Finance Bill, 1997: Financial Resolutions.

I move:

10. That Chapter I of Part XVI of the Income Tax Act, 1967 (No. 6 of 1967), which is concerned with annual allowances and balancing allowances and charges on industrial buildings and structures, be amended in the manner and to the extent specified in the Act giving effect to this Resolution.

11. That provision be made in the Act giving effect to this Resolution so as to secure, in the manner and to the extent specified in that Act, that no allowance shall be made under Chapter II of Part XV or Chapter I of Part XVI of the Income Tax Act, 1967 (No. 6 of 1967), in respect of a hotel investment by a hotel partnership where, in connection with any such investment, there exists a room ownership scheme.

12. That the provisions of the Tax Acts which provide for the granting of double rent allowance in the computation of the amount of the profits or gains of a trade or profession be amended in the manner and to the extent specified in the Act giving effect to this Resolution.

13. That provision be made in the Act giving effect to this Resolution for the taxation of strips of securities.

14. That section 17 of the Finance Act, 1993 (No. 13 of 1993), which provides for the tax treatment of undertakings for collective investment, be amended in the manner and to the extent specified in the Act giving effect to this Resolution.

15. That, in consequence of the reduction of the basic rate of corporation tax, the provisions of the Corporation Tax Act, 1976 (No. 7 of 1976), relating to tax credits in respect of distributions made by companies on or after the 6th day of April, 1997, be amended in the manner and to the extent specified in the Act giving effect to this Resolution.

16. That Chapter VIII of Part I of the Finance Act, 1991 (No. 13 of 1991), be amended so as to provide for the tax treatment of a buy back of its own shares by a quoted company, or by a fellow group company of a quoted company, in the manner and to the extent specified in the Act giving effect to this Resolution.

17. That provision be made in the Act giving effect to this Resolution to provide for the tax treatment on the transfer of rights and property to the port companies pursuant to the Harbours Act, 1996 (No. 11 of 1996).

18. That provision be made in the Act giving effect to this Resolution to enable a company and its Irish parent company transfer liability for a charge to capital gains tax on a company ceasing to be resident in the State to its parent company.

19. That provision be made in the Act giving effect to this Resolution to impose a charge to capital gains tax on companies which cease to be resident in the State.

20. That the provisions of the Tax Acts providing for relief in respect of contributions to exempt approved schemes (within the meaning of section 16 of the Finance Act, 1972) be amended in the manner and to the extent provided for in the Act giving effect to this Resolution.

21. That provision be made in the Act giving effect to this Resolution to enable tax arising on a company ceasing to be resident in the State which is due but unpaid by the company concerned to be recovered from certain controlling directors or companies which are member companies of the same group of companies as the company ceasing to be so resident.

22. That section 464 of the Income Tax Act, 1967 (No. 6 of 1967), which deals with exemption of interest and capital from tax in respect of government securities held by persons not domiciled or ordinarily resident in the State, be amended so as to provide that interest and other profits or gains from such securities are not exempt from tax where they are held by or for a branch of a non-resident company carrying on a trade in the State the profits or gains for which are chargeable to corporation tax under Case IV of Schedule D.

23. That provision be made in the Act giving effect to this Resolution to amend section 470 of the Income Tax Act, 1967 (No. 6 of 1967), which grants an exemption from tax in respect of interest arising from certain securities issued by Irish local authorities for persons who are not domiciled or ordinarily resident in the State, to provide that such interest will not be so exempt where the securities are held by a branch of a non-resident company carrying on a trade in the State the profits or gains from which are chargeable to tax under Case IV of Schedule D.

24. That section 474 of the Income Tax Act, 1967 (No. 6 of 1967), which deals with exemption of interest and capital from tax in respect of securities of certain semi-State bodies held by persons not domiciled or ordinarily resident in the State, be amended, so as to provide that interest and other profits or gains from such securities are not exempt from tax where they are held by or for a branch of a non-resident company carrying on a trade in the State the profits or gains from which are chargeable to corporation tax under Case IV of Schedule D.

25. That section 28A of the Corporation Tax Act, 1976 (No. 7 of 1976), which provides for a reduced rate of corporation tax for certain income of a company in an accounting period be amended in the manner and to the extent specified in the Act giving effect to this Resolution.

26. That provision be made in the Act giving effect to this Resolution to repeal section 80 of the Corporation Tax Act, 1976 (No. 7 of 1976), which section exempts the Voluntary Health Insurance Board from corporation tax.

27. That provision be made in the Act giving effect to this Resolution in relation to the taxation of:—

(i) a company established pursuant to section 7 of the Harbours Act, 1996 (No. 11 of 1996), and

(ii) any other company which controls a harbour and which carries on a trade which consists wholly or partly of the provision in that harbour of such facilities and accommodation for vessels, goods and passengers as are ordinarily provided by harbour authorities within the meaning of the Harbours Act, 1946 (No. 9 of 1946), and companies specified in paragraph (i) which control harbours, situate within the State, in those harbours."

28. That section 56 of the Finance Act, 1992 (No. 9 of 1992), which provides for relief for gifts to The Enterprise Trust Ltd. be amended in the manner and to the extent specified in the Act giving effect to this Resolution.

29. That section 35 of the Corporation Tax Act, 1976 (No. 7 of 1976), which provides for the taxation of the profits of an assurance company in respect of its life business, be amended in the manner and to the extent provided for in the Act giving effect to this Resolution.

30. That provision be made in the Act giving effect to this Resolution to amend section 36 of the Corporation Tax Act, 1976 (No. 7 of 1976), so as to provide that the new standard rate of income tax of 26 per cent. Will apply to the taxation of the life business of a life assurance company from the 6th day of April, 1997.

31. That section 46A of the Corporation Tax Act, 1976 (No. 7 of 1976), which provides for the deemed disposal and reacquisition of certain assets for tax purposes of the life business fund of a life assurance company, be amended in the manner and to the extent specified in the Act giving effect to this Resolution.

32. That Schedule 2 to the Capital Gains Tax Act, 1975 (No. 20 of 1975), be amended to provide for the tax consequences of the demutualisation of an assurance company in the manner and to the extent specified in the Act giving effect to this Resolution.

33. That section 20A of the Capital Gains Tax Act, 1975 (No. 20 of 1975), which provides for the capital gains tax treatment of foreign life assurance and deferred annuities, be amended in the manner and to the extent specified in the Act giving effect to this Resolution.

34. That section 46 of the Capital Gains Tax Act, 1975 (No. 20 of 1975), which provides for the capital gains tax treatment of disposal of debts, be amended in the manner and to the extent specified in the Act giving effect to this Resolution.

35. That provision be made in the Act giving effect to this Resolution for the inclusion in the definitions of unregistered vehicle of vehicles built using a monocoque or an assembly serving an equivalent purpose to a chassis and the particulars of such vehicles shall be declared to the Commissioners under the provision of section 131 (2) (a) of the Finance Act, 1992, and Vehicle Registration Tax shall be charged accordingly under the provision of section 132 (1) of the Finance Act, 1992.

36. That provision be made in the Act giving effect to this Resolution for the charging of duty of excise, in accordance with the provisions of that Act, on used by hydrocarbon oil, which has undergone a process of recycling which has rendered it suitable for use as a motor fuel.

37. That provision be made in the Act giving effect to this Resolution for amending the qualifying criteria for unleaded petrol, in accordance with the provisions of that Act, for the purposes of the rebate on mineral hydrocarbon light oil provided for in section 56(3) of the Finance Act, 1988.

38. That provision be made in the Act giving effect to this Resolution for the inclusion, in the category of fine-cut tobacco for the rolling of cigarettes, of certain other smoking tobacco, in accordance with the provisions of that Act and for the purposes of charging excise duty under the provisions of section 2 of the Finance (Excise Duty on Tobacco Products) Act, 1977.

39. That provision be made in the Act giving effect to this Resolution so that:

(a) an intra-Community acquisition of goods arises in the State and is subject to value-added tax where,inter alia, the supplier of such goods is a person in another Member State who is obliged to be registered for VAT in that Member State,

(b) an interest in immovable goods, which when it was created was for a period of less than ten years but whose terms contain an option or options to extend it to a period of at least ten years is a taxable interest for value-added tax and that the extent of such a taxable interest shall be the combined length of the interest and any options,

(c) value-added tax is chargeable on the disposal of a subsequent interest in immovable goods following a taxable surrender of such goods and that that disposal be treated as the disposal of an interest for the period between the date of the disposal of the subsequent interest and the date on which the surrendered interest would, but for its surrender, have expired,

(d) value-added tax is chargeable on a reversionary interest arising in connection with the disposal of a subsequent interest in immovable goods in certain circumstances following the taxable surrender of that interest,

(e) the appropriation by a person, including the appropriation of a surrendered interest, in immovable goods is a supply of goods and is valued accordingly,

(f) in respect of a surrender or an assignment of an interest in immovable goods to certain persons, such persons be deemed to have supplied those goods in the course of furtherance of business and be liable for VAT on such supply,

(g) value-added tax be chargeable on telecommunications services supplied from outside the State in certain circumstances,

(h) a person may waive his or her right to exemption from value-added tax on the short-term letting of a surrendered interest in immovable goods without effecting the treatment of other short-term lettings,

(i) where a person cancels a waiver of exemption from value-added tax in respect of short-term lettings of immovable goods, such person shall pay the Revenue Commissioners the excess of the total of the tax deductible, and the tax that would be deductible in certain circumstances, in respect of such lettings over the amount of tax chargeable by that person on the lettings,

(j) the supply of certain agricultural produce by a farmer whose turnover from such supplies exceeds £40,000 per annum is subject to value-added tax or the supply of certain agricultural services and agricultural produce by a farmer whose turnover from such supplies exceeds £20,000 per annum is subject to value-added tax,

(k) a taxable person is not entitled, in certain circumstances involving discounts, to reduce a value-added tax liability, until a valid and adjusted value-added tax credit note has been issued by the taxable person to the customer,

(l) a surrendered or assigned interest is valued as if it were the disposal of a newlycreated interest equivalent to the duration of the surrendered or assigned interest,

(m) the disposal, surrender or assignment of an interest in immovable goods is valued on the basis of unencumbered, open market rents and such rents are defined appropriately,

(n) the relief from value-added tax on the supply of travellers' qualifying goods to travellers be made subject to specific conditions, and

(o) prepayments for telecommunications services supplied from outside the State prior to the 1st day of July, 1997, are liable to value-added tax."

40. That provision be made in the Act giving effect to this Resolution for declaring, in accordance with the provisions of that Act, that subsection (2) of section 112 of the Finance Act, 1990 (No. 10 of 1990), does not apply where the dwelling house or apartment was occupied prior to the agreement for sale or lease of the land.

41. That the Heading BILL OF EXCHANGE or PROMISSORY NOTE in the First Schedule (as amended by the Finance Act, 1970 (No. 14 of 1970) to the Stamp Act, 1891, be amended in the manner and to the extent specified in the Act giving effect to this Resolution.

42. That subsection (3) of section 57 of the Capital Acquisitions Tax Act, 1976 (No. 8 of 1976), which provides that the three year ownership condition laid down in subsection (2) does not apply in certain circumstances, be amended, as respect gifts or inheritances taken on or after the 26th day of March, 1997, in the manner and to the extent specified in the Act giving effect to this Resolution.

43. That subsection (1) of section 39 of the Finance Act, 1978 (No. 21 of 1978), which extends the exemption granted in respect of certain objects in section 55 of the Capital Acquisitions Tax Act, 1976, to certain houses or gardens situated in the State, be amended, as respects gifts or inheritances taken on or after the 1st day of February, 1987, in the manner and to the extent specified in the Act giving effect to this Resolution.

Question put and agreed to.