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IMEACHTAÍ AN CHOISTE SPEISIALTA.PROCEEDINGS OF THE SPECIAL COMMITTEE.Dé Céadaoin, 25 Feabhra, 1976.Wednesday, 25th February, 1976.1. The Committee met at 11 a.m. 2. Members Present. The following members were present:— Deputy Esmonde (in the Chair), the Minister for Finance, Deputies Paddy Belton, Brugha,* Edward Collins, Crowley, Maurice Dockrell, Tom Fitzpatrick (Dublin Central), * Haughey, Kenneally, Noonan, O’Malley and Seamus Pattison. 3. Consideration of Bill. The Committee resumed consideration of the Bill. (i) Sections 69 and 70 agreed to. (ii) Section 71. Question “That the section stand part of the Bill”, put: the Committee divided: For, 5; Against, 3. For:—Minister for Finance, Deputies Paddy Belton, Edward Collins, Maurice Dockrell and Esmonde. Against:—Deputies Tom Fitzpatrick (Dublin Central), Haughey and O’Malley. The Question was declared carried accordingly. (iii) Sections 72 to 76 inclusive, agreed to. (iv) New section. Amendment proposed (Minister for Finance): “In page 68, before section 77, to insert a new section as follows: ‘77.—Where charges on income, which are payable out of the income of a trade consisting partly of exempted trading operations and partly of other trading operations, are paid in an accounting period by a company there shall be treated as paid out of profits brought into charge to corporation tax only the portion of the charges so payable which bears to the total amount thereof the same proportion as the amount of the income of the trade actually charged to tax bears to the amount of such income which would have been charged to tax if this Part had not been enacted.’.” Question “That the new section be there inserted”—put, and agreed to. (v) Section 77 deleted. (vi) Section 78 agreed to. (vii) Section 79. Amendment proposed (Minister for Finance): “In page 73, in subsection (6), lines 21 and 22, to delete ‘applies in respect of the distribution or’.” Amendment agreed to. Amendment proposed (Minister for Finance): “In page 73, in subsection (6), line 28, after ‘income tax’ to insert ‘for the year of assessment in which the winding up or dissolution occurs’.” Amendment agreed to. Amendment proposed (Minister for Finance): “In page 74, after line 38, to insert a new subsection as follows: ‘(8) Any amount on which by virtue of this section income tax is charged on a company by an assessment under Case IV of Schedule D shall not be regarded as income of the company for any purpose of the Tax Acts’.” Amendment agreed to. Section, as amended, agreed to. (viii) Sections 80 and 81 agreed to. (ix) Section 82. Amendment proposed (Minister for Finance): “In page 76, subsection (5), line 16, to delete ‘subsection (6)’ and to substitute ‘subsection (7)’.” Amendment agreed to. Section, as amended, agreed to. (x) Sections 83 to 89 inclusive, agreed to. (xi) Section 90. Amendment proposed (Minister for Finance): “In page 84, in subsection (2), lines 61 and 62, to delete ‘applies in respect of the distribution or’.” Amendment agreed to. Amendment proposed (Minister for Finance): “In page 85, in subsection (4), line 18, to delete ‘applies in respect of the distribution or’.” Amendment agreed to. Section, as amended, agreed to. (xii) Section 91. Amendment proposed (Minister for Finance): “In page 85, in subsection (2), line 50, to delete ‘applies in respect of the distribution or’.” Amendment agreed to. Amendment proposed (Minister for Finance): “In page 85, after line 58, to insert a new subsection as follows: ‘(4) Any amount on which by virtue of this section income tax is charged on a company by an assessment under Case IV of Schedule D shall not be regarded as income of the company for any purpose of the Tax Acts’.” Amendment agreed to. Section, as amended, agreed to. (xiii) Section 92 agreed to. (xiv) Section 93. Amendment proposed (Minister for Finance): “In page 87, to delete subsections (10) and (11).” Amendment agreed to. Section, as amended, agreed to. (xv) Section 94 agreed to. (xvi) Section 95. Amendment proposed (Deputy Haughey): “In page 89, subsection 1 (a), line 6 to delete ‘50’ and substitute ‘35’.” Amendment agreed to. Amendment proposed (Minister for Finance): “In page 89, in subsection (3), line 24, to delete ‘expectations’ and to substitute ‘exceptions’.” Amendment agreed to. Section, as amended, agreed to. (xvii) Section 96 agreed to. (xviii) Section 97. Amendment proposed (Deputy Haughey): “In page 91, subsection (4), lines 35 and 36 to delete ‘12 per cent. per annum or such other rate of interest as the Minister for Finance may from time to time prescribe’ and substitute ‘such a rate as the company would have to pay on similar borrowings from a bank’.” Amendment, by leave, withdrawn. Amendment proposed (Deputy Haughey:) “In page 91, line 35 to delete ‘12’ and substitute ‘13’.” Amendment agreed to. Amendment proposed (Deputy Haughey): “In page 91, subsection (4), line 47 after ‘period’ to add: ‘Provided that the restriction will not apply to interest paid to an associate where it is shown that the loan was provided by the associate from his own resources or from personal bank borrowings’.” Amendment, by leave, withdrawn. Section, as amended, agreed to. (xix) Section 98. Amendment proposed (Deputy Haughey): “In page 92, between lines 46 and 47 to insert a new subsection as follows: ‘(4) subsection (1) shall not apply to— (a) loans made to persons who are not resident in the State and where no person resident in the State would become liable to tax if distributions were made to the nonresident person who received the loan; (b) loans in excess of a company’s distributable income; (c) loans made out of profits which have been relieved from tax under Parts IV and V of this Act or under Part XXV of the Income Tax Act, 1967’.” Amendment, by leave, withdrawn. Section agreed to. Further consideration of the Bill adjourned. 4. Ordered that the Committee do adjourn from 1.40 p.m. to 3.30 p.m. 5. The Committee met again at 3.30 p.m. 6. Members Present. The following members were present:— Deputy Esmonde (in the Chair), the Minister for Finance, Deputies Paddy Belton, Bermingham,* Edward Collins, Conlon,* Tom Fitzpatrick (Dublin Central),* Haughey, Lalor,* O’Malley and Pattison. 7. Consideration of Bill. The Committee resumed consideration of the Bill. (i) Section 99. Amendment proposed (Minister for Finance): “In page 93, subsection (1), line 32, after ‘income tax’ to insert ‘by virtue of section 434 of the Income Tax Act, 1967’.” Amendment agreed to. Section, as amended, agreed to. (ii) Section 100 agreed to. (iii) Section 101. Amendment proposed (Minister for Finance): “In pages 96 and 97, to delete subsection (2) and to substitute the following subsection: ‘(2) Where the aggregate of— (a) the accumulated undistributed income of the company at the end of the accounting period, and (b) any amount which, on or after the 27th day of November, 1975, was transferred to capital reserves or was used to issue shares, stock or securities as paid up otherwise than for new consideration (as defined in Part IX) or was otherwise used so as to reduce the amount referred to in paragraph (a), is less than the excess referred to in subsection (1), that subsection shall apply as if the amount of that aggregate were substituted for the said excess.’.” Amendment agreed to. Section, as amended, agreed to. (iv) Sections 102 to 108 inclusive, agreed to. (v) Section 109. Amendment proposed (Minister for Finance): “In page 104, subsection (1), line 19, to delete ‘section 108’ and to substitute ‘this Part’.” Amendment agreed to. Section, as amended, agreed to. (vi) Section 110 agreed to. Further consideration of the Bill adjourned. 4. Adjournment. The Committee adjourned at 6.40 p.m., until 2.30 p.m. on Tuesday, 2nd March, 1976. |
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