asked the Minister for Finance if he will now state, further to a reply of 1st May on the subject of income tax liability of co-operatives in which he stated that a precise estimate of the annual return from the proposed taxation had not been made, whether any estimate whatever of the annual return from this tax was made prior to the decision to impose it; and, if so, what was the estimate.
Ceisteanna—Questions. Oral Answers. - Income Tax Liability of Co-operatives.
6.
As I informed the Deputy on 1st May, a prime purpose of the proposed legislation in question is to prevent abuse of the existing exemption. In this connection, therefore, the proposed charge is not so much intended to bring in additional revenue as to stop a leakage which, if not checked, could lead to serious loss of revenue. I cannot say what the loss of tax would ultimately amount to since it would depend on the extent to which advantage would be taken of the existing position. Recent indications, however, are that this was becoming more widespread and I am satisfied that, if the abuse was not ended, the loss might soon amount to over £100,000 a year.