Committee Reports::Report - Corporation Tax Bill, 1975::24 February, 1976::Proceedings of the Joint Committee

Deputy Esmonde (in the Chair), the Minister for Finance, Deputies Paddy Belton, Brugha,* Edward Collins, Crowley, Maurice Dockrell, Tom Fitzpatrick (Dublin Central),* Kenneally, O’Malley and Seamus Pattison.

“In page 58, subsection (1), line 10, to delete ‘carrying’ and to substitute ‘carries’.”

“In page 58, subsection (1), line 13, before ‘all’ to insert ‘and’.”

“In page 59, subsection (2), line 24, to delete ‘carrying’ and to substitute ‘carries’.”

Question “That the section, as amended, stand part of the Bill”, put: the Committee divided: For, 5; Against, 4.

For:—Minister for Finance, Deputies Paddy Belton, Maurice Dockrell, Esmonde and Pattison.

Against:—Deputies Brugha, Crowley, Tom Fitzpatrick (Dublin Central) and O’Malley.

“In page 61, subsection (2), line 57, and in page 62, lines 1 and 2, to delete ‘such proportion of the amount of the relevant distribution as is represented by the fraction (A+B)/C of the relevant distribution’ and to substitute ‘an amount arrived at by applying a fraction determined by the formula (A+B)/C to the amount of the relevant distribution’.”

‘(c) where the total amount of the distributions made or deemed under this subsection to have been made for the first accounting period for which the company came within the charge to corporation tax exceeds the distributable income of the company for that accounting period—

(i) the excess shall be deemed to be a distribution for the company’s period of account which ended on the accounting date last before the 6th day of April, 1975, or, if there was no such period of account, to be a distribution for the year which ended on the 5th day of April, 1976, and

(ii) the tax credit in respect of the excess which is so deemed shall be an amount equal to the amount of income tax which, under section 410 of the Income Tax Act, 1967, the company would have been entitled to deduct from a dividend of such an amount as after deduction of that tax would equal the amount of the excess and for this purpose it shall be assumed that the dividend was paid on the 5th day of April, 1976, and was in respect of the said period of account or year which ended on the 5th day of April, 1976, as the case may be.’.”

“In page 62, subsection (4), lines 39, 40 and 41, to delete paragraph (a) and to substitute the following paragraph:

‘(a) the income of the company charged to corporation tax for the accounting period as defined in section 28 (8) less the amount of corporation tax payable by the company for the the accounting period which is attributable to that income, and’.”

“In page 62, subsection (4), line 46, to insert ‘25 or 26,’ after ‘section 15 (4),’.”

“In page 63, lines 8 to 14, to delete subsection (7) and to substitute the following subsection:

‘(7) Where the income of a company for an accounting period includes a dividend from which income tax was deducted under section 456 of the Income Tax Act, 1967, then for the purposes of this section the amount of tax so deducted shall be deemed to be a tax credit in respect of a distribution of an amount equal to the amount of the dividend reduced by the amount of tax so deducted.’.”

“In page 64, subsection (3), lines 24, 28, 34 and 59, to substitute ‘in relation to’ for ‘in respect of’ in each place where it occurs.”

The Committee adjourned at 6.40 p.m. until 11 a.m. on Wednesday, 25th February, 1976.

IMEACHTAÍ AN CHOISTE SPEISIALTA.

PROCEEDINGS OF THE SPECIAL COMMITTEE.

Dé Máirt, 24 Feabhra, 1976.

Tuesday, 24th February, 1976.