Finance Act, 1995 (No. 8)

AI Summary of Finance Act, 1995 (No. 8)

The Finance Act 1995 serves as a vital legislative framework for implementing fiscal policy in Ireland, encapsulating provisions related to income tax, corporation tax, capital taxes, VAT, and various administrative measures. It aims to align tax law with European standards while promoting economic growth, enhancing public finances, and incentivising investment. Key reforms include updates to income tax provisions, clarifying residency and domicile rules, and balancing revenue-generating measures with targeted reliefs for families and low-income workers.

In addition, the Act refines corporation tax regulations, enhances anti-avoidance measures, and modernises capital taxes. VAT provisions undergo significant adjustments to meet EU compliance, while excise duties align with public health and environmental goals. Moreover, strengthened enforcement powers for the Revenue Commissioners bolster compliance and combat tax evasion. Overall, the Finance Act 1995 encapsulates Ireland's commitment to fostering economic stability and growth within an evolving tax landscape.

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Version status: In force | Document consolidation status: Updated to reflect all known changes

Published date: 2 June 1995

		Future version	Amendment requiring commencement	Draft proposed change
	Introductory Text
	Acts Referred to
	Part I Income Tax Corporation Tax and Capital Gains Tax (ss. 1-76)
	Chapter I Income Tax (ss. 1-19)
	1. Amendment of provisions relating to exemption from income tax.
	2. Alteration of rates of income tax.
	3. Personal reliefs.
	4. Amendment of section 6 (special allowance in respect of P.R.S.I. for 1982-83) of Finance Act, 1982.
	5. Amendment of section 142A (allowance for rent paid by certain tenants) of Income Tax Act, 1967.
	6. Relief for fees paid to private colleges.
	7. Allowance for service charges.
	8. Tax relief for designated charities.
	9. Amendment of section 8 (restriction of relief in respect of interest paid on certain loans at a reduced rate) of Finance Act, 1982.
	10. Amendment of provisions relating to the taxation of certain benefits payable under Social Welfare Acts.
	11. Amendment of provisions relating to the taxation of certain savings and investments.
	12. Amendment of provisions relating to settlements on minors.
	13. Amendment of section 439 (dispositions for short periods) of Income Tax Act, 1967.
	14. Returns of certain information in relation to rent.
	15. Amendment of section 191 (error or mistake) of Income Tax Act, 1967.
	16. Amendment of Chapter IX (Profit Sharing Schemes) of Part I of, and Third Schedule (Profit Sharing Schemes) to, Finance Act, 1982.
	17. Amendment of Chapter III (Income Tax: Relief for Investment in Corporate Trades) of Part I of Finance Act, 1984.
	18. Amendment of section 17 (tax deductions from payments to subcontractors in the construction industry) of Finance Act, 1970.
	19. Short-lived businesses.
	Chapter II Income Tax, Corporation Tax and Capital Gains Tax (ss. 20-45)
	20. Amendment of section 19 (relief for expenditure on significant buildings) of Finance Act, 1982.
	21. Farming: amendment of provisions relating to relief in respect of increase in stock values.
	22. Compulsory disposals of livestock.
	23. Capital allowances for, and deduction in respect of, vehicles.
	24. Amendment of section 265 (balancing allowances and balancing charges) of Income Tax Act, 1967, etc.
	25. Amendment of section 272 (balancing allowances and balancing charges) of Income Tax Act, 1967.
	26. Amendment of section 51 (application of certain allowances in relation to certain areas and certain expenditure) of Finance Act, 1988.
	27. Amendment of section 81 (application of certain allowances in relation to certain expenditure) of Finance Act, 1990.
	28. Amendment of section 49 (tax treatment of foreign trusts) of Finance Act, 1993.
	29. Tax relief for certain branch profits.
	30. Amendment of section 48 (surcharge for late submission of returns) of Finance Act, 1986.
	31. Amendment of section 18 (date for payment of tax) of Finance Act, 1988.
	32. Amendment of Chapter V (Urban Renewal: Relief from Income Tax and Corporation Tax) of Part I of Finance Act, 1986.
	33. Amendment of section 27 (designated areas for urban renewal relief) of Finance Act, 1987.
	34. Amendment of Chapter VII (Urban Renewal: Temple Bar and Other Areas) of Part I of Finance Act, 1991.
	35. Amendment of Chapter IV (Urban Renewal Reliefs: Introduction of New Scheme in Certain Areas) of Part I of Finance Act, 1994.
	36. Amendment of section 35 (relief for investments in films) of Finance Act, 1987.
	37. Non-distributing investment companies.
	38. Amendment of section 18 (taxation of collective investment undertakings) of Finance Act, 1989.
	39. Amendment of section 27 (distributions to non-residents) of Finance Act, 1994.
	40. Certain interest not to be chargeable.
	41. Returns of material interest in offshore funds.
	42. Amendment of Chapter VI (Petroleum Taxation) of Part I of Finance Act, 1992.
	43. Exemption of certain employment grants to certain industrial undertakings.
	44. Exemption of the Irish Horseracing Authority, Irish Thoroughbred Marketing Limited and the Tote.
	45. Tax credits in respect of distributions.
	Chapter III Income Tax and Corporation Tax: Reliefs for Renewal and Improvement of Certain Resort Areas (ss. 46-53)
	46. Interpretation (Chapter III).
	47. Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures.
	48. Capital allowances in relation to construction or refurbishment of certain commercial premises.
	49. Double rent allowance in respect of rent paid for certain business premises.
	49A. Restriction of capital allowances on holiday cottages, holiday apartments, etc.
	50. Deduction for certain expenditure on construction of rented residential accommodation.
	51. Rented residential accommodation: deduction for expenditure on conversion.
	52. Rented residential accommodation: deduction for expenditure on refurbishment.
	53. Provisions supplementary to sections 50 to 52.
	Chapter IV Corporation Tax (ss. 54-69)
	54. Rate of corporation tax.
	55. Amendment of section 162 (surcharge on undistributed income of service companies) of Corporation Tax Act, 1976.
	56. Amendment of section 45 (credit for bank levy) of Finance Act, 1992.
	57. Relief for certain payments to National Cooperative Farm Relief Services Ltd. and certain payments made to its members.
	58. Amendment of section 141 (particulars to be supplied by new companies) of Corporation Tax Act, 1976.
	59. Deduction for certain expenditure on research and development.
	60. Amendment of section 23 (double taxation relief: supplementary) of Corporation Tax Act, 1976.
	61. Amendment of section 41 (basis of relief from corporation tax) of Finance Act, 1980.
	62. Double taxation relief.
	63. Amendment of section 39C (credit for foreign tax) of Finance Act, 1980.
	64. Amendment of section 43 (overseas life assurance companies: investment income) of Corporation Tax Act, 1976.
	65. Amendment of section 39B (relief in relation to income from certain trading operations carried on in Custom House Docks Area) of Finance Act, 1980.
	66. Amendment of section 55 (late submission of returns: restriction of certain claims of relief) of Finance Act, 1992.
	67. Amendment of section 51 (relief for gifts to First Step) of Finance Act, 1993.
	68. Amendment of section 20A (foreign life assurance and deferred annuities: taxation and returns) of Capital Gains Tax Act, 1975.
	69. Amendment of section 46B (gains or losses arising by virtue of section 46A) of Corporation Tax Act, 1976.
	Chapter V Capital Gains Tax (ss. 70-76)
	70. Amendment of Schedule 4 (administration) to Capital Gains Tax Act, 1975.
	71. Amendment of section 26 (disposal of business or farm on retirement) of Capital Gains Tax Act, 1975.
	72. Amendment of section 27 (disposal within the family of business or farm) of Capital Gains Tax Act, 1975.
	73. Amendment of section 39 (amendment of provisions regarding replacement of assets) of Finance Act, 1982.
	74. Amendment of section 27 (relief for individuals on certain reinvestment) of Finance Act, 1993.
	75. Amendment of section 66 (reduced rate of capital gains tax on certain disposals of shares by individuals) of Finance Act, 1994.
	76. Amendment of paragraph 11 (disposal of certain assets) of Schedule 4 to Capital Gains Tax Act, 1975.
	Part II Customs and Excise (ss. 77-117)
	Chapter I Excise Duty on Tobacco Products other than Cigarettes - Introduction of Tax Stamps (ss. 77-84)
	77. Interpretation (Chapter I).
	78. Amendment of section 2A (liability for duty to be paid by tax stamps) of Principal Act.
	79. Amendment of section 2B (sale of cigarettes) of Principal Act.
	80. Amendment of section 3 (repayment, remission and deferment of payment) of Principal Act.
	81. Amendment of section 8 (regulations) of Principal Act.
	82. Amendment of section 10A (offences in relation to tax stamps) of Principal Act.
	83. Amendment of section 18 (power to refuse delivery of goods) of Finance Act, 1939.
	84. Amendment of Chapter I (Excise Duty on Cigarettes - Introduction of Tax Stamps) of Part II of Finance Act, 1994.
	Chapter II Excise Duties - Powers of Officers, Detention, Seizure and Forfeiture (ss. 85-96)
	85. Definitions (Chapter II).
	86. Power to stop and search vehicles.
	86A. Power to take samples and to question in relation to mineral oil in vehicles.
	87. Power to enter and search premises.
	87A. Obligation to answer certain questions, detention and arrest in respect of certain tobacco products.
	87B. Power of arrest for certain mineral oil offences.
	88. Detention of goods and vehicles.
	89. Seizure of goods and vehicles.
	90. Notice of seizure.
	91. Notice of claim.
	92. Condemnation.
	93. Proceedings for condemnation by court.
	94. Power to deal with seizures before condemnation.
	95. Miscellaneous amendments.
	96. Repeals and revocation.
	Chapter III Vehicle Registration Tax (ss. 97-98)
	97. Amendment of section 132 (charge of excise duty) of Finance Act, 1992.
	98. Repayment of amounts in respect of vehicle registration tax in certain cases.
	Chapter IV Implementation of Council Directive No. 94/74/EC (ss. 99-102)
	99. Application of section 104 (excisable products) of Finance Act, 1992, and reliefs for hydrocarbons.
	100. Amendment of section 111 (accompanying documents) of Finance Act, 1992.
	101. Amendment of section 117 (regulations) of Finance Act, 1992.
	102. Commencement (Chapter IV).
	Chapter V Appeals in relation to Excise Duty (ss. 103-109)
	103. Definitions (Chapter V).
	104. Appeals to Revenue Commissioners.
	105. Appeals to Appeal Commissioners.
	106. Payment of duty pending appeal.
	107. Exclusion of criminal matters.
	108. Repeal (Chapter V).
	109. Commencement (Chapter V).
	Chapter VI Miscellaneous (ss. 110-117)
	110. Tobacco products.
	111. Duty on licence for the sale of intoxicating liquor.
	112. Amendment of section 77 (spirits retailers' on-licences) of Finance Act, 1993.
	113. Amendment of section 89 (exemption from duty on certain bets) of Finance Act, 1994.
	114. Amendment of section 43 (gaming machine licence duty) of Finance Act, 1975.
	115. Amendment of section 49 (grant of licences and date of expiration of licences) of Finance (1909-10) Act, 1910.
	116. Excise duty on motor fuel substitutes.
	117. Amendment of section 20 (provisions in relation to excise duty and licences under Act of 1952) of Finance (No. 2) Act, 1992.
	Part III Value-Added Tax (ss. 118-141)
	118. Intepretation (Part III).
	119. Amendment of section 1 (interpretation) of Principal Act.
	120. Amendment of section 3 (supply of goods) of Principal Act.
	121. Amendment of section 3A (intra-Community acquisition of goods) of Principal Act.
	122. Amendment of section 4 (special provisions in relation to the supply of immovable goods) of Principal Act.
	123. Amendment of section 5 (supply of services) of Principal Act.
	124. Amendment of section 8 (taxable persons) of Principal Act.
	125. Amendment of section 10 (amount on which tax is chargeable) of Principal Act.
	126. Margin scheme goods.
	127. Special scheme for auctioneers.
	128. Amendment of section 11 (rates of tax) of Principal Act.
	129. Amendment of section 12 (deductions for tax borne or paid) of Principal Act.
	130. Special scheme for means of transport supplied by taxable dealers.
	131. Amendment of section 14 (determination of tax due by reference to cash receipts) of Principal Act.
	132. Amendment of section 17 (invoices) of Principal Act.
	133. Amendment of section 18 (inspection and removal of records) of Principal Act.
	134. Amendment of section 19 (tax due and payable) of Principal Act, etc.
	135. Amendment of section 20 (refund of tax) of Principal Act.
	136. Amendment of section 22 (estimation of tax due for a taxable period) of Principal Act.
	137. Amendment of section 25 (appeals) of Principal Act.
	138. Amendment of section 32 (regulations) of Principal Act.
	139. Amendment of First Schedule to Principal Act.
	140. Amendment of Sixth Schedule to Principal Act.
	141. Addition of Eighth Schedule to Principal Act.
	Part IV Stamp Duties (ss. 142-150)
	142. Levy on banks.
	143. Amendment of section 19 (conveyance or transfer on sale - limit on stamp duty in the case of certain transactions between bodies corporate) of Finance Act, 1952.
	144. Relief from stamp duty in case of reconstructions or amalgamations of companies.
	145. Amendment of Chapter II (stamp duty on capital companies) of Part IV of Finance Act, 1973.
	146. Amendment of section 92 (levy on certain premiums of insurance) of Finance Act, 1982.
	147. Amendment of section 208 (location of insurance risk for stamp duty purposes) of Finance Act, 1992.
	148. Amendment of section 106 (exemption from stamp duty of certain loan capital and securities) of Finance Act, 1993.
	149. Amendment of section 107 (particulars to be delivered in cases of transfers and leases) of Finance Act, 1994.
	150. Stock borrowing.
	Part V Residential Property Tax (ss. 151-155)
	151. Application (Part V).
	152. Amendment of section 96 (charge of residential property tax) of Finance Act, 1983.
	153. Amendment of section 100 (market value exemption limit) of Finance Act, 1983.
	154. Amendment of section 101 (income exemption limit) of Finance Act, 1983.
	155. Repeal (Part V).
	Part VI Capital Acquisitions Tax (ss. 156-166)
	156. Interpretation (Part VI).
	157. Amendment of section 2 (interpretation) of Principal Act.
	158. Amendment of section 19 (value of agricultural property) of Principal Act.
	159. Amendment of section 52 (appeals in other cases) of Principal Act.
	160. Amendment of section 55 (exemption of certain objects) of Principal Act.
	161. Business relief.
	162. Amendment of section 134 (exclusion of value of excepted assets) of Finance Act, 1994.
	163. Amendment of section 135 (withdrawal of relief) of Finance Act, 1994.
	164. Payment of tax on certain assets by instalments.
	165. Exemption of certain inheritances taken by parents.
	166. Heritage property of companies.
	Part VII Miscellaneous (ss. 167-179)
	Chapter I Provisions Relating to Residence of Individuals (ss. 167-170)
	167. Amendment of Chapter IV (Interest Payments by Certain Deposit Takers) of Part I of Finance Act, 1986.
	168. Amendment of section 175 (power to obtain information as to interest paid or credited without deduction of tax) of Income Tax Act, 1967.
	169. Amendment of section 152 (application of Part III (Schedule C) and section 52 (Schedule D) of Income Tax Act, 1967) of Finance Act, 1994.
	170. Amendment of section 154 (deduction for income earned outside the State) of Finance Act, 1994.
	Chapter II General (ss. 171-179)
	171. Capital Services Redemption Account.
	172. Duties of a relevant person in relation to certain revenue offences.
	173. Amendment of provisions relating to appeals.
	174. Amendment of section 115 (liability to tax, etc., of holder of fixed charge on book debts of company) of Finance Act, 1986.
	175. Power to obtain information.
	176. Relief for donations of heritage items.
	177. Tax clearance certificates in relation to public sector contracts.
	178. Care and management of taxes and duties.
	179. Short title, construction and commencement.
	First Schedule - Amendments Consequential on Changes in Personal Reliefs
	Second Schedule - Amendments Consequential on Changes in Amounts of Tax Credits in Respect of Distributions
	Third Schedule - Income Tax and Corporation Tax: Reliefs for Renewal and Improvement of Certain Resort Areas
	Third Schedule, Part I Description of Qualifying Resort Areas of Clare
	Third Schedule, Part II Description of Qualifying Resort Areas of Cork
	Third Schedule, Part III Description of Qualifying Resort Areas of Donegal
	Third Schedule, Part IV Description of Qualifying Resort Areas of Galway
	Third Schedule, Part V Description of Qualifying Resort Areas of Kerry
	Third Schedule, Part VI Description of Qualifying Resort Areas of Louth
	Third Schedule, Part VII Description of Qualifying Resort Areas of Mayo
	Third Schedule, Part VIII Description of Qualifying Resort Areas of Meath
	Third Schedule, Part IX Description of Qualifying Resort Areas of Sligo
	Third Schedule, Part X Description of Qualifying Resort Areas of Waterford
	Third Schedule, Part XI Description of Qualifying Resort Areas of Wexford
	Third Schedule, Part XII Description of Qualifying Resort Areas of Wicklow
	Fourth Shedule - Change in Rate of Corporation Tax: Consequential Provisions
	Fourth Shedule, Part I Application of sections 6(3), 13(1B), 182 and 194 of Corporation Tax Act, 1976
	Fourth Schedule, Part II Amendment of Chapter VI (Corporation Tax: Relief in relation to Certain Income of Manufacturing Companies) of Part I of Finance Act, 1980
	Fifth Schedule - Excise Duties - Miscellaneous Amendments
	Sixth Shedule - Excise Duties - Repeal of Certain Provisions
	Seventh Schedule - Rates of Excise Duty on Tobacco Products

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AI Summary of Finance Act, 1995 (No. 8)