PART VI.

Amendment of Finance (Miscellaneous Provisions) Act, 1956, and Training of Local Staff before Commencement of Trading Income Tax, Sur-tax and Corporation profits Tax.

70. —In this Part of this Act “the Act” means Finance (Miscellaneous Provisions) Act, 1956 .

71. —(1) In the case of a company carrying on the trade of building or repairing ships, the following provisions shall apply for the purposes of relief from income tax and corporation profits tax under Part III of the Act:

(a) repairs carried out within the State to a ship shall be regarded as the manufacture within the State of goods and, to the extent to which any such repairs have been carried out within the State to a ship which is wholly owned by persons who are not ordinarily resident in the State, the ship shall be regarded as goods which are manufactured within the State and exported by the person who manufactures them and any amount receivable in payment for repairs carried out within the State to a ship shall be regarded as an amount receivable from the sale of goods;

(b) where, as respects any year of assessment or any accounting period, the company, by notice in writing given to the inspector of taxes within twelve months after the end of that year or period, so elects, the Act shall apply in the case of that year or period—

(i) as if all ships built by the company within the State had been exported by the company,

(ii) as if all ships to which repairs were carried out by the company within the State were, to the extent of such repairs, goods exported by the company, and

(iii) as if amounts receivable by the company in payment for the building within the State or of the repair within the State of ships were amounts receivable from the sale of goods exported by the company out of the State.

(2) In paragraphs (a) and (b) of subsection (1) of this section, any reference to repair or building, as well as including a reference to repair or building effected on or after the 6th day of April, 1959, also includes a reference to repair or building effected before that day.

(3) Each of the references to books contained in paragraph (d) of subsection (2); of section 56 of Finance Act, 1958 , shall be construed as including a reference to greeting cards.

(4) This section shall have effect—

(a) in relation to income tax, for any year of assessment beginning on or after the 6th day of April, 1959, and

(b) in relation to corporation profits tax, for any accounting period or part of an accounting period subsequent to the 5th day of April, 1959, and, in the case of corporation profits tax, the Revenue Commissioners may, for the purposes of this section in relation to any-such part of an accounting period, make such apportionments as may be appropriate.

72. —(1) This section shall take effect for the purposes of relief from income tax or corporation profits tax under Part III of the Act, and in this section “the company” means a company claiming relief pursuant to that Part.

(2) Where it appears to the Revenue Commissioners that, in the case of goods of a particular class, the relationship between the amount receivable from the sale in any period of goods exported and the amount receivable from the sale in that period of goods not exported is affected by the payment by the company of any duty in respect of the goods or the materials used in their manufacture, the Revenue Commissioners may direct that subsection (3) or subsection (4) of this section, whichever appears to them to be appropriate, shall apply in arriving at an amount receivable from the sale in that period of such goods, and where any such direction has been given, any relief to the company by reference to the sale of goods in that period shall be computed in accordance with it.

(3) (a) An amount receivable from the sale of goods exported out of the State shall be deemed to be increased by the amount of any drawback, rebate or repayment of duty, being duty payable in the State, received by the company in respect of such goods and to be reduced by the amount of any duty paid in any territory outside the State by the company in respect of the import of such goods into that territory.

(b) An amount receivable from the sale of goods not exported shall be deemed to be increased by the amount of any rebate or repayment of duty, being duty payable in the State, received by the company in respect of such goods.

(4) (a) An amount receivable from the sale of goods exported out of the State shall be deemed to be reduced by the amount of any duty paid in any territory outside the State by the company in respect of the import of such goods into that territory.

(b) An amount receivable from the sale of goods not exported shall be deemed to be reduced by the amount of any duty, being duty payable in the State, paid by the company in respect of such goods.

(5) The Revenue Commissioners may by notice in writing require the company to furnish them with such information or particulars as may be necessary for the purpose of giving effect to this section, and subsection (1) of section 12 and subsection (1) of section 13 of the Act shall have effect as if the matters of which proof is required by those subsections included the information or particulars specified in a notice under this subsection.

(6) This section shall have effect as from the passing of the Act, and relief from tax in relation to the period between such passing and the passing of this Act may be given accordingly either by repayment or otherwise as the Revenue Commissioners think proper.

73. —(1) Section 17 of the Act is hereby amended—

(i) by the addition at the end of subsection (1) of the word “or” and the following paragraph:

“(c) for the purposes of a dock undertaking.”

(ii) by the insertion after subsection (3) of the following subsection:

“(3A) In this section ‘dock ’ includes any harbour, wharf, pier or jetty or other works in or at which vessels can ship or unship merchandise or passengers, not being a pier or jetty primarily used for recreation, andi ‘dock undertaking’ shall be construed accordingly.”

(2) Section 19 of the Act shall have effect as if paragraph (b) and the proviso to that paragraph were deleted and the following paragraphs inserted in lieu thereof:

“(b) any expenditure on the provision of machinery or plant or on any asset which is treated for any year of assessment as machinery or plant, or

(c) any expenditure in respect of which an allowance is or may be made, for the same or for any previous or subsequent year of assessment, under subsection (3) of section 5 or under section 6 of Finance Act, 1946 (No. 15 of 1946).”

(3) Where capital expenditure is incurred on preparing, cutting, tunnelling or levelling land for the purposes of preparing the land as a site for the installation of machinery or plant, the machinery or plant shall, as regards that expenditure, be treated, for the purposes of Part IV of the Act, as a building or structure.

(4) In relation to industrial building allowances for years of assessment beginning on or after the 6th day of April, 1959, other than amounts carried forward from any year of assessment ended before that date, this section shall have effect as from the commencement of the Act.

74. —(1) Where, before the day (being the 6th day of April, 1959, or a later day) of the setting up or commencement of a trade consisting of the production for sale of manufactured goods, a person who is about to carry on the trade incurs or has incurred expenditure on the recruitment and training, with a view to their employment in the trade, of persons all or a majority of whom are Irish citizens—

(a) for the year of assessment in which that day occurs and each of the next two years of assessment, there shall be made to him an allowance equal to one-third of that expenditure, and such allowance shall be made as a deduction in charging the profits or gains of the trade,

(b) in the case of a company, that expenditure shall be treated for the purposes of corporation profits tax as if one-thirty-sixth thereof had been incurred in each of the thirty-six consecutive months the first of which is that beginning with that day,

(c) paragraph (3) of Rule 6 of the Rules applicable to Cases I and II of Schedule D and section 4 of Finance Act, 1937 , shall apply in relation to an allowance under paragraph (a) of this subsection as they apply in relation to a deduction allowable in respect of wear and tear of machinery or plant.

(2) For the purposes of this section—

(a) expenditure shall not include any expenditure incurred by a person in respect of which no deduction would have been allowable to him, in computing the profits or gains of the trade under the Rules applicable to Cases I and II of Schedule D, if it had been incurred on or after the day of the setting up or commencement of the trade,

(b) expenditure shall not be regarded as having been incurred, by a person in so far as it has been or is to be met directly or indirectly by the State, by any board established by statute or by any public or local authority.

(3) For the purposes of this section, the date on which any expenditure is incurred shall be taken to be the date on which the sum in question becomes payable.

(4) Any claim by a person for an allowance under this section shall be included in the annual statement required to be delivered under the Income Tax Acts of the profits or gains of his trade and shall be accompanied by a certificate signed by the claimant, which shall be deemed to form part of the claim, stating that the expenditure was incurred on the recruitment and training, with a view to their employment in the trade, of persons all or a majority of whom are Irish citizens and giving such particulars as show that the allowance falls to be made.