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18 1944

FINANCE ACT, 1944

PART I.

Income Tax.

Income tax and sur-tax for year 1944-45.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1944, at the rate of seven shillings and sixpence in the pound.

(2) Sur-tax (other than excess sur-tax) for the year beginning on the 6th day of April, 1944, 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, 1943.

(3) Where the total income, within the meaning of section 5 of the Finance Act, 1941 (No. 14 of 1941), of any individual for the year beginning on the 6th day of April, 1944, exceeds one thousand five hundred pounds and includes any such profits as are mentioned in the said section 5 , an additional duty of surtax (in this section referred to as excess sur-tax) shall be charged for the said year beginning on the 6th day of April, 1944, at the rate of seven shillings and sixpence in the pound in respect of so much of the said income as is made chargeable therewith by subsection (1) of the said section 5 as modified and applied by the subsequent provisions of this section.

(4) The several statutory and other provisions which were in force on the 5th day of April, 1944, in relation to income tax and sur-tax (including excess sur-tax) shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax (including excess sur-tax) to be charged as aforesaid for the year beginning on the 6th day of April, 1944.

(5) In the application (by virtue of the next preceding sub-section of this section) of Part II of the Finance Act, 1941 (No. 14 of 1941), to the excess sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1944, the said Part II shall have effect with and subject to the following modifications, that is to say:—

(a) the expression “the 6th day of April, 1944” shall be substituted for the expression “the 6th day of April, 1941,” wherever that expression occurs in the said Part II;

(b) in paragraph (b) of sub-section (3) of section 7 of the said Act, the expression “the 5th day of April, 1945” shall be substituted for the expression “the 5th day of April, 1942,” and the word “eight” shall be substituted for the word “five” and the expression “the 5th day of April, 1944,” shall be substituted for the expression “the 5th day of April, 1941”.

Amendment of Rule 6 of the Rules applicable to Cases I and II of Schedule D.

2. —Paragraph (2) of Rule 6 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, shall have effect as if the words “provided that the burden of the wear and tear of the machinery or plant will in fact fall directly on him.” were added at the end of the said paragraph.

Amendments of enactments consequent upon the substitution in county boroughs and the borough of Dun Laoghaire of the municipal rate for the poor rate and certain other rates.

3. —(1) The amendments specified in the second column of the Schedule to this Act shall be made in the enactments specified in the first column of that Schedule.

(2) Where, by virtue of this section, the expression “the municipal rate” occurs in any enactment specified in the Schedule to this Act, that expression shall be construed as meaning any rate which is—

(a) the rate leviable by the Right Honourable the Lord Mayor, Aldermen and Burgesses of Dublin under section 63 of the Local Government (Dublin) Act, 1930 (No. 27 of 1930), or

(b) the rate leviable by the Corporation of Dun Laoghaire under section 63 of the said Local Government (Dublin) Act, 1930 , or

(c) the rate leviable under section 25 of the Limerick City Management Act, 1934 (No. 35 of 1934), or

(d) the rate leviable under section 24 of the Waterford City Management Act, 1939 (No. 25 of 1939), or

(e) the rate leviable under section 16 of the Cork City Management (Amendment) Act, 1941 (No. 5 of 1941).

(3) Sub-sections (1) and (2) of this section shall be deemed to have come into force on and to have had effect as on and from the 6th day of April, 1931.

(4) In the case of any assessment made or purporting to have been made under sub-section (6) of section 187 of the Income Tax Act, 1918, against which due notice of appeal has been given before the 3rd day of May, 1944, such appeal shall be heard and determined as if the foregoing provisions of this section had not been enacted.

Exemption of children's allowance from income tax and reduction of deductions under section 21 of the Finance Act, 1920.

4. —(1) A children's allowance under the Act of 1944 shall be exempt from income tax (including sur-tax) and shall not be reckoned in computing income for the purposes of the Income Tax Acts.

(2) Where, but for this sub-section, a claimant would be entitled, under section 21 of the Finance Act, 1920, as amended by any subsequent enactment, to a deduction of sixty pounds in respect of any child living and under the age of sixteen years at the commencement of a year of assessment, the said deduction in respect of any such child in excess of two such children shall be reduced, for the year beginning on the 6th day of April, 1944, to forty-eight pounds and, for the year beginning on the 6th day of April, 1945 or any subsequent year, to forty-three pounds.

(3) Sub-section (2) of this section shall not apply in the case of a claimant who, because he is compelled to reside outside the State by reason of the circumstances of his trade, profession or employment, is not resident in any region on any date (being the qualifying date in relation to any payment period for that region) in the year of assessment to which his claim relates.

(4) In this section—

the expression “the Act of 1944” means the Children's Allowances Act, 1944 (No. 2 of 1944);

the expressions “qualifying date”, “payment period” and “region” have the same meanings as in the Act of 1944.

Amendment of section 22 of the Finance Act, 1920.

5. —Sub-section (1) of section 22 (which relates to deduction in respect of dependent relatives) of the Finance Act, 1920, shall have effect as if the words “a person (being a son or daughter of the claimant)” were substituted for the words “a daughter”.

Amendment of section 3 of the Finance Act, 1925 .

6. Section 3 (which relates to exemption of certain military pensions and gratuities) of the Finance Act, 1925 (No, 28 of 1925), is hereby amended by the insertion therein of the following sub-section section in lieu of sub-section (2) now (by virtue of section 4 of the Finance Act, 1938 (No. 25 of 1938)) contained in the said section 3 , that is to say—

“(2) The wounds and disabilities pensions to which section 16 of the Finance Act, 1919, applies shall include and be deemed always to have included all wound and disability pensions granted under the Army Pensions Acts, 1923 to 1943, and all gratuities in respect of wounds or disabilities similarly granted, and the said section 16 shall be construed and have effect accordingly.”

Exemption in respect of certain profits from sweepstakes organised by the Irish Red Cross Society.

7. —(1) Exemption shall be granted from tax under Schedule D of the Income Tax Act, 1918, in respect of the profits of any sweepstake held under the Act of 1933 by the Irish Red Cross Society which, but for this section, would have been assessable under Case 1 of the said Schedule on the Irish Red Cross Society or on the sweepstake committee appointed in pursuance of the Act of 1933 for the purpose of such sweepstake by the Irish Red Cross Society.

(2) In this section—

the expression “the Act of 1933” means the Public Hospitals Act, 1933 (No. 18 of 1933), as amended by the Public Hospitals (Amendment) (No. 2) Act, 1939 (No. 29 of 1939);

the word “sweepstake” has the meaning given to it by section 1 of the Act of 1933.

(3) This section shall be deemed to have come into force on and to have had effect as on and from the 6th day of April, 1939.

Emergency allowances in respect of certain machinery or plant.

8. —(1) Where—

(a) a person shows to the satisfaction of the Revenue Commissioners—

(i) that machinery or plant has been acquired by him during the appointed period for the sole purpose of overcoming difficulties in the carrying on by him of a trade chargeable to tax under Schedule D of the Income Tax Act, 1918, and

(ii) that those difficulties are due exclusively to circumstances created by or arising from the present national emergency (including circumstances continuing after the termination of that emergency), and

(iii) that it is likely that the said machinery or plant will, before the expiration of the appointed period, cease to be employed by that person for the purpose of carrying on the said trade, and

(b) that person applies, in accordance with this section, to the Revenue Commissioners for an allowance under this section in respect of the said machinery or plant in respect of any year of assessment falling wholly or partly within the appointed period, and

(c) that person shows to the satisfaction of the Revenue Commissioners that, during the year of assessment to which the application relates, he was possessed of the said machinery or plant,

the Revenue Commissioners may cause such allowance (in this section referred to as an emergency allowance) as they consider just to be made, by repayment or otherwise, in respect of the said machinery or plant from the assessment made on him for the year of assessment to which the application relates in respect of the profits of the said trade.

(2) Application to the Revenue Commissioners for an emergency allowance in relation to any year of assessment ended on or before the 5th day of April, 1944, may be made within twelve months after the passing of this Act and a similar application in relation to any subsequent year of assessment may be made within twelve months after the end of such year.

(3) Where, before the expiration of the appointed period, machinery or plant, in respect of which emergency allowances have been made to any person, either is sold or has ceased to be employed by that person for the purpose of carrying on the trade for which it was acquired, the Revenue Commissioners may review the said emergency allowances—

(a) in case the said machinery or plant is so sold, after the sale, or

(b) in case the said machinery or plant is not so sold, but has ceased to be so employed, after the expiration of the appointed period.

(4) The following provisions shall have effect in relation to or in consequence of a review under sub-section (3) of this section of the emergency allowances made to any person, that is to say—

(a) for the purpose of such review the Revenue Commissioners may compare the following amounts, that is to say:—

(i) the net cost (as hereinafter defined in this sub-section) to the said person of the machinery or plant in respect of which the said emergency allowances were made, and

(ii) the total allowances (as hereinafter defined in this sub-section) made to the said person;

(b) for the purposes of the said comparison, the said net cost shall be taken to be the amount by which the actual cost to the said person of the installation of the said machinery or plant exceeds the aggregate of—

(i) the sum or sums (if any) provided by way of subsidy or grant out of public funds towards the said installation, and

(ii) if the said machinery or plant is sold before the expiration of the appointed period, the amount for which the said plant or machinery was sold, or, if the said machinery or plant is not sold before the expiration of the appointed period but ceases before the expiration of the appointed period to be employed for the purposes of carrying on the trade for which it was acquired, the amount for which, in the opinion of the Revenue Commissioners, the said plant or machinery is worth to be sold at the expiration of the appointed period;

(c) for the purposes of the said comparison, the said total allowances shall be taken to be the aggregate of—

(i) all emergency allowances made to the said person in respect of the said machinery or plant, and

(ii) all allowances made to the said person, in respect of the said machinery or plant, under or by reason of Eule 6 or Rule 7 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, or section 3 of the Finance Act, 1942 (No. 14 of 1942), for the year of assessment during which the appointed period expires and for any previous year of assessment during which the said machinery or plant was possessed by him or, if the said machinery or plant is sold before the expiration of the appointed period, for the year of assessment in which it was sold and for any previous year during which the said machinery or plant was possessed by him;

(d) if the said net cost exceeds the said total allowances, the Revenue Commissioners may, by repayment or otherwise, make such further emergency allowance as is in their opinion just;

(e) if the said total allowances exceed the said net cost, the emergency allowances made to the said person may be revised and such additional assessments as the Revenue Commissioners consider to be necessary may be made on the said person for any year of assessment in respect of which any emergency allowance was granted to him.

(5) Where, after the expiration of the appointed period, machinery or plant, in respect of which emergency allowances are made to any person, continues to be employed by that person for the purpose of carrying on the trade for which it was acquired, the Revenue Commissioners may review the said emergency allowances and may make such additional assessments as may be necessary to revoke the said emergency allowances.

(6) In this section, the expression “the appointed period” means the period which commenced on the date of the passing of the Emergency Powers Act, 1939 (No. 28 of 1939), and which will end twelve months after the expiration of that Act.

Schedule D and Schedule E Assessment Districts.

9. —(1) Notwithstanding anything contained in the Income Tax Acts, assessments to income tax under Schedules D and E shall be made for such districts as the Revenue Commissioners shall from time to time direct.

(2) This section shall apply in respect of any assessment made after the passing of this Act, in relation to tax chargeable for any year of assessment, whether beginning before or after the passing of this Act.

Publication of reports of case stated.

10. —The holding (whether before or after the passing of this Act) in camera, in pursuance of sub-section (9) of section 5 of the Finance Act, 1929 (No. 32 of 1929), of the hearing by the High Court or the Supreme Court of a case stated under the enactments mentioned in that sub-section shall not preclude the publication, in the law reports published by the Incorporated Council of Law Reporting for Ireland or in any other recognised law reports or in any reports printed with the permission of the said Incorporated Council, of a report of the proceedings before, or the judgments given by, the High Court or the Supreme Court, but no such report shall disclose the name of the person whose chargeability to tax is the subject of the case.