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15 1947

FINANCE ACT, 1947

PART III.

Corporation Profits Tax.

Continuance of certain exemptions from corporation profits tax.

14. —(1) The exemptions from corporation profits tax given by section 33 of the Finance Act, 1929 (No. 32 of 1929), as amended by section 30 of the Finance Act, 1931 (No. 31 of 1931), and paragraph (b) of subsection (1) of section 47 of the Finance Act, 1932 (No. 20 of 1932), and continued until the 31st day of December, 1946, by section 17 of the Finance Act, 1944 (No. 18 of 1944), shall be and are hereby continued until the 31st day of December, 1949.

(2) In respect of every accounting period beginning on or after the 1st day of January, 1947, and ending on or before the 31st day of December, 1949, paragraph (b) of subsection (1) of section 47 of the Finance Act, 1932 (No. 20 of 1932), shall be construed and have effect as if the word “tramway” were deleted therefrom and subsection (1) of this section shall be construed and have effect accordingly.

Provisions in respect of deductions for the remuneration of directors in relation to corporation profits tax.

15. —In respect of every accounting period ending after the 31st day of December, 1946, proviso (c) to subsection (2) of section 53 of the Finance Act, 1920, and subsection (4) of section 36 of the Finance Act, 1941 (No. 14 of 1941), shall be construed and have effect as if the words “one thousand five hundred pounds” were substituted therein for the words “one thousand pounds”.

Relief for losses on sale of stock.

16. —(1) For the purposes of this section and the Fifth Schedule to this Act—

(a) the expression “the sales period” shall be construed in accordance with the following provisions:—

(i) the said expression shall mean, subject to subparagraph (ii) of this paragraph, the years 1947 and 1948,

(ii) if a company ceases to carry on the whole of its trade or business during the said years, the said expression shall, as regards the company, mean the period commencing on the 1st day of January, 1947, and ending on the date of such cesser;

(b) the value of a particular class of trading stock held for the purposes of a trade or business on the 31st day of December, 1946, shall be taken to be the aggregate of the values of the several items comprising that class of trading stock, each item thereof being valued at its cost or the cost of its replacement on that day, whichever is the lower;

(c) the value of all the trading stock held for the purposes of a trade or business on the 31st day of December, 1946, shall be taken to be the aggregate of the values of the several classes of the trading stock held for the purposes of that trade or business on the 31st day of December, 1946;

(d) the sum realised during the sales period for all the trading stock held for the purposes of a trade or business on the 31st day of December, 1946, shall be taken to be the aggregate of the several sums ascertained, in relation to the several classes of that trading stock, in accordance with Rule 2 of the Fifth Schedule to this Act, each such several sum being reduced, if appropriate, in accordance with Rule 3 of the said Fifth Schedule .

(2) If any company carrying on a trade or business on the 31st day of December, 1946, makes, not later than twelve months after the end of the sales period, a claim to the Revenue Commissioners for relief under this section and proves—

(a) that, on the 31st day of December, 1946, stock was taken of all the trading stock then held for the purposes of the trade or business, and

(b) that the value of all such trading stock exceeded the sum realised during the sales period for all such trading stock,

the following provisions shall have effect—

(i) a claimable loss shall be deemed to have been sustained by the company,

(ii) the claimable loss shall, subject to paragraphs (iii) and (iv) of this subsection, be taken to be an amount equal to the said excess,

(iii) where the whole or any part of any loss sustained on sales of, or resulting from any fall in the value of, any of the stock held for the purposes of the trade or business on the 31st day of December, 1946, has been or is to be met directly or indirectly by any person, other than the company, the amount of the claimable loss shall be reduced accordingly,

(iv) where a sale of stock is taken into account in computing the profits or loss of the trade or business in respect of any accounting period beginning before the 1st day of January, 1947, and ending on or after that date, the amount of the claimable loss shall be calculated as if the value of all the trading stock held for the purposes of the trade or business on the 31st day of December, 1946, were decreased or increased, as the case may be, by so much of any loss or profit on the sale as, by virtue of any apportionment under paragraph (c) (which said paragraph was inserted by paragraph (c) of subsection (1) of section 25 of the Finance Act, 1946 (No. 15 of 1946)) of subsection (3) of section 37 of the Finance Act, 1941 (No. 14 of 1941), affects the profits or loss for the part of the period falling before the said 1st day of January, 1947,

(v) the claimable loss shall be allowed as a deduction in computing the profits of the company chargeable to excess corporation profits tax for the period which is, in case an accounting period of the company ended on the 31st day of December, 1946, the said accounting period or, in any other case, the part, prior to the 1st day of January, 1947, of the accounting period of the company which began before and ends on or after the 1st day of January, 1947, or as an addition to any deficiency of profits for that period, as the case may be.

(3) Where a post-appointed day company is deemed by section 14 of the Finance Act, 1944 (No. 18 of 1944), to be an auxiliary of a pre-appointed day company and the provisions of subsection (5) of the said section 14 apply to the companies, the preceding subsections of this section shall have effect with due regard to the provisions contained in the said section 14 .

(4) Any company on behalf of which a false or fraudulent claim for relief is made under this section shall be liable to a penalty equal to treble the amount of the relief claimed.

(5) Pending the determination of any claim for relief under this section the Revenue Commissioners may assess and collect excess corporation profits tax without reference to the claim, and any relief due in respect of any such claim shall be given by way of repayment.

(6) Any inspector of taxes may by notice in writing require any company making a claim under this section to deliver to him a return in such form as the Revenue Commissioners may prescribe containing such particulars as they may require with respect to the trading stock held or deemed to be held for the purposes of the trade or business at any material date, and with respect to any other matters relevant to the claim.

(7) Subsection (6) of section 56 of the Finance Act, 1920, and also so much of subsection (7) of that section and the regulations made thereunder as relates to appeals shall apply and have effect, with the necessary modifications, in relation to the giving of relief under this section in the like manner as they apply to assessments to excess corporation profits tax.

Construction of Part III of this Act.

17. —This Part of this Act shall be read and construed together with Part V of the Finance Act, 1920, as amended or extended by subsequent enactments, and, in particular, shall be read and construed together with Part V of the Finance Act, 1941 (No. 14 of 1941), Part IV of the Finance Act, 1942 (No. 14 of 1942), Part III of the Finance Act, 1943 (No. 16 of 1943), Part II of the Finance Act, 1944 (No. 18 of 1944), and Part III of the Finance Act, 1946 (No. 15 of 1946).