Direct Tax Acts, Finance Act 2018

18 Schedule D
ITA67 s52 and s53; FA69 s33(1) and Sch4 PtI, s65(1) and Sch5 PtI; FA06 s15

(1) The Schedule referred to as Schedule D is as follows:

SCHEDULE D

1. Tax under this Schedule shall be charged in respect of –

(a) the annual profits or gains arising or accruing to –

(i) any person residing in the State from any kind of property whatever, whether situate in the State or elsewhere,

(ii) any person residing in the State from any trade, profession or employment, whether carried on in the State or elsewhere,

(iii) any person, whether a citizen of Ireland or not, although not resident in the State, from any property whatever in the State, or from any trade, profession or employment exercised in the State, and

(iv) any person, whether a citizen of Ireland or not, although not resident in the State, from the sale of any goods, wares or merchandise manufactured or partly manufactured by such person in the State,

and

(b) all interest of money, annuities and other annual profits or gains not charged under Schedule C or Schedule E, and not specially exempted from tax,

in each case for every one euro of the annual amount of the profits or gains.

2. Profits or gains arising or accruing to any person from an office, employment or pension shall not by virtue of paragraph 1 be chargeable to tax under this Schedule unless they are chargeable to tax under Case III of this Schedule.

(2) Tax under Schedule D shall be charged under the following Cases:

Case I – Tax in respect of –

(a) any trade;

(b) profits or gains arising out of lands, tenements and hereditaments in the case of any of the following concerns –

(i) quarries of stone, slate, limestone or chalk, or quarries or pits of sand, gravel or clay,

(ii) mines of coal, tin, lead, copper, pyrites, iron and other mines, and

(iii) ironworks, gasworks, salt springs or works, alum mines or works, waterworks, streams of water, canals, inland navigations, docks, drains or levels, fishings, rights of markets and fairs, tolls, railways and other ways, bridges, ferries and other concerns of the like nature having profits from or arising out of any lands, tenements or hereditaments;

Case II – Tax in respect of any profession not contained in any other Schedule;

Case III – Tax in respect of –

(a) any interest of money, whether yearly or otherwise, or any annuity, or other annual payment, whether such payment is payable in or outside the State, either as a charge on any property of the person paying the same by virtue of any deed or will or otherwise, or as a reservation out of it, or as a personal debt or obligation by virtue of any contract, or whether the same is received and payable half-yearly or at any shorter or more distant periods, but not including any payment chargeable under Case V of Schedule D;

(b) all discounts;

(c) profits on securities bearing interest payable out of the public revenue other than those charged under Schedule C;

(d) interest on any securities issued, or deemed within the meaning of section 36 to be issued, under the authority of the Minister for Finance, in cases where such interest is paid without deduction of tax;

(e) income arising from securities outside the State except such income as is charged under Schedule C;

[(f) income arising from possessions outside the State except, in the case of income from an office or employment (including any amount which would be chargeable to tax in respect of any sum received or benefit derived from the office or employment if the profits or gains from the office or employment were chargeable to tax under Schedule E), so much of that income as is attributable to the performance in the State of the duties of that office or employment;]1

Case IV – Tax in respect of any annual profits or gains not within any other Case of Schedule D and not charged by virtue of any other Schedule;

Case V – Tax in respect of any rent in respect of any premises or any receipts in respect of any easement;

and subject to and in accordance with the provisions of the Income Tax Acts applicable to those Cases respectively.

(3) This section is without prejudice to any other provision of the Income Tax Acts directing tax to be charged under Schedule D or under one or other of the Cases mentioned in subsection (2), and tax so directed to be charged shall be charged accordingly.

Go to Revenue Guidance Notes on TCA

Amendments

1 Substituted by FA06 s15 as respects the year of assessment 2006 and subsequent years of assessment

Case Law

Taxpayer carrying on profession or trade as an individual and whether payment made by taxpayer deductible in computing profits of partnership’s trade – Revenue and Customs Commissioners v Vaines - [2018] EWCA Civ 45

Whether trading

The infinite variety of possible factual circumstances means that no fixed formula can be applied to determine whether or not an activity should be classified as trading or non-trading. Erichsen v Last [1881] 4 TC 422.

There is a distinction between owning a trade and actually trading. Mere ownership is not trading. Ransom v Higgs [1974] STC 539.

Exploitation of the Noddy copyright and trademark was held to be a trade – Noddy Subsidiary Rights Co. Ltd. VIRC (1966) 43 TC 458.

Isolated transactions not a trade – Jenkinson (HM Inspector of Taxes) v Freedland (1961) 39 TC 636

A rail company which leased its business to another company and had little power in the working of the leased line was still carrying on a business. The Commissioners of Inland Revenue v The Dublin and Kingstown Railway Company. [1926] ITR Vol 1 page 119. CLTP 2.7.5

Carrying on supplementary work to make goods more saleable is one Badge of Trade. Selling to public instead of selling in one lot can satisfy this. Martin v Lowry. (1926) 11 TC 297.

Profits from the sale of whiskey in bond were taxable trading profits. McCall (deceased) v Commissioners of Inland Revenue. [1923] ITR Vol 1 page 28. CLTP 2.7.1

Partners financed capital contributions to partnership with loans and entered into transactions in relation to acquisition, distribution and marketing of films and the question arose as to whether partnership carried on trade. Eclipse Film Partners (No 35) LLP v Revenue and Customs Commissioners - [2014] STC 1114

Whether taxpayers were carrying on trade and anti-avoidance re loss greater than economic loss. Flanagan and others v Revenue and Customs Commissioners - [2014] SFTD 881

A Partnership was established to distribute and exploit films and entered into transactions in relation to acquisition and distribution of film rights and whether partnership carrying on trade – Eclipse Film Partners No 35 LLP v Revenue and Customs Commissioners [2015] EWCA Civ 95

Partnerships acquiring interests in films and entering into ‘lease back’ agreements in return for fixed, increasing and guaranteed rental payments and hether partnerships trading during relevant period – Samarkand Film Partnership No 3 and others v Revenue and Customs Commissioners [2015] UKUT 211 (TCC)

Whether partnership incurring qualifying expenditure on research and development relating to partnership’s trade and whether partnership trading – Brain Disorders Research Ltd Partnership and another v Revenue and Customs Commissioners [2015] SFTD 1043

Partnership participating in scheme to secure allowances for substantially higher amount than actually applied in undertaking research and whether partnership trading – Brain Disorders Research Ltd Partnership v Revenue and Customs Commissioners – [2018] EWCA Civ 2348

LLP established team to take part in sailing competition with LLP having business plan to win successive competitions and make cumulative profit and ceased to trade without making a profit and whether LLP’s activities a trade carried on on commercial basis. Mills and another v Revenue and Customs Commissioners – [2017] UKFTT 378 (TC)

Trading

Taxpayer participating in tax avoidance scheme involving acquisition and assignment of film rights and whether taxpayer carrying on trade. Degorce v R&CC – [2015] UKUT 447 (TCC)

Self-employed or employee status

Whether workers employees of agency. Talentcore Ltd (trading as Team Spirits) v Revenue and Customs Commissioners [2011] STC 2377

The employment relationship between the taxpayer and company was a sham to enable the drawing of pension benefits - Dunne v Revenue and Customs Commissioners - [2008] STC (SCD) 422

Stewardess of a golf club provided catering services to the club. Profits were Sch D rather than Sch E. McManus v Griffiths [1997] STC 1089

Whether actors outside provision treating self-employed entertainers as employed earners. ITV Services Ltd v Revenue and Customs Commissioners - [2012] STC 1213.

Taxpayers in receipt of fees for performances under contracts with various cruise lines and whether it gace rise to a contract for services or contract of services. Matthews and another v Revenue and Customs Commissioners - [2014] STC 297

Case I - Revenue or capital receipts

Whether interest receivable by solicitors on clients’ accounts to be regarded for tax purposes as trading income - Barnetts (a firm) v R&CC [2010] SFTD 1074

Whether wayleave agreement a lease licence or other agreement conferring right to win and work minerals and whether profits were capital or revenue – Revenue and Customs Commissioners v Bute [2009] STC 2138

Whether on the facts the taxpayer was a dealer in jewelry - Rose v Director of the Assets Recovery Agency (No 2) – [2008] STC (SCD) 48

Exchange gains on advance payments – Landes Brothers v Simpson (H.M Inspector of Taxes) (1934) 19 TC 62

Compensation grant not a profit or a gain arising from the taxpayers trade. – WA Robinson, trading as James Pimm and Son v JD Dolan, (Inspector of Taxes) [1934] ITR Vol 1 page 427 – CLTP 2.5.2

The hope of reselling an item at a profit does not necessarily mean you are trading. Particularly if the item is income generating in the meantime. Leeming v Jones (1930) 15 TC 333.

Whether compensation received for losses and expenses arising out of the giving and withdrawal of a CPO notice to a taxpayer was income or capital in nature – Able (UK) Ltd v Revenue & Customs Commissioners [2007] STC 1738

Capital allowances case with useful discussion on Badges of Trade. Rosemoor Investments v HMIT (2002) SpC 320.

A payment received in return for the sale of an income stream, was a capital receipt. – IRC v John Lewis Properties plc v Inland Revenue Commissioners [2001] STC 1118

Prepayment retained on sale of business held to be trading profit. – Tapemaze Ltd v Melluish (HM Inspector of Taxes) [2000] STC 189

Whether sub-underwriting of a pension scheme was taxable under Sch. D, Case I as a trade and not under Sch. D, Case VI. Clarke (HMIT) v British Telecom Pension Scheme Trustees and others [2000] STC 222.

Foreign pension payments constitute a foreign possession. – Albon & Anor v Inland Revenue Commissioners [1998] STC 1181

An inducement payment made to a lessee for undertaking an onerous lease was a capital payment. CIR v Wattie and anor [1998] STC 1160.

Income generated from the purchase of sweepstake tickets was trading income. HH v MJ Forbes (Inspector of Taxes). [1974] ITR Vol 2 page 614. CLTP 2.7.9

A transaction which is wholly driven by tax considerations may be regarded as non-trading in character. It may be considered as no more than an organized raid on the Revenue. Lupton v FA and AB. (1971) 47 TC 580

The mere exploitation of property rights is not trading. Thus, for example, the letting of property, even if on a large scale, is not trading and is chargeable under Case V. Pairceir v EM. [1971] ITR Vol 2 page 596.

Investment in silver an adventure in the nature of trade – Wisdom v Chamberlain (H.M. Inspector of Taxes) – (1968) 45 TC 92

Training grants taxable – O’Cleirigh (Inspector of Taxes) v Jacobs International Ltd [1985] ITR Vol 3 page 165 – CLTP 2.5.5

Surplus on a liquidation not a trading receipt – Guinness & Mahon Limited v Browne (Inspector of Taxes) – [1985] ITR Vol 3 page 373 – CLTP 2.5.6

The argument that the investment of surplus funds was part of the overall trade and the income was trading income, was rejected. Nuclear Electric plc v Bradley. [1979] STC 750.

Loss of profits insurance proceeds assessable – F Corr (Inspector of Taxes) v F E Larkin [1949] ITR Vol 12 page 164 – CLTP 2.5.4

What is a discount? Lomax v Peter Dixon (1943) 25 TC 353.

A fall in the value of shares without a disposal does not give rise to an allowable trading loss. Davis (Inspector of Taxes) v Hibernian Bank Ltd. [1936] ITR Vol 1 page 503. CLTP 2.6.3

A payment for the cancellation of the company’s future rights under an agreement, which constituted a capital asset of the company, was a capital receipt – Van den Berghs Limited v Clark (H.M. Inspector of Taxes) – (1935) 19 TC 390

Speculation in toilet paper was a trade – Rutledge v The Commissioners of Inland Revenue [1929] 14 TC 49

Compensation for cancelled order a trading receipt – Short Bros Ltd v Commissioners of Inland Revenue (1927) 12 TC 955

Wartime compensation - Whether compensation for sterlisation of a capital asset should be treated as an accretion to Capital – The Alliance and Dublin Consumers Gas Co. v McWilliams (Inspector of Taxes) [1927] ITR Vol 1 page 207 – CLTP 2.5.1

Taxpayers who bought and sold cotton futures did not deal so habitually and systematically as to constitute a trade but were taxable on annual profits under Case IV. Cooper v Stubbs. (1925) 10 TC 29.

Profits from acquiring and reselling mining property liable to Income Tax – Californian Copper Syndicate v Harris (1904) 5 TC 159

Whether overpayments by customers were profits arising or accruing from trade. Pertemps Recruitment Partnership Ltd v R&CC - [2011] STC 1346.

Taxpayer received licence fees for use of certain and intellectual property rights over licence period and whether licence fees constituted ‘annual payments’, trading income or employment income - UKCO and another v R&CC [2011] SFTD 72.

Whether taxpayer chargeable to income tax in respect of interest paid on borrowed gilts. Barnes v Revenue and Customs Commissioners - [2012] STC 1904

Whether taxpayer carrying on trade given claim for loss relief in respect of film distribution activity. Degorce v Revenue and Customs Commissioners - [2013] SFTD 806

Whether profits realised on disposal ‘discounts’. Healey v Revenue and Customs Commissioners - [2013] SFTD 861

Profits realised on disposal of floating rate notes at end of specified period and whether profits realised on disposal being ‘discounts’ chargeable to income tax – Healey v Revenue and Customs Commissioners [2015] UKUT 140 (TCC)

Taxpayer company received of repayment of VAT and associated and whether repayment of VAT and interest liable to corporation tax. Coin-a-Drink Ltd v Revenue and Customs Commissioners – [2017] UKUT 211 (TCC)

Case I - Deductible expenses

Payments made by firm to partners withdrawing from the firm was chargeable to income tax and not deductible in computing the profits of the partnership – Morgan v Revenue and Customs Commissioners; Self v Revenue and Customs Commissioners - [2009] SFTD 160

Case I - Bad debts

Taxation treatment of a sum which had previously been ruled by the courts as being a bad debt – Bourke (Inspector of Taxes) v Lyster & Sons Ltd. – [1958] ITR Vol 2 page 374. CLTP 2.7.7.

Case I - Continuance of existing trade

Whether a trade carried on by an executor was a different trade to that previously carried on by deceased person – CD v JM O’Sullivan (Inspector of Taxes), [1948] ITR Vol 2 page 140, CLTP 2.7.6.

Case I - Post cessation receipts

Presumption that a company continues to carry on a business so long as it is liable to make periodic payments in respect of a liability incurred by it in the course of its former business. – The City of Dublin Steampacket Co v Revenue Commissioners [1926] ITR Vol 1 page 108 – CLTP 2.7.3

Group member received repayments of overpaid VAT and interest and question was whether repayment and interest payment chargeable to tax. Shop Direct Group and others v Revenue and Customs Commissioners - [2014] STC 1383

Taxpayer company received repayment of value added tax overpaid by discontinued companies within its corporate group and whether charge to corporation tax only being imposed on original trader. Shop Direct Group v R&CC – [2016] UKSC 7

Case I - Beneficial owner of income source

Whether certain payments under multiple trust deeds were taxpayers income - Braithwaite v Revenue and Customs Commissioners - [2008] STC (SCD) 707

Case I - Dealing in stocks and shares and exchange gains

Whether a company which bought and occasionally sold shares was carrying on a trade. New Zealand case. Rangatira Ltd v CIR [1997] STC 47.

Nature of annuities – B McCabe (Inspector of Taxes) v South City and County Investment Co Ltd. [1997] ITR Vol 5 page 107 – CLTP 2.5.7

Whether profits derived by a bank from the holding of Government securities formed part of its trading profits – JA Browne (Inspector of Taxes) v Bank of Ireland Finance Ltd. Supreme Court 1991, [1991] ITR Vol 3 page 644. CLTP 2.6.4.

Shoe manufacturer placed surplus cash on deposit which resulted in a loss. Useful case that discusses whether transactions were trading. Cooper v C&J Clark. [1982] STC 335.

Valuation of securities – A B Ltd v Mac Giolla Riogh (Inspector of Taxes) – [1960] ITR Vol 2 page 419. CLTP 2.6.2 Profits from the sale of investments can form part of the trade of a company – The Agricultural Credit Corporation Ltd. v JB Vale (Inspector of Taxes) [1935] ITR Vol 1 page 174. CLTP 2.6.1, High Court 1935.

Taxpayer buying and selling shares and whether taxpayer trading. Ali v R&CC - [2016] UKFTT 8 (TC)

Partnership purchased rights to dividends and receiving dividends and claimed deduction for cost of dividend rights but seeking to exclude dividend payments from trading profits giving rise to trading loss and whether partnership trading in short-dated securities. Clavis Liberty 1 LP (acting through Mr D J Cowen) v R&CC – [2016] UKFTT 253 (TC)

Case I - Accounting rules

Lands may be treated as trading stock of a developer even if it does not yet have possession. Murnaghan Bros v J O Maoldhomhnaigh (Inspector of Taxes). [1990] ITR Vol 14 page 304. CLTP 2.4.4.

Profits should be based on historical cost accounting and not on current cost accounting. – Carroll Industries plc (Formerly PJ Carroll & Co Ltd) and PJ Carroll & Co Limited v S O’Culachain (Inspector of Taxes) [1988] ITR Vol 4 page 135 – CLTP 2.4.5

Valuation of work in progress – Symons (Inspector of Taxes) v Weeks and others [1983] STC 195

Certain deposits to be regarded as payments on account received in respect of trading stock – O’Laoghaire (Inspector of Taxes) v CD Ltd [1983] ITR Vol 3 page 51 – CLTP 2.4.3

The difference between interest and discount on Bills of Exchange. Willingale v International Commercial Bank Ltd. [1978] STC 75.

Nature of trading stock in hand – Greens Co (Cork) Ltd v The Revenue Commissioners [1926] ITR Vol 1 page 130 – CLTP 2.4.1

Accounting date changes and whether conditions for change in accounting period met. Grint v Revenue and Customs Commissioners – [2016] UKFTT 537 (TC)

Case I - Multiple trades

Single trade or separate trades. P McElligott & Sons v Duigenan (Inspector of Taxes). High Court [1984] ITR Vol 3 page 178. CLTP 2.7.10

Trade carried on exclusively abroad

Income from a trade carried out wholly abroad is Case III income – Colquhoun (Surveyor of Taxes) v Brooks [1889] 2TC 490. Also Egyptian Hotels Ltc. v Mitchell (1915) 6 TC 542.

General oversight exercised in the UK was held to be sufficient to make a warehousing business, carried on in Canada entirely by managers, carried on partly in the UK and therefore chargeable under Case I. Ogilvie v Kitton (1908) 5 TC 338.

A trade is carried on exclusively abroad and taxed under Case III only if all activities are carried on outside State and such activities are not controlled and directed from the State. San Paulo (Brazilian) Railway Company v Carter (1896) 3 TC 407.

A Partnership participated in scheme to secure capital for biotechnological company to fund R&D of vaccines. The questions for the court included whether partnership incurring qualifying expenditure on R&D relating to partnership’s trade and if the partnership was trading and whether trade carried on wholly outside the United Kingdom – Vaccine Research Ltd Partnership and another v Revenue and Customs Commissioners [2014] UKUT 389 (TCC)

Case III

Payments by a UK company to an ex-employee were taxable under Sch D Case III. McHugh (Inspector of Taxes) v A. [1959] ITR Vol 2 page 393. CLTP 3.1.4.

“Interest...is payment by time for the use of money”. Bennett v Ogston. (1930) 15 TC 374.

For tax purposes, a discount is not merely the difference between the price you pay for something and the price that it is worth. The National Provident Institution v Brown. [1924] 8 TC 57.

“Interest is compensation for delay in payment.” Bond v Barrow Haematite Steel Company [1902] 1 Ch 353. Whether ‘discount’ was ‘interest’. Leeds Design Innovation Centre Ltd and others v Revenue and Customs Commissioners - [2014] SFTD 681

Loan made by resident of Isle of Man to resident of United Kingdom and whether ‘interest arising in United Kingdom’. Perrin v Revenue and Customs Commissioners - [2014] SFTD 919

Whether interest payments made by UK company to Gibraltar-based trusts comprised interest ‘arising in the United Kingdom’. Ardmore Construction Ltd v Revenue and Customs Commissioners - [2014] SFTD 1077

Profits realised on disposal of floating rate notes at end of specified period and whether profits realised on disposal being ‘discounts’ chargeable to income tax – Savva and others v Revenue and Customs Commissioners [2015] UKUT 141 (TCC)

Whether interest ‘arising in the United Kingdom’ and factors relevant for test to be applied for withholding tax. Ardmore Construction Ltd and another v R&CC – [2015] UKUT 633 (TCC)

Dealing in v Developing Land

Ordinary accountancy treatment applied in calculating the loss on sale of a lease by a company to a shareholder. Cronin (Inspector of Taxes) v Cork and County Property Company Ltd. [1986] ITR Vol 3 page 198. CLTP 17.6

Case IV

Payment of sum in settlement of court proceedings where claim was in respect of sum representing bonus for fund management services and whether bonus capital or income receipt – Manduca v Revenue and Customs Commissioners [2015] UKUT 262 (TCC)

Case V or Case I

Whether income from letting holiday accommodation units property or trading income. Nott v R&CC – [2016] UKFTT 106 (TC)

Double Taxation Agreement

Diver carrying out engagements in UK continental shelf waters and whether income from employment or business profits – Fowler v Revenue and Customs Commissioners [2018] EWCA Civ 2544

Emoluments

Taxpayer became employee of company and entering into contract with another company in the corporate group and delivered clients to that company with it making a payment to taxpayer and whether payment constituting employment earnings. R&CC v Smith & Williamson Corporate Services Ltd and another - [2015] UKUT 666 (TCC)

Whether food delivery drivers engaged by the Appellant are in receipt of emoluments from an employment or are self-employed persons chargeable to tax under Case I Schedule D – 23TACD2018

Irish Tax Review Articles

The Construction of Statutes. Suzanne Kelly, Irish Tax Review, July, 1997

Locating International Intellectual Property Rights in Ireland and the 12.5% Tax Rate. John Heffernan, Irish Tax Review, May, 2002

Ireland as a location for intellectual property rights Trading Income – The Need for Solomon’s Wisdom! Liam Lynch, Irish Tax Review, January, 2003

History as well as current thinking on 12.5% rate. Taxation of Interest Bearing and Discount Instruments for Non-Financial Traders. Aidan Walsh, Irish Tax Review, September, 2002

Taxation of Foreign Employments - the story so far, Pat O’Brien, Irish Tax Review November, 2007

Employed or Self-Employed? The Implications of the Brightwater Case. Daragh O’Shaughnessy, Irish Tax Review, Issue 2, 2012

Foreign Direct Investment: The People Agenda. Duncan Watson, Irish Tax Review, Issue 3, 2014

Income Tax on Gambling: Recent Developments. Paul Brady, Irish Tax Review, Issue 4, 2014

Take Two on Trading. Tom Maguire, Irish Tax Review, Issue 2, 2016

The Future of Tax Compliance within the Tax Function. James McNally, Mary Douglas, Irish Tax Review, Issue 3, 2016

Cryptocurrencies: Tax Position in Ireland. Alan Heuston and James Quirke, Irish Tax Review, Issue 2, 2018

Revenue Precedents

Case I: Whether the special sellers prize paid by the national lottery to lotto agents who sell winning lotto tickets is taxable. Such prizes are taxable under Schedule D Case I. Originally published: 25/05/1994 File ref:GD94027.

Treatment of debtors in accounts of professionals: Whether the amount per a bill of costs issued to solicitors’ clients should be included as debtors in the firm’s accounts. Applying the ordinary principles of commercial accounting, clients become debtors of the firm when issued with a bill of costs. Accordingly, the amount should be included as debtors in the firm’s accounts. Originally published: 05/09/1997. File ref:IT972508

Are disability benefits receivable by Irish Residents under US Insurance Policies taxable here. Yes, under Schedule D Case III. Originally published: 12/12/1990. File ref:IT903513

Case I: Whether payments made to foster parents in Ireland under German Rehabilitation Programmes to board/accommodate German youths are chargeable to tax under Schedule D Case I. Where the foster parents are not employees of the German paying authorities, the payments are chargeable to tax under Schedule D Case I. Originally published: 24/04/1996 File ref:IT952520

Dividend Income: What rate is applied for the purpose of converting dividend income to Irish Pounds. The rate of exchange which applied to the dividend on encashment. Originally published: 15/03/1999 File ref:IT913539

Expenses and Allowances paid by APSO: Taxation of resettlement expenses and certain allowances paid by the Agency for Personnel Services Overseas (APSO) to its volunteers. It was agreed to concessionally exempt from tax certain allowances paid to APSO volunteers. Originally published: 03/12/1991 File ref:IR 10470/406/93

Gifts to sportspersons: Whether gifts to amateur sportspersons are taxable receipts in the hands of those sportsmen In general, where the recipient is a sportsperson who engages in the sport purely for recreational purposes (i.e. is not carrying on a trade or profession as a sports person or is not an employee of the club etc. which provides the gift, it would be regarded as a gift which would not give rise to an Income Tax liability. However, the circumstances of each case would need to be considered before giving a definitive answer. Originally published: 04/12/1996 File ref:IT962011

Income chargeable to tax: Whether payment over and above fee charged was income within TCA97 s18 – Revenue accept CCJ decision that payment was not a receipt of the profession but a personal gift. Originally published: 12/12/1983 File ref:4265/83

Is court interest chargeable to income tax in the hands of the recipient? Yes, under Schedule D Case III. Originally published: 20/02/1991 File ref:IT913520

Is income earned abroad by Irish resident entertainers taxable in Ireland under Schedule D Case II? Yes. Originally published: 21/11/1999. File ref:IT903501

Lloyd’s Income: How is credit for US tax shown in a Lloyd’s account given. Credit is given against the tax for the year of assessment for which the accounts form the basis of assessment. If there are losses, the effective rate of Irish tax is nil. In these circumstances the amount of the US tax is allowed as a deduction. Originally published: 16/10/1992 File ref:IT923078

Permanent Establishment: Whether a bookmakers stand or patch at a racecourse constitutes a permanent establishment? A bookmakers stand or patch at a racecourse constitutes a permanent establishment. Originally published: 14/07/1995 File ref:IT952546

Taxability of Boarding Out Allowances: Whether Boarding Out Allowances paid under S.I. No. 225 of 1993 by Health Boards to people who board out elderly persons are taxable. The allowances are taxable. There is no exempting provision. Originally published 19/11/1997 File ref:IT972515

Trusts: Where a company acts as a trustee and the settlors are not resident, ordinarily resident or domiciled in Ireland and funds upon the trust are settled in currencies other than Irish pounds or property situated outside Ireland, is the trust treated as non-resident? Yes. Originally published: 15/01/1991 File ref:IT913510

Whether video tapes in use in video rental shops should be classed as fixed assets or stock in trade. The ordinary rules of commercial accounting apply. It is necessary to examine the facts of each case to determine whether video tapes are fixed assets or stock in trade. Originally published: 28/09/1992 File ref:IT923002

Revenue Guidance

Tax Briefing No. 04/13, Revenue’s Contractors Project - eBrief No. 48/13

Foreign Trades & Professions - eBrief No. 06/14

Equitable Life Compensation Scheme – eBrief No. 29/15

Tax Treatment of Animal Leasing – eBrief No. 17/15

Sub-Postmasters and Social Welfare Branch Managers – Tax and PRSI – eBrief No. 10/15

Order of offset of income tax reliefs, allowances and deductions – eBrief No. 24/16

Sub-Postmasters and Social Welfare Branch Managers - Tax and PRSI – eBrief No. 29/16

Issue of Patronage Shares by Co-Operatives – eBrief No. 94/16

Income Tax Statement of Practice SP.IT.3/07 – eBrief No. 102/16

Guidelines for agents acting on behalf of taxpayers – eBrief No. 113/18

What is trading? – eBrief No. 120/17

Taxation of Farmers - Basic Payment Scheme – eBrief No. 201/18

Taxation of couriers – eBrief No. 198/18

Tax Clearance for applicants under the Standards in Public Office Act – eBrief No. 189/18

Companies carrying on mutual business or not carrying on a business – eBrief No. 180/18

Deposit interest - whether a trading receipt – eBrief No. 175/18

Share Farming – eBrief No. 169/18

The tax treatment of cryptocurrency transactions – eBrief No. 88/18

Tax treatment of income arising from the provision of short-term accommodation - eBrief No. 59/18

Return earned by regulated investment managers – eBrief No. 54/18

Corresponding UK Tax Provision

section 18, Income and Corporation Taxes Act 1988. Now re-enacted at various places in the Corporation Tax Act 2009. Refer to Destination Table of that Act for details.

Sections referred to in text

section 36 [Government Securities]

Cross references

12 The charge to income tax

56 Tax on quarries, mines and other concerns chargeable under Case I(b) of Schedule D

57 Extension of charge to tax under Case III of Schedule D in certain circumstances

77 Miscellaneous special rules for computation of income

85 Deduction for certain industrial premises

104 Taxation of certain rents and other payments

200 Certain foreign pensions

208 Lands owned and occupied, and trades carried on, by charities

779 Charge to income tax of pensions under Schedule E

784 Retirement annuities: relief for premiums

787G Taxation of payments from a PRSA

821 Application of sections 17 and 18(1) and Chapter 1 of Part 3

985A Application of section 985 to certain perquisites, etc.

1035A Relieving provision to section 1035