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10 1990

FINANCE ACT, 1990

Chapter II

Change in Basis of Assessment and Consequential Provisions

Basis of assessment: Cases I and II of Schedule D.

14. —(1) As respects the year 1990-91 and subsequent years of assessment, section 58 of the Income Tax Act, 1967 , is hereby amended—

(a) by the deletion, in subsection (1), of “the year preceding”, and

(b) by the substitution of the following subsections for subsections (3) and (4):

“(3) Any person chargeable with income tax in respect of the profits or gains of any trade or profession which has been set up and commenced within the year preceding the year of assessment shall be charged on the full amount of the profits or gains for one year from the time of such setting up and commencement.

(4) Any person chargeable with income tax in respect of the profits or gains of any trade or profession which has been set up and commenced within the year next before the year preceding the year of assessment shall be entitled, on giving notice in writing to the inspector with the return required under section 10 of the Finance Act, 1988 , for the year of assessment, to have the assessment reduced by the amount (if any) by which the amount of the assessment for the year preceding the year of assessment exceeds the full amount of the profits or gains of that preceding year:

Provided that, where the said excess is greater than the amount of the assessment, the difference between the excess and the amount of the assessment shall be treated, for the purposes of section 309 of the Income Tax Act, 1967 , as if it were a loss sustained in a trade in that year of assessment.”,

and the said subsection (1), as so amended, is set out in the Table to this subsection.

TABLE

(1) Subject to the provisions of this section and sections 59 and 60, tax shall be charged under Case I or Case II of Schedule D on the full amount of the profits or gains of the year of assessment.

(2) In relation to a trade or profession which is permanently discontinued on or after the 6th day of April, 1991, section 3 of the Finance Act, 1971 , shall cease to have effect.

Period of computation of profits.

15. —As respects the year 1990-91 and subsequent years of assessment, the Income Tax Act, 1967 , is hereby amended by the substitution of the following section for section 60:

“60.— (1) Where, in the case of any trade or profession, it has been customary to make up accounts—

(a) if only one account was made up to a date within the year of assessment, and that account was for a period of one year, the profits or gains of the year ending on that date shall be taken to be the profits or gains of the year of assessment;

(b) if an account, other than an account to which paragraph (a) applies, was made up to a date in the year of assessment, or if more accounts than one were made up to dates in the year of assessment, the profits or gains of the year ending on that date, or on the last of those dates, as the case may be, shall be taken to be the profits or gains of the year of assessment;

(c) in any other case, the profits or gains of the year of assessment shall be determined in accordance with the provisions of subsection (1) of section 58.

(2) Where the profits or gains of a year of assessment have been computed on the basis of a period in accordance with the provisions of paragraph (b) or (c) of subsection (1) and the profits of the corresponding period relating to the immediately preceding year of assessment exceed the profits or gains charged to income tax for that year, then the profits of that corresponding period shall be taken to be the profits or gains of that preceding year of assessment and the assessment shall be amended accordingly.

(3) In the case of the death of a person who, if he had not died, would, under the provisions of this section, have become chargeable to income tax for any year of assessment, the tax which would have been so chargeable shall be assessed and charged upon his executors or administrators and shall be a debt due from and payable out of his estate.”.

Basis of assessment: transitional provisions.

16. —(1) In this section—

basis period for the year 1990-91” means the period on the profits or gains of which income tax for the year 1990-91 falls to be finally computed for the purposes of Case I and Case II of Schedule D;

corresponding period” means the period of 12 months immediately preceding the basis period for the year 1990-91.

(2) Subject to subsections (4) and (5), the provisions of subsection (3) shall apply, in determining for the year 1990-91 the full amount of the profits or gains of a trade or profession where the trade or profession was set up and commenced before the 6th day of April, 1989.

(3) Where this subsection applies, the assessment which, by virtue of section 58 of the Income Tax Act, 1967 (as amended by section 14 ), falls to be made for the year 1990-91, shall be reduced by the excess of the amount of the profits or gains of the basis period for the year 1990-91 over one-half of the aggregate of the profits or gains of that basis period and of the profits or gains, if any, of the corresponding period:

Provided that the assessment for the year 1990-91 shall not be reduced under the provisions of this section to an amount which is less than the amount determined by the formula—

125

A

×

___

100

where A is the amount of the profits or gains of the corresponding period.

(4) Where an individual is charged to income tax for the year 1990-91 on the full amount of the profits or gains from farming determined in accordance with the provisions of subsection (2) of section 20B of the Finance Act, 1974 (as amended by section 20 ), the provisions of subsection (3) shall have effect as if—

(a) the reference to the amount of the profits or gains of the basis period for the year 1990-91 were a reference to the full amount of the profits or gains from farming of the individual determined without regard to the other provisions of this section but in accordance with the provisions of subsection (2) of the said section 20B (as so amended) for the year 1990-91,

(b) the reference to the amount of the profits or gains of the corresponding period were a reference to the full amount of the profits or gains determined upon a fair and just average of the profits or gains from farming of the individual in each of the 3 years ending on the date 12 months immediately before the end of the basis period for the year 1990-91, and

(c) the reference in subsection (3) to section 58 of the Income Tax Act, 1967 , were a reference to subsection (2) of the said section 20B (as so amended).

(5) Where, under the provisions of section 58 (5) (a) (ii) of the Income Tax Act, 1967 (as amended by section 14 ), profits or gains of the year ending on the 5th day of April, 1991, are to be computed or the assessment for the year 1990–91 is to be amended, then those profits or gains shall be computed without reference to the provisions of this section and the said assessment shall be amended accordingly.

Basis of assessment: Case III of Schedule D.

17. —(1) As respects the year 1990-91 and subsequent years of assessment—

(a) Chapter IV of Part IV of the Income Tax Act, 1967 , is hereby amended—

(i) by the substitution of the following section for section 75:

“75.— Income or profits chargeable under Case III of Schedule D shall, for all the purposes of ascertaining liability to income tax, be deemed to issue from a single source, and the provisions of section 77 shall apply accordingly.”,

(ii) in section 76, by the deletion, in subsections (1) and (3), of “the year preceding”, and

(iii) in section 77, by the substitution of the following subsection for subsection (1):

“(1) Tax under Case III of Schedule D shall be computed on the full amount of the profits or income arising within the year of assessment.”,

and

(b) Part III of Schedule 6 to the Income Tax Act, 1967 , is hereby amended by the deletion, in subparagraph (2) of paragraph 1, of “the year preceding”,

and the said subsections (1) and (3) of the said section 76 and the said subparagraph (2), as so amended, are set out in the Table to this subsection.

TABLE

(1) Subject to the provisions of this section and section 77, tax chargeable under Case III of Schedule D in respect of income arising from securities and possessions in any place outside the State shall be computed on the full amount thereof arising in the year of assessment whether the income has been or will be received in the State or not, subject, in the case of income not received in the State—

(a) to the same deductions and allowances as if it had been so received; and

(b) to the deduction, where such deduction cannot be made under, and is not forbidden by, any other provision of this Act, of any sum which has been paid in respect of income tax in the place where the income has arisen; and

(c) to a deduction on account of any annual interest or any annuity or other annual payment payable out of the income to a person not resident in the State,

and the provisions of this Act (including those relating to the delivery of statements) shall apply accordingly.

(3) In the cases mentioned in subsection (2), the tax shall, subject to the provisions of section 77, be computed on the full amount of the actual sums received in the State from remittances payable in the State, or from property imported, or from money or value arising from property not imported, or from money or value so received on credit or on account in respect of such remittances, property, money or value brought into the State in the year of assessment without any deduction or abatement.

(2) The following provisions shall have effect for the purposes of Case III of Schedule D, notwithstanding anything to the contrary in section 76 or 77:

The tax in respect of income arising from possessions in Great Britain or Northern Ireland, other than stocks, shares, or rents or the occupation of land, shall be computed either on the full amount thereof arising in the year of assessment or on the full amount thereof on an average of such period as the case may require and as may be directed by the Appeal Commissioners, so that according to the nature of the income the tax may be computed on the same basis as that on which it would have been computed if the income had arisen in the State, and subject in either case to a deduction on account of any annual interest or any annuity or other annual payment payable out of the income to a person not resident in the State and the provisions of this Act (including those relating to the delivery of statements) shall apply accordingly; and the person chargeable and assessable shall be entitled to the same allowances, deductions, and reliefs as if the income had arisen in the State:

In this paragraph “rents” includes any payment in the nature of a royalty and any annual or periodical payment in the nature of a rent derived from any lands, tenements or hereditaments, including lands, tenements and hereditaments to which section 56 would apply or have applied if such lands, tenements and hereditaments were situate in the State.

(2) In respect of a person who, on or after the 6th day of April, 1991, ceases to possess the whole of a single source of income or profit as is referred to in section 75 (as amended by this section) of the Income Tax Act, 1967 , subsections (3) and (4) of section 77 of the Income Tax Act, 1967 , shall not apply or have effect.

Basis of assessment: Case V of Schedule D.

18. —(1) As respects the year 1990-91 and subsequent years of assessment, Chapter VI of Part IV of the Income Tax Act, 1967 , is hereby amended—

(a) in subsection (3) of section 81 (inserted by the Finance Act, 1969), by the substitution of the following paragraph for paragraph (a):

“(a) Tax under Case V of Schedule D shall be computed on the full amount of the profits or gains arising within the year of assessment.”,

(b) in subsection (1) of section 89 (as so inserted)—

(i) by the deletion of “may, on a claim being made in that behalf, be deducted from or set off, as far as may be, against the amount of profits or gains on which the person chargeable is assessed under Case V of Schedule D for that year, and any portion of the excess for which relief is not so given”, and

(ii) by the substitution of “the person chargeable” for “he”,

and

(c) in subsection (2) of section 89 (as so inserted), by the deletion of “by way of carrying forward any portion of such excess as is referred to in subsection (1)”,

and the said section 89, as so amended, is set out in the Table to this subsection.

TABLE

89.— (1) Where in any year of assessment the aggregate amount of the deficiencies, computed in accordance with section 81 (4), exceeds the aggregate of the surpluses as so computed, the excess shall be carried forward and, so far as may be, deducted from or set off against the amount of profits or gains on which the person chargeable is assessed under Case V of Schedule D for any subsequent year of assessment, and, if tax has been overpaid, the amount overpaid shall be repaid.

(2) Any relief under this section shall be given as far as possible from the first subsequent assessment, and so far as it cannot be so given then from the next assessment and so on.

(2) In respect of a person who, on or after the 6th day of April, 1991, ceases to possess the whole of a single source of profits or gains as is referred to in section 81 (2) of the Income Tax Act, 1967 , paragraphs (b) and (c) of subsection (3) of the said section 81 shall not apply or have effect.

Basis of assessment: Schedule E.

19. —As respects the year 1990-91 and subsequent years of assessment, Chapter I of Part V of the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution of the following section for section 110:

“110.—Tax under Schedule E shall be annually charged on every person having or exercising an office or employment of profit mentioned in that Schedule, or to whom any annuity, pension or stipend, chargeable under that Schedule, is payable, in respect of all salaries, fees, wages, perquisites or profits whatsoever therefrom and shall be computed on the amount of all such salaries, fees, wages, perquisites or profits whatsoever therefrom for the year of assessment.”,

and

(b) by the deletion of section 111:

Provided that the deletion of the said section 111 shall not affect any enactment which contains reference to the said section or any part of it.

Basis of assessment: consequential provisions.

20. —(1) As respects the year 1990—91 and subsequent years of assessment, Schedule 18 to the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution, in paragraphs II, III and IV of “the year of assessment” for “the preceding year” in each place where it occurs, and

(b) by the deletion, in paragraph VI, of “or of the preceding year, as the case shall require”,

and the said paragraphs II, III, IV and VI, as so amended, are set out in the Table to this subsection.

TABLE

II.—By or for Every Person Carrying on any Trade or Exercising any Profession to be Charged Under Schedule D.

The amount of the profits or gains thereof arising within the year of assessment.

III.—By Every Person Entitled to Profits of an Uncertain Value Not Before Stated, or any Interest, Annuity, Annual Payment, Discount or Dividend, to be Charged Under Schedule D.

The full amount of the profits or gains arising therefrom within the year of assessment.

IV.—By Every Person Entitled to or Receiving Income From Securities or Possessions out of the State to be Charged Under Schedule D.

(1) The full amount arising within the year of assessment, and the amount of every deduction or allowance claimed in respect thereof, together with the particulars of such deduction and the grounds for claiming such allowance; or

(2) In the case of any such person who satisfies the Revenue Commissioners that he is not domiciled in the State, or that being a citizen of Ireland he is not ordinarily resident in the State, or in the case of income arising from such securities and possessions aforesaid which form part of the investments of the foreign life assurance fund of an assurance company the full amount of the actual sums received in the State from remittances payable in the State or from property imported, or from money or value arising from property not imported, or from money or value so received on credit or on account in respect of such remittances, property, money or value brought into the State in the year of assessment without any deduction or abatement.

VI.—Statement of Profits of any Public Office, or Employment of Profit, to be Charged Under Schedule E.

The amount of the salary, fees, wages, perquisites, and profits of the year of assessment.

(2) As respects the year 1990-91 and subsequent years of assessment, section 20B (inserted by the Finance Act, 1981 ) of the Finance Act, 1974 , is hereby amended—

(a) by the substitution, in subsection (2), of the following paragraph for paragraph (a):

“(a) An individual who is to be charged to tax for a year of assessment in respect of profits or gains from farming in accordance with the provisions of this subsection shall be so charged under Case I of Schedule D on the full amount of those profits or gains determined upon a fair and just average of the profits or gains from farming of the individual in each of the three years ending on that date in the year of assessment to which it has been customary to make up accounts or, where it has not been customary to make up accounts, on the 5th day of April in the year of assessment.”,

and

(b) by the substitution of the following subsection for subsection (4):

“(4) Where, for a year of assessment, an individual is, by virtue of subsection (3), chargeable to tax in respect of profits or gains from farming in accordance with the provisions of subsection (2) and he was so chargeable for each of the three years of assessment immediately preceding the year of assessment, he may, by notice in writing given to the inspector with the return required under section 10 of the Finance Act, 1988 , for the said year of assessment, elect to be charged to tax for that year of assessment in accordance with the provisions of section 58 of the Income Tax Act, 1967 :

Provided that where, for any year of assessment, in the case of an individual, subsection (3) does not apply by reason of paragraph (a) of the proviso to the said subsection (3), he shall be deemed to be entitled to elect and to have duly elected, as respects that year of assessment, in accordance with this subsection.”.

(3) The provisions specified in the Table to this subsection shall not apply or have effect for the year 1990-91 or any subsequent year of assessment.

TABLE

(a) Paragraphs (a) and (c) in Part I of the Table to section 17 of the Finance Act, 1980 .

(b) Paragraphs (a) and (b) of section 9 of the Finance Act, 1981 .

(4) (a) In this subsection—

deficiency” means a deficiency computed in accordance with subsection (4) of section 81 of the Income Tax Act, 1967 ;

excepted premises” means a premises other than a qualifying premises;

qualifying expenditure” means expenditure which would, but for the provisions of this Chapter, qualify for relief under any of the specified sections;

qualifying premises” means a premises or building in respect of which any of the specified sections apply;

specified sections” means—

(i) sections 23 and 24 of the Finance Act, 1981 ,

(ii) sections 21 and 22 of the Finance Act, 1985 , and

(iii) sections 43 and 44 of the Finance Act, 1986 ;

surplus” means a surplus computed in accordance with subsection (4) of section 81 of the Income Tax Act, 1967 .

(b) Where a person, who is within the charge to income tax, has incurred qualifying expenditure in the year 1989-90, the provisions of section 89 of the Income Tax Act, 1967 , as they apply for the year 1989-90, shall have effect in relation to a deficiency in respect of rent from a qualifying premises as if the other provisions of this Chapter had not been enacted and no surplus from excepted premises arose in the year 1989-90:

Provided that where the person is chargeable under Case V for the year 1989-90 on the basis of the profits or gains arising in that year, the provisions of this paragraph shall not apply or have effect.

Capital allowances: transitional provisions.

21. —(1) In this section—

basis period for the year 1990-91” has the meaning assigned to it by section 16 ;

basis period for the year 1989-90” means the period on the profits or gains of which income tax for the year 1989-90 falls to be finally computed for the purposes of Case I or II of Schedule D in accordance with the provisions (as if this Act had not been enacted) of Chapter II of Part IV of the Income Tax Act, 1967 ;

intervening period” means the period beginning immediately after the end of the basis period for the year 1989-90 and ending immediately before the commencement of the basis period for the year 1990-91;

relevant expenditure” means capital expenditure incurred by a person—

(a) on the provision, for the purposes of a trade or profession, of machinery or plant,

(b) for the purposes of a trade of farming farmland occupied by him, on the construction of farm buildings (excluding a building or part of a building used as a dwelling), fences, roadways, holding yards, drains or land reclamation or other works, or

(c) on the construction of a building or structure which is, or is to be, an industrial building or structure for the purposes of Chapter II of Part XV (as amended by section 34 of the Finance Act, 1975 ) of the Income Tax Act, 1967 .

(2) Notwithstanding any other provision of the Tax Acts, where a person has incurred relevant expenditure to which this subsection applies then, as respects that expenditure—

(a) allowances shall not be made under sections 251 (as amended by this Act) and 254 (as amended by this Act) of the Income Tax Act, 1967 ,

(b) an allowance which falls to be made under section 241 (as amended by this Act) of the Income Tax Act, 1967 , shall not be increased under section 11 (as amended by this Act) of the Finance Act, 1967 , or section 26 (as amended by this Act) of the Finance Act, 1971 ,

(c) an allowance which falls to be made under section 22 (as amended by this Act) of the Finance Act, 1974 , shall not be increased under the proviso to subsection (2) of that section, and

(d) an allowance which falls to be made under section 264 (as amended by section 50 of the Finance Act, 1988 ) of the Income Tax Act, 1967 , shall not be increased under section 25 (as amended by this Act) of the Finance Act, 1978 .

(3) Subsection (2) applies to relevant expenditure incurred by a person in the intervening period.

(4) Subsection (3) shall not have effect in relation to a person where he so elects, by giving notice in writing to the inspector with the return for the year 1990-91 which is required under section 10 of the Finance Act, 1988 .

(5) Where a person makes an election under subsection (4), the provisions of subsection (2) shall apply to relevant expenditure incurred by the person in the basis period for the year 1990-91.

Capital allowances: consequential provisions.

22. —(1) The Income Tax Act, 1967 , is hereby amended—

(a) in section 262—

(i) by the deletion, in paragraph (b) of subsection (2), of “or of the cessation of the single source of profits or gains mentioned in section 81 (2)”, and

(ii) by the deletion, in paragraph (c) of subsection (2), of “or the said single source ceases” and of “or the cessation”, and

(b) in section 297—

(i) by the deletion, in paragraph (b) of subsection (2), of “or of the cessation of the single source of profits or gains mentioned in section 81 (2)”, and

(ii) by the deletion, in paragraph (c) of subsection (2), of “or the said single source ceases” and of “or the cessation”,

and the said paragraphs (b) and (c) of the said subsection (2) of the said section 262 and the said paragraphs (b) and (c) of the said subsection (2) of the said section 297, as so amended, are set out, respectively, in the Table to this subsection.

TABLE

(b) where there is an interval between the end of the basis period for one year of assessment and the basis period for the next year of assessment, then, unless the second-mentioned year of assessment is the year of the permanent discontinuance of the trade or profession, the interval shall be deemed to be part of the second basis period; and

(c) where there is an interval between the end of the basis period for the year of assessment preceding that in which the trade or profession is permanently discontinued and the basis period for the year in which the permanent discontinuance occurs, the interval shall be deemed to form part of the first basis period.

(b) where there is an interval between the end of the basis period for one year of assessment and the basis period for the next year of assessment, then, unless the second-mentioned year of assessment is the year of the permanent discontinuance of the trade, the interval shall be deemed to be part of the second basis period, and

(c) where there is an interval between the end of the basis period for the year of assessment preceding that in which the trade is permanently discontinued and the basis period for the year in which the permanent discontinuance occurs, the interval shall be deemed to form part of the first basis period.

(2) Section 22 of the Finance Act, 1974 , is hereby amended by the substitution in subsection (2A) (c) of “For the purposes of this section” for “For the purpose of this subsection” and the said subsection (2A) (c), as so amended, is set out in the Table to this subsection.

TABLE

(c) For the purposes of this section “basis period” has the meaning assigned to it by section 297 of the Income Tax Act, 1967 .

Tax returns.

23. —(1) Section 70 of the Income Tax Act, 1967 , is hereby amended—

(a) in subsection (1)—

(i) by the deletion, in paragraph (a), of “(in this section referred to as the preceding year) immediately preceding the year of assessment”,

(ii) by the substitution, in paragraph (b), of “the year of assessment” for “the preceding year”, and

(iii) by the deletion, in paragraph (c), of “the preceding year or”,

and

(b) by the substitution of the following subsection for subsection (2):

“(2) The amount of income from any source to be included in a return under this section shall be computed in accordance with the provisions of this Act:

Provided that where, in the case of a trade, an account has been made up to a date within the year of assessment or more accounts than one have been made up to dates within that year, the computation shall be made by reference to the period or to all the periods, where there are more than one, for which accounts have been made up as aforesaid.”.

(2) Section 172 of the Income Tax Act, 1967 , is hereby amended—

(a) in subsection (1)—

(i) by the deletion, in paragraph (a), of “(in this section referred to as the preceding year) immediately preceding the year of assessment”,

(ii) by the substitution, in paragraph (b), of “the year of assessment” for “the preceding year”, and

(iii) by the deletion, in paragraph (c), of the words “the preceding year or”,

and

(b) in subsection (2)—

(i) by the deletion of “save that the computation shall be made in all cases by reference to the preceding year”, and

(ii) by the substitution of the following proviso for the proviso thereto:

“Provided that where, under section 60 (as amended by the Finance Act, 1990), the profits or gains of a year ending on a date within the year of assessment are to be taken to be the profits or gains of that year of assessment, the computation shall be made by reference to the said year ending on a date within that year of assessment.”,

and the said subsection (1) of the said section 70 and the said subsections (1) and (2) (other than the proviso) of section 172, as so amended, are set out, respectively, in the Table to this subsection.

TABLE

(1) The precedent partner of any partnership, when required to do so by a notice given to him in relation to any year of assessment by an inspector, shall, within the time limited by the notice, prepare and deliver to the inspector a return in the prescribed form of—

(a) all the sources of income of the partnership for the year of assessment in relation to which the notice is given;

(b) the amount of income from each source for the year of assessment computed in accordance with subsection (2);

(c) such further particulars for the purposes of income tax for the year of assessment as may be required by the notice or indicated by the prescribed form.

(1) Every individual, when required to do so by a notice given to him in relation to any year of assessment by an inspector, shall, within the time limited by the notice, prepare and deliver to the inspector a return in the prescribed form of—

(a) all the sources of his income for the year of assessment in relation to which the notice is given;

(b) the amount of income from each source for the year of assessment computed in accordance with subsection (2);

(c) such further particulars for the purposes of income tax for the year of assessment as may be required by the notice or indicated by the prescribed form.

(2) The amount of income from any source to be included in a return under this section shall be computed in accordance with the provisions of this Act:

(3) The Finance Act, 1988 , is hereby amended—

(a) by the substitution, in the definition of “specified return date for the chargeable period”, in subsection (1) of section 9, of the following paragraph for paragraph (a):

“(a) where the chargeable period is a year of assessment, the 31st day of January in the year of assessment following that year, and”,

and

(b) by the substitution, in paragraph (a) of subsection (1) of section 10, of “which is” for “immediately preceding”,

and the said paragraph (a), as so amended, is set out in the Table to this subsection.

TABLE

(a) in the case of a chargeable person, who is chargeable to income tax for a chargeable period which is a year of assessment, all such matters and particulars as would be required to be contained in a statement delivered pursuant to a notice given to the chargeable person by the appropriate inspector under section 169 of the Income Tax Act, 1967 , if the period specified in such notice were the year of assessment which is the relevant chargeable period, and where the chargeable person is an individual who is chargeable to income tax for a relevant chargeable period, in addition to such matters and particulars as aforesaid, all such matters and particulars as would be required to be contained in a return for the period delivered to the appropriate inspector pursuant to a notice given to the chargeable person by the appropriate inspector under section 172 of the said Act, or

(4) (a) Every chargeable person (as defined in section 9 of the Finance Act, 1988 ), who is within the charge to income tax, shall prepare and deliver to the appropriate inspector (as defined in the said section 9) a return in the prescribed form of all such matters and particulars as would have been included in a return for the year of assessment 1990-91 if the provisions of this Chapter, other than this subsection, had not been enacted.

(b) The return to which this subsection applies shall be identified and referred to as the “1990 Income Tax Return”.

(c) Sections 500 and 503 of the Income Tax Act, 1967 , shall apply to a failure to deliver a return in accordance with this subsection as they apply to a failure to deliver a return referred to in the said section 500, and Schedule 15 to that Act is hereby amended by the insertion, in column 1, of “Finance Act, 1990, section 23 (4)”.

(d) Section 48 (as amended by this Act) of the Finance Act, 1986 , shall have effect as if the definition of “return of income” in subsection (1) (a) of that section included the return to which this subsection applies and as if that section provided that the specified date in relation to that return was 31 January, 1991.

(5) Subsections (1), (2) and (3) shall apply and have effect as respects the year 1990-91 and subsequent years of assessment.

Payment of tax.

24. —As respects the year 1990-91 and subsequent years of assessment and as respects accounting periods ending on or after the 6th day of April, 1990—

(a) section 477 (inserted by the Finance Act, 1980 ) of the Income Tax Act, 1967 , is hereby amended, in subsection (1)—

(i) by the substitution of “1st day of November” for “1st day of October”, in both places where it occurs, and

(ii) by the substitution of “not later than one month from the date” for “on the day next after the day”,

(b) section 550 (2) of the Income Tax Act, 1967 , and section 27 (4) of the Finance Act, 1982 , shall cease to have effect,

(c) section 6 (as amended by the Finance Act, 1985 ) of the Corporation Tax Act, 1976 , is hereby amended by the substitution, in subsection (4), of “seven months” for “six months”, and of “one month” for “two months”, and

(d) section 18 of the Finance Act, 1988 , is hereby amended—

(i) by the substitution, in subsection (1), of “1st day of November” for “1st day of October”, in both places where it occurs, and of “7 months” for “6 months”, in both places where it occurs,

(ii) by the substitution of the following paragraph for paragraph (b) of subsection (2):

“(b) where the assessment is made on or after that date—

(i) if the chargeable period is a year of assessment, on or before the specified return date for the chargeable period or, if later, not later than one month from the date on which the assessment is made, and

(ii) if the chargeable period is an accounting period of a company, not later than one month from the date on which the assessment is made.”,

(iii) by the substitution of the following subsection for subsection (3):

“(3) Where, but for this subsection, tax specified in an assessment made on a chargeable person for a relevant chargeable period would be due and payable in accordance with subsection (2) (b) and—

(a) the chargeable person has defaulted in the payment of preliminary tax for that chargeable period,

(b) the preliminary tax paid by the chargeable person for the chargeable period is less than, or less than the lower of, as the case may be—

(i) 90 per cent. of the tax payable by the chargeable person for the chargeable period, or

(ii) in the case of a chargeable person who is chargeable to income tax for the said chargeable period being a year of assessment, the tax payable for the immediately preceding chargeable period:

Provided that for the purposes of this subparagraph—

(I) where the chargeable person was not a chargeable person for the immediately preceding chargeable period, the tax payable for the immediately preceding chargeable period shall be taken to be nil, and

(II) where, after the due date for the payment of an amount of preliminary tax for a chargeable period which is a year of assessment, an amount of additional tax for the immediately preceding chargeable period becomes payable, that additional tax shall not be taken into account if, but only if, it became due and payable one month following the amendment to the assessment or the determination of the appeal, as the case may be, by virtue of the provisos (as amended by section 24 of the Finance Act, 1990) to subsection (4) or (5),

or

(c) the preliminary tax payable by the chargeable person for the chargeable period was not paid by the date on which it was due and payable,

the tax specified in the assessment shall be deemed to have been due and payable on the due date for the payment of an amount of preliminary tax for the chargeable period.”,

(iv) by the substitution, in the proviso to subsection (4), of “not later than one month from the date of the amendment” for “on the day immediately following the date of the amendment”, and

(v) by the substitution, in the proviso to subsection (5), of “not later than one month from the date of the determination of the appeal” for “on the date of the determination of the appeal”,

and the said subsection (1) of the said section 477, the said subsection (4) of the said section 6, the said subsection (1) and the provisos to subsections (4) and (5) of the said section 18, as so amended, are set out, respectively, in the Table to this section.

TABLE

(1) Subject to the provisions of this section, tax contained in an assessment for any year of assessment shall be payable on or before the 1st day of November in that year, except that tax included in an assessment for any year of assessment which is made on or after the 1st day of November in that year shall be deemed to be due and payable not later than one month from the date on which the assessment is made.

(4) Corporation tax assessed for an accounting period shall be paid within seven months from the end of the accounting period or, if it is later, within one month of the making of the assessment.

(1) Preliminary tax appropriate to a relevant chargeable period shall be due and payable—

(a) where the chargeable period is a year of assessment, on or before the 1st day of November in that year of assessment, or

(b) where the chargeable period is an accounting period of a company, within the period of 7 months from the end of the accounting period,

and references in this Chapter to the due date for the payment of an amount of preliminary tax shall be construed as references to the 1st day of November in the relevant year of assessment or the last day of that period of 7 months, as the case may be.

Provided that if—

(a) the assessment was made after the chargeable person had delivered a return containing a full and true disclosure of all material facts necessary for the making of the assessment, or

(b) the assessment had previously been amended following the delivery of the return containing such disclosure,

the additional tax so due shall be deemed to have been due and payable not later than one month from the date of the amendment.

Provided that—

(a) where the tax which the chargeable person had so paid is not less than 90 per cent. of the tax so found to be payable on the determination of the appeal, and

(b) where the tax charged by the assessment was due and payable in accordance with the provisions of subsection (2),

the said excess shall be deemed to be due and payable not later than one month from the date of the determination of the appeal.

Surcharge for late submission of returns.

25. —(1) Section 48 of the Finance Act, 1986 , is hereby amended—

(a) in paragraph (a) of subsection (1)—

(i) by the insertion of the following definition:

“‘chargeable person’ means, in relation to a year of assessment or an accounting period—

(i) a person who is a chargeable person for the purposes of Chapter II of Part I of the Finance Act, 1988 , or

(ii) a person who is chargeable to capital gains tax;”,

and

(ii) by the substitution, in the definition of “specified date”, of the following subparagraphs for subparagraph (II) of paragraph (i):

“(II) as respects any of the years 1987-88, 1988-89 or 1989-90, the 31st day of December in that year of assessment,

(IIa) as respects the year 1990-91 or any subsequent year of assessment, the 31st day of January in the year following the year of assessment,”,

and

(b) in paragraph (b) of subsection (1), by the substitution of the following subparagraphs for subparagraphs (iii), (iv) and (v):

“(iii) where a person delivers a return of income on or before the specified date in relation to the return of income but the inspector, by reason of being dissatisfied with any statement of profits or gains arising to the person from any trade or profession which is contained in the return of income, requires the person, by notice in writing served on him under section 174 of the Income Tax Act, 1967 , to do any thing, the person shall be deemed not to have delivered the return of income on or before the specified date unless he does that thing within the time specified in the notice, and

(iv) references to such of the specified sections as are applied, subject to any necessary modifications, in relation to capital gains tax by paragraph 3 of Schedule 4 to the Capital Gains Tax Act, 1975 , shall be construed as including references to those sections as so applied.”,

and

(c) by the substitution of the following subsection for subsection (2) (other than the proviso thereto):

“(2) Where, in relation to a year of assessment or accounting period, a chargeable person fails to deliver a return of income on or before the specified date in relation to the return of income, any amount of tax for that year of assessment or accounting period which, apart from this section, is or would be contained in an assessment to tax made or to be made on the chargeable person shall be increased by an amount (hereafter in this subsection referred to as the ‘surcharge’) equal to 10 per cent. of that amount of tax and, if the tax contained in the assessment to tax is not the amount of tax as so increased, then all the provisions of the Tax Acts and the Capital Gains Tax Acts (apart from this section) including, in particular, those relating to the collection and recovery of tax and the payment of interest on unpaid tax shall apply as if the tax contained in the assessment to tax were the amount of tax as so increased:”.

(2) Subsection (1) shall apply and have effect as respects the year 1991-92 and any subsequent year of assessment and as respects any accounting period ending on or after the 6th day of April, 1990.

(3) In relation to the year 1990-91 only, subsection (2) (as amended by this section) of section 48 of the Finance Act, 1986 , shall have effect as if the reference to the chargeable person who fails to deliver a return of income before the specified date in relation to the return of income were a reference to a chargeable person who fails to deliver either—

(a) the 1990 Income Tax Return referred to in subsection (4) of section 23 before the specified date in relation to that return, or

(b) the return of income for the year 1990-91 before the specified date in relation to that return.

Payments in respect of professional services.

26. —(1) As respects the year 1990-91 and subsequent years of assessment and as respects accounting periods ending on or after the 6th day of April, 1990, Chapter III of Part I of the Finance Act, 1987 , is hereby amended—

(a) in section 13, by the substitution of the following paragraph for paragraph (b) of subsection (2)—

“(b) in relation to a specified person, appropriate tax referable to—

(i) an accounting period,

(ii) a basis period for a year of assessment, or

(iii) a credit period within the meaning of section 18 (as amended by the Finance Act, 1990) for a year of assessment,

means the appropriate tax deducted from a relevant payment which is taken into account in computing the specified person's profits or gains for the said period and where there is more than one such relevant payment in the said period the aggregate of the appropriate tax deducted from such payments.”,

and

(b) in section 18—

(i) by the substitution, in subsections (2) and (4), of “credit” for “basis” where it occurs in those subsections, and

(ii) by the addition of the following subsection after subsection (4)—

“(5) In this section—

credit period for a year of assessment’ means, in relation to a specified person—

(a) as respects the year of assessment 1990-91, the basis period which would otherwise have been the basis period for that year of assessment but for the provisions of sections 14 and 15 of the Finance Act, 1990,

(b) as respects any subsequent year of assessment, the basis period for the year of assessment immediately preceding the year of assessment, or

(c) notwithstanding paragraph (a) or (b), as respects a year of assessment which is a discontinuance period, the year of assessment:

Provided that where there is an interval between the end of the credit period for one year of assessment and the credit period for the next year of assessment, then, the interval shall be deemed to be part of the second credit period;

discontinuance period’ means the year of assessment in which a source of income, profits or gains is permanently discontinued (or is to be treated as permanently discontinued by virtue of section 59 or 71 of the Income Tax Act, 1967 ) and in relation to which a relevant payment is to be taken into account in a computation of the income, profits or gains of that source for that year of assessment.”,

and the said subsections (2) and (4), as so amended, are set out in the Table to this subsection.

TABLE

(2) Where, in relation to a year of assessment, a specified person is within the charge to income tax and has borne appropriate tax referable to the credit period for that year of assessment he may, subject to the provisions of section 21, claim to have the amount of appropriate tax specified in subsection (4) set against the income tax chargeable for that year of assessment and, where such appropriate tax exceeds such income tax, to have the excess refunded to him.

(4) The amount of the appropriate tax to be set against corporation tax for an accounting period or income tax for a year of assessment in accordance with subsection (1) or (2) shall be the total of the appropriate tax referable to the accounting period or to the credit period for the year of assessment, as the case may be, which is included in the forms furnished in accordance with subsection (3) and not repaid under any of the provisions of this Chapter.

(2) Where a specified person is within the charge to income tax for the year of assessment 1990-91, section 19 of the Finance Act, 1987 , shall apply as respects the first-mentioned period (being the first-mentioned period within the meaning assigned to it by subsection (1) of that section) which is the basis period for the year of assessment 1990-91 as if, in subsection (2) of that section 19, the reference to the basis period for the year of assessment immediately preceding the first-mentioned period were a reference to the basis period for the year of assessment 1989-90.

(3) (a) This section shall not apply in relation to a specified person where the year 1990-91 is a discontinuance period (within the meaning assigned to it by section 18 (5), inserted by this Act, of the Finance Act, 1987 ) as respects that person.

(b) This subsection shall be construed together with Chapter III of Part I of the Finance Act, 1987 (as amended by this Act).

Miscellaneous (Chapter II).

27. —(1) As respects the year 1990-91 and subsequent years of assessment, section 236 of the Income Tax Act, 1967 , is hereby amended by the substitution of the following subsection for subsection (11) (inserted by the Finance Act, 1974 ), other than the proviso thereto:

“(11) Where, in relation to a year of assessment, a qualifying premium is paid after the end of the year of assessment but on or before the 31st day of January in the year following the year of assessment, the premium may, if the individual so elects on or before the said 31st day of January, be treated for the purposes of this section as paid in the earlier year (and not in the year in which it is paid):”.

(2) The following provisions shall not apply or have effect for the year 1990-91 or any subsequent year of assessment, that is to say—

(a) subsection (1AA) (inserted by the Finance Act, 1979 ) of section 307, and section 546 , of the Income Tax Act, 1967 ;

(b) section 20 of the Finance Act, 1988 .