PART I.

Income Tax.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1957, at the rate of seven shillings and sixpence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1957, 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, 1956.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1957, in relation to income tax and sur-tax shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1957.

2. —(1) The amount of any deduction under Rule 6 of the Rules applicable to Cases I and II of Schedule D of the Income Tax Act, 1918, shall, in the case of any year of assessment beginning on or after the 6th day of April, 1958, be computed as if paragraph (1) of the said Rule 6 had provided, in relation to any

such year, for a deduction equal to five-fourths of the amount considered by the authority having jurisdiction in the matter to be just and reasonable as representing the diminished value by reason of wear and tear during the year of the machinery or plant.

(2) References to the said Rule 6 which are contained in section 3 of the Finance Act, 1949 (No. 13 of 1949), and in subsection (1) of section 24 of the Finance Act, 1956 (No. 22 of 1956), shall be construed as including references to the said Rule 6 as amended by this section.

(3) Paragraph (4) of the said Rule 6 shall have effect as if from “as” to the end of the paragraph were deleted and “as is due” were substituted therefor.

(4) Paragraph (5) of the said Rule 6 shall have effect as if the amount therein referred to were an amount equivalent to the amount which would be allowable under paragraph (1) of the said Rule 6 if the machinery or plant were, during the period of the letting, in use for the purposes of a trade carried on by the lessor.

(5) The provisions of this section shall not apply to any deduction allowable—

(a) under the said Rule 6 as representing the diminished value by reason of wear and tear of any vehicle suitable for the conveyance by road of persons or goods or the haulage by road of other vehicles, or

(b) by virtue of an election under the proviso which was added to paragraph (1) of the said Rule 6 by section 3 of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956).

3. —Paragraph (b) of subsection (1) of section 20 of the Finance Act, 1922 (being the paragraph inserted by section 3 of the Finance Act, 1940 (No. 14 of 1940)) is hereby amended by the insertion therein after subparagraph (i) of the following subparagraph:

“(ia) being payable to any university or college, being a university or college in the State, for the purpose of enabling such university or college to carry on research, is so payable for a period which is or may be three years or longer, or”.

4. —(1) In relation to stocks, shares and securities of a company whose trade or business consists wholly or mainly of the production for sale of manufactured goods—

(a) the following subsection shall, with effect as from the commencement of section 7 of the Finance Act, 1932 (No. 20 of 1932), be substituted for subsection (2) of that section:

“(2) This section shall apply to all stocks, shares, and securities issued after the passing of this Act in respect of which the Revenue Commissioners certify that they are satisfied that all the following conditions are complied with in relation to such stock, share or security, that is to say:

(a) such stock, share or security is or was issued by a company which complies with the following provisions, that is to say, such company—

(i) is incorporated by or under the laws of the State, and

(ii) is a company limited by shares within the meaning of the Companies (Consolidation) Act, 1908, and

(iii) is managed and controlled in the State, and

(iv) carries on or (in the case of a company which has not commenced to carry on business) intends to carry on its business wholly or mainly in the State; and

(b) the stocks, shares or securities—

(i) have been issued for public subscription, or

(ii) belong to a class of the company's stocks, shares or securities that is quoted on a Stock Exchange in the State, and the number of individuals as described in subsection (1) of this section who are beneficial owners of stocks, shares or securities of that class is not less than fifty; and

(c) such issue of stock, shares or security is so described and designated that it is readily distinguishable from all other (if any) issues of such company.”; and

(b) the following subsection shall, with effect as from the commencement of section 7 of the Finance Act, 1932 , be substituted for subsections (4) and (5) of that section:

“(4) Any stock, share or security to which this section applies shall cease to be a stock, share or security (as the case may be) to which this section applies if and when the Revenue Commissioners certify in relation to such stock, share or security that they are satisfied that the company's trade or business has ceased to consist wholly or mainly of the production for sale of manufactured goods or that, as respects the company, all or any of the conditions set forth in paragraph (a) of subsection (2) of this section or, as respects such stock, share or security, all or any of the conditions set forth in paragraphs (b) and (c) of subsection (2) of this section, or in subsection (3) of this section, have ceased to be complied with.”

(2) In relation to stocks, shares and securities of a company whose trade or business consists wholly or mainly of the production for sale of manufactured goods, section 7 of the Finance Act, 1935 (No. 28 of 1935), is hereby repealed with effect as from the commencement of that section.

(3) Where a certificate is given by virtue of this section in respect of any stocks, shares or securities, relief or repayment under subsection (1) of section 7 of the Finance Act, 1932 , shall, nevertheless, not be granted in respect of any dividend or interest on the stocks, shares or securities which is payable prior to the 6th day of April, 1958.

(4) Nothing in this section shall—

(a) affect the validity of any certificate under subsection (2) of section 7 of the Finance Act, 1932 , issued before the passing of this Act, or

(b) in a case in which such a certificate has been so issued, prevent the issue of a certificate under subsection (4) (as originally enacted) of section 7 of the Finance Act, 1932 ,

(5) Where—

(a) a company (in this subsection referred to as the holding company) holds beneficially more than ninety per cent. (in nominal value) of the issued stocks, shares and securities of any other company or companies,

(b) all of such stocks, shares or securities are such as would qualify for a certificate of the Revenue Commissioners under subsection (2) of section 7 of the Finance Act, 1932 , as amended by subsection (1) of this section, but for paragraph (b) of that subsection as so amended, and

(c) such holding is the sole or main business of the holding company,

subsections (1), (2) and (3) of this section shall, so long as the foregoing conditions subsist, have effect in relation to stocks, shares and securities issued by the holding company as if the holding company were a company whose trade or business consisted wholly or mainly of the production for sale of manufactured goods.

5. — Section 12 of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956), is hereby amended by the addition thereto of the following subsections:

“(5) (a) For any year of claim, other than the year of assessment commencing on the 6th day of April, 1957, subsection (1) of this section shall have effect as if, for ‘shall be reduced by fifty per cent.’ where occurring at the end of the subsection, there were substituted ‘shall be reduced to nil’.

(b) For any year of claim, other than the year of assessment commencing on the 6th day of April, 1957, subsection (3) of this section shall have effect as if, for ‘shall be reduced by fifty per cent.’ where occurring at the end of the subsection, there were substituted ‘shall be reduced to nil’.

(6) (a) Income tax payable by a company for a year of claim other than the year of assessment commencing on the 6th day of April, 1957, so far as such income tax is referable to profit on the sale of goods exported out of the State may, notwithstanding anything contained in this section, be reduced by twenty-five per cent., but such reduction shall be in substitution for and not in addition to any other reduction of income tax, under the provisions of this section, for the year of claim.

(b) For the purposes of this subsection ‘profit on the sale of goods exported out of the State’ shall be taken to be such sum as bears to the amount of the company's profits for the year of claim, computed in accordance with the Income Tax Acts, which is attributable to the sale of goods (whether exported or not), the same proportion as the amount receivable in the basis period from the sale of goods exported bears to the total amount receivable by the company from the sale of goods (whether exported or not) in the basis period.”

6. —(1) Any stock or other forms of security issued after the passing of this Act by Bord na Móna shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 2 of the Finance Act, 1924 (No. 27 of 1924), and that section shall apply accordingly.

(2) Notwithstanding anything contained in the Income Tax Acts, Bord na Móna shall be entitled to have the amount of income tax which, but for this section, it would be liable ultimately to bear for any year of assessment reduced by a sum representing income tax on the amount of the interest on stock or other forms of security which, by direction of the Minister for Finance given under section 2 of the Finance Act, 1924 , as applied by this section, is paid by Bord na Móna without deduction of tax in that year of assessment.

(3) There shall be added to Rule 1 of Case III of Schedule D of the Income Tax Act, 1918, the following clause, that is to say:

“(k) interest on stock or other forms of security issued by Bord na Móna in cases where such interest is paid without deduction of tax.”