Committee on Finance. - Finance Bill, 1970: Financial Resolutions.

I move:

That provision be made for such reductions in the deduction claimable under section 141 of the Income Tax Act, 1967, as may be prescribed in the Act giving effect to this Resolution.

Question put and agreed to.

I move:

That provision be made for such increases in income tax and sur-tax as may arise, with effect from the year of assessment 1970-71, in consequence of amendments of the law relating to deductions for wear and tear of machinery or plant under section 241 of the Income Tax Act, 1967.

Is this formal?

Yes. It relates to section 14.

Question put and agreed to.

I move:

That provision be made with a view to, or in connection with, the imposition of a charge for income tax purposes in respect of certain payments made on or after a date to be appointed by order by the Minister for Finance where such payments arise under construction contracts as may be defined in the Act giving effect to this Resolution.

Question put and agreed to.

I move:

That for the purposes of income tax (including sur-tax) and corporation profits tax, provision be made for withholding industrial building allowance in respect of expenditure on the construction of a building or structure if the relevant interest in the building or structure is sold before the building or structure is used.

Question put and agreed to.

I move:

That provision be made as follows with respect to the charge to income tax, sur-tax and corporation profits tax of trades and professions, that is to say—

(a) for imposing any charge to tax in respect of profits or gains (including such sums as are referred to in the next following paragraph) arising from a trade or profession which accrue after the trade or profession has been or is treated for tax purposes as having been discontinued;

(b) for including in the profits or gains chargeable to tax any sums released in respect of debts deducted in computing for tax purposes the profits or gains of a trade or profession:

(c) for amending the law with respect to the valuation for tax purposes of work in progress in cases where a trade or profession is discontinued or is treated for tax purposes as discontinued;

(d) for imposing any charge to tax in cases in which profits or gains have been computed otherwise than by reference to earnings.

What is this resolution? I have not got the Order Paper.

It is concerned with the provisions in chapter 2 of Part I of the Bill which deals with income tax, sur-tax and corporation profits tax. Generally speaking these provisions impose a charge to tax on sums which at present escape tax because they are received after a trade or a profession has been discontinued, or after its accounting basis has been altered. Liability is also imposed on sums released in respect of trading debts for which deductions have already been allowed and provision is made for valuing work in progress at the discontinuance of a trade or profession.

How relevant is this to sections 20 to 24 of the Bill?

Well, it is essential. In so far as it imposes a charge to tax which has not heretofore existed, this resolution is necessary.

It does not inhibit a discussion on the sections in the Bill?

No. It is pretty broadly framed and I understand it will not inhibit the discussion which the Deputy has in mind.

Question put and agreed to.

I move:

That provision be made, in connection with the deferment of payment of excise duty on spirits, for the charging as on and from the 1st day of October, 1970, of the duty of excise imposed by section 3 (2) of the Finance Act, 1920, at the rate of fourteen pounds and five pence the gallon (computed at proof) in lieu of the rate chargeable by virtue of section 35 (4) of the Finance Act, 1969.

This deals with the alteration being made in the excise duty on spirits. It is a small item and does not affect the retail price of spirits. It will be dealt with as we go through the Bill.

Question put and agreed to.

I move:

That provision be made for the imposition of a charge of estate duty in connection with certain amendments in the Act giving effect to this Resolution of section 20 of the Finance Act, 1965, in relation to dispositions in favour of certain private companies.

This is relating to the provisions in the Bill to counter devices for the avoidance of estate duty through the medium of family companies.

There is only one point which perhaps I should have raised earlier. There are sections in the Bill and in fact some of the sections which relate to section 20 of the Finance Act, 1965, which will be questioned on the Committee and Report Stages of the Bill. Again I assume that what we are doing now is without prejudice to any decision made by the House subsequently?

Yes. I should say that I raised this point myself with my advisers and I was advised that the wording of the Financial Resolutions is sufficiently wide not to inhibit the discussion or decisions being taken on the sections which would render decisions on these Financial Resolutions ones that would have to be changed again.

I take it that this applies to the subsequent resolutions?

I am so advised.

Question put and agreed to.

I move:

That provision be made for the imposition of a charge of estate duty, legacy duty and succession duty in connection with the restriction, in the circumstances specified in the Act giving effect to this Resolution, of the exemption from those duties which applies to certain securities.

Question put and agreed to.

I move:

That provision be made for the imposition of charges of stamp duty on certain instruments in connection with the amendment of the First Schedule to the Stamp Act, 1891, contained in the Act giving effect to this Resolution.

Question put and agreed to.

I move:

That provision be made for the imposition of charges of stamp duty on loan capital in connection with amendments of the Finance Act, 1899, and the Finance Act, 1907, contained in the Act giving effect to this Resolution.

Question put and agreed to.

I move:

That provision be made to authorise the Minister for Finance, after consultation with the Minister for Agriculture and Fisheries, by order—

(a) to impose a levy on pigs brought on to premises licensed under the Pigs and Bacon Acts, 1935 to 1961, or section 12 (2) of the Agricultural Produce (Fresh Meat) Act, 1930,

(b) to make appropriate provision for the payment and collection of such levy, and

(c) to revoke or amend any such Order.

Does this arise under the Bill?

This deals with the levy on pigs.

Are we dealing with that here?

In the Bill, yes. There is an amendment to the Bill to include the relevant section.

Question put and agreed to.
Financial Resolutions reported and agreed to.