PART I

Income Tax

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1964, at the rate of six shillings and four pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1964, shall be charged in respect of the income of any individual the total of which from all sources exceeds two thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1963.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1964, in relation to income tax and sur-tax and any such provisions which came into operation on the 6th day of April, 1964, in relation thereto shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1964.

2. —(1) An individual who, in the manner prescribed by the Income Tax Acts, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves that at any time during the year of assessment either he or, in the case of a married man, his wife living with him was of the age of sixty-five years or upwards shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his unearned income of a sum equal to one-fourth of the amount of that income:

Provided that—

(a) in case the individual is entitled to a deduction exceeding three hundred and fifty pounds under section 16 of the Finance Act, 1920—

(i) in case that deduction is five hundred pounds, there shall be no deduction under this section, and

(ii) in any other case, the deduction under this section shall not be greater than the amount by which the deduction under the said section 16 falls short of five hundred pounds, and

(b) in any other case, the deduction under this section shall not be greater than one hundred and fifty pounds.

(2) For the purpose of subsection (1) of this section the amount of the unearned income of any individual shall be taken to be the amount of his total income diminished by the amount of his earned income.

(3) All such provisions of the Income Tax Acts as apply in relation to allowances or deductions within the meaning of the Third Schedule to the Finance Act, 1920, shall, with any necessary modifications, apply in relation to deductions under this section.

(4) Section 9 of the Finance Act, 1958 , is hereby amended—

(i) by the substitution for paragraph (d) of subsection (2) of the following paragraph:

“(d) so far as it flows from relief under section 2 of the Finance Act, 1964, in proportion to the amounts of their respective unearned incomes within the meaning of the said section 2,” and

(ii) by the substitution in subsection (6) of “ section 2 of the Finance Act, 1964,” for “ section 4 of the Finance Act, 1951 (No. 15 of 1951), or”.

(5) In this section “earned income” and “total income” mean respectively earned income as estimated in accordance with the provisions of the Income Tax Acts and total income from all sources as so estimated.

3. —(1) In this section—

“total income” means total income from all sources as estimated in accordance with the provisions of the Income Tax Acts;

“relevant income” means, in relation to any individual, his total income exclusive of any part thereof which arises to him by virtue or in consequence of a disposition within the meaning of section 20 of the Finance Act, 1922, and which, if subparagraphs (ii) and (iii) of paragraph (b) of subsection (1) of that section had been omitted therefrom, would be deemed to be income of the person by whom the disposition was made.

(2) Subject to the provisions of this section, an individual who, in the manner prescribed by the Income Tax Acts, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves that his total income for the year of assessment does not exceed four hundred and fifty pounds, shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his relevant income of a sum equal to one-fourth of the amount of that income.

(3) Subject as aforesaid, an individual not entitled to a deduction under the foregoing subsection shall be entitled to have the amount of the income tax payable in respect of his total income reduced, where necessary, so as not to exceed a sum equal to the aggregate of the two following amounts, that is to say, the amount of the tax which would have been payable if his total income had amounted to, but had not exceeded, four hundred and fifty pounds and one-half of the amount by which his total income exceeds four hundred and fifty pounds.

(4) For the purposes of subsection (3) of this section, the computation of the tax which would have been payable if the individual's total income had amounted to, but had not exceeded, four hundred and fifty pounds shall be made—

(a) in a case in which the individual's relevant income amounts to not less than four hundred and fifty pounds, on the basis that the income of four hundred and fifty-pounds consisted wholly of relevant income, and

(b) in a case in which the individual's relevant income is less than four hundred and fifty pounds, on the basis that the income of four hundred and fifty pounds included the whole of the relevant income.

(5) An individual shall not be entitled to any deduction or relief under this section if he is entitled to a deduction under section 2 of this Act and any deduction or relief under this section shall be in substitution for and not in addition to the deduction under section 16 of the Finance Act, 1920.

(6) Section 9 of the Finance Act, 1958 , is hereby amended—

(i) by the insertion before paragraph (e) of subsection (2) of the following paragraph:

“(dd) so far as it flows from relief under section 3 of the Finance Act, 1964, in proportion to the amounts of their respective relevant incomes within the meaning of the said section 3, and” and

(ii) by the addition of “or under section 3 of the Finance Act, 1964” at the end of subsection (6).

(7) All such provisions of the Income Tax Acts as apply in relation to allowances or deductions within the meaning of the Third Schedule to the Finance Act, 1920, shall, with any necessary modifications, apply in relation to deductions or relief under this section.

4. —As respects the computation of income for the purposes of income tax for the year 1964-65 or for any subsequent year of assessment—

(a) any deduction which, but for this paragraph, would be allowable for the tax in the United Kingdom known as profits tax shall be reduced by an amount equal to so much of that tax as can, under section 21 of the Finance Act, 1949 , be allowed as a credit against corporation profits tax;

(b) paragraph 8 of the Second Schedule to the Finance Act, 1958 , shall have effect as if, in clause (c) of subparagraph (3), “either falls to be allowed as a credit against corporation profits tax, or” were deleted.

5. —The business of carrying out under section 4 of the Voluntary Health Insurance Act, 1957 , schemes of voluntary health insurance shall, for all the purposes of the Income Tax Acts in relation to the Voluntary Health Insurance Board, be deemed not to be a trade, and accordingly, in particular and without prejudice to the generality of the foregoing, that Board shall be exempt from income tax under Case I of Schedule D in respect of profits or gains arising from that business:

Provided that that Board shall be entitled to relief under section 34 of the Income Tax Act, 1918, as if the foregoing provisions of this section had not been enacted.

6. —(1) Section 22 of the Finance Act, 1963 , is hereby amended by the addition of the following subsection:

“(3) As soon as may be after the termination of the appointment of a collector referred to in subsection (2) of this section, the inspector of taxes shall transmit to the Collector-General for collection particulars of all sums of income tax or balances thereof contained in duplicates which were delivered to that collector and which remained unpaid on such termination, and references in the Income Tax Acts to duplicates of assessments delivered to collectors shall be construed as including references to particulars so transmitted.”

(2) The reference in subsection (2) of section 23 of the Finance Act, 1963 , to section 22 of that Act shall be construed as including a reference to that section as amended by subsection (1) of this section.

(3) Where, before or after the 6th day of April, 1964, the collector duly appointed to collect any income tax in succession to another collector institutes or continues proceedings under section 11 of the Finance Act, 1924 , for the recovery of the tax or any balance thereof, the other collector shall, for the purposes of the proceedings, be deemed until the contrary is proved to have ceased to be the collector appointed to collect the tax.

7. —(1) Where—

(a) an individual who holds, has held or is about to hold an office or employment gives, in connection with his holding thereof, an undertaking (whether absolute or qualified and whether legally valid or not) the tenor or effect of which is to restrict him as to his conduct or activities; and

(b) in respect of the giving of that undertaking by him, or of the total or partial fulfilment of that undertaking by him, any sum is paid, on or after the 14th day of April, 1964, either to him or to any other person; and

(c) apart from this section, the sum paid would neither fall to be treated as income of any person for the purposes of income tax for any year of assessment nor fall to be taken into account as a receipt in computing, for the purposes of income tax for any year of assessment, the amount of any income of, or loss incurred by, any person,

the same results shall follow in relation to sur-tax for the year of assessment in which the said sum is paid as would have followed if the said sum had been paid to the said individual (and not to any other person) as and for the net amount of an annual payment to which the said individual was entitled, being an annual payment chargeable to income tax from the gross amount of which tax had been duly deducted under Rule 21 of the General Rules:

Provided that where the individual has died before the payment of the said sum, so much of the preceding provisions of this subsection as relates to the results which are to follow from the matters specified in paragraphs (a) to (c) of this subsection shall have effect as if the said sum had been paid immediately before the death.

(2) Where valuable consideration otherwise than in the form of money is given in respect of the giving of, or of the total or partial fulfilment of, any undertaking, the preceding provisions of this section shall apply as if a sum had instead been paid equal to the value of that consideration.

(3) The preceding provisions of this section shall not apply to any sum paid or consideration given if the undertaking in question was given before the 14th day of April, 1964.

(4) Where any sum is paid or valuable consideration given to any person in any year of assessment in respect of the giving of, or of the total or partial fulfilment of, an undertaking given on or after the 14th day of April, 1964, and satisfying the conditions specified in paragraph (a) of subsection (1) of this section (not being a sum from which tax is duly deducted under any provision of the Income Tax Acts), it shall be the duty of the person paying over the sum or giving the consideration to deliver particulars thereof in writing to the inspector of taxes not later than one month after the end of that year, identifying the recipient of the payment or consideration, the undertaking in connection with which it was made or given and the individual who gave that undertaking.

(5) The Third Schedule to the Finance Act, 1963 , is hereby amended by the insertion in the third column thereof of “Finance Act, 1964 Subsection (4) of section 7 ”.

(6) In this section, “office or employment” means any office or employment whatsoever such that the emoluments thereof, if any, are or would be chargeable to income tax under Schedule E, or under Case III of Schedule D in accordance with Rule (1) of the Rules contained in Part II of the First Schedule to the Finance Act, 1929 , for any year of assessment; and references in this section to the giving of valuable consideration do not include references to the mere assumption of an obligation to make over or provide valuable property, rights or advantages, but do include references to the doing of anything in or towards the discharge of such an obligation.

8. —(1) Subject to the provisions of this and the next following section, income tax shall be charged under Schedule E in respect of any payment to which this section applies which is made to the holder or past holder of any office or employment, or to his executors or administrators, whether made by the person under whom he holds or held the office or employment or by any other person.

(2) This section applies to any payment (not otherwise chargeable to income tax) which is made, whether in pursuance of any legal obligation or not, either directly or indirectly in consideration or in consequence of, or otherwise in connection with, the termination of the holding of the office or employment or any change in its functions or emoluments including any payment in commutation of annual or periodical payments (whether chargeable to tax or not) which would otherwise have been made as aforesaid

(3) For the purposes of this and the next following section, any payment made to the spouse or any relative or dependant of a person who holds or has held an office or employment, or made on behalf of or to the order of that person, shall be treated as made to that person, and any valuable consideration other than money shall be treated as a payment of money equal to the value of that consideration at the date when it is given.

(4) Any payment which is chargeable to tax by virtue of this section shall be treated as income received on the following date, that is to say—

(a) in the case of a payment in commutation of annual or other periodical payments, the date on which the commutation is effected;

(b) in the case of any other payment, the date of the termination or change in respect of which the payment is made,

and shall be treated as emoluments of the holder or past holder of the office or employment assessable to income tax under Schedule E and any such payment shall be treated for all the purposes of the Income Tax Acts as earned income.

(5) In the case of the death of any person who, if he had not died, would have been chargeable to tax in respect of any such payment, 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.

(6) This section does not apply to any payment made before the 14th day of April, 1964, nor to any payment, whenever made, being—

(a) a payment made in pursuance of an obligation incurred before that date; or

(b) a payment made in respect of a termination or change which took place before that date, not being a payment made in commutation of annual or periodical payments;

but subject as aforesaid this section applies to payments made before as well as after the passing of this Act.

(7) Where any payment chargeable to tax under this section is made to any person in any year of assessment, it shall be the duty of the person by whom it is made to deliver particulars thereof in writing to the inspector of taxes not later than fourteen days after the end of that year.

(8) The Third Schedule to the Finance Act, 1963 , is hereby amended by the insertion in the third column thereof of “Finance Act, 1964 Subsection (7) of section 8 ”.

9. —(1) Tax shall not be charged by virtue of the last foregoing section in respect of the following payments, that is to say—

(a) any payment made in connection with the termination of the holding of an office or employment by the death of the holder, or made on account of injury to or disability of the holder of an office or employment;

(b) any sum chargeable to sur-tax under section 7 of this Act;

(c) a benefit provided in pursuance of any such scheme or agreement as is referred to in section 32 of the Finance Act, 1958 , where the holder of the office or employment was chargeable to tax in respect of sums paid, or treated as paid, with a view to the provision of the benefit;

(d) a benefit paid in pursuance of any such scheme or fund as is described in subsection (1) and subsection (2) of section 33 of the Finance Act, 1958 .

(2) Tax shall not be charged by virtue of the last foregoing section in respect of a payment in respect of an office or employment in which the holder's service included foreign service where—

(a) in the case of a payment of compensation for loss of office, the foreign service comprised the whole of the three years immediately preceding the relevant date (or the whole period of service if less than three years), or

(b) in the case of any other payment, the foreign service comprised either—

(i) in any case, three-quarters of the whole period of service down to the relevant date, or

(ii) where the period of service down to the relevant date exceeded ten years, the whole of the last ten years, or

(iii) where the period of service down to the relevant date exceeded twenty years, one-half of that period, including any ten of the last twenty years.

(3) Tax shall not be charged by virtue of the last foregoing section in respect of a payment of an amount not exceeding three thousand pounds, and in the case of a payment which exceeds that amount shall be charged only in respect of the excess:

Provided that where two or more payments in respect of which tax is chargeable by virtue of that section, or would be so chargeable apart from the foregoing provisions of this subsection, are made to or in respect of the same person in respect of the same office or employment, or in respect of different offices or employments held under the same employer or under associated employers, this subsection shall apply as if those payments were a single payment of an amount equal to that aggregate amount; and the amount of any one payment chargeable to tax shall be ascertained as follows, that is to say—

(a) where the payments are treated as income of different years of assessment, the said sum of three thousand pounds shall be deducted from a payment treated as income of an earlier year before any payment treated as income of a later year; and

(b) subject as aforesaid, the said sum shall be deducted rateably from the payments according to their respective amounts.

(4) The person chargeable to tax by virtue of the last foregoing section in respect of any payment may, before the expiration of six years after the end of the year of assessment of which it is treated as income, by notice in writing to the inspector of taxes claim any such relief in respect of the payment as is applicable thereto under the First Schedule to this Act; and where such a claim is duly made and allowed, all such repayments and assessments of tax shall be made as are necessary to give effect thereto.

(5) For the purposes of this section and of the First Schedule to this Act offices or employments in respect of which payments to which the last foregoing section applies are made shall be treated as held under associated employers if, on the date which is the relevant date in relation to any of those payments, one of those employers is under the control of the other or of a third person who controls or is under the control of the other on that or any other such date.

(6) In this section “control”, in relation to a body corporate, means the power of a person to secure, by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than one-half of the assets, or of more than one-half of the income, of the partnership.

(7) In this section “the relevant date”, “payment of compensation for loss of office” and “foreign service” have the same meaning as in the First Schedule to this Act, and references to an employer or to a person controlling or controlled by an employer include references to his successors.

(8) For the purposes of any provision of the Income Tax Acts requiring income of any description to be treated as the highest part of a person's income, that income shall be calculated without regard to any payment chargeable to tax by virtue of the last, foregoing section.

10. —(1) In this section—

“basis period” means, in relation to a year of assessment, the period on the profits or gains of which income tax for that year falls to be finally computed under Case I of Schedule D in respect of the trade in question or, where, by virtue of any Act, the profits or gains of any other period are to be taken to be the profits or gains of the said period, that other period;

“company” means any body corporate;

“short lease” has the same meaning as in Part IX of the Finance Act, 1963 ;

“trade” means a trade within Case I of Schedule D;

“unit of valuation” means any lands, tenements or hereditaments valued under the Valuation Acts as a unit.

(2) (a) Subject as hereafter provided, this section applies to any unit of valuation in respect of which a company is assessable under Schedule A being a unit of valuation of which no part fails, at any time during the year of assessment, to satisfy one or other of the following conditions, that is to say:

(i) that it is wholly occupied by the company assessable as aforesaid for the purposes of a trade, or

(ii) that it, with or without other premises, is subject to a short lease granted by the company not being such a lease as is referred to in section 87 of the Finance Act, 1963 .

(b) This section does not apply to a unit of valuation—

(i) of which the whole or a part is occupied for the purposes of a trade which consists wholly or partly of exempted trading operations within the meaning of Part II of the Finance (Miscellaneous Provisions) Act, 1958 , or

(ii) in respect of which any rent is payable under a short lease by the company assessable under Schedule A in respect thereof.

(c) For the purposes of subparagraph (ii) of paragraph (a) of this subsection, the currency of a lease shall be determined as it would be determined for the purposes of subsection (4) of section 84 of the Finance Act, 1963 .

(3) Notwithstanding anything in the Income Tax Acts, no assessment under Schedule A need be made for 1964-65 or any subsequent year of assessment in respect of a unit of valuation to which this section applies; and where, for any year of assessment, an assessment under Schedule A is not made, the annual value of the unit of valuation shall not, save as is hereafter provided, be taken into account for any purpose of the said Acts in relation to the company assessable under Schedule A in respect thereof.

(4) Where—

(a) the whole or a part of a unit of valuation to which this section applies (hereafter in this subsection referred to as the unit) is occupied at any time during a year of assessment (hereafter in this subsection referred to as the relevant year) for the purposes of a trade carried on by the company concerned, and

(b) an assessment under Schedule A is not made for the relevant year in respect of the unit,

the following provisions shall apply to the computation for the purpose of assessment of the amount of the profits or gains of the trade for the basis period for the relevant year but not to the computation for the purpose of relief of the amount of a loss sustained in the trade in that period:

(i) the profits or gains of the basis period shall first be computed as if an assessment under Schedule A in respect of the unit had been made for every year of assessment falling wholly or partly within the basis period for which such an assessment was not made;

(ii) the amount computed in accordance with paragraph (i) of this subsection shall then be adjusted as if, in addition to the trading receipts taken into account in arriving at it, the company had received in the basis period an amount of trading receipts equal to the sum specified in the next following paragraph and the amount computed in accordance with the said paragraph (i) as so adjusted shall for all purposes of the Income Tax Acts be taken to be the amount of the profits or gains of the basis period;

(iii) the sum referred to in paragraph (ii) of this subsection is a sum equal to the amount of the assessment under Schedule A which might have been made in respect of the unit for the relevant year or, in a case in which Rule 7 of No. V of Schedule A would have applied, the net amount, as reduced for the purposes of collection, of the assessment which might have been made as aforesaid, provided that in a case in which the whole of the unit is not occupied for the purposes of the trade throughout the relevant year, the sum hereinbefore specified shall be appropriately reduced.

(5) (a) Where—

(i) the assessment under Schedule A for any year of assessment (hereafter in this subsection referred to as the relevant year) in respect of a unit of valuation to which this section applies (hereafter in this subsection referred to as the unit) would, if made, fall to be reduced for the purposes of collection under Rule 7 of No. V of Schedule A,

(ii) an assessment under Schedule A is not made for that year in respect of the unit,

(iii) a period (hereafter in this subsection referred to as the unassessed period) being the whole or a part of that year falls within a period (hereafter in this subsection referred to as the accounting period) for which the accounts of the company concerned are made up, and

(iv) the whole or a part of the unit is occupied at any time during the unassessed period for the purposes of a trade carried on by the company,

there shall be allowed in the computation of the amount of a loss sustained in the trade in the accounting period such deduction, if any, as is authorised by paragraph (b) of this subsection.

(b) (i) In a case in which the unassessed period coincides with the relevant year and the whole of the unit was throughout that period occupied for the purposes of the trade, the deduction under paragraph (a) of this subsection shall be equal to the amount, if any, by which the net amount of the assessment under Schedule A which might have been made for the relevant year in respect of the unit falls short of the sum which, if the said assessment had been made, would have fallen to be deducted, under Rule 5 of the Rules applicable to Cases I and II of Schedule D, in respect of the unassessed period on account of the annual value of the unit.

(ii) In any other case, the deduction under paragraph (a) of this subsection shall be the same proportion of the deduction which would have been allowable thereunder, if subparagraph (i) of this paragraph applied, as the proportion which the sum which in the circumstances of the case would, if an assessment under Schedule A in respect of the unit had been made for the relevant year, have fallen to be deducted, under the said Rule 5, in respect of the unassessed period on account of the annual value of the unit bears to the sum which would have fallen to be deducted under that Rule if the circumstances were as stated in the said subparagraph (i).

(6) Where in consequence of the operation of the foregoing provisions of this section the amount of the profits or gains of a trade on which a company is chargeable to tax under Case I of Schedule D is, for any year of assessment, greater than it would otherwise have been, only so much of the profits or gains on which the company is so chargeable as does not exceed the amount on which it would have been so chargeable if this section had not been enacted and only so much of the tax payable by the company as is attributable to that part of the profits or gains shall be taken into account in determining the amount of any relief to which the company is entitled for the year of assessment under the Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 , Part II or Part III of the Finance (Miscellaneous Provisions) Act, 1956 , or section 70 of the Finance Act, 1963 .

(7) The circumstance that in accordance with this section an assessment under Schedule A is not made in respect of any unit of valuation shall not have the effect that a sum, which would otherwise be treated in accordance with Part IV of the Finance Act, 1958 , as a perquisite of an office or employment, is not so treated.

(8) (a) A company may by notice in writing delivered to the inspector of taxes within the time limited by paragraph (b) of this subsection elect that this section shall not have effect in relation to it and, where a company has so elected, no unit of valuation in respect of which it is assessable under Schedule A shall be a unit of valuation to which this section applies.

(b) A notice under paragraph (a) of this subsection shall be delivered—

(i) in the case of a company in existence at the passing of this Act, within six months from the date of such passing,

(ii) in any other case, within six months from the date on which the company is incorporated.

(c) A company may at any time withdraw a notice given by it under paragraph (a) of this subsection and thereupon the notice shall cease to have effect as from the beginning of the next following year of assessment.

11. —(1) In this section—

“lessor” means a person to whom rent is payable;

“premises” means any lands, tenements or hereditaments in the State;

“rent” means any such payment as is mentioned in paragraph (b) of subsection (1) of section 94 of the Finance Act, 1963 .

(2) (a) It shall be lawful for the inspector of taxes to enter into an arrangement with a lessor whereby the income tax chargeable on any or all rents payable to the lessor is assessed and charged by assessment under Case VI of Schedule D instead of being deducted under Rule 19 or Rule 21 of the General Rules.

(b) Where pursuant to such an arrangement a lessor is for any year of assessment chargeable by assessment under Case VI of Schedule D in respect of two or more amounts of rent, the several amounts may be assessed in one assessment.

(c) Any such arrangement shall come into force as from the beginning of a year of assessment.

(d) Either party to any such arrangement may at any time give notice in writing to the other that he wishes to terminate the arrangement, and, on the expiration of one month from the giving of such notice, the arrangement shall be terminated.

(3) In connection with the making of an arrangement under this section and from time to time during the currency of such an arrangement, the inspector of taxes may by notice in writing require the lessor to deliver within the time limited by the notice such information as may be specified in the notice as to the rents receivable by him and, in particular and without prejudice to the generality of the foregoing, may require the lessor to deliver a statement setting out the names and addresses of all persons by whom rents are payable to him, the annual amount of the rent so payable by each such person and the situation of the premises in respect of which such rent is payable.

(4) Where it is necessary to do so for the purpose of giving effect to subsection (2) of this section, the inspector of taxes may give to any person by whom a rent is payable—

(a) a notice in writing instructing him that payments of the rent becoming payable by him to the lessor concerned on or after a specified date (which shall be not less than one month after the date of the notice) are to be paid without deduction of tax;

(b) a notice in writing instructing him that the notice previously given under paragraph (a) of this subsection is cancelled and that tax is deductible from all payments of the rent paid after a specified date (which shall be not less than seven days after the date of the notice).

(5) The following provisions shall have effect in relation to payments of rent which by reference to instructions given under subsection (4) of this section are payable without deduction of tax—

(a) section 94 of the Finance Act, 1963 , shall have effect in relation to the payments as if paragraph (b) of subsection (3) were deleted;

(b) the payments shall be deemed for the purposes of paragraph (b) of subsection (4) of section 84 of the Finance Act, 1963 , to have been payable under a short lease;

(c) where the payments becoming payable in a year of assessment are paid in respect of premises occupied for the purposes of a trade, profession or vocation carried on by the person by whom they are paid, that person shall be allowed, by repayment or otherwise, such relief, if any, as may be necessary to reduce the total amount of tax ultimately borne by him for the year to the amount which would have been so borne if the notice under paragraph (a) of subsection (4) of this section had not been given;

(d) so much of the payments becoming payable in a year of assessment as do not otherwise fall to be taken into account in the computation, for the purposes of income tax, of the amount of any profits or gains or loss of the person by whom they are paid shall be deducted from or set off against the income for the year of assessment of that person.

(6) The Third Schedule to the Finance Act, 1963 , is hereby amended by the insertion in the second column thereof of “Finance Act, 1964 Subsection (3) of section 11 ”.

12. —(1) Any debentures, debenture stock or other forms of security issued after the passing of this Act by a company to which this section applies shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 2 of the Finance Act, 1924 , and that section shall apply accordingly.

(2) Notwithstanding anything contained in the Income Tax Acts, in computing for the purposes of assessment under Case I of Schedule D the amount of the profits or gains of a company to which this section applies, for any period for which accounts are made up, there shall be allowed as a deduction the amount of the interest on debentures, debenture stock or other forms of security which, by direction of the Minister for Finance given under section 2 of the Finance Act, 1924 , as applied by this section, is paid by the company without deduction of tax for such period.

(3) The companies to which this section applies are Aer Lingus, Teoranta, Aer Rianta, Teoranta, and Aerlinte Eireann, Teoranta.

(4) There shall be added to Rule 1 of Case III of Schedule D of the Income Tax Act, 1918, the following clause:

“(m) interest on debentures, debenture stock or other forms of security issued by Aer Lingus, Teoranta, Aer Rianta, Teoranta, or Aerlinte Eireann, Teoranta, in cases where such interest is paid without deduction of tax.”