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25 1958

FINANCE ACT, 1958

PART V.

Retirement and Other Benefits for Directors and Employees: Income Tax and Sur-Tax.

Interpretation (Part V).

31. —(1) In this Part of this Act, except where the context otherwise requires—

director” means—

(a) in relation to a body corporate the affairs whereof are managed by a board of directors or similar body, a member of that board or similar body,

(b) in relation to a body corporate the affairs whereof are managed by a single director or similar person, that director or person,

(c) in relation to a body corporate the affairs whereof are managed by the members themselves, a member of the body corporate,

and includes any person who is to be or has been a director;

employee”, in relation to a body corporate, includes any person taking part in the management of the affairs, of the body corporate who is not a director, and includes a person who is to be or has been an employee;

final remuneration” means, in relation to a director or employee of a body corporate, the average annual amount of (his remuneration from the body corporate over the last three years of his service with the body corporate, and the amount of a person's remuneration for any year shall be taken to be the amount thereof on which he would be assessable under the provisions of the Income Tax Acts, if those provisions required the assessment to be based on the profits or gains of that year and not on those of any other year or period, reduced by any deduction (other than deductions under section 32 of the Finance Act, 1921, or under section 38 of this Act) which would be allowable in computing profits or gains under the said Acts, and by any deductions which would be allowable in respect of wear and tear of any machinery or plant: Provided that, in the case of a director of a company, remuneration shall not include any director's fee or similar remuneration received by him in his capacity as such director;

part-time director” means, in relation to a body corporate, a director who is not required to devote substantially the whole of his time to the service of the body corporate;

part-time employee” means, in relation to a body corporate, an employee who is not required to devote substantially the whole of his time to the service of the body corporate;

proprietary director” means a director of a company who is either the beneficial owner of, or able, either directly or through the medium of other companies or by any other indirect means, to control, more than fifteen per cent. of the ordinary share capital of the company;

proprietary employee” means, in relation to a company, an employee who is the beneficial owner of, or able, either directly or through the medium of other companies or by any other indirect means, to control, more than fifteen per cent. of the ordinary share capital of the company;

retirement or other benefit” means any pension, annuity, lump sum, gratuity or other like benefit to be given on retirement, or in anticipation of retirement, or, in connection with past service, after retirement, or on or in connection with death during service or after retirement, or to be given on or in anticipation of or in connection with any change in the nature of the service of the person in question, except that it does not include any pension, annuity, lump sum, gratuity, or other like benefit which is to be afforded solely by reason of the death or disability of a person resulting from an accident arising out of or in the course of his office or employment and for no other reason;

service” means service as an employee or director of the body corporate in question and “retirement” shall be construed accordingly;

statutory superannuation scheme” means a scheme set up by or under any enactment relating to superannuation.

(2) For the purposes of the definitions in subsection (1) of this section of “proprietary director” and “proprietary employee”—

(a) ordinary share capital which is owned or controlled as referred to in the definitions by a person being a spouse or an infant child of a director or employee, or by the trustee of a trust for the benefit of a person or persons being or including any such person or such director or employee, shall be deemed to be owned or controlled by such director or employee and not by any other person, and

(b) “ordinary share capital” means all the issued capital (by whatever name called) of the company, other than capital the holders whereof have a right to a dividend at a fixed rate or a rate fluctuating in accordance with the rate of income tax, but have no other right to share in the profits of the company.

(3) Where an alteration has been made in a retirement benefits scheme at any time after the 23rd day of April, 1958, the scheme shall, for the purposes of this Part of this Act, be deemed to have become a new scheme coming into being on the date of the alteration, but this subsection shall not apply to an alteration approved by the Revenue Commissioners.

(4) Any reference in this Part of this Act to the provision for a person of retirement or other benefits includes a reference to the provision of benefits payable to that person's spouse, children, dependants or legal personal representatives.

(5) Any reference in this Part of this Act to the provision of retirement or other benefits, or of a pension or annuity, by a body corporate includes a reference to the provision thereof by means of a contract with a third person.

(6) This Part of this Act shall apply in relation to unincorporated societies or other bodies as it applies in relation to bodies corporate, but the reference in this subsection to unincorporated societies or other bodies shall be deemed not to include a reference to individuals in partnership.

Charge to tax in respect of provision for retirement or other benefits to directors and employees of bodies corporate.

32. —(1) Subject to section 33 of this Act, where, pursuant to a scheme for the provision of future retirement or other benefits for persons consisting of or including directors or employees of a body corporate (in this Part of this Act referred to as a retirement benefits scheme), the body corporate in any year of assessment pays a sum with a view to the provision of any such benefits for any director or employee thereof, then (whether or not the accrual of the benefits is dependent on any contingency)—

(a) the sum paid, if not otherwise chargeable to income tax as income of the director or employee, shall be deemed for all the purposes of the Income Tax Acts to be income of that director or employee for that year of assessment and assessable to income tax under Case VI of Schedule D; and

(b) where the payment is made under any such insurance or contract as is mentioned in section 32 of the Income Tax Act, 1918, relief, if not otherwise allowable, shall be given to the director or employee under that section in respect of the payment and shall be given to the extent, if any, to which such relief would have been allowable to him if the payment had been made by him and the insurance or contract under which the payment is made had been made with him.

(2) Subject to section 33 of this Act, where—

(a) an agreement is in force between a body corporate and a director or employee thereof for the provision for him of any future retirement or other benefits afforded by a retirement benefits scheme, or a person is serving as a director or employee of a body corporate in connection wherewith there is a retirement benefits scheme, relating to persons of the class within which he falls, under which any such benefits will be provided for him,

(b) the body corporate does not, or does not fully, secure the provision of the benefits by the payment of such sums as are mentioned in subsection (1) of this section, and

(c) the circumstances in which the benefits are to accrue are not such as will render the benefits assessable to income tax as emoluments of his office as a director or of his employment,

then (whether or not the accrual of the benefits is dependent on any contingency), in each year of assessment in which the agreement is in force or the director or employee is serving as aforesaid, up to and including the year of assessment in which the benefits accrue or there ceases to be any possibility of the accrual thereof, a sum equal to the annual sum which the body corporate would have had to pay in that year under a contract with a third person which secured the provision by that third person of those benefits or, as the case may be, of those benefits so far as not already secured by the payment of such sums as are mentioned in subsection, (1) of this section, shall be deemed for all the purposes of the Income Tax Acts to be income of the director or employee for that year and assessable to income tax under Case VI of Schedule D.

(3) Where the body corporate pays any sum as mentioned in subsection (1) of this section in relation to several directors or employees, the sum so paid shall, for the purpose of that subsection, be apportioned among them by reference to the separate sums which would have had to be paid to secure the separate benefits to be provided for them respectively, and the part of the sum apportioned to each of them shall be deemed for that purpose to have been paid separately in relation to that one of them.

Exemptions from charge to tax under section 32.

33. —(1) The following payments shall be exempted from the operation of subsection (1) of section 32 of this Act:

(a) payments to a superannuation fund approved (whether in whole or in part) by the Revenue Commissioners for the purposes of section 32 of the Finance Act, 1921;

(b) payments made by way of premium pursuant to a retirement benefits scheme, the benefits whereunder are secured by premiums payable by the body corporate, with or without contributions by the directors or employees affected, under life or endowment assurance or life annuity contracts, being a scheme which was in operation before the 24th day of April, 1958,

subject to the proviso that paragraph (b) of this subsection shall not apply in relation to a payment made in respect of a director or employee admitted to membership of the scheme after the commencement of this Part of this Act or in respect of a person who at any time during the year of assessment is—

(i) a proprietary director,

(ii) a part-time director,

(iii) a proprietary employee, or

(iv) a part-time employee.

(2) (a) Neither subsection (1) nor subsection (2) of section 32 of this Act shall apply so as to cause any sum to be treated as income as therein mentioned where the retirement benefits scheme in question is—

(i) a statutory superannuation scheme,

(ii) an excepted scheme, or

(iii) a scheme which is for the time being approved by the Revenue Commissioners under section 34 of this Act.

(b) In this subsection “excepted scheme” means a retirement benefits scheme relating to persons, none of whom is a proprietary director, part-time director, proprietary employee or part-time employee, under the terms of which the aggregate value of all benefits which may be provided for any person cannot exceed £3,000 (where there are more retirement benefits schemes than one subsisting for the time being in connection with the body corporate and relating to persons of the same class, all such schemes taken together being deemed to constitute a single scheme for the purposes of this definition).

(3) Where—

(a) in respect of the provision for a director or employee of any future retirement or other benefits, a sum (in this subsection referred to as the charged sum) has been deemed to be income of his by virtue either of subsection (1) or of subsection (2) of section 32 of this Act,

(b) subsequently the director or employee proves to the satisfaction of the Revenue Commissioners, or on appeal to the satisfaction of the Special Commissioners, that no payment in respect of, or in substitution for, the benefits has been made and that some event has occurred by reason whereof no such payment will be made, and

(c) within three years from the time when that event occurred, the director or employee claims relief under this subsection,

the Revenue Commissioners shall give relief in respect of tax on the charged sum by repayment or otherwise as may be appropriate; and, if the director or employee satisfies the Revenue Commissioners, or on appeal the Special Commissioners, as aforesaid in relation to some particular part of the benefits but not the whole thereof, the Revenue Commissioners may give such relief as may seem to them just and reasonable.

(4) Where, apart from this subsection, any sum would be deemed, by virtue of subsection (1) or of subsection (2) of section 32 of this Act, to be income of an employee for any year of assessment, but, for that year, the employee is, under the provisions of the Income Tax Acts, either not assessable to income tax in respect of the emoluments of his employment or is so assessable in respect thereof on the basis of the amount received in the State, that subsection shall not apply so as to cause that sum to be deemed to be income of his for that year.

Approval of retirement benefits schemes.

34. —(1) Subject to section 35 of this Act, the Revenue Commissioners shall approve a retirement benefits scheme for the purposes of this Part of this Act if it is shown to their satisfaction that the scheme satisfies all the following conditions:

(a) that the scheme is established in connection with a trade or undertaking carried on wholly or partly in the State by a body corporate resident for income tax purposes therein;

(b) that the benefits afforded by the scheme may accrue only to—

(i) directors or employees of the body corporate on retirement, either on reaching a specified age (not exceeding seventy years) or on becoming permanently incapacitated at an earlier age, or

(ii) the widows, children or other dependants or the legal personal representatives of persons who are or have been directors or employees of the body corporate, on the death of such persons;

(c) that each person to whom the scheme relates has, under it, a specified right to defined benefits and has been made aware of the terms of the scheme;

(d) that the nature of the benefits afforded by the scheme is the same in relation to all the persons to whom the scheme relates;

(e) that not less than one-third of the cost of providing the benefits payable under the scheme, to or in respect of each of the persons to whom the scheme relates, is borne by the body corporate;

(f) that no sum paid by the body corporate for the purposes of providing benefits under the scheme may be applied to any other purpose or may be repaid to the body corporate;

(g) that, where any director or employee contributes to the cost of providing the benefits under the scheme, no sum so contributed by any person may be applied to any purpose other than the provision of those benefits or may be refunded to him;

(h) that—

(i) the aggregate value of all benefits which may accrue to any person on his retirement may not exceed the value, at the date of such retirement, of a pension for his life equal to one-sixtieth of his final remuneration multiplied by the number of his years of service, or the value, at such date, of a pension for his life equal to two-thirds of his final remuneration whichever is the lesser, and

(ii) the fraction of such aggregate value which may be represented by the value of the benefits, if any, given otherwise than by way of non-commutable pension or annuity does not exceed one-fourth;

(i) that the aggregate value of all benefits (in this subparagraph referred to as death benefits), which may accrue on the death during his service of any person, may not exceed the value of the benefits which might, consonant with the condition set forth in subparagraph (i) of paragraph (h) of this subsection, have been provided for him on retirement on attaining the specified age, if he had continued to serve until he attained that age at an annual rate of remuneration equal to his final remuneration, and that the value of all such death benefits which may be given otherwise than by way of non-commutable pension or annuity may not exceed whichever of the following amounts is the greatest:

(i) the sum of one thousand pounds,

(ii) an amount equal to the person's final remuneration,

(iii) an amount equal to one-thirtieth of the person's final remuneration multiplied by the number of his years of service or by forty-five, whichever is the lesser,

(iv) an amount equal to the aggregate of the sums contributed by the person under the scheme, together with reasonable interest on those sums;

(j) that—

(i) the aggregate value of all benefits which may accrue, on the death after his retirement of any person, may not exceed an amount equal to the aggregate value of the benefits to which that person became entitled on his retirement reduced by the total amount of all payments made or due up to such death in respect of such benefits, or

(ii) the only benefit which may accrue on the death after his retirement of any person is a non-commutable pension to his widow or other dependant of an amount not exceeding one-half of the pension or annuity to which that person had been entitled at the time of his death;

(k) that the pensions or annuities provided under the scheme are not assignable in whole or in part;

(l) that the scheme includes provision securing that no rights to any benefit provided or to be provided under the scheme (whether or not the accrual of the benefit is dependent on a contingency) shall be surrendered in whole or in part; and

(m) that no service of a person in whatever capacity while he is—

(i) a proprietary director,

(ii) a part-time director,

(iii) a proprietary employee, or

(iv) a part-time employee,

may be taken into account for any of the purposes of the scheme.

(2) The Revenue Commissioners may, if they think fit, having regard to the circumstances of the particular case, and subject to such conditions as they think proper to impose, approve a retirement benefits scheme for the purposes of this Part of this Act notwithstanding that one or more of the following paragraphs applies:

(i) the condition set out in paragraph (a) of subsection (1) of this section is not satisfied,

(ii) while the provision of benefits which may accrue only in the circumstances mentioned in paragraph (b) of that subsection is the principal purpose of the scheme, such provision is not its sole purpose,

(iii) the condition set out in paragraph (f) of that subsection is not satisfied because, if the amount of the sums paid by the body corporate for the purpose of providing benefits under the scheme in respect of any person or persons is in excess of the amount required to provide benefits in accordance with the scheme for such person or persons, a sum in relation to the excess may be repaid to the body corporate,

(iv) the condition set out in paragraph (g) of that subsection is not satisfied because sums contributed by a director or employee may be refunded to him (with or without reasonable interest thereon) on the cessation of his service in circumstances such that he does not become entitled to a pension payable either immediately or at some future date,

(v) in exceptional circumstances the aggregate value of the benefits which may accrue on the retirement of a director or employee may exceed the limit set out in subparagraph (i) of paragraph (h) of that subsection, or the value of such benefits which may be given otherwise than by way of non-commutable pension or annuity may exceed the limit set out in subparagraph (ii) of paragraph (h) of that subsection,

(vi) the aggregate value of the benefits which may be given, otherwise than by way of non-commutable pension or annuity, on the death during his service of any person may exceed the limit set out in paragraph (i) of that subsection,

(vii) the condition set out in paragraph (m) of that subsection is not satisfied in relation to a part-time director or part-time employee,

provided that the scheme otherwise satisfies the conditions set out in that subsection and that all payments under the scheme to persons to whom the scheme relates are payable by or through a person resident, for income tax purposes, in the State.

(3) Where the Revenue Commissioners have given their approval to a scheme, they may at any time, by notice in writing to the body corporate in question, withdraw their approval on such grounds, and as from such date (including a date before the date of the notice) as may be specified in the notice and where any approval is withdrawn under this subsection, such assessments as, having regard to section 32 of this Act, may be appropriate consequent upon the withdrawal shall thereupon be made.

(4) In the case of a scheme in existence on the commencement of this Part of this Act which does not then satisfy the conditions set out in subsection (1) of this section or which is not then a scheme which the Revenue Commissioners see fit to approve under subsection (2) of this section but which is so altered before the 6th day of April, 1960, or within such further time as the Revenue Commissioners may allow, as to be approvable under subsection (1) or subsection (2) of this section, approval thereof after the 6th day of April, 1959, shall, if the Revenue Commissioners so direct, be deemed to have had effect as from that day.

Aggregation and severance of schemes.

35. —(1) References in this Part of this Act to a retirement benefits scheme shall be construed in accordance with the following provisions:

(a) references to such a scheme shall, in relation to a deed, agreement, series of agreements, or other arrangements providing for retirement or other benefits for persons of two or more classes, be construed as references to so much thereof as relates to persons of a single class, and accordingly a deed, agreement, series of agreements or other arrangements so providing shall be treated for the purposes of this Part of this Act as constituting two or more retirement benefits schemes relating respectively to the different classes;

(b) references to such a scheme include references to a deed, agreement, series of agreements, or other arrangements providing for retirement or other benefits for persons consisting of or including a director or employee, or directors or employees, of a body corporate (or, in a case falling within paragraph (a) of this subsection, to so much thereof as relates to a person or persons of any one class), notwithstanding that it or they relates or relate only to a small number of directors or employees, or to a single director or employee.

(2) For the purpose of determining, in the case of a retirement benefits scheme submitted for the approval of the Revenue Commissioners, whether the conditions specified in subsection (1) of section 34 of this Act are satisfied, the scheme shall be considered in conjunction with any other scheme or schemes subsisting in connection with the body corporate and relating to persons of the class to which the scheme in question relates and if the said conditions are satisfied in the case of all the schemes taken together, those conditions shall be taken to be satisfied in the case of each of them, and, if not, those conditions shall be taken to be satisfied in the case of none of them.

(3) The Revenue Commissioners may, if they think fit—

(a) approve a part of a retirement benefits scheme, or

(b) approve such a scheme notwithstanding that, having regard to another such scheme subsisting in connection with the body corporate, the scheme in question is to be treated by virtue of the last preceding subsection as not satisfying the conditions aforesaid,

and references in this Part of this Act to a retirement benefits scheme approved under section 34 of this Act shall be deemed to include references to a part of a scheme approved under this subsection.

Certain amounts to be deemed to be income.

36. —(1) This section applies in relation to a retirement benefits scheme which is approved by the Revenue Commissioners by exercise of the powers conferred on them by subsection (2) of section 34 of this Act, in a case to which paragraph (v) of that subsection applies.

(2) Where, under a retirement benefits scheme in relation to which this section applies, any benefit is provided for a director or employee on his retirement, otherwise than by way of non-commutable pension or annuity, and the total value of all benefits so provided under all retirement benefits schemes in relation to which this section applies exceeds the amount which would have satisfied the condition specified in subparagraph (ii) of paragraph (h) of subsection (1) of section 34 of this Act, the amount of such excess (hereafter in this section referred to as the excess) shall be deemed, for all the purposes of the Income Tax Acts, to be income of the director or employee for the year of assessment in which his retirement takes place and assessable to income tax under Case VI of Schedule D:

Provided that the director or employee shall, on proof of the relevant facts to the satisfaction of the Revenue Commissioners, be entitled to have the total amount of income tax and sur-tax payable by him for the year of assessment reduced to the total of the two following amounts:

(i) the amount of income tax and sur-tax which would have been payable by him if this subsection had not been enacted, and

(ii) income tax and sur-tax on the amount of the excess at rates respectively ascertained in the manner specified in subsection (3) of this section.

(3) There shall be ascertained:

(a) the amounts of income tax and sur-tax respectively which would have been payable by the director or employee for the year of assessment in which his retirement takes place if his total income for that year had not included any remuneration from the office or employment from which he has retired, but had included a full year's payment of the non-commutable pension or annuity, if any, provided for him on his retirement, and

(b) the additional amounts of income tax and sur-tax, over and above the amounts ascertained in accordance with paragraph (a) of this subsection, which would have been payable by him if his total income for the year of assessment had, in addition to the income specified in that paragraph, included a full year's payment of a pension for his life (hereafter in this subsection referred to as the notional pension) the value of which, at the date of his retirement, would have been equal to the excess,

and the rates of income tax and sur-tax respectively for the purposes of paragraph (ii) of the proviso to subsection (2) of this section shall then be ascertained by dividing the additional amounts of income tax and sur-tax respectively computed in accordance with paragraph (b) of this subsection by the amount of the notional pension.

(4) (a) Rule 21 of the General Rules shall apply to any payment made in respect, or on account, of the excess as if such payment were a payment of interest charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recoverable from the person by or through whom the payment is made.

(b) This subsection shall not affect the liability of the director or employee in question to assessment to tax by virtue of this section under Case VI of Schedule D, or the amount on which he may be so assessed to tax, but, for the purposes of collection, credit shall be given to him for the amount deducted and accounted for under this subsection.

(5) Where the aggregate value of all benefits provided on or in connection with the retirement of a director or employee under all retirement benefits schemes subsisting in connection with the body corporate does not exceed £3,000, this section shall not take effect in relation to such director or employee.

Application of Rule 21 of General Rules to certain payments.

37. —(1) This section applies in relation to a retirement benefits scheme approved by the Revenue Commissioners by exercise of the powers conferred on them by subsection (2) of section 34 of this Act, in a case to which paragraph (vi) of that subsection applies.

(2) Where, under a retirement benefits scheme in relation to which this section applies, any benefit is provided, otherwise than by way of non-commutable pension or annuity, on the death during his service of a director or employee and the total value of all benefits so provided under that scheme and under all other schemes exempt from the operation of section 32 of this Act, subsisting in connection with the body corporate, exceeds the amount which would have satisfied the condition specified in paragraph (i) of subsection (1) of section 34 of this Act, Rule 21 of the General Rules shall apply to any payment made in respect, or on account, of such excess as if the payment were a payment of interest charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recoverable from the person by or through whom the payment is made.

(3) Nothing in this section shall cause any such excess as is referred to in subsection (2) of this section to be treated, for any purpose of the Income Tax Acts, as income either of the legal personal representative of the deceased director or employee or of any other person.

(4) Where the aggregate value of all benefits provided on or in connection with the death during his service of a director or employee under all retirement benefits schemes subsisting in connection with the body corporate does not exceed £3,000 this section shall not taken effect in relation to such director or employee.

Allowance of contributions as deductions, etc.

38. —(1) Where, under the terms of a retirement benefits scheme approved by the Revenue Commissioners under section 34 of this Act, a director or employee contributes towards the cost of providing the benefits afforded by the scheme, any amount so contributed by the director or employee shall, for the purpose of assessment under Schedule E, be allowed as a deduction from the remuneration from his office or employment and such deduction shall be made in accordance with subsection (3) of section 17 of the Finance Act, 1929 (No. 32 of 1929), but

(a) the amount (hereafter in this paragraph referred to as the said amount), otherwise allowable under this subsection for any year of assessment, of any deduction or deductions shall, where necessary, be reduced (including reduced to nil) so that the total amount of the said amount and of the deduction, if any, allowable for the same year of assessment under subsection (1) of section 32 of the Finance Act, 1921, in respect of contributions made to a superannuation fund relating to the same office or employment, shall not exceed 15 per cent. of the remuneration from the office or employment concerned for the year, or the portion of a year, for which the relevant contributions were made, and

(b) no deduction shall be allowable in respect of a contribution which is repaid before the end of the year of assessment in which it is made.

(2) Where any contributions made by a director or employee under an approved scheme within the meaning of subsection (1) of this section are repaid to him during his lifetime—

(a) Rule 21 of the General Rules shall apply to the amount of the contributions repaid as if it were a payment of interest charged to tax under Schedule D not payable out of profits or gains brought into charge to tax, and tax shall accordingly be deducted by and recovered from the person by or through whom the repayment is made,

(b) for the purposes of income tax (excluding sur-tax) the amount of the contributions repaid shall not be regarded as income of the director or employee but, on making a claim in that behalf, he shall be entitled to be repaid so much of the tax deducted under paragraph (a) of this subsection as is in excess of a sum equal to tax on the amount of the contributions repaid, exclusive of any contributions or portions of contributions which were not allowable as deductions under subsection (1) of this section, at a rate ascertained by dividing the total of the additional amounts of income tax which would have been payable by him for the six years of assessment preceding that in which the contributions were repaid if no deduction had been allowed under the said subsection (1) by reference to the payment of those contributions, by the total of the deductions which were actually so allowed for those years, and

(c) for the purposes of sur-tax, the contributions repaid shall, to the extent to which they were allowed as deductions under subsection (1) of this section, be treated as income of the several years of assessment for which they were so allowed and any necessary additional assessments to sur-tax may be made accordingly.

(3) Paragraph (b) of the proviso to subsection (1) of section 32 of the Finance Act, 1921, shall cease to have effect and no relief under section 32 of the Income Tax Act, 1918, shall be allowed for any year of assessment in respect of a payment if, for that year, a deduction—

(a) is allowable under section 32 of the Finance Act, 1921. consequent upon paragraph (b) of the proviso to subsection (1) of that section having ceased to have effect, or

(b) is allowable under subsection (1) of this section,

in respect of that payment or in respect of a similar payment made in the year preceding the year of assessment.

Delivery of particulars of retirement benefits schemes, etc.

39. —(1) It shall be the duty of a body corporate—

(a) to deliver to the inspector of taxes within the time specified in this subsection, particulars of any retirement benefits scheme subsisting in connection with the body corporate on the commencement of this Part of this Act, or coming into being after such commencement, other than a scheme operated through a fund approved by the Revenue Commissioners under section 32 of the Finance Act, 1921, or a statutory superannuation scheme, and

(b) when required so to do by notice given by the inspector of taxes, to furnish within the time limited by the notice such further particulars as he may reasonably require with regard to any retirement benefits scheme subsisting in connection with the body corporate or to the persons to whom it relates.

The time for delivery of particulars under paragraph (a) of this subsection shall be—

(i) in the case of a scheme that came into being before the commencement of this Act, six months beginning with such commencement, and

(ii) in the case of a scheme coming into being after such commencement, three months beginning with the date of its coming into being.

(2) Where a retirement benefits scheme is for the time being approved for the purposes of this Part of this Act, it shall be the duty of the person having the management of the scheme, when required so to do by notice given by the inspector of taxes, to furnish within the time limited by the notice such particulars relating to the carrying out of the scheme as the inspector may reasonably require, including (in particular and without prejudice to the generality of the foregoing)—

(a) particulars of payments made to provide benefits under the scheme,

(b) particulars of payments made in respect of or on account of benefits under the scheme and of persons to whom such payments were made, and

(c) particulars of contributions refunded under the scheme and of any interest paid on such contributions.

(3) (a) Subsections (1) and (3) of section 107 of the Income Tax Act, 1918, shall apply in relation to particulars required by or under this section as they apply in relation to a list, declaration or statement required by notice referred to in the said subsection (1).

(b) In a case in which the said subsection (1) applies by virtue of the foregoing paragraph, the reference therein to the time limited in a notice shall be construed, where particulars are required to be delivered by paragraph (a) of subsection (1) of this section, as a reference to the time specified in that subsection.

(4) Where a body corporate deducts from the emoluments which it pays to any of its directors or employees, or pays on his behalf, any contributions of that director or employee under an approved retirement benefits scheme, particulars of the deduction or payment shall be included in the appropriate return of wages and salaries required to be furnished under section 105 of the Income Tax Act, 1918.