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IMEACHTAÍ AN BHUAN-CHOMHCHOISTEPROCEEDINGS OF THE STANDING JOINT COMMITTEEDé Céadaoin, 4 Eanáir, 1967Wednesday, 4th January, 19671. The Committee met at 10.30 a.m. 2. Members Present. The following members were present: Deputy Sweetman (in the Chair), the Minister for Finance and Deputies Booth and de Valera; Senators Crowley, Eoin Ryan and Yeats. 3. Income Tax Bill, 1966. The Committee took the Bill into consideration. (i) Section 1 postponed. (ii) Sections 2 to 58 inclusive, agreed to. (iii) Section 59. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 54, line 45, to substitute ‘subsection’ for ‘paragraph’.” Amendment agreed to. Amendment proposed (Senator Eoin Ryan): “In subsection (2), page 54, line 52, to substitute ‘subsection’ for ‘paragraph’.” Amendment agreed to. Section, as amended, agreed to. (iv) Sections 60 to 63 inclusive, agreed to. (v) Section 64. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 57, line 52, to insert ‘ending on or after the 1st day of April, 1966’ after ‘period’.” Amendment agreed to. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 57, lines 56 to 58, to delete the proviso and to substitute ‘Provided that there shall be disregarded for the purposes of this subsection so much of the corporation profits tax paid in respect of any such accounting period which began before the 1st day of April, 1966, as is referable to profits apportioned under section 21 (2) of the Finance Act, 1966, to the part of the accounting period before that day.”’ Amendment agreed to. Section, as amended, agreed to. (vi) Sections 65 to 73 inclusive, agreed to. (vii) Section 74. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 68, line 46, to insert ‘a charge’ before ‘under’.” Amendment agreed to. Section, as amended, agreed to. (viii) Sections 75 and 76 agreed to. (ix) Section 77. Amendment proposed (Senator Eoin Ryan): “In subsection (5), page 71, line 3, to substitute ‘if’ for ‘to’ before ‘references’.” Amendment agreed to. Section, as amended, agreed to. (x) Sections 78, 79 and 80 agreed to. (xi) Section 81. Amendment proposed (Senator Eoin Ryan): “In subsection (4) (d), page 73, line 12, to substitute ‘or’ for ‘of’.” Amendment agreed to. Section, as amended, agreed to. (xii) Sections 82 to 92 inclusive, agreed to. (xiii) Section 93. Amendment proposed (Senator Eoin Ryan): “In subsection (3), page 82, line 12, to insert ‘subject to section 104,’ before ‘be treated’.” Amendment agreed to. Section, as amended, agreed to. (xiv) Sections 94 to 140 inclusive, agreed to. (xv) Section 141. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 115, line 44, before ‘of £120’, to insert ‘and such deduction, in the case of a child shown by the claimant to have been over the age of eleven years at the commencement of the year of assessment, shall be of the amount of £150 and, in any other case, shall be of the amount’.” Amendment agreed to. Amendment proposed (Senator Eoin Ryan): “In subsection (4), page 116, lines 21 to 25, to delete the words from ‘of £200’ to ‘the amount of the excess’ and to substitute ‘exceeding £80 a year, except that if the amount of the excess is less than the deduction which apart from this subsection would be allowable, a deduction reduced by that amount shall be allowed’.” Amendment agreed to. Section, as amended, agreed to. (xvi) Sections 142 to 217 inclusive, agreed to. Further consideration of the Bill adjourned. 4. Ordered: That the Committee do adjourn from 1.10 p.m. to 3 p.m. 5. The Committee met again at 3 p.m. 6. Members present. The following members were present: Deputy Sweetman (in the Chair), Deputies Booth, de Valera and Patrick Lenihan; Senators Crowley, Eoin Ryan and Yeats. 7. Income Tax Bill, 1966. The Committee resumed consideration of the Bill. (i) Sections 218 to 253 inclusive, agreed to. (ii) Section 254. Amendment proposed (Senator Eoin Ryan): “In subsection (2), page 192, line 47, to insert ‘or in relation to capital expenditure incurred on the construction of a building or structure in respect of which an allowance under this Chapter falls to be made by virtue of section 255 (1) (c)’ after ‘hotel-keeping’.” Amendment agreed to. Section, as amended, agreed to. (iii) Section 255. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 193, before paragraph (c), to insert a new paragraph as follows:— ‘( ) for the purposes of growing fruit, vegetables or other produce in the course of a trade of market gardening within the meaning of section 54, or’.” Amendment agreed to. Section, as amended, agreed to. (iv) Sections 256 to 263 inclusive, agreed to. (v) Section 264. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 197, line 5, to insert ‘and in relation to a building or structure which falls to be regarded as an industrial building or structure by reason of its use for the purposes of growing fruit, vegetables or other produce in the course of a trade of market gardening within the meaning of section 54’ before ‘,this Part’.” Amendment agreed to. Amendment proposed (Senator Eoin Ryan): “In subsection (3), page 197, line 37, to insert ‘and in relation to a building or structure which falls to be regarded as an industrial building or structure by reason of its use for the purposes of growing fruit, vegetables or other produce in the course of a trade of market gardening within the meaning of section 54’ before ‘,this Part’.” Amendment agreed to. Section, as amended, agreed to. (vi) Section 265. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 198, line 22, to insert ‘and in relation to a building or structure which falls to be regarded as an industrial building or structure by reason of its use for the purposes of growing fruit, vegetables or other produce in the course of a trade of market gardening within the meaning of section 54’ before ‘,this Part’.” Amendment agreed to. Section, as amended, agreed to. (vii) Section 266. Amendment proposed (Senator Eoin Ryan): “In subsection (4), page 200, line 11, to insert ‘and in relation to a building or structure which falls to be regarded as an industrial building or structure by reason of its use for the purposes of growing fruit, vegetables or other produce in the course of a trade of market gardening within the meaning of section 54’ before ‘,this Part’.” Amendment agreed to. Section, as amended, agreed to. (viii) Sections 267 to 277 inclusive, agreed to. (ix) Section 278. Amendment proposed (Senator Eoin Ryan): “In page 207, line 13, to insert ‘on’ before ‘the intestacy’.” Amendment agreed to. Section, as amended, agreed to. (x) Sections 279 to 299 inclusive, agreed to. (xi) Section 300. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 223, line 9, to substitute ‘1967’ for ‘1966’.” Amendment agreed to. Section, as amended, agreed to. (xii) Sections 301 to 343 inclusive, agreed to. (xiii) Section 344. Amendment proposed (Senator Eoin Ryan): “In subsection (4), page 248, lines 49 and 50, to substitute ‘The National Bank of Ireland Limited’ for ‘the National Bank, Limited’.” Amendment agreed to. Section, as amended, agreed to. (xiv) Sections 345 to 356 inclusive, agreed to. (xv) New section. Amendment proposed (Senator Eoin Ryan): “Before section 357 to insert a new section as follows:— ‘(1) In this section and Schedule 7— “Company” means any body corporate; “corporation tax” means the tax in Northern Ireland and Great Britain known as corporation tax; “profits” in relation to income tax means income. (2) Subject to the provisions of Schedule 7, corporation tax payable in respect of profits arising in Northern Ireland or Great Britain shall, to the extent to which it is to be taken into account for the purposes of this section, be allowed as a credit against the income tax chargeable for any year of assessment by reference to those profits. (3) Where a dividend is paid by a company resident in Northern Ireland or Great Britain to a company which beneficially owns, directly or indirectly, not less than three-quarters of the ordinary share capital of the former company, the credit shall take into account the corporation tax payable by the former company in respect of its profits. (4) The corporation tax payable in respect of any profits shall be taken into account for the purposes of this section— (a) where the profits are subject to corporation profits tax, only to the extent that it cannot, on due claim having been made in that behalf, be allowed as a credit against corporation profits tax, or (b) where the profits are not subject to corporation profits tax, only to the extent that it could not, on due claim having been made in that behalf, have been allowed as a credit against corporation profits tax if the profits had been subject to that tax as profits of a company incorporated by or under the laws of the State. (5) In a case in which relief is allowed under this section, section 363 (3) shall have effect in relation to a dividend paid before the passing of the Finance Act, 1966, as it has effect in relation to a dividend paid before the making by the Government of an order to which section 360 (1) relates’.” Question:—“That the new section be there inserted”—put, and agreed to. (xvi) Sections 357, 358 and 359 agreed to. (xvii) Section 360. Amendment proposed (Senator Eoin Ryan): “To add to the section the following subsection:— ‘(8) The Revenue Commissioners may from time to time make regulations generally for carrying out the provisions of this section or any arrangements having the force of law thereunder and may, in particular, but without prejudice to the generality of the foregoing, by those regulations provide— (a) for securing that relief from taxation imposed by the laws of the territory to which any such arrangements relate does not ensure to the benefit of persons not entitled thereto, and (b) for authorising, in cases where tax deductible from any periodical payment has, in order to comply with any such arrangements, not been deducted and it is discovered that the arrangements do not apply to that payment, the recovery of the tax by assessment on the person entitled to the payment or by deduction from subsequent payments.”’ Amendment agreed to. Section, as amended, agreed to. (xviii) Section 361 deleted. (xix) Section 362 agreed to. (xx) Section 363. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 254, line 41, to insert ‘of section 357 or’ after ‘by virtue’.” Amendment agreed to. Section, as amended, agreed to. (xxi) Sections 364 to 381 inclusive, agreed to. (xxii) Section 382. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 267, lines 4 to 6, to delete the definition of ‘existing mining operations’.” Amendment agreed to. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 267, line 12, to substitute ‘at no time in the period of one year ending on the 5th day of April, 1956, have resulted in the production of scheduled minerals’ for ‘are not existing mining operations’.” Amendment agreed to. Section, as amended, agreed to. (xxiii) Section 383 agreed to. (xxiv) Section 384. Amendment proposed (Senator Eoin Ryan): “In page 267, line 48, to insert ‘and any corporation profits tax which, by virtue of section 6 of the Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956, is not payable, shall be deemed to have been paid’ after ‘commencement day’.” Amendment agreed to. Section, as amended, agreed to. (xxv) Sections 385 to 390 inclusive, agreed to. (xxvi) Section 391. Amendment proposed (Senator Eoin Ryan): “In page 272, to substitute the following subsections for subsections (1), (2) and (3):— ‘(1) In this section “company” means a company which has obtained relief under section 11 of the Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956, in respect of profits derived from the working of an existing mine (as defined in the said section 11). (2) Notwithstanding that subsection (2) of the said section 11 no longer has effect, section 387 shall apply to a dividend paid by the company after the commencement of this Act in a case in which the dividend is paid out of profits the net income tax on which has been reduced by virtue of the said section 11. (3) For the purpose of applying section 387 to any such dividend the day on which the company commenced to carry on the trade of working the existing mine or the 6th day of April, 1954 (whichever is the later) shall be taken to be the commencement day.”’ Amendment agreed to. Amendment proposed (Senator Eoin Ryan): “In subsection (4), page 272, lines 31 and 42, to delete ‘established’ before ‘company’.” Amendment agreed to. Section, as amended, agreed to. (xxvii) Section 392. Amendment proposed (Senator Eoin Ryan): “In page 272, to delete subsection (1).” Amendment agreed to. Amendment proposed (Senator Eoin Ryan): “In subsection (2), page 272, line 53, to insert ‘qualifying’ before ‘mine’.” Amendment agreed to. Section, as amended, agreed to. (xxviii) Section 393. Amendment proposed (Senator Eoin Ryan): “In page 273, lines 22 to 24 and lines 29 to 39, to delete the definitions of ‘commencement day’ and ‘new coal-mining operations’.” Amendment agreed to. Section, as amended, agreed to. (xxix) Section 394. Amendment proposed (Senator Eoin Ryan): “In page 273, lines 44 and 45, to delete ‘new coal-mining operations or’.” Amendment agreed to. Section, as amended, agreed to. (xxx) Sections 395 and 396 deleted. (xxxi) Section 397. Amendment proposed (Senator Eoin Ryan): “In page 274, to insert the following subsection after subsection (1):— ‘() In computing, for the purpose of assessment to income tax, the amount of the profits from existing coal-mining operations, any corporation profits tax which, by virtue of section 8 (2) of the Finance (Miscellaneous Provisions) Act, 1956, is not payable, shall be deemed to have been paid’.” Amendment agreed to. Section, as amended, agreed to. (xxxii) Section 398. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 275, line 2, to insert ‘or section 7 of the Finance (Miscellaneous Provisions) Act, 1956, or section 32 of the Finance Act, 1960’ after ‘Chapter’.” Amendment agreed to. Amendment proposed (Senator Eoin Ryan): “In subsection (2), page 275, line 8, to insert ‘or section 7 of the Finance (Miscellaneous Provisions) Act, 1956, or section 32 of the Finance Act, 1960’ after ‘Chapter’.” Amendment agreed to. Section, as amended, agreed to. (xxxiii) Section 399. Amendment proposed (Senator Eoin Ryan): “In page 275, lines 22 and 23, to delete ‘(including any opinion of the Revenue Commissioners under section 393)’.” Amendment agreed to. Section, as amended, agreed to. (xxxiv) Section 400 deleted. (xxxv) Sections 401 to 406 inclusive, agreed to. (xxxvi) Section 407. Amendment proposed (Senator Eoin Ryan): “In page 280, to insert the following subsection after subsection (8):— ‘( ) In computing, for the purpose of assessment to income tax, the amount of the profits or gains from a company’s trade, any corporation profits tax which, by virtue of section 13 of the Finance (Miscellaneous Provisions) Act, 1956, is not payable, shall be deemed to have been paid.”’ Amendment agreed to. Section, as amended, agreed to. (xxxvii) Section 408 agreed to. (xxxviii) New sections. Amendment proposed (Senator Eoin Ryan): “Before section 409 to insert a new section as follows:— ‘(1) In the case of a body corporate carrying on a trade which consists of or includes the rendering to another person of services by way of subjecting commodities or materials belonging to that person to any process of manufacturing, the following provisions shall, if the body corporate so elects, apply for the purposes of relief from income tax under this Chapter: (a) the body corporate shall be regarded as being a company where it would not otherwise be so regarded; (b) the rendering in the State of such services shall be regarded as the manufacture of goods and any amount receivable in payment therefor shall be regarded as an amount receivable from the sale of goods, and (c) where— (i) such services are rendered to a person who is not resident in the State in relation to commodities or materials which have been imported into the State, and (ii) after the services have been rendered, the commodities or materials, or the products or articles into which they have been converted, are exported out of the State while continuing to belong to that person, the body corporate shall be regarded as having exported goods out of the State and any payment receivable by it for the services shall be regarded as an amount receivable from the sale of goods so exported. (2) Any election under subsection (1) shall be made by notice in writing delivered to the inspector and shall have effect as respects every year of claim for which relief under this Chapter is, or has been, claimed by the body corporate by which it is made. (3) The Revenue Commissioners may by notice in writing require a body corporate claiming relief from tax by virtue of subsection (1) to furnish them with such information or particulars as may be necessary for the purpose of giving effect to that subsection, and section 407 (1) shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this subsection. (4) Subsection (1) shall have effect as from the 27th day of December, 1956, and relief from tax may be given accordingly by repayment or otherwise as the Revenue Commissioners think proper: Provided that where, before an election was made by it under this section, a body corporate has paid a dividend and the amount of income tax which it was entitled to deduct from the dividend exceeds the amount which, under section 410 (2), it would have been entitled to deduct if the election had been made before the dividend was paid, any relief from income tax which would otherwise have been allowable shall be reduced by the amount of the excess. (5) Where for any year of assessment the income of any person consists of, or includes, a dividend in relation to which the proviso to subsection (4) has had effect, the person shall be entitled to claim such repayment, if any, of income tax and sur-tax as will reduce his total liabilities to those taxes to what those liabilities would have been if income tax had been deducted from the dividend at the rate at which it would have been deductible if subsection (1) had had effect in relation to the body corporate at the time when the dividend was paid.”’ Question:—“That the new section be there inserted”—put, and agreed to. Amendment proposed (Senator Eoin Ryan): “Before section 409 to insert the following section:— ‘For the purposes of section 407 (1), where, in a year of claim, there is a succession to a trade, the total amount receivable from the sale of the goods exported during the standard period shall be apportioned between the predecessor and the successor in proportion to the lengths of the respective periods in the year of claim during which they carried on the trade.”’ Question:—“That the new section be there inserted”—put, and agreed to. Amendment proposed (Senator Eoin Ryan): “Before section 409 to insert the following section:— ‘Where, in the year of claim, the trade is permanently discontinued, the total amount receivable from the sale of the goods exported during the standard period shall, for the purposes of section 407 (1), be deemed to be such part thereof as bears to the whole the same proportion as the period in the year of claim during which the trade was carried on bears to twelve months’.” Question:—“That the new section be there inserted”—put, and agreed to. Amendment proposed (Senator Eoin Ryan): “Before section 409 to insert the following section:— ‘Where, on or after the day on which the standard period commenced, any change takes place whereby a part of a trade becomes transferred to any person, the total amount receivable from the sale of the goods exported during the standard period shall, as respects any year of claim in which, or prior to which, the change occurs, be apportioned for the purposes of section 407 (1) and every such apportionment shall be made in such manner as the Revenue Commissioners consider just, having regard to all the circumstances.”’ Question:—“That the new section be there inserted”—put, and agreed to. (xxxix) Section 409 deleted. (xl) Sections 410 to 425 inclusive, agreed to. (xli) Section 426. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 290, line 20, to insert ‘made on another person’ before ‘to appear’.” Amendment agreed to. Section, as amended, agreed to. (xlii) Sections 427 to 433 inclusive, agreed to. (xliii) Section 434. Amendment proposed (Senator Eoin Ryan): “In subsection (5) (d), page 294, line 51, to substitute ‘rehearing’ for ‘rehearsing’ and to insert ‘the’ after ‘for’.” Amendment agreed to. Section, as amended, agreed to. (xliv) Sections 435 to 449 inclusive, agreed to. (xlv) Section 450. Amendment proposed (Senator Eoin Ryan): “In subsection (2) (c) (ii), page 304, lines 25 and 26, to delete ‘£4,000 to which the widow of the intestate’ and substitute ‘£500 to which a widow is entitled under the Intestates’ Estates Act, 1890, or the sum of £4,000 to which a widow’.” Amendment agreed to. Section, as amended, agreed to. (xlvi) Sections 451 to 464 inclusive, agreed to. (xlvii) New section. Amendment proposed (Senator Eoin Ryan): “Before section 465 to insert a new section as follows:— ‘The excess of the amount received on the redemption of a unit of non-interest-bearing securities issued by the Minister for Finance under section 4 of the Central Fund Act, 1965, over the amount which was paid for the unit on its issue shall, save where the excess falls to be taken into account in computing for the purposes of taxation the profits of a trade, be exempt from income tax (including sur-tax).”’ Question:—“That the new section be there inserted”—put, and agreed to. (xlviii) Sections 465 and 466 agreed to. (xlix) Section 467. Amendment proposed (Senator Eoin Ryan): “To add to the section the following subsection:— ‘(3) Debentures, debenture stock and certificates of charge issued by The Agricultural Credit Corporation, Limited, shall not be liable to tax so long as it is shown in manner to be prescribed by the Minister for Finance that they are in the beneficial ownership of persons who are neither domiciled nor ordinarily resident in the State.”’ Amendment agreed to. Section, as amended, agreed to. (l) Section 468 deleted. (li) Sections 469 to 482 inclusive, agreed to. (lii) Section 483 postponed. (liii) Sections 484 to 522 inclusive, agreed to. (liv) Section 523. Amendment proposed (Senator Eoin Ryan): “In subsection (1), page 332, line 40, to substitute ‘that’ for ‘the’.” Amendment agreed to. Section, as amended, agreed to. (lv) Sections 524 to 530 inclusive, agreed to. (lvi) New section. Amendment proposed (Senator Eoin Ryan): “Before section 531, but in Chapter II of Part XXXVI, to insert a new section as follows:— ‘(1) Any company to which section 530 applies, may at any time after the general meeting at which the accounts of the company made up for any year or other period are adopted, forward to the Special Commissioners for their consideration a copy of the said accounts, together with a copy of the report, if any, of the directors for that year or period, and such further information, if any, as it may think fit, and the Special Commissioners shall, subject to the provisions of this section, on receiving the said accounts and other documents, if any, proceed to consider the position of the company in relation to the said section 530. (2) The Special Commissioners may as soon as reasonably may be, but not later than twenty-eight days after the receipt of the said accounts and other documents, if any, call upon the company to furnish to them within twenty-eight days, or such extended period as they may subsequently allow, such further particulars as they may reasonably require: Provided that, if the particulars so required are not furnished to the Commissioners within the period or extended period allowed for the purpose, they may proceed under this section upon the information before them. (3) Where a company has under subsection (1) forwarded to the Special Commissioners the accounts of the company for any year or other period, whether with or without any other documents, the following provisions shall have effect:— (a) unless within three months after the receipt of the said accounts and other documents, or, if further particulars have been required as aforesaid, within three months after the receipt of those particulars, or the expiration of the period within which those particulars are to be furnished, as the case may be, the Special Commissioners intimate to the company their intention to take further action in the case of the company under the said section 530 in respect of that year or other period, the power of the Commissioners to take any such further action in respect of that year or other period shall absolutely cease and determine; and (b) notwithstanding that the Special Commissioners have given such an intimation as aforesaid, they shall not after the expiration of six months from the date of the intimation have power in relation to that company to issue a notice under Schedule 15, paragraph 4, with respect to that year or period, or, unless such a notice has been issued before the expiration of the said period of six months, to give a direction in relation to the company under section 530 (1).”’ Question:—“That the new section be there inserted”—put, and agreed to. (lvii) Sections 531 to 541 inclusive, agreed to. (lviii) Section 542. Amendment proposed (Senator Eoin Ryan): “In page 342— (i) in line 41, before ‘is’ to insert ‘annulling any such regulation’; and (ii) to delete all words from and including ‘praying’ in line 45 down to and including ‘void,’ in line 47, and to substitute ‘the regulation shall be annulled accordingly’.” Amendment agreed to. Section, as amended, agreed to. (lix) Sections 543 to 560 inclusive, agreed to. (lx) Schedules 1 to 6 inclusive, agreed to. (lxi) New Schedule. Amendment proposed (Senator Eoin Ryan): “Before Schedule 7 to insert a new Schedule as follows:— ‘SCHEDULE 7 Provisions as to Relief from Income Tax by way of Credit in respect of United Kingdom Corporation Tax 1. Subject to the provisions of this Schedule, where, under section 357, credit is to be allowed against income tax chargeable by reference to any profits, the amount of income tax so chargeable shall be reduced by the amount of the credit. 2. For any year of assessment, the amount of the credit to be allowed against income tax for corporation tax in respect of any profits shall not exceed the income tax chargeable by reference to those profits. 3. (a) Where in respect of any source of profits income tax is chargeable by assessment, the tax chargeable by the assessment for any year of assessment shall be regarded as chargeable by reference to the profits of the basis period for that year and the amount of corporation tax payable in respect of any profits by reference to which income tax is chargeable for any year of assessment shall be determined accordingly: Provided that where the assessment for any year of assessment is reduced under section 58 (4), the corporation tax payable in respect of the profits by reference to which income tax is chargeable thereby shall be taken to be the amount, if any, by which the aggregate amount of corporation tax payable in respect of the profits arising in that year of assessment and in the year preceding that year exceeds the amount of any corporation tax payable in respect of profits by reference to which income tax is chargeable for that preceding year. (b) In relation to any source of profits the basis period for a year of assessment shall, for the purposes of the foregoing subparagraph, be taken to be the period on the profits of which income tax falls to be finally computed in respect of that source or, where, by virtue of this Act, the profits of any other period are to be taken to be the profits of the said period, that other period. 4. (a) Subject to the provisions of this paragraph, where credit for corporation tax in respect of any profits falls to be allowed against corporation profits tax or income tax, no deduction for corporation tax (whether in respect of those or any other profits) shall be made in computing the amount of those profits for the purposes of income tax. (b) The amount of such a dividend as is mentioned in section 357 (3) shall, for the purposes of income tax, be treated as increased by the amount of corporation tax not chargeable directly in respect thereof which falls to be taken into account in computing the amount of the credit and, for the purpose of determining the said amount of corporation tax, paragraph 6 of Part II of the Fifth Schedule to the Finance Act, 1949, shall have effect as if a reference to the said section 357 were substituted for the reference to the agreement set forth in Part I of that Schedule and a reference to income tax for the reference to corporation profits tax. (c) Notwithstanding anything in the preceding subparagraphs— (i) where any part of the corporation tax in respect of any profits (including any corporation tax which, under subparagraph (b), falls to be treated as increasing the amount of a dividend) cannot be allowed as a credit against either corporation profits tax or income tax, the amount of the profits shall be treated for the purposes of income tax as reduced by that part of the corporation tax, and (ii) where any part of the corporation tax in respect of any profits arising on or after the 1st day of April, 1966 (including any corporation tax which, under subparagraph (b), falls to be treated as increasing the amount of a dividend) falls to be allowed as a credit against corporation profits tax, the amount of the profits shall be treated for the purposes of income tax as reduced by that part of the corporation tax. 5. (a) Where for any purpose of this Schedule it is necessary, in order to arrive at the amount of corporation tax payable in respect of the profits arising in any year of assessment or other period, to divide and apportion to specific periods the profits on which any assessment to corporation tax has been made, or to aggregate any such profits or any apportioned parts thereof, it shall be lawful to make such a division and apportionment or aggregation. (b) Any apportionment under this paragraph shall be made in proportion to the respective lengths of the periods. 6. The provisions of paragraphs 6, 12, 13 and 14 of Schedule 9 shall, with any necessary modifications, have effect in relation to the allowance of credit for corporation tax under section 357 as they have effect in relation to the allowance of credit for tax payable under the laws of a territory in regard to which arrangements are in force by virtue of section 360.”’ Question:—“That the new Schedule be there inserted”—put, and agreed to. (lxii) Schedules 7 and 8 agreed to. (lxiii) Schedule 9. Amendment proposed (Senator Eoin Ryan): “In paragraph 8 (3) (c), page 391, line 23, to insert ‘either falls to be allowed as a credit against corporation profits tax, or’ after ‘income)’.” Amendment agreed to. Amendment proposed (Senator Eoin Ryan): “In paragraph 8 (3) (c), page 391, line 27, after ‘tax’ to add:— ‘Provided that in relation to foreign tax in respect of income arising before the 1st day of April, 1966, the provisions of this paragraph shall have effect as if the words “either falls to be allowed against corporation profits tax or” were omitted from this clause and, for the purposes of this proviso, in a case in which the foreign tax is chargeable in respect of income arising in a period of which a part is before the 1st day of April, 1966, and a part after the 31st day of March, 1966, the foreign tax shall be apportioned in proportion to the respective lengths of those parts.”’ Amendment agreed to. Schedule, as amended, agreed to. (lxiv) Schedules 10 to 17 inclusive, agreed to. (lxv) Schedule 18. Amendment proposed (Senator Eoin Ryan): “In page 410, to insert in the appropriate places the following:—
’ ” Amendment agreed to. Schedule, as amended, agreed to. Further consideration of the Bill adjourned. 8. Adjournment. The Committee adjourned at 7 p.m. until 2.30 p.m. tomorrow. |
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