Publication of names of tax defaulters

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					                                                                                     ISSUE 21 - March 1996

TAX
BRIEFING
Office of the Chief Inspector of Taxes


Internal Review Procedure
for Revenue Audits
Background                                  practitioners more comfortable with
                                            looking for a second opinion, the
The right to have an internal review of     Revenue Commissioners have
any decision made by a Revenue              nominated the Director of Customer
                                                                                            Capital Taxes
official is provided under the “Charter     Services as the person who will take
of Rights”. The existing review             responsibility for the arbitration role in      New Capital Acquistions Tax Form
procedure is initiated by a taxpayer or     relation to decisions taken in Tax              & Guide
his/her adviser requesting that a review    Districts. The Director of Customer
be undertaken by a superior officer. In     Services has no connection with the
relation to decisions taken in Tax          Audit Programme and has no                      Relief for Service Charges
Districts, this review is normally          responsibility for its management. He
undertaken by a Regional Director.          has a direct role in promoting and
                                            implementing the Charter of Rights
Some practitioner and business              and in ensuring taxpayer confidence in
                                                                                            Urban Renewal Relief
representative groups have suggested        tax administration.
that there is a reluctance, particularly                                                    Multi-storey Car Parks
in relation to Revenue Audit, to ask for    The aim of this review process is to
a review by a Regional Director             provide an objective second opinion
because:                                    within Revenue when taxpayers or tax            Revenue Audit Review
                                            advisers feel :
     this officer may be perceived as                                                      New Internal Review Procedure
      being too closely involved with            their viewpoint on a particular
                                                                                            (This Page)
      the Tax District and the official           issue has not been given due
      who carried out the audit,                  consideration at District level,
or                                          or
     it might be thought that the               that their rights under the Charter       Direct Debit
      review would give offence to the            of Rights have not been fully
      official involved and have an               respected,                                Payment of Preliminary Tax
      adverse affect on their future        or
      relations with Revenue.                    that the District has adopted an
                                                  unreasonable approach, or an
There is no need for such reluctance.             approach that is
Revenue officials fully accept that their         technically/legally incorrect.
decisions, including decisions relating
to audits, can be reviewed either by a      (Continued on page 2)
colleague or by an appeal tribunal.




                                            In this Issue
Alternative Review Process
                                            International News
Nevertheless, it is recognised that
perceptions are important. To meet the      Double Taxation Treaties
situation and to make taxpayers and
                                                                1
Guidelines                                              support of the case for a review
                                                        should previouslyhave been
The following points may be helpful to                  presented to the District.
practitioners in considering whether an
internal review of an audit is                         From audit cases reviewed to date,               Requests for reviews should outline the
appropriate:                                            it is evident that some                          specific reason why the request is being
                                                        practitioners may be looking for a               made and should be addressed to:
     In reviewing audit cases, the                     review simply because they do not
      Director of Customer Services                     like the findings arising from the               Mr. Joe Lynch,
      will look at all relevant aspects of              audit and, perhaps, feel that they               Director of Customer Services,
      the case. He will be concerned                    may get a better deal elsewhere.                 Office of the Chief Inspector of Taxes,
      with ensuring that the Charter of                 The review process is not, of                    Setanta Centre,
      Rights is implemented and that                    course, to be used for such a                    Nassau Street,
      Revenue‟s objectives, as set out in               purpose. Where a review is                       Dublin 2.
      the Charter, are furthered.                       requested, practitioners should be
                                                        able to rely on evidence, already                Existing Rights and Practice
     Obviously, the adequacy of                        put forward during the audit, to
      records, explanations and co-                     support an alternative result or to              Where they prefer, practitioners and
      operation given are matters to be                 cast substantial doubt on the                    taxpayers can, of course, continue to
      taken into account in the review                  District findings.                               contact the District‟s Regional Director,
      process.                                                                                           if dissatisfied with the local handling of
      A review should not be requested                 Where the item requiring review is               a client‟s tax affairs.
      until the District Inspector‟s                    a legal/technical issue, agents
      attention has been drawn to all                   should give their view of what                   The review procedure outlined does
      evidence on which the taxpayer                    they consider the position to be. It             not affect a person‟s right of appeal to
      and practitioner are relying in                   should be supported, as                          the Appeal Commissioners under tax
      support of their contention. In                   appropriate, by reference to the                 legislation.
      other words, any information in                   law, case law, etc.
                                                                                                         Contents
                                                                             Internal Review of Revenue Audit                     Page 1
    TAX                                                                      International Issues                                       3
    BRIEFING                                                                 Relief for Service Charges                                 4
                                                                             Completion of Form CT1                                     5
                                                                             Residential Property Tax                                   5
                                                                             Stamp Duty                                                 5
    Customer Service Unit,
                                                                             Capital Acquisitions Tax                                   6
    Office of the Chief Inspector of Taxes,
                                                                               New Forms & Guide
    4th Floor,
                                                                             Payment of Preliminary Tax by Direct Debit                  7
    Setanta Centre,
                                                                             Issue of Third Party Returns                                8
    Nassau Street,
                                                                             PAYE                                                        8
    Dublin 2.                                                                   Benefit-in-kind & PAYE Allowance
                                                                             Urban Renewal Relief                                        9
                                                                                Multi-storey Car Parks
    Editor:                           John Leamy                             Credit Unions & D.I.R.T.                                    10
    Telephone No.                     (01) 671 6777, Extn. 4325.             Farming
                                                                             Conacre Lettings & Farm Retirement Scheme stock values      10
                                                                             Stock Relief for Young Farmers in Partnerships              11
    Assistant Editor:                 Rosemary O‟Rahilly                     Losses on Disposal of BES Shares                            12
    Telephone No.                     (01) 6716777, Extn. 4310.              Disposal of Assets for                                      12
    Fax No.                           (01) 6710960                           consideration in excess of £100,000
                                                                             Administration of Capital Gains Tax                         13
                                                                             Completion of Form P35                                      13
    __________________________________________________                       Revenue News                                                14
    While every effort is made to ensure that the information given in
    this publication is accurate, it is not a legal document.
    Responsibility cannot be accepted for any liability incurred or
    loss suffered as a consequence of relying on any matter published
    herein.
    __________________________________________________




                                                                         2
INTERNATIONAL ISSUES


    Current Position on Ireland‟s Double Taxation Agreements
    Ireland currently has Double Taxation
    Agreements, in force, with twenty                  It is hoped that two new Double             International matters are dealt with in
    seven countries. Three of these                    Taxation Treaties, Ireland/Greece and       the following areas:
    agreements, with Russia, Israel and                Ireland/Mexico, will be finalised
    Poland, were ratified, by both parties,            during 1996.                                International Section,
    during 1995 and therefore take effect                                                          Revenue Commissioners,
    in 1996. It is expected that two further           Ireland is currently in the process of      Dublin Castle,
    agreements, with Hungary and the                   renegotiating a number of its older         Dublin 2
    Czech Republic, which were ratified                Double Taxation Agreements. These           Telephone          (01) 679 2777
    by Ireland in 1995 will be ratified by             include our treaties with: the United       Fax                (01) 679 3314
    our partners in 1996 thus enabling the             States, Belgium, Italy, France, Canada,
    treaties to take effect in 1997.                   Austria and Norway.                         International Claims, Residence and
                                                                                                   Charities Unit,
    Additionally, a Protocol to the                                                                Revenue Commissioners,
    Ireland/UK Double Taxation                         Copies of Double Taxation                   Government Offices,
    Agreement dealing with foreign                     Agreements may be purchased from            Nenagh,
    pension schemes was ratified on 21                 the                                         Co. Tipperary.
    September 1995. This applies with
    retroactive effect from 1994. Broadly it           Government Publications Sales               Callers in (01) area
    provides that an employee transferred              Office,                                     Telephone:       677 4211
    by his employer, from one State to the             Sun Alliance House,
    other for a temporary period, may                  Molesworth Street, Dublin 2.                Callers outside the (01) area:
    remain a member of an approved                                                                 Telephone         (067) 335 33
    pension scheme in the former State                                                             Fax              (067) 323 73
    while getting tax relief in the latter             Telephone          (01) 661 3111
    State.                                             Fax                (01) 475 2760




                                               Double Taxation Treaties entered into by Ireland.
                                                        (For Tabulation see Page 16)




                                                                         3
    SERVICE CHARGES

    Relief for Service Charges
Introduction                                               payment of a specified annual charge to        “Tag” system
Section 7 Finance Act 1995 introduced income                independent contractors for domestic
tax relief for service charges paid by individuals.         refuse collection and                          A variety of domestic refuse collection “tag”
The relief will be available for 1996/97 and               purchase of “tags” for domestic refuse         systems are operated throughout the country by
subsequent years for service charges paid in full           collection by local authorities or             both local authorities and independent
and on time in the preceding calendar year. The             independent contractors.                       contractors. The “tags” can be purchased from
maximum relief in any tax year is £150 at the                                                              normal retail outlets as well as directly from the
standard rate (27% for 1996/97).                      How tax relief is granted                            service provider. claims for relief for the cost of
                                                      Local Authority Service Charges                      “tags” can be made directly to the Tax Office.
Service Charges Qualifying                                                                                 Receipts will not normally be required.
for Relief                                            The legislation requires each local authority to
                                                      submit computerised returns for each calendar        Non PAYE Taxpayers
All service charges paid to:-                         year to the Revenue Commissioners detailing all
 local authorities for the provision of              cases who have met the necessary conditions (set     Non PAYE taxpayers must claim the relief at
      domestic water supply, domestic refuse          out below). Returns must be submitted by 31          year end in their tax return.
      collection and domestic sewage disposal,        January (i.e. within one month of the year end).
 independent contractors for domestic                Where the first return is incomplete a               Holiday Homes
      refuse collection,                              supplementary return must be made within a
 group water schemes for domestic water              further month.                                       Relief is not limited to a principal private
      supply.                                         To be included in the computerised return an         residence. Accordingly, it may be claimed in
                                                      individual must have fulfilled all of the            respect of more than one domestic residence
Qualifying Individuals                                following conditions:                                subject to the overall limit of £150.

An individual (or his/her spouse) who is liable            all service charges must be paid in full       Business expense
for and pays the service charge will qualify for            and on time (i.e. the 1995 services charges
the relief.                                                 must be paid in full and on time to qualify    Relief is not available on any amount claimed as
Alternatively, an individual who pays the service           for relief in 1996/97)                         a business expense. For example, where one
charge (although not liable for it) and lives, on a        arrears from earlier years          must be    supply is used for both domestic and business
full-time basis, in the house which is the subject          cleared over 5 years. Accordingly, at least    purposes, relief is not available on the portion
of the charge can also qualify for the relief.              20% of any arrears, in addition to the 1995    claimed as a business expense.
This latter category is intended to cover                   service charge, must be paid before an
situations such as a son or daughter paying a               individual can qualify for relief in 1996/97   General
service charge on behalf of an elderly parent.             the local authority must be advised of the
Any claim to relief by the son/daughter must be             RSI number of the individual liable for the    A percentage of all claims will be checked with
accompanied by a disclaimer (Form SC1)                      service charge.                                the Local Authority to confirm their validity.
completed by the liable individual.
                                                      Where a PAYE taxpayer has supplied his or
Local Authority Service                               her RSI number in sufficient time to be
Charges Arrears                                       included in the local authority return the
                                                      relief, where due, has been automatically
An individual with arrears can only qualify for       incorporated into his or her 1996/97 TFA
relief for service charges in 1996/97 if at least     certificate.
20% of the arrears are paid in addition to the
1995 service charges. The arrears do not              Claims for Relief directly to
qualify for relief.                                   Tax Offices
                                                      Taxpayers who have not advised the local
Amount of Relief                                      authority of their RSI number (or who have not
                                                      done so in sufficient time to be included in a
The amount which qualifies for relief under all       local authority return) will not be granted relief
headings is the lower of £150 or the amount paid      automatically.
(net of any discount and arrears).                    In such cases relief will be granted on due claim
The relief is calculated by reference to the          from the taxpayer.
following:
                                                      Independent Contractors and Group Water
Actual amount paid to:-                               Schemes
 local authorities for the domestic services
     described above                                  Independent contractors and Group Water
 group schemes for domestic water supply.            Schemes are not obliged to submit computerised
                                                      returns. Relief will be granted on due claim by
Flat rate of £50 for:-                                the taxpayer. It will not normally be necessary to
                                                      provide a receipt.


                                                                              4
 CORPORATION TAX


    Completion of Form CT1
    Introduction                                    Losses                                                 should be entered at Panel 11
    The standard of completion of forms                                                                    Code H1.
    CT1 has generally been high.                    Section 16(1) C.T.A. 1976
    However, as part of our ongoing                 Where relief is being claimed in                 Income Tax
    review of the completion of forms we            respect of a trading loss incurred in a
    wish to draw practitioners‟ attention to        preceding accounting period under                Section 151 C.T.A. 1976
    the following matters.                          Section 16(1) C.T.A. 1976                         Payments in respect of which the
                                                                                                           company is liable to account for income tax shou
    Manufacturing Relief                                 The amount of the loss being
    Where manufacturing relief is being                   claimed should be entered at               Surcharges
    claimed, the amount claimed should be                 Panel 4 Code S6.
    entered at Panel 12, Code R3.                                                                    Section 101 and 162
                                                    Section 16(2) C.T.A. 1976                        C.T.A. 1976.
    It is not sufficient to charge the profits      Where a trading loss has been incurred           Surcharges under Sections 101 and
    to corporation tax at the reduced rate          in an accounting period                          162 in respect of accounting periods
    in Panel 11 while omitting to input an                                                           ended in the 12 months preceding the
    entry in respect of the manufacturing                Nil should be entered at Panel 1           accounting period (for which the CT1
    relief being claimed at Panel 12, Code                Code D1.                                   is being completed) should be entered
    R3.                                                  Capital allowances should be               at Panel 13 Code V1 or V2
                                                          entered at Panel 2 under Codes             respectively.
                                                          S1, S2 or S3 as appropriate.
                                                         The aggregate of the trading loss,
                                                          plus the capital allowances

CAPITAL TAXES

    RESIDENTIAL PROPERTY TAX -                                                                       STAMP DUTY
    Valuation Dates & Certificates of                                                                Abolition of need for Adjudication
    Clearance                                                                                        in the case of new houses

    Valuation Date 5 April 1996                     certificate procedure was enclosed with         procedures for obtaining this stamp duty
    The market value exemption limit for 1996       Issue 20 of                                     exemption.
    (valuation date 5 April) is £101,000            Tax Briefing.
    The Income exemption limit for 1996 is          Further information may be obtained from        The requirement to present the deed for
    £30,100.                                        the                                             impression of the PD (Particulars
                                                    Capital Taxes Branch,                           Delivered) stamp will not be affected by the
    Residential Property Tax in respect of the      Dublin Castle,                                  above provisions.
    valuation date 5 April 1996, is payable on      Dublin 2.
    or before 1 October 1996.
                                                    Telephone No. (01) 679 2777
    Certificate of Clearance                        Extns: 4164, 4173, 4174.
    Practitioners are reminded that any person
    who purchases a residential property for an
    amount in excess of the market value
    exemption limit must deduct the specified
    amount from the sale consideration unless       New houses with a floor area of less than
    the vendor produces a Residential Property      125 square metres are exempt from stamp
    Tax clearance certificate before the sale is    duty. However, the deed of
    closed.                                         transfer/conveyance must be submitted for
    A guarantee given by the vendor (or his/her     adjudication to the Revenue Commissioners
    agent) that the clearance certificate will be   together with a floor area certificate issued
    furnished on a date subsequent to the date      by the Department of the Environment.
    of the closing of the sale does not obviate     The Finance Bill, 1996, will provide that
    the purchaser‟s obligation to deduct the        such deeds need no longer be presented for
    specified amount.                               adjudication if the deed itself contains a
                                                    statement to the effect that a valid
    Further Information                             Department of the Environment certificate
    A leaflet (RP5) outlining the main features     was in force for the new house at the date of
    of the Residential Property Tax clearance       transfer/conveyance. This measure will
                                                    reduce the formalities and simplify the

                                                                       5
CAPITAL TAXES

    Capital Acquisitions Tax
    New Forms and Guide
    As part of the ongoing review of the
    main forms in use for Capital
                                                   Indexation Factors                                                    The indexed class thresho
                                                                                                In the meantime, if practitioners have
    Acquisitions Tax purposes, a number                                                         any queries on the new forms they
                                                   aggregation and go over the operation                 Class    Relationship
    of new forms and a new guide will be                                                        should contact Capital Taxes
                                                   of the main CAT reliefs relating to                                                                   19
    available from mid-April.                                                                   Division‟s Taxpayer Advisory Service
                                                   agricultural and business property.
    These are                                                                                   at the numbers below. son/daughter/parent*
                                                                                                           A      e.g.                                 £174
     the standard Gift/Inheritance
                                                   Dublin:                                                 B      e.g. niece/nephew/brother/           £23,
          Tax Self-Assessment Return                                                            The new forms and guide can be
                                                   Jurys Hotel, Ballsbridge                                       sister/ grandchildren
          (IT38)                                                                                ordered (preferably by fax) from
     the Guide to completing the Self-                                                                     C      e.g. strangers/cousins              £11,
                                                   Tuesday 7 May            2.30 p.m.
          Assessment Return (IT39),                                                             Taxpayer Advisory Service
                                                                                                          *
    and                                                                                                     In Division,
                                                                                                Capital Taxes the case of a gift a parent falls into Class B
                                                   Limerick:
     supplementary claim forms for                                                             Dublin Castle,
                                                   Castletroy Park Hotel                                           In relation to Probate Tax, th
          the two main CAT reliefs;                                                             Dublin 2.
          Agricultural Relief (IT41) and
                                                   Wednesday 24 April        2.30 p.m.
                                                                                                                              exemption thresholds
          Business Relief (IT5)                                                                 Telephone:        (01) 679 2777 Index Factor
                                                                                                                  Year
                                                                                                         Extns. 4591/4593/4597
                                                                                                                  1993                    –
                                                   Cork:
    Seminars                                                                                                         1994                     1.015
                                                   Silver Springs Hotel
                                                                                                Fax:                (01) 679 3261
                                                                                                                     1995                     1.039
    A series of seminars will be held
                                                   Thursday 25 April        2.30 p.m.                                1996                     1.065
    shortly at the following venues to                                                          or from
    acquaint practitioners with the new
                                                   Galway:                                              A copy of the new Statement of Practice is avail
    forms. The seminars will also examine                                                       Revenue Forms Leaflets Service
                                                   Corrib Great Southern Hotel                            Taxpayer Advisory Service (address and phone n
    the more difficult aspects of CAT such
    as                                                                                          Telephone            (01) 8780100
                                                   Tuesday 30 April         2.30 p.m.
                                                                                                (This service is available 24 hours a
                                                   Practitioners are invited to attend at the
                                                                                                day)
                                                   most convenient location.


    A new Statement of Practice (SP-CAT1/96)
     detailing the index factors to be used in
    calculating CAT and Probate Tax liabilities
     up to and including 1996 is now available.

    For CAT purposes, in respect of taxable
    gifts/inheritances taken in the following
    years, the index factors to be used are:

    1990                1.04 }
    1991               1.076 } To be
    1992               1.109 } applied to
    1993               1.145 } the
    1994                     } threshold
    (prior to 11 April) 1.160 } amount


    1994                        }   To be
    (on or after 11 April)1.160     } applied to
    1995               1.188 }       the class
    1996               1.217 }      threshold




                                                                        6
COLLECTOR GENERAL

    Payment by Direct Debit
    Preliminary Tax
    Legislation                               Completion and return of a direct debit      Collector-General‟s Office (address
                                              mandate form is required from any            below) and should include an
    Section 31 Finance Act 1995 makes         customer wishing to participate in the       explanation of the reason for the change
    provision for the payment of Income       scheme.                                      of the mandated amount.
    Tax Preliminary Tax by direct debit.
                                              Completed mandate forms should be
                                              returned to the Collector-General by the     Subsequent Years
    Minimum amount payable                    1st of the month preceding the month in
                                              which deductions are to commence e.g.        Once a customer has joined the direct
    The minimum amount of preliminary         if deductions are to commence in             debit scheme, deductions will continue
    tax which must be paid is the lower of:   February, the mandate form should be         to be made in accordance with the most
                                              returned by 1 January. Payments will be      up to date instructions provided by the
     90% of the tax liability for the        deducted on the 9th of each month up to      customer for subsequent years, unless
      actual year of assessment               and including December.                      the customer notifies the Collector-
      or                                                                                   General that participation in the direct
                                                                                           debit scheme is being ceased.
     100% of the tax liability for the       Cut-off Date for 1996/97 Preliminary
      previous year of assessment             Tax
      or                                                                                   Enquiries
     in the case of direct debit             As a special transitional measure for
      participants only, 105% of the tax      1996 (in respect of Preliminary Tax for      Further information on the scheme and
      liability for the pre-preceding year    the 1996/97 year of assessment),             mandate forms may be obtained by
      of assessment.                         authorisations for the payment of            calling
                                              Preliminary Tax by direct debit will be      (061) 310310
    * The 105% rule does not apply where      accepted by the Collector-General up to      and asking for the Direct Debit Helpline
    the income tax payable for the pre-       1 June 1996.                                 or by writing to
    preceding year is Nil.
                                              For 1997 and subsequent years,               Office of the Collector-General,
                                              authorisations for the payment of            Sarsfield House,
    Direct Debit Scheme                       Preliminary Tax by direct debit must         Francis Street,
                                              reach the Collector-General by 1 March       Limerick.
    The direct debit scheme for Preliminary   in the calendar year in which deductions     A Statement of Practice on the
    Tax is designed to spread the burden of   are to be made.                              operation of the direct debit scheme is
    payment of preliminary tax evenly                                                      enclosed with this issue.
    throughout the calendar year. Payments
    made in the calendar year will be         Revision of monthly payment amount
    credited against the Preliminary Tax
    which falls due in that calendar year.    The amount of Preliminary Tax to be
    For example, direct debit deductions      debited on a monthly basis may be
    made during 1996 will be credited         revised downwards at any time.
    against the Preliminary Tax payment       For 1996, the first year of operation of
    due in 1996 for the 1996/97 year of       the scheme, upward revisions of the
    assessment.                               monthly payment amount can be made
                                              up to 1 August 1996.
    At the end of the calendar year, each     For 1997 and subsequent years, upward
    customer participating in the direct      revisions of the monthly payment
    debit scheme will be issued with a        amount can be made up to 1 May.
    statement of all preliminary tax          To revise the amount of the direct debit,
    payments made during the calendar         a new completed mandate form,
    year.                                     indicating the new monthly deduction
                                              amount, should be returned to the
                                              Collector-General by the appropriate
                                              date.
                                              Where special circumstances arise (e.g.
                                              cessation or change in the accounting
                                              date for the business) the Collector-
                                              General will consider, on an individual
    Participation in the Direct Debit         basis, applications to increase the
    Scheme                                    amount of direct debit after the dates set
                                              out above. Such applications should be
                                              made to the Central Services Area of the
                                                                7
INCOME TAX

    Issue of Third Party Returns
    to be reduced
    Forms 46G and 46G(Company) are                  This will be reflected in the issue of            Returns are required in respect of
    currently issued to all cases on                Forms 46G in April 1996 for the year              persons who are ordinarily resident in
    Revenue records considered likely to            1995/96, where the numbers to be                  the State. Payments for services
    be required to make returns of                  issued will be reduced. They will issue           rendered by a foreign supplier who has
    payments for services.                          to the bigger cases only. Taxpayers               no presence in the country need not be
                                                    who have made returns for prior years             returned e.g. a foreign transport
    Since the introduction of automatic             and do not get one for 1995/96 are not            company delivering a machine.
    filing of Third Party returns we have           expected to file a return for 1995/96.
    received a significant amount of                Where, exceptionally, we require a                VAT exclusive figures should be given
    information which has been valuable             return from such a taxpayer we will ask           except where a person is not registered
    in Revenue programmes. We have                  for it.                                           for VAT. Where there are difficulties
    started the process of carrying out                                                               in isolating the VAT exclusive figure,
    computer analysis to identify taxpayers         Taxpayers who have never been issued              the VAT inclusive figure will be
    not on record and sources not returned.         with the form or who have not made                accepted once it is made clear that it is
    Having analysed returns received, we            returns for prior years should review             VAT inclusive. The same limit of
    are getting a clearer picture of areas          their records to establish whether or             £3,000 applies whether the payments
    where we are getting relevant returns.          not they are obliged to file a return, as         are returned on a VAT inclusive or
                                                    the self assessment basis applies.                exclusive basis.


                                                         excluded) - a day for this purpose        foreign social security pensions received
    Overseas duties and Car                              must include an overnight stay            by Irish residents from EU Member States
    Benefit-in-Kind                                                                                notwithstanding that they have not been
                                                        the director/employee travels abroad      subject to a PAYE type system of tax
    A car provided to a director or an                   without the car                           deduction.
    employee will not be regarded as available
    for private use for that part of the year in        the car is not available for use by the
    which the director or employee is outside            director‟s/ employee‟s family or
    the State for the purpose of performing the          household during the
    duties of the office or employment.                  director‟s/employee‟s period of
                                                         absence outside the State.
    This treatment will apply for 1994/95
    and following years provided the
    following conditions are satisfied

         the director or employee does not
          claim the „foreign earnings
          deduction‟ (if any)under Section 154
          Finance        Act 1994 (as amended)
          in respect of the carbenefit-in-kind




                                                   PAYE Allowance
                                                   extended
         the aggregate number of days spent       Employee (PAYE) Allowance
          outside the State for the purpose of     Section 138B, Income Tax Act 1967
          performing the duties of the office or
          employment is at least 30 complete       With effect from 1994/95 (i.e. with effect
          days in the tax year (any holiday        from the 6 April 1994), the Employee
          leave period abroad should be            (PAYE) Allowance was extended to

                                                                          8
URBAN RENEWAL RELIEF

    Urban Renewal Relief -
    Multi-storey Car Parks
    Introduction                                    It is not necessary that the multi-storey         balancing allowance after the expiry of the
                                                    car park be located in an area                    13 year period.
    Section 41B, Finance Act 1994                   designated for Urban Renewal.
    (introduced by Section 35, Finance Act                                                            Double Rent Deduction
    1995), extends the 1994 Urban Renewal           The question of whether to issue a
    provisions to certain multi-storey car          certificate is one for the appropriate local      A double rent deduction, for which Section
    parks. This article gives details of the        authority to which any queries on the             42, Finance Act 1994 makes provision, is
    incentives available for expenditure on the     certification process should be directed.         available to the lessee of a multi-storey car
    construction or refurbishment of a multi-                                                         park, subject to the usual conditions, i.e.
    storey car park.                                The certificate will take the form of a letter
                                                    from the local authority to the developer. It          construction or refurbishment
    Definition of a Qualifying Multi-storey         will confirm that the car park has been                 expenditure, which is capital in
    Car Park.                                       developed in accordance with the criteria                   nature, must be incurred on a
                                                    laid down by the Minister. (Guidelines on                   qualifying building in the three
    In order to qualify for the incentives a        these criteria are available from the                   year qualifying period
    multi-storey car park must:                     Department of the Environment.)
                                                                                                           the lease under which the rent is paid
         be certified by the local authority in    The Incentives                                          must be entered into during the three
          whose functional area the car park is                                                             year qualifying period
          located                                   Capital Allowances
                                                                                                           the lease under which the rent is paid
         consist of two or more stories, and       50% of expenditure incurred in the                      must be on bona fide commercial
          those two or more stories must be         qualifying period on construction or                    terms.
          used exclusively for the provision of     refurbishment of a qualifying multi-storey
          car parking space to members of the       car park qualifies for industrial buildings            the lessor and lessee must not,
          public generally.                         allowances. The rates are:                              directly or indirectly, be connected
                                                                                                            with each other.
    A car park located over a commercial            Owner-occupier:
    premises, such as ground floor retail units     50% free depreciation,    or                      Qualifying Period
    or offices, will qualify once it meets the      25% initial allowance and 2% annual
    conditions outlined above. In such              allowance on the remaining 25%,                   The legislation runs for the three year
    circumstances, only the expenditure on the                                                        period from 1 July 1995 to 30 June 1998.
    car park will qualify for the incentives.       Lessor:
    The expenditure on which relief is being        25% initial allowance and 2% annual
    claimed must be apportioned so as to            allowance on the remaining 25%.
    exclude the expenditure on the commercial
    premises.                                       Expenditure on the refurbishment of an
                                                    existing multi-storey car park will qualify for
    The Certification Process                       capital allowances only if it amounts to 20%
                                                    or more of the market value of the car park
    In order to qualify for the incentives, the     prior to refurbishment.
    developer of a multi-storey car park must
    obtain a certificate from the local authority
    in whose functional area the car park is        Balancing Charge
    located, certifying that it has been            Where an event which would otherwise give
    developed in accordance with criteria laid      rise to a balancing charge occurs, in the case
    down by the Minister for the Environment.       of a qualifying building, no balancing charge
                                                    can be imposed where the event occurs more
                                                    than 13 years after:
                                                     the building is first used in the case of
                                                           construction expenditure
    These criteria relate to:                       or
                                                     the incurring of the expenditure in the
         planning and design,                             case of refurbishment.
         traffic and parking anagement             Notwithstanding this restriction on the
          policies, and                             imposition of a balancing charge the
         pricing structures and hours of           building still has a 25 year “life” for the
          operation.                                purposes of industrial buildings allowances.
                                                    There is no prohibition on the granting of a
                                                                          9
    DIRT
    Credit Unions
    Deposit Accounts and DIRT
    We have been asked to comment on             industrial and provident societies being
    the treatment of credit unions under         bodies corporate would, but                Since credit unions are not companies
    the DIRT provisions. The position is as      for section 43 be within the charge to     which are within the charge to
    follows:                                     corporation tax).                          corporation tax in respect of relevant
                                                                                            interest, they cannot
    Under section 43 Finance Act 1972,           Relevant interest within the meaning of
    credit unions are exempt from income         Chapter IV of Part 1 Finance Act 1986           operate DIRT free deposit accounts
    tax with effect from the date of their       received by credit unions is subject to          under section 37B Finance Act 1986,
    registration under the Industrial and        DIRT.                                            or
    Provident Societies Acts 1893 to 1978.
    Section 11(6) Corporation Tax Act                                                            have DIRT refunded to them (section
    1976 extends this exemption to                                                                35(1)(b) Finance Act 1986).
    corporation tax (registered



FARMING

                                                 A number of enquires have been                       the stock in computing the
    Conacre Letting                              received from practitioners regarding                trading profits.
                                                 the valuation of stock of a farming
    Income from Conacre Letting
                                                 trade                                          Note
                                                  in the hands of the farmer who is            This article clarifies the operation of
    A number of enquiries have been
                                                       retiring                                 Section 62 as it stands and is without
    received from practitioners on the tax
                                                  in the hands of the                          prejudice to any changes which may
    treatment of income from conacre letting,
    and whether it is chargeable under the
                                                       successor/transferee                     arise in this years Finance Act.
    rules of Case I or Case V of Schedule D.
                                                 Treatment
    The Revenue Approach
                                                 Where stock
    Income arising from conacre letting is “a     is sold for valuable consideration
    payment in the nature of rent”, and              to a trader
    comes within the definition of rent in       and
    Section 80(I), Income Tax Act, 1967, it       the trader is entitled to deduct
    is therefore chargeable under the rules of       that cost in computing his/her
    Case V of Schedule D .                           profits

    This approach is supported by the case       the stock should be valued at the sale
    of Maurice E. Taylor (Merchants) Ltd. v.     price or the value of the consideration
    Commissioner of Valuation [1981] N.I.        given. (Section 62(1)(a) Income Tax
    236. The modern conacre agreement is         Act, 1967 applies)
    analogous to a lease and consequently        Sales or transfers at gross under-value
    any payment made on foot of that             or over-value do not come within this
    agreement is analogous to rent, i.e. a       provision and in such circumstances
    payment in the nature of rent.               stock should be valued at market value
                                                 in the hands of both the transferor and
    Such income should not be included in        transferee.
    arriving at the Case I profit (or loss)      Where stock is transferred for no
    from farming, and cannot be taken into
                                                 consideration i.e. from a parent to a
    account for the purposes of stock relief
                                                 child who is farming or commencing
    or income averaging. A separate Case V
    computation is required.
                                                 to farm:

    Stock Valuations on                               the stock should be valued at
    Farm Retirement                                    market value in the parent‟s
                                                       accounts Section 62(1)(b)
    Scheme                                             Income Tax Act, 1967 applies)
                                                      the child, who in effect has
                                                       received a gift and has
                                                       appropriated it to trading stock,
    Farm Retirement Scheme
                                                       is entitled to claim a deduction
    Valuation of Stock
                                                       equivalent to the market value of


                                                                   10
FARMING

Stock Relief for Young
Farmers in Partnerships
Background                                  Example                                     Conclusion

Section 21, Finance Act 1995,               A and B farm in partnership, sharing        Practitioners should note that the
introduced a scheme of 100% stock           profits and losses equally. B, who is 30    questions of whether a partnership
relief for farmers who are eligible for a   years of age, completed a recognised        exists in any particular case, or what
grant under the EU Scheme of                agricultural course in 1994, and is         the profit sharing ratios of any
Installation Aid for Young Farmers or       entitled to 100% stock relief by virtue     partnership are, are questions of fact.
who are under a certain age and have        of Section 21. A, his father, is entitled   “Partnership” cases where the
completed a recognised agricultural         to the usual 25% stock relief. Results      enhanced relief is claimed and it
course. A farmer who qualifies for this     for the year ended 31 March 1996            appears that:
enhanced relief can avail of it for a       (basis period for 1995/96) show:
maximum period of 4 years.                                                                   a partnership does not exist,
A number of enquiries have been             Profit per accounts             15,000      or
received on how the relief should be                                                         the profit sharing ratios are not
ascertained in the case of a partnership.   Adjustments for light, heat,                      factual and appear to have been
In particular, where one or more of the     depreciation, motor, etc.       5,000             altered so as to maximise the
partners is a “qualifying farmer” (as                                                         enhanced relief for the period
defined), and one or more is not.           Adjusted profit before                            that it is available
                                            stock relief:                   20,000
                                                                                        may be subject to audit for any year
General                                     Closing stock :                 75,000      that the enhanced relief is claimed.
                                            Opening stock:                  51,000
Stock relief is a deduction in arriving     Stock increase:                 24,000
at the Case I profit. In the case of a
partnership the practice has been to        Allocated to A:                 12,000
deduct the stock relief due in arriving     Allocated to B:                 12,000
at the partnership profit. This practice
will continue where all the partners        Partner A‟s share               10,000
come within the same stock relief           less stock relief:
regime.                                     Stock increase of
Where some partners in a partnership        £12,000 @ 25%                   3,000
are entitled to 100% stock relief while     Case I profit - A               7,000
others are entitled to the usual 25%
relief, the partnership profit to be        Partner B‟s share               10,000
allocated in accordance with the profit     less stock relief:
sharing ratios is the profit before stock   Stock increase of
relief but after making all other           £12,000 @ 100%                  12,000
adjustments. To arrive at the assessable    Case I profit - B                Nil
profit of each partner, the stock           (stock relief cannot
increase will be allocated in               create a loss)
accordance with the profit sharing
ratios and stock relief will be allowed
accordingly.




                                                              11
CAPITAL GAINS TAX

    Losses arising on disposal
    of BES shares
    A number of enquiries have been             the amount by which the
    received from practitioners as to how        deductions exceed the                        Allowable deduction          £10,000
    losses arising on the disposal of BES        consideration.
    shares are to be calculated.                                                              Reduce Allowable deduction by the
                                               The effect of this restriction is that the     lower of :-
    Section 25 Finance Act 1984 provides       result for Capital Gains Tax will
    that for the purposes of calculating       normally be no gain/no loss.                   the amount by which
    capital gains tax, the full acquisition                                                   the deductions exceed
    cost, indexed for inflation, may be        Example:                                       the consideration            £4,000
    deducted from the sale proceeds.           An amount of £10,000 was invested in
                                               a BES Scheme and income tax relief             the amount of the
    However, if a loss arises on a disposal    was granted as follows:                        income tax
    of shares in respect of which BES          £10,000 @ 48% = £4,800.                        relief allowed               £10,000
    relief was allowed, and not withdrawn      Seven years later the shares were sold
    i.e. where the amounts normally            for £6,000.                                    (Reduction is               £4,000)
    allowable as deductions exceed the                                                        Allowable deduction
    consideration, then the following                                                         is now                     £6,000
    provisions will apply :                                                                   Therefore the
                                                                                              Chargeable Gain/Allowable Loss
    The amount of the deductions will be                                                      is                         Nil
    reduced by the lower of
     the amount of the income tax relief                                                     NO ALLOWABLE LOSS
        obtained (i.e. the amount of relief    The loss is calculated as follows:
        allowed, not the tax saved)                                                           ARISES
    or                                         Sale proceeds                    £6,000

    Disposal of Certain Assets in excess of £100,000
    The purpose of this article is to alert          where consideration passes               obliged within seven days of the time
    practitioners to the significant changes         without an asset being acquired          of the acquisition to notify the
    introduced by Section 76 Finance Act             i.e. liquidations and loan               Revenue Commissioners in writing,
    1995,                                            redemptions.                             providing particulars
    regarding the disposal of certain                                                         of
    assets for consideration in excess of      C.G.50 Certificate
    £100,000. These changes are effective                                                        (Continued on page 13)
    from 2 June 1995.                          One of the grounds on which a vendor
                                               can claim entitlement to a C.G.50 has
    Paragraph 11 Schedule 4 Capital            been altered. Whereas previously a
    GainsTax Act 1975 provides that on         vendor who satisfied the Inspector that
    the payment of consideration for           he/she is „ordinarily resident‟ was
    acquiring certain assets a deduction of    entitled to a certificate, a vendor must
    15% is to be made by the purchaser,        now satisfy the Inspector that he/she is
    unless the Inspector of Taxes has          „resident‟ within the meaning of
    issued a certificate relieving the         Section 150 F.A.1994.
    purchaser of his/her obligation to make
    this deduction.                            The other grounds for obtaining a
                                               certificate remain unaltered so that the
    Assets                                     vendor is still entitled to a certificate if
                                               he/she can show that either no amount
    Section 76 extends the scope of the        of C.G.T. is payable or that the C.G.T.
    assets to which Paragraph 11 now           has been paid.
    applies to include :
                                               Non Monetary Consideration
         shares received in exchange for
          shares which were of a type          The provisions relating to non-
          specified in the original            monetary consideration disposals have
          enactment.                           been altered substantially. Since 2 June
                                               1995 a purchaser involved in such a
         situations which rank as             transaction and to whom the vendor
          disposals for C.G.T. purposes        has not given a certificate is now

                                                                   12
  CAPITAL GAINS TAX
                                              Administration of Capital Gains
          the asset acquired                 Tax
                                              There appears to be confusion among
      the consideration for acquiring        some practitioners, especially               It is administered by the Office of the
     the asset                                solicitors, regarding the administration     Chief Inspector of Taxes in the Tax
                                              of Capital Gains Tax. This has led to        Districts spread around the country.
         the market value of the             many queries being misdirected with
     consideration and                        consequent inefficiencies for both           Accordingly, practitioner queries (both
                                              Revenue and practitioners and their          oral and written) on behalf of clients in
     the name and address of the person      clients.                                     relation to Capital Gains should be
      making the disposal .                                                                addressed to the Tax District where the
                                              Capital Gains Tax is not administered        clients‟ Income Tax/Corporation Tax
    The purchaser must also pay to the        centrally in Dublin Castle like other        affairs are dealt with.
    Collector General 15% of the market       capital taxes such as Capital
    value of the consideration.               Acquisitions Tax.


EMPLOYERS‟ P35


    New Look to Form P35
    Tips for Completion

    By now each registered employer
    should have received their 1995/96
    P35 stationery. Practitioners are
    reminded that the deadline for                 return the original form (not a
    submission of fully completed returns           photocopy). In the interests of
    is 30 April 1996. Returns should be             accuracy the computer                       ensure that the Declaration Form
    sent to the Employers (P35) Unit,               technology used by Revenue to                is signed.
    Government Offices, Nenagh, Co.                 process returns is designed to
    Tipperary.                                      operate with original forms.                record the correct RSI number
                                                                                                 for each employee on the P35L.
    In an effort to improve customer               use the return envelope provided
    service to both taxpayers and                   as this also speeds up processing.          make a nil return for employers
    practitioners the P35 Declaration Form                                                       who have no employees during
    has been redesigned and simplified             ensure that all entries on the               the tax year.
    thus making it easier to complete. The          form are complete and legible.
    most up to date technology is being                                                    The above sets out the general
    used to capture and process the data on        make sure that all computations        position.
    the new form and practitioners can              are accurate and carried forward       If you require further advice or
    greatly assist Revenue in achieving             correctly.                             assistance please ring the
    accurate and timely processing by                                                      P35 Helpline at 6774211 (01 area)
    following some simple ground rules             complete the pence boxes in the                           or (067) 33533
    when completing the forms:-                     P35 Declaration Form and                                 (all other areas).
                                                    ensure that the totals field (part B
        make sure that the Declaration             on the Declaration Form) is            Finally remember that employee
         Form is used only for the                  completed.                             details can be submitted on
         employer to whom it is issued.                                                    Computer Tape or Diskette.
         This is necessary because each
         form is pre-coded with details
         unique to a specific employer.




                                                                13
REVENUE NEWS

                                                    Dublin PAYE No.4 District has moved           4th Floor,
    Tax Briefing -                                  from Hawkins House, Hawkins Street,           Setanta Centre,
                                                    Dublin 2 to :                                 Nassau Street,
    Issue 20                                                                                      Dublin 2.
                                                    14/15 Upr. O‟Connell Street,
                                                    Dublin 1.
    Correction
                                                    with effect from Monday 12 February           _______________________________
    Article 1.3 of Tax Briefing Issue 20, No.4,     1996.
    1995 on Off-Shore Funds contains an error.
                                                    Telephone number (01) 874 6821
                                                                                                  Revenue Forms &
    In paragraph (iv) of the Article the sentence
    „Broadly, gains arising on the disposal of
                                                                                                  Leaflets -
                                                    Fax number (01) 878 6389
    material interests in off-shore funds after 5                                                 Centralised form
    April 1995-----‟                                This District deals with employees of:
                                                    Airlines, Banks, Bookmakers, Brewers,
                                                                                                  ordering service
    should read                                     Dept.of Defence, Distillers, Farmers,
                                                    Hairdressers, Hotels, Motor Trade,            Practitioners should note that all Revenue
    „Broadly, gains arising on the disposal of      National Teachers, Newspapers, Printing.      forms and leaflets can now be ordered by
    material interests in certain off-shore funds                                                 telephone from
    after 5 April 1990-----‟
                                                    Dublin Audit No.3 District has moved          Revenue Forms & Leaflets Service
                                                    from Clanwilliam Court, Mount Street          at                  (01) 878 0100

    Collector General’s                             Lower, to:                                    (This service is available 24 hours a day)

    Decentralisation                                Hawkins House,                                Capital Taxes
                                                    Hawkins Street,
                                                    Dublin 2.                                     Practitioners should also note that Capital
                                                                                                  Tax forms relating to Capital Acquisitions
    As part of the Government‟s
                                                    with effect from Monday 12 February           Tax, Stamp Duty and Residential Property
    decentralisation programme, the Big Cases
                                                                                                  Tax can also be ordered directly (preferably
    Section of the Collector-General‟s Office,      1996.
                                                                                                  by Fax) from :
    formerly located in St. Martin‟s House,
    Waterloo Road, Dublin 2, has with effect        Telephone number      (01) 677 5004
                                                                                                  Taxpayer Advisory Service,
    from 1 March 1996 commenced relocating
                                                    Fax number            (01) 677 5003           Capital Taxes Division,
    to:
                                                                                                  Dublin Castle,
                                                    This District deals with Audit and Vat        Dublin 2.
    Office of the Collector-General,
    Customer Services - Big Cases Section,          queries of Professionals & Related
                                                    Companies.                                    Telephone No.       (01) 679 2777
    Sarsfield House,
                                                                                                             Extns. 4591/4593/4597
    Francis Street,
                                                    Castlebar District                            Fax No.             (01) 679 3261
    Limerick.

                                                    To avoid the possibility of correspondence
    Telephone No.         (061) 310310              going, in error, to other offices in the
    (Dublin callers may contact this Office at      building, all correspondence for Castlebar
    (01) 6774211)                                   District should be addressed to :-

    Fax No.                (061) 401009             Inspector of Taxes,
                                                    Michael Davitt House,
    Please note that all returns and payments       Castlebar,
    should continue to be submitted to the          Co. Mayo.
    address printed on the return form.
                                                    Tax Briefing
                                                    available on diskette
                                                    Practitioners should note that Tax Briefing
    Change of addresses                             can now be supplied on 3½ “diskettes, to
                                                    practitioners using Microsoft Word,
    for                                             Version 6.0. Requests should be made to :

    Tax Districts                                   Tax Briefing Mailing List,
                                                    Office of the Chief Inspector of Taxes,
                                                    Customer Services Unit,

                                                                         14
                                                  transmission to bank or building society
New Procedures in the                             accounts nominated by traders. An advice
Stamp Duty Public Office,                         slip giving brief details of the repayment         Revenue -
                                                  will be issued to traders at the same time as
Dublin Castle                                     the electronic payment is being made.
                                                                                                     on the Web
Following a review of cash handling               All traders registered for VAT have                People at home and abroad now have an
arrangements in the Stamp Duty Public             recently received an information leaflet           opportunity to obtain relevant and timely
Office, Dublin Castle, new procedures have        outlining the scheme and requesting details        tax and customs information at the click of
been introduced with effect from 5                of the nominated account to which their            a mouse.
February 1996. From that date, all cash           repayments will be sent.
payments for Stamp Duty or Companies                                                                 Information on business incentive schemes
Capital Duty must be made directly to :           Electronic transmission is the quickest and        - the 10% Corporation Tax rate, the
                                                  safest way to receive your VAT refund and          International Financial Services Centre and
Cash Office,                                      practitioners are asked to ensure that their       Section 35 Film Relief is now available on
Capital Taxes Division,                           clients have notified the Collector Generals       the Revenue Commissioners Web site on
Stamping Building,                                Office of the relevant details.                    the Internet. This site can be found at
Dublin Castle,                                                                                       http://www.revenue.ie/
Dublin 2.                                         Any further information in relation to the
                                                  scheme can be obtained from:                       For those interested in getting more
An explanatory leaflet is available from :                                                           information on these incentive schemes the
                                                                                                     E-mail address is
                                                  VAT Repayments Section,
Stamp Duty Office,                                Office of the Collector General,                   incentive@revenue.iol.ie.
Dublin Castle,                                    Sarsfield House,
Dublin 2.                                         Francis Street,                                    Other information available includes the
                                                  Limerick.                                          Taxpayers Charter of Rights, Personal Tax
For further information contact Brendan                                                              information, information on Double
Costigan at (01) 679 2777 Ext: 4574 or            Tel. No. (061) 310310                              Taxation agreements, and recent changes
Donal Savage at Ext: 4567.                        Fax No. (061) 401013.                              announced in the Budget.

Agents’ File
Change of name or
                                                  Tax Calendar 1996/97
address
Name and address information relating to          A tax calendar, covering the period 1 April
practitioners has now been extracted from         1996 to 30 April 1997, is enclosed with this
our computer records and used to compile a        issue. This is a quick reference guide to remind
comprehensive Agents‟ File. As a result,          you of key tax dates in the coming tax year.
any changes of agent‟s name or address
will need only be notified once to a central
area and individual notifications for each
client to various districts and offices will no
longer be necessary.
Changes of agents name/address should be
notified to:

Taxes Central Registration Office,
Arus Brugha,
9/10 Upper O‟Connell St,
Dublin 1.
                                                  New Business Profile
Telephone No.          (01) 874 6821
Fax No.                (01) 874 6078
                                                  Form (Form BP1)

                                                  A new simplified tax return form is being
                                                  introduced on a trial basis for the 1995/96
VAT -                                             tax year to cater for small unincorporated
                                                  businesses which do not engage agents to
Electronic                                        prepare their tax returns. The form,
transmission of VAT                               Business Profile (Form BP1), is similar to
                                                  the Farm Profile (Form AG12) currently
repayments                                        used by certain farmers.

The Revenue Commissioners will shortly            It incorporates a simplified form of
introduce a scheme whereby repayments of          accounts.
VAT will be made by electronic
                                                                      15
Double Taxation Treaties entered into by Ireland
    COUNTRY            DATE OF              DATE OF                                  DATE OF ENTRY INTO EFFEct
                       SIGNING            RATIFICATION
                                                                   Income Tax      Corporation Tax      Capital Gains Tax     S.I. No.
 AUSTRALIA         31 May 1983         21 December 1983           6 April 1984     1 January 1984         6 April 1984      406 of 1983
 AUSTRIA           24 May 1966         5 January 1968             "    " 1964                                               250 of 1967
 AUSTRIAN          19 June 1987        9 December 1988            "    " 1976      1 January 1974         6 April 1974       29 of 1988
 PROTOCOL
 BELGIUM           24 June 1970        31 December 1973           "   "   1973                                               66 of 1973
 CANADA            23 November 1966    6 December 1967            "   "   1958                                              212 of 1967
 CYPRUS            24 September 1968   4 December 1970            "   "   1952                                               79 of 1970
 CZECH REPUBLIC    14 November 1995    IR - December 1995                                                                   321 of 1995
 DENMARK           26 March 1993       8 October 1993             "   "   1994     1 January 1994         6 April 1994      286 of 1993
 FINLAND           27 March 1992       26 November 1993           "   "   1990     1 January 1990         6 April 1990      289 of 1993
 FRANCE            21 March 1968       15 June 1971               "   "   1966                                              162 of 1970
 GERMANY           17 October 1962     2 April 1964               "   "   1959                                              212 of 1962
 HUNGARY           25 April 1995       IR - December 1995                                                                   301 of 1995
 ITALY             11 June 1971        14 February 1975            "   " 1967                                                64 of 1973
 ISRAEL            20 November 1995       December 1995            "   " 1996      1 January 1996         6 April 1996      323 of 1995
 JAPAN             18 January 1974     4 November 1974             "   " 1974                                               259 of 1974
 KOREA (REP. OF)   18 July 1990        27 November 1991            "   " 1992      1 January 1992         6 April 1992      290 of 1991
 LUXEMBOURG        14 January 1972     25 February 1975            "   " 1968                                                65 of 1973
 NETHERLANDS       11 February 1969    12 May 1970                 "   " 1965                                                22 of 1970
 NEW ZEALAND       19 September 1986   26 September 1988           "   " 1989      1 January 1989         6 April 1989       30 of 1988
 NORWAY            21 October 1969     21 August 1970              "   " 1967                                                80 of 1970
 PAKISTAN          13 April 1973       20 December 1974            "   " 1968                                               260 of 1974
 POLAND            13 November 1995       December 1995            "   " 1996       1 January 1996        6 April 1996      322 of 1995
 PORTUGAL          1 June 1993         11 July 1994                "   " 1995       1 January 1995        6 April 1995      102 of 1994
 RUSSIA            29 April 1994         7 July 1995               "   " 1996       1 January 1996        6 April 1996      428 of 1994
 SPAIN             10 February 1994    21 November 1994            "   " 1995       1 January 1995        6 April 1995      308 of 1994
 SWEDEN            8 October 1986      5 April 1988                "   " 1988       1 January 1989        6 April 1988      348 of 1987
 SWEDISH           1 July 1993         21 December 1993          20 January 1994   20 January 1994      20 January 1994     398 of 1993
 PROTOCOL
 SWITZERLAND       8 November 1966     16 February 1968           6 April 1965                                              240 of 1967
 SWISS PROTOCOL    24 October 1980     25 April 1984              "   " 1976       1 January 1974         6 April 1974       76 of 1984
 UNITED KINGDOM    2 June 1976         23 December 1976           "   " 1976       1 January 1974         6 April 1976      319 of 1976
 UK PROTOCOL       7 November 1994     21 September 1995          6 April 1994       1 April 1994                           209 of 1995
 UNITED STATES     13 September 1949   20 December 1951           "   " 1951                                                Sch. B, ITA
                                                                                                                                „67
 ZAMBIA            29 March 1971       31 July 1973               "   "   1967                                              130 of 1973

 SOUTH AFRICA      1 May 1958          26 August 1960                                                                       210 of 1959
 SPAIN             25 February 1975    25 March 1977                                Sea or Air Transport Agreements          26 of 1977
 U.S.S.R.          17 December 1986    23 December 1987                             Air Transport Agreement                 349 of 1987




                                                            16