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13 1991

FINANCE ACT, 1991

Chapter VI

Extension of Self Assessment to Capital Gains Tax and Certain Other Matters

Amendment of section 9 (interpretation (Chapter II)) of Finance Act, 1988.

45. Section 9 (as amended by section 23 of the Finance Act, 1990 ) of the Finance Act, 1988 , is hereby amended—

(a) in subsection (1)—

(i) by the insertion after “ Income Tax Act, 1967 ”, in the definition of “appeal”, of “, or, as respects capital gains tax, an appeal under paragraph 8 of the Fourth Schedule to the Capital Gains Tax Act, 1975 ”, and the said definition, as so amended, is set out in the Table to this section,

(ii) by the insertion after “profits”, in paragraph (a) of the definition of “appropriate inspector”, of “or chargeable gains”, and the said definition, as so amended, is set out in the Table to this section,

(iii) by the insertion after “Corporation Tax Acts”, in the definition of “assessment”, of “or the Capital Gains Tax Acts,”, and the said definition, as so amended, is set out in the Table to this section,

(iv) by the insertion after the definition of “assessment” of the following definition:

“‘chargeable gain’ has the same meaning as in section 11 (2) of the Capital Gains Tax Act, 1975 ;”,

(v) by the insertion after “whether on his own account or on account of some other person, but”, in the definition of “chargeable person”, of “as respects income tax,”, and the said definition, as so amended, is set out in the Table to this section,

(vi) by the substitution of the following definition for the definition of “relevant chargeable period”:

“‘relevant chargeable period’ means—

(a) (i) where the chargeable period is a year of assessment for income tax, the year 1988-89 and any subsequent year of assessment,

(ii) where the chargeable period is a year of assessment for capital gains tax, the year 1990-91 and any subsequent year of assessment, or

(b) where the chargeable period is an accounting period of a company, an accounting period ending on or after the 1st day of October, 1989.”,

(vii) by the insertion of the following proviso after paragraph (b) of the definition of “specified return date for the chargeable period”:

“Provided that where an accounting period of a company ends on or before the date of commencement of the winding up of the company and the specified return date in respect of that accounting period would, but for this proviso, fall on a date after the date of commencement of the said winding up but not within a period of 3 months after that date, the specified return date for that accounting period of the company shall be the date which falls 3 months after the date of commencement of the winding up.”,

(viii) by the substitution for the definition of “tax”, of the following definition:

“‘tax’ means income tax, corporation tax, or capital gains tax, as the case may be.”,

and

(b) by the deletion of subsection (4).

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appeal” means an appeal under section 416 of the Income Tax Act, 1967 , or, as respects capital gains tax, an appeal under paragraph 8 of the Fourth Schedule to the Capital Gains Tax Act, 1975 ;

appropriate inspector” means, in relation to a chargeable person—

(a) the inspector who has last given notice in writing to the chargeable person that he is the inspector to whom the chargeable person is required to deliver a return or statement of income or profits or chargeable gains,

(b) in the absence of such an inspector as is referred to in paragraph (a), the inspector to whom it is customary for the chargeable person to deliver such return or statement, or

(c) in the absence of such an inspector as is referred to in paragraphs (a) and (b), the inspector of returns;

assessment” means an assessment to tax made under the Income Tax Acts or the Corporation Tax Acts or the Capital Gains Tax Acts, as the case may be;

chargeable person” means, as respects a chargeable period, a person who is chargeable to tax for that period, whether on his own account or on account of some other person, but, as respects income tax, does not include a person—

(a) whose total income for the chargeable period consists solely of emoluments to which Chapter IV of Part V of the Income Tax Act, 1967 , applies, and for this purpose a person whose total income for the chargeable period, other than emoluments to which the said Chapter IV applies, is deducted in determining the amount of his tax-free allowances for the chargeable period by virtue of Regulation 10 (1) (b) of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), shall be deemed for that chargeable period to be a person whose total income consists solely of emoluments to which the said Chapter IV applies,

(b) who, for the chargeable period, has been exempted by an inspector from the requirements of section 10 by reason of a notice given under subsection (6) of that section, or

(c) who is chargeable to tax for the chargeable period by reason only of the provisions of section 433 or 434 of the Income Tax Act, 1967 , or section 151 of the Corporation Tax Act, 1976 .

Amendment of section 10 (obligation to make a return) of Finance Act, 1988.

46. Section 10 (as amended by section 23 of the Finance Act, 1990) of the Finance Act, 1988 is hereby amended—

(a) by the insertion in paragraph (a) of subsection (1) of “or capital gains tax” after “chargeable to income tax” in both places where it occurs, and the said paragraph (a), as so amended, is set out in the Table to this section,

(b) by the substitution for the proviso to subsection (6) of the following proviso:

“Provided that—

(i) where, before the passing of this Act, a person has been given notice by the inspector that he need not prepare and deliver a return for or until a specified chargeable period or until the happening of any event, he shall be deemed to have been given notice to that effect under this subsection;

(ii) where a person who has been given a notice under this subsection is chargeable to capital gains tax for any chargeable period, this subsection shall not operate to remove his obligation under subsection (1) to make a return of his chargeable gains for that chargeable period.”,

(c) by the substitution of the following subsection for subsection (10):

“(10) A certificate signed by an inspector which certifies that he has examined the relevant records and that it appears from them—

(a) that, as respects a chargeable period, a named person is a chargeable person, and

(b) that, on or before the specified return date for the chargeable period, a return in the prescribed form was not received from that chargeable person,

shall be evidence until the contrary is proved that the person so named is a chargeable person as respects that chargeable period and that that person did not, on or before the specified return date, deliver that return and a certificate certifying as provided by this subsection and purporting to be signed by an inspector may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by such inspector.”.

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(a) in the case of a chargeable person, who is chargeable to income tax or capital gains 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 or capital gains 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

Amendment of section 12 (notices of preliminary tax) of Finance Act, 1988.

47. Section 12 of the Finance Act, 1988 , is hereby amended—

(a) by the substitution for paragraph (a) of the proviso to subsection (7) of the following paragraph:

“(a) interest shall not be payable under this subsection—

(i) if it amounts to less than £10, or

(ii) to the extent that the said excess arises from relief provided for by subsection (4) of section 98 of the Corporation Tax Act, 1976 ,

and”,

and

(b) by the insertion after subsection (10) of the following subsection:

“(11) This section shall not, except for the provisions of subsection (7), apply as respects capital gains tax.”.

Amendment of section 13 (making of assessments) of Finance Act, 1988.

48. Section 13 of the Finance Act, 1988 , is hereby amended by the addition of the following subsection after subsection (6):

“(7) Nothing in this section shall prevent an inspector from making an assessment in accordance with the provisions of—

(a) section 5 (3) of the Capital Gains Tax Act, 1975 , and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of the said section 5 (3), or

(b) subparagraph (3) or (4), as appropriate, of paragraph 11 of the Fourth Schedule to the Capital Gains Tax Act, 1975 , and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of paragraph 11 (9) of the Fourth Schedule to the Capital Gains Tax Act, 1975 , or

(c) paragraph 17 (2) or subparagraph (1) or (2) of paragraph 18, as appropriate, of the Fourth Schedule to the Capital Gains Tax Act, 1975 , and, notwithstanding the provisions of section 11 and section 18, tax specified in such an assessment shall be due and payable in accordance with the provisions of section 5 (2) of the Capital Gains Tax Act, 1975 .”.

Amendment of section 14 (amendment of and time limit for assessments) of Finance Act, 1988.

49. Section 14 of the Finance Act, 1988 , is hereby amended by the insertion in subsection (5) of “or, as respects capital gains tax, chargeable gains,” after “income, profits or gains”, and the said subsection (5), as so amended, is set out in the Table to this section.

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(5) Section 186 of the Income Tax Act, 1967 , and section 144 (5) (a) of the Corporation Tax Act, 1976 , shall not apply in the case of a chargeable person for any relevant chargeable period and all matters which would have been included in an additional first assessment under those sections shall be included in an amendment of the first assessment or first assessments made in accordance with this section and, for this purpose, where any amount of income, profits or gains or, as respects capital gains tax, chargeable gains, was omitted from the first assessment or first assessments or the tax stated in the first assessment or first assessments was less than the tax payable by the chargeable person for that chargeable period, there shall be made such adjustments or additions (including the addition of a further first assessment) to the first assessment or first assessments as are necessary to rectify the omission or to ensure that the tax so stated is equal to the tax so payable by the chargeable person.

Amendment of section 15 (inspector's right to make enquiries and amend assessments) of Finance Act, 1988.

50. Section 15 of the Finance Act, 1988 , is hereby amended by the insertion in subsection (1) of “or, as respects capital gains tax, chargeable gains,” after “income, profits or gains”, and the said subsection (1), as so amended, is set out in the Table to this section.

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(1) For the purpose of making an assessment on a chargeable person for a relevant chargeable period or for the purpose of amending such an assessment, the inspector may accept either in whole or in part any statement or other particular contained in a return delivered by the chargeable person for that chargeable period and he may assess any amount of income, profits or gains or, as respects capital gains tax, chargeable gains, or allow any deduction, allowance or relief by reference to such statement or particular; but the making of an assessment or the amendment of an assessment by reference to any such statement or particular contained in the chargeable person's return shall not preclude the inspector from making suchenquiries or taking such actions, within his powers, as he considers necessary to satisfy himself as to the accuracy or otherwise of that statement or particular and, subject to section 14 (2), shall not preclude the inspector from amending or further amending an assessment in such manner as he considers appropriate:

Provided that any such enquiries and any such actions shall not be made in the case of any chargeable person for any relevant chargeable period at any time after the expiry of the period of 6 years commencing at the end of the chargeable period in which the chargeable person has delivered a return for the relevant chargeable period unless at that time the inspector has reasonable grounds for believing that the return is insufficient due to its having been completed in a fraudulent or negligent manner.

Amendment of section 17 (appeals) of Finance Act, 1988.

51. Section 17 of the Finance Act, 1988 , is hereby amended by the insertion in paragraphs (b) and (c) of subsection (1) of “or, as respects capital gains tax, chargeable gains,” after “income, profits or gains” in each place where it occurs, and the said paragraphs (b) and (c), as so amended, are set out in the Table to this section.

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(b) the amount of any income, profits or gains or, as respects capital gains tax, chargeable gains, or the amount of any allowance, deduction or relief specified in an assessment or an amended assessment made on a chargeable person for a relevant chargeable period where the inspector has determined that amount by accepting without the alteration of and without departing from the statement or statements or the particular or particulars with regard to income, profits or gains or, as respects capital gains tax, chargeable gains, or allowances, deductions or reliefs specified in the return delivered by the chargeable person for that chargeable period, or

(c) the amount of any income, profits or gains or, as respects capital gains tax, chargeable gains, or the amount of any allowance, deduction or relief specified in an assessment or an amended assessment made on a chargeable person for a relevant chargeable period where that amount had been agreed between the inspector and the chargeable person, or any person authorised by the chargeable person in that behalf, prior to the making of the assessment or the amendment of the assessment, as the case may be.

Amendment of section 18 (date for payment of tax) of Finance Act, 1988.

52. Section 18 (as amended by section 24 of the Finance Act, 1990 ) of the Finance Act, 1988 , is hereby amended—

(a) by the substitution of the following subsection for subsection (1)—

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

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

(b) where the chargeable period is a year of assessment for capital gains tax, on or before the 1st day of November next following that year of assessment, or

(c) 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, accordingly, be construed as references to the 1st day of November in the relevant year of assessment, the 1st day of November next following that year ofassessment or the last day of that period of 7 months, as the case may be.”,

and

(b) in subsection (3), by the insertion of the following additional proviso after paragraph (II) of the proviso to subparagraph (ii) of paragraph (b):

“Provided also that, for the purpose of this subparagraph, where the chargeable person is chargeable to income tax for a chargeable period being the year of assessment 1991-92 or any subsequent year of assessment, the tax payable for the immediately preceding chargeable period shall be determined without regard to any relief to which the chargeable person is, or may become, entitled for that immediately preceding chargeable period under Chapter III of Part I of the Finance Act, 1984 .”.

Amendment of section 21 (miscellaneous) of Finance Act, 1988.

53. Section 21 of the Finance Act, 1988 , is hereby amended—

(a) by the insertion in subsection (3), after “the inspector causes to issue”, of “manually or”, and the said subsection (3), as so amended, is set out in the Table to this section, and

(b) by the addition of the following subsections after subsection (6):

“(7) The provisions of this Chapter as respects due dates for payment of tax shall apply subject to the provisions of sections 37 (4) (b) (which provides for the postponement, in certain circumstances, of the payment of capital gains tax in the case of certain beneficiaries of a non-resident trust) and 44 (which provides for the payment of tax on certain chargeable gains by instalment, in certain circumstances) of the Capital Gains Tax Act, 1975 .

(8) With effect for the year of assessment 1990-91 and subsequent years of assessment, references in this Chapter to any provision of the Income Tax Acts shall, where appropriate for capital gains tax and unless the contrary intention appears, be construed as a reference to the said provisions as applied in relation to capital gains tax by paragraphs 2 and 3 of the Fourth Schedule to the Capital Gains Tax Act, 1975 .”.

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(3) Where the inspector or any other officer of the Revenue Commissioners acting with the knowledge of the inspector causes to issue, manually or by any electronic, photographic or other process, a notice of preliminary tax bearing the name of the inspector or a notice of assessment or a notice of an amendment of an assessment bearing the name of the inspector, the said notice of preliminary tax shall, for all the purposes of the Tax Acts, be deemed to have been given by the inspector to the best of his opinion and the said assessment or amended assessment to which the notice of assessment or notice of amended assessment relates, as the case may be, shall, for those purposes, be deemed to have been made by the inspector to the best of his judgement.