater;

(b) if the said trade or business has been so carried on for two but not for three complete accounting years ending on or before the 5th day of April, 1939, the standard profits of such individual shall be the amount of his profits from the said trade or business for one (to be selected by him or (in default of such selection) by the Revenue Commissioners) of those two accounting years or the sum of two thousand five hundred pounds, whichever is the greater;

(c) if the said trade or business has been so carried on for one complete accounting year ending on or before the 5th day of April, 1939, but not for two complete accounting years so ending, the standard profits of such individual shall be the amount of his profits from the said trade or business for that accounting year or the sum of two thousand five hundred pounds, whichever is the greater;

(d) in any other case, the standard profits of such individual shall be the sum of two thousand five hundred pounds.

(2) The standard profits of an individual from a trade or business to which this Part of this Act applies carried on by him during part only of the year beginning on the 6th day of April, 1941, either solely or in partnership with another person or other persons shall be such amount as bears to the amount which would be his standard profits under the other sub-sections of this section if he had so carried on the said trade or business during the whole of the said year the same proportion as the part of the said year during which he so carried on the said trade or business bears to twelve months.

(3) The following provisions shall apply and have effect in relation to the computation of profits for the purposes of this section, that is to say:—

(a) the amount of the profits of a trade or business for any accounting year shall be taken to be the actual profits derived from such trade or business in that accounting year computed in accordance with the Income Tax Acts, but with such allowance for wear and tear of plant and machinery (as computed for the purposes of income tax) as appears to the Revenue Commissioners to be reasonably and properly attributable to the said accounting year;

(b) where a trade or business to which this Part of this Act applies was carried on by an individual (either solely or in partnership with another person or other persons) during the whole or any part of the year ending on the 5th day of April, 1942, and was so carried on by him for less than five consecutive years ending on the 5th day of April, 1941, and was, immediately prior to being so carried on by the said individual, carried on by another person or by two or more persons not including the said individual, the profits of the said trade or business while so carried on by such person or persons may, on the application of the said individual, be treated, for the purpose of calculating the standard profits of the said individual, as profits of the said individual if he so carried on the said trade or business as aforesaid solely or as profits of the said individual and his partner or partners if he so carried on the said trade or business as aforesaid in partnership with another person or other persons.

(4) For the purposes of this section a partner shall be deemed always to have been entitled to share in the profits of the partnership in the proportion that his share of the profits of the partnership for the year beginning on the 6th day of April, 1941, bore to the total profits of the partnership for that year.

8. —(1) The standard total income of an individual who has carried on during the whole of the year beginning on the 6th day of April, 1941, either solely or in partnership with another person or other persons, a trade or business to which this Part of this Act applies shall be computed for the purposes of this Part of this Act in accordance with whichever of the following paragraphs is applicable, that is to say:—

(a) if such individual has, for three or more consecutive years ending on the 5th day of April, 1940, been in receipt of income chargeable to income tax, the standard total income of such individual shall be the amount of his total income for one (to be selected by him or (in default of such selection) by the Revenue Commissioners) of the last three of those years or the sum of two thousand five hundred pounds, whichever is the greater;

(b) if such individual has, for two but not for three consecutive years ending on the 5th day of April, 1940, been in receipt of income chargeable to income tax, the standard total income of such individual shall be the amount of his total income for one (to be selected by him or (in default of such selection) by the Revenue Commissioners) of those two years or the sum of two thousand five hundred pounds, whichever is the greater;

(c) if such individual has not been in receipt of income chargeable to income tax for two consecutive years ending on the 5th day of April, 1940, but has been in receipt of income chargeable to income tax for the year ending on the said 5th day of April, 1940, the standard total income of such individual shall be his total income for the said year ending on the 5th day of April, 1940, or the sum of two thousand five hundred pounds, whichever is the greater;

(d) in any other case the standard total income of such individual shall be the sum of two thousand five hundred pounds.

(2) The standard total income of an individual who by reason of his death has carried on during part only of the year beginning on the 6th day of April, 1941, either solely or in partnership with another person or other persons a trade or business to which this Part of this Act applies shall be such amount as bears to the amount which would be his standard total income under the foregoing sub-section of this section if he had so carried on the said trade or business during the whole of the said year the same proportion as the part of the said year during which he so carried on the said trade or business bears to twelve months.

9. —(1) Where an individual is chargeable to excess sur-tax, the following provisions shall apply and have effect, that is to say:—

(a) there shall be deemed to have been included in the total income from all sources of such individual for the year beginning on the 6th day of April, 1941, a sum (in this section referred to as the added sum) equal to whichever of the following amounts is the lesser, that is to say:—

(i) an amount equal to the portion of the income of the said individual on which excess sur-tax is chargeable, or

(ii) the amount of income from the profits of a trade or business to which this Part of this Act applies which would fall to be included in a statement of the total income from all sources of the said individual for the said year;

(b) there shall be deducted from the excess sur-tax payable by the said individual a sum equal to whichever of the following sums is the lesser, that is to say:—

(i) a sum equal to so much of the sur-tax (other than excess sur-tax), if any, payable by the said individual for the year beginning on the 6th day of April, 1941, as is applicable to the added sum, or

(ii) a sum equal to five shillings in the pound on the added sum;

(c) the added sum shall be treated for the purposes of this section as the highest part of the total income from all sources of the said individual.

(2) The definition contained in this Part of this Act of the expression “total income” shall not apply or have effect in relation to that expression where it occurs in this section, and accordingly the said expression shall, in this section, be construed as if the said definition had not been enacted.

(3) The provisions of this Part of this Act relating to the computation of profits shall not apply or have effect in relation to the computation of the profits of a trade or business for the purposes of this section.

10. —Where the net result of the carrying on of a trade or business to which this Part of this Act applies in the accounting year or the two or three accounting years by reference to the profits for which or for one of which (as the case may be) the standard profits of an individual from such trade or business are computed has been a loss, such loss shall, to the extent to which it exceeds the profits of such individual from the said trade or business for the accounting year next following the said accounting year or the last of the said two or three accounting years (as the case may be), be carried forward and, so far as it will extend, be deducted from or set-off against the profits of such individual from the said trade or business in respect of which he is chargeable with excess sur-tax.

11. —(1) The profits from a trade or business to which this Part of this Act applies shall (save as is otherwise provided in this Part of this Act) be computed for the purposes of this Part of this Act without regard to the provisions of paragraph (3) of Rule 6 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, or the provisions of section 14 of the Finance Act, 1929 (No. 32 of 1929).

(2) The provisions of the foregoing sub-section of this section are, in this Part of this Act, referred to as the provisions of this Part of this Act relating to the computation of profits.