PART II.

Profits from Coal-mining Operations—Temporary Relief from Income Tax and Corporation Profits Tax.

4. —In this Part of this Act—

“coal-mining operations” means coal-mining operations (by underground or opencast excavation) within the State, whether before or after the passing of this Act, but only in so far as the production of coal results or has resulted therefrom;

“commencement day” means such day after the 30th day of September, 1956, as is referred to in paragraph (b) of the definition in this section of “new coal-mining operations”;

“existing coal-mining operations” means coal-mining operations which, at any time during the period of one year ending on the 30th day of September, 1956, have resulted in the production of coal ;

“new coal-mining operations” means coal-mining operations which—

(a) are not existing coal-mining operations,

(b) are begun on a day after the 30th day of September, 1956, and

(c) are, in the opinion of the Revenue Commissioners, having regard to all the circumstances (which may include the nature and magnitude of the operations and the place where they are carried on), substantially distinct and separate from, and not merely an extension of, any other coal-mining operations;

“production” means production in reasonable commercial quantities with a view to the realisation of profits.

5. —Relief under this Part of this Act shall be given in respect only of income or profits of a company, incorporated in the State and resident therein for the purposes of income tax, derived from new coal-mining operations or existing coal-mining operations.

6. —In computing, for the purpose of assessment to income tax, the amount of the profits from any new coal-mining operations—

(a) the new coal-mining operations shall be treated as a separate trade, and

(b) any corporation profits tax which, by virtue of section 7 of this Act is not payable, shall be deemed to have been paid.

7. —(1) Income tax payable in respect of income, computed in accordance with the Income Tax Acts, from new coal-mining operations shall, as respects the year of assessment in which the commencement day occurs and succeeding years of assessment, be reduced by fifty per cent., subject to the proviso that income tax so payable shall not be so reduced for any year of assessment beginning on or after the 6th day of April, 1967.

(2) (a) Corporation profits tax referable to profits from new coal-mining operations for accounting periods or parts of accounting periods within the period from the commencement day to the 30th day of September, 1966, shall be reduced by fifty per cent.

(b) The Revenue Commissioners may make such apportionments as they consider necessary for the purposes of this subsection.

8. —(1) For each relevant year of assessment, income tax payable in respect of income, computed in accordance with the Income Tax Acts, from existing coal-mining operations, in so far as such income is referable to the income tax excess, shall be reduced by fifty per cent.

(2) (a) For each of the accounting periods or parts of accounting periods within the period from the 1st day of October, 1956, to the 30th day of September, 1966, corporation profits tax chargeable in respect of profits from existing coal-mining operations, in so far as such profits are referable to the corporation profits tax excess, shall be reduced by fifty per cent.

(b) The Revenue Commissioners may make such apportionments as they consider necessary for the purposes of this subsection.

(c) In computing, for the purpose of assessment to income tax, the amount of the profits from existing coal-mining operations, any corporation profits tax which, by virtue of this subsection is not payable, shall be deemed to have been paid.

(3) (a) In this section—

“basis period” means the period on the profits or gains of which income tax in respect of the existing coal-mining operations is finally computed under Case I of Schedule D for the relevant year of assessment;

“corporation profits tax excess” means the excess of the volume of output of coal resulting from the existing coal-mining operations for an accounting period or part of an accounting period to which paragraph (a) of subsection (2) of this section refers over the standard output of coal;

“income tax excess” means the excess of the volume of output of coal resulting from the existing coal-mining operations in the basis period for a relevant year of assessment over the standard output of coal;

“relevant year of assessment” means each of the ten consecutive years of assessment of which the first is such one of the three years of assessment commencing on the 6th day of April, 1957, the 6th day of April, 1958, and the 6th day of April, 1959, respectively, as the company in question elects or, in default of election, the year commencing on the 6th day of April, 1959, subject to the proviso that, in any case in which the standard output of coal is the volume of output of coal in the twelve months ending on the 30th day of September, 1956, the year of assessment commencing on the 6th day of April, 1957, shall not be a relevant year of assessment if the basis period in relation thereto commences on a day prior to the 1st day of October, 1955;

“standard output of coal” means the volume of output of coal from the existing coal-mining operations in the twelve months ending on the 30th day of September, 1956, or, if the company in question so elects, in the twelve months ending on the 30th day of September, 1955.

(b) Where, for the purpose of ascertaining the income tax excess or the corporation profits tax excess, it is necessary to compare, with the standard output of coal, the volume of output of coal in a period of less than twelve months, the standard output of coal shall, for the purpose of the comparison, be deemed to be such part thereof as bears to the whole the same proportion as that period bears to twelve months.

9. —(1) Where, under Rule 20 of the General Rules, a company is entitled to deduct income tax from any dividend, tax shall not in any case be deducted at a rate exceeding the rate of the income tax as reduced by any relief from that tax given under this Part of this Act, and the provisions of section 5 of the Finance Act, 1940 (No. 14 of 1940), shall apply accordingly, with any necessary modifications.

(2) The rate of income tax at which any repayment of income tax for any year of assessment falls to be made shall be subject to such adjustments as may be proper in cases in which relief is given under or by virtue of this Part of this Act.

(3) No relief from income tax shall be granted under this Part of this Act in respect of any income the income tax on which a company is, otherwise than under Rule 20 of the General Rules, entitled to charge against any other person or to deduct, retain or satisfy out of any payment to any other person.

(4) Where, by virtue of subsection (1) of this section, income tax is deducted from a dividend at a reduced rate, the amount to be included in respect of the dividend in any return for the purpose of sur-tax shall be an amount which bears the same proportion to the amount of the dividend as the rate of income tax deducted therefrom bears to the rate which would have been authorised to be deducted if this section had not been enacted.