Dáil Éireann debate -
Wednesday, 11 Nov 1981

Vol. 330 No. 10

Finance (No. 2) Bill, 1981: Financial Resolutions.

Minister for Finance (Mr. Bruton)

I move:

That section 8 of the Value-Added Tax Act, 1972 (No. 22 of 1972), be amended—

(a) by the substitution of the following subsection for subsection (4):

"(4) Where, by virtue of subsection (3) or (6), a person has not been a taxable person and a change of circumstances occurs from which it becomes clear that he is likely to become a taxable person, he shall be deemed, for the purposes of this Act, to be a taxable person from the beginning of the taxable period commencing next after such change.",

and

(b) by the insertion in subsection (8), after paragraph (b), of the following proviso:

"Provided that this subsection shall not apply to business activities consisting of the supply of immovable goods by any such person to any other such person and, where a request is made by such persons pursuant to regulations under this subsection, such business activities shall be treated for the purposes of this Act, as if the request had not been made.".

In view of the fact that there was some misunderstanding or some question raised on this matter on the Order of Business, perhaps it would be appropriate and helpful to Deputy Fitzgerald if I were to indicate what is involved here. The position is that before the Committee Stage of a Bill is taken which imposes a charge on the people, a resolution must be passed which is known as a Financial Resolution to enable the Dáil to approve of that charge so that it can then proceed to deal with the detailed application of the charge in the course of the Committee Stage debate.

In the case of charges imposed at the time of the budget by means of a Financial Resolution passed at that stage, it is not necessary to come in again at this stage with a repeat Financial Resolution. In the case of certain of the charges which fall to be imposed in this Bill which were not subject to the Financial Resolutions passed at the time of the budget, it is necessary to adopt a Financial Resolution now. For the assistance of the Deputy I want to indicate that the first of these resolutions which I am now moving concerns section 11 of the Bill. In order to short circuit further queries about subsequent resolutions, I want to indicate to the Deputy that the other two resolutions relate to stamp duties concerning sections 16 and 17 of the Bill. Naturally, the Deputy is perfectly in order in asking me any questions he wishes about the Financial Resolutions. Perhaps it might be better for both of us if we could postpone a substantive discussion until Committee Stage. However, that is a matter for him.

Mr. Gene Fitzgerald

It is appropriate and important that on the Order of Business the Taoiseach should be asked to explain to the House what is involved. The Taoiseach did not appear to know what was involved. He did not indicate to the House what was involved in these Financial Resolutions. I accept the explanation given by the Minister for Finance that the amendment of the Value-Added Tax Act, 1972, is necessary and the reasons for it. I also accept the point he made about discussing it in more detail when we come to the relevant section. The same can be said about the Financial Resolutions dealing with stamp duty which I take it, are in connection with the changes in the position of the bank charges and that the second and third Financial Resolutions relate to that. In those circumstances I am quite happy to have them discussed in some detail on the relevant sections rather than at this stage.

Question put and agreed to.

Mr. Bruton

I move:

That provision be made in the Act giving effect to this Resolution for——

(a) charging a stamp duty in accordance with the provisions of that Act at the rate specified in that Act on statements of certain amounts required by that Act to be delivered to the Revenue Commissioners by banks, and

(b) imposing, in accordance with the provisions of that Act, a penalty in respect of non-compliance with such of those provisions as relate to the stamp duty.".

Question put and agreed to.

Mr. Bruton

I move:

That provision be made in the Act giving effect to this Resolution for——

(a) charging a stamp duty in accordance with the provisions of that Act at the rates specified in that Act on——

(i) statements required by that Act to be delivered to the Revenue Commissioners by banks in relation to accounts maintained by banks to which amounts in respect of transactions involving the use of credit cards are charged, and

(ii) statements required by that Act to be delivered to the Revenue Commissioners by persons issuing or renewing charge cards in relation to the periods of validity of such cards,

and

(b) imposing, in accordance with the provisions of that Act, a penalty in respect of non-compliance with such of those provisions as relate to stamp duty.".

Question put and agreed to.