I move:—
(1) That in order to remove doubts it is hereby declared and enacted that for the purpose of determining liability for assessment to and payment of income tax, the Electricity Supply Board is not and never was the State or a branch or Department of the Government of the State.
(2) That the annual value with reference to which tax is to be charged under Schedules A and B of the Income Tax Act, 1918, in respect of any tenement or hereditament in the exclusive possession or control or the occupation of the Electricity Supply Board and for the time being exempt from assessment to poor rate shall be ascertained according to the surveys and valuations made under the Valuation Acts.
It was always intended that the Electricity Supply Board should be liable to income tax. That was stated by the Minister in this House and in the Seanad, and, of course, it was also told to the Board, but, in consequence of legal advice which has been received, there seems to be some doubt as to whether the intention was carried out or not. While the Board is apparently advised that it is not liable to income tax, the Revenue Commissioners are advised that it is liable, and whatever the decision of the Court may be, the position is, that without legislation litigation would take place and this resolution, which will be embodied in an amendment to the Finance Bill, is introduced. We are quite clear that the Electricity Supply Board ought to be liable to income tax. In the first place, it is to a certain extent in competition with private firms. It is in competition, for instance, with gas companies which are liable to income tax. It is in competition with firms which are engaged in the wiring of houses and the selling of electrical appliances which are also liable to income tax. It has taken over a number of private concerns which are making profits to the extent of about £120,000 per annum and which are liable to income tax. It is felt on all grounds that the Electricity Supply Board should have the same liability to income tax as these competing firms and as concerns whose works it took over and as, in fact, an ordinary commercial firm running a scheme of this nature. As I say, the object of the resolution is to remove doubts which have been raised and to give effect to an intention which has been on previous occasions expressed in the House.