I move amendment No. 1:
In page 11, to delete lines 1 to 7 and substitute as follows:
"(1) Where, for any year of assessment, a person to whom this section applies is chargeable to tax under Schedule B in respect of the occupation for the purposes of husbandry of any lands—
(a) the person shall when required to do so by a notice in writing served on him by an inspector of taxes prepare and deliver to the inspector, within the time limited by the notice, a statement of the profits or gains on which he would have been chargeable for the year of assessment if he had made an election in relation to the lands under Rule 5 of the Rules applicable to Schedule B;
(b) where the person fails to deliver the statement, or where the Revenue Commissioners are not satisfied with the statement delivered by the person, the Revenue Commissioners may serve on the person a notice in writing or notices in writing requiring him to do any of the following things, that is to say—
(i) to deliver to an inspector of taxes copies of such accounts (including balance sheets) relating to the occupation of the lands as may be specified or described in the notice within such period as may be therein specified, including, where the accounts have been audited, a copy of the auditor's certificate,
(ii) to make available, within such time as may be specified in the notice, for inspection by an inspector of taxes or by any officer authorised by the Revenue Commissioners, all such books, accounts and documents in his possession or power as may be specified or described in the notice, being books, accounts and documents which contain information as to transactions related to the occupation of the lands;
(c) the inspector of taxes or other officer may take copies of, or extracts from, any books, accounts or documents made available for his inspection under the foregoing paragraph;
(d) where the person fails to do anything which he is required to do by a notice under paragraph (b) of this subsection, the Income Tax Acts shall apply as if he had duly made, under Rule 5 of the Rules applicable to Schedule B, an election in relation to the lands by notice delivered immediately after the commencement of the year of assessment;
(e) where the person has delivered copies of accounts relating to the occupation of the lands and the Revenue Commissioners are of opinion that the accounts overstate the profits or gains arising from such occupation, the Revenue Commissioners may certify accordingly;
(f) where the Revenue Commissioners have given a certificate under the foregoing paragraph—
(i) the Income Tax Acts shall, subject to the next subparagraph, apply as if the person had duly made, under Rule 5 of the Rules applicable to Schedule B, an election in relation to the lands by notice delivered immediately after the commencement of the year of assessment,
(ii) an appeal against the certificate shall, within twentyone days after notification of the person of the giving of the certificate, lie to the Special Commissioners in like manner as an appeal would lie against an assessment to income tax and the provisions of the Income Tax Acts relating to appeals shall have effect accordingly."
The point was raised by Deputy Sweetman on Committee Stage that it would be unfair and unjust to apply this section to a man who is carrying on farming in the normal way and who is making a profit under good conditions. I agree with that. I undertook to consider whether the section could be amended to safeguard such a farmer. The amendment is rather long, but that does not take from its effectiveness. I should say that the section was designed to deal with a person in a trade or profession who returns a very small profit on his trade or profession, and intimates to the inspector of taxes that he is making a larger profit on the farm. The amendment provides that the inspector will ask the owner of the farm to make a statement on his profits from the farm, and the Revenue Commissioners will consider whether or not they should go further with the matter.
If the Revenue Commissioners consider that the statement is correct, in their opinion, they go no further and he pays his tax on the valuation, if he has to pay income tax at all. If they think the profit is over-stated, they may require him to pay on profits rather than on valuation. He has an appeal against that decision to the Special Commissioners. If the Special Commissioners rule that his statement was correct, he pays on the valuation and that is the end of it. If they rule in favour of the Revenue Commissioners, he pays on profits. If he refuses to make a return, he will be dealt with in the ordinary way in which any income tax payer would be dealt with in the same circumstances.