Vol. 202 No. 1
I move:—
THAT in relation to accounting periods ending on or after the 1st day of January, 1963—
(a) section 53 of the Finance Act, 1921, shall be repealed;
(b) the Act giving effect to this Resolution may contain provisions consequential on or incidental to the said repeal, including special provision as respects accounting periods which began before and ended on or after the 1st day of January, 1963.
This deals with corporation profits tax on co-operative societies.
The Minister has said he will look into that, too.
This imposition of corporation profits tax on co-operative societies is subject to the same restrictions as the Minister says he proposes to implement in the Bill?
Yes.
How many Deputies understood when the Minister finished making his speech that the joint effect of Resolution No. 6 and Resolution No. 12 was, for the first time in 60 years, to make co-operative societies liable to income tax and corporation profits tax? I do not believe any Deputy knew that that was the intention of the Government. I must say it fascinates me to think of the members of the Fianna Fáil Party accepting and approving that proposal without discussion, debate or inquiry. We shall return to this on the Finance Bill but we will then need very much more detailed information on the introduction of such a revolutionary change in the taxation system of this country.
I think we have been told that only £10,000 approximately will be collected under Resolution No. 6. Could the Minister give any indication of what will be collected under Resolution No. 12?
Practically nothing.
Is it not a bad thing to have the time of the House taken up for nothing?
It is a very suspicious business. I should like the Minister to put on record that no co-operative society engaged at the present time in helping out areas which have been denuded of their population during past years will be penalised under this provision—that no co-operative society engaged in the growing or the processing of fruit and vegetables in places like Donegal, Cork or areas in the West of Ireland where such help is needed, will be penalised under this Resolution, and I would ask the Minister for a guarantee that no such penalty will be imposed on any such society.
I have already said that a co-operative society which takes produce from farmers for processing will be exempt. There is no doubt that the type of co-operative society mentioned by the Deputy, dealing with fruit and vegetables, will be exempt.
What about limited liability companies dealing in such produce?
We are dealing only with co-operative societies.
Is there no Resolution dealing with the proposal about bank deposit interests?
The Finance Bill will deal with that.
Would it not be better to have a Resolution introduced at this time and have the amount paid out under deduction of tax? It would be a better proposition for the Minister and the country. As it is, we will lose a lot of money. We will not get the revenue.
I do not agree.
If you did it the other way you would get revenue.
