Financial Resolutions 1998. - Financial Resolution No. 7: Income Tax and Corporation Tax
(1) THAT section 4 of the Taxes Consolidation Act, 1997 (No. 39 of 1997), be amended in subsection (1) by the substitution for the definition of "standard credit rate" of the following definition:
"‘standard credit rate' for a year of assessment means—
(a) for the year of assessment 1997-98—
(i) 21 per cent. where it has application in relation to a distribution made or treated as having been made by a company before the 3rd day of December, 1997, and
(ii) 11 per cent. where it has application in relation to a distribution made or treated as having been made by a company on or after the 3rd day of December, 1997,
and
(b) for the year of assessment 1998-99, 11 per cent.,
and, accordingly, ‘standard credit rate per cent.' for the year of assessment 1997-98 means 21 or 11, as the case may be, and for the year of assessment 1998-99 means 11;".
(2) THAT section 145 of the Taxes Consolidation Act, 1997, be amended in subsection (2)—
(a) in paragraph (b) by the substitution for "The reference to certain tax credits" of "Subject to paragraph (c), the reference to certain tax credits",
and
(b) by the insertion, after paragraph (b), of the following paragraph:
(c) (i) This paragraph shall apply to a distribution made or treated as having been made on or after the 3rd day of December, 1997, by a company and to which this section applies by virtue of subsection (1).
(ii) The reference to certain tax credits in the definition of ‘B' in paragraph (a) shall, in relation to distributions received by a company which makes a distribution to which this paragraph applies, be construed-
(I) as a reference to such tax credits multiplied by .2295 in so far as they are tax credits in respect of distributions made before the 6th day of April, 1978, or made after the 5th day of April, 1983, and before the 6th day of April, 1988,
(II) as a reference to such tax credits multiplied by .2883 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1978, and before the 6th day of April, 1983,
(III) as a reference to such tax credits multiplied by .2626 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1988, and before the 6th day of April, 1989,
(IV) as a reference to such tax credits multiplied by .3178 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1989, and before the 6th day of April, 1991,
(V) as a reference to such tax credits multiplied by .3707 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1991, and before the 6th day of April, 1995,
(VI) as a reference to such tax credits multiplied by .4137 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1995, and before the 6th day of April, 1997, and
(VII) as a reference to such tax credits multiplied by .4649 in so far as they are tax credits in respect of distributions made after the 5th day of April, 1997, and before the 3rd day of December, 1997.".
(3) THAT section 729 of the Taxes Consolidation Act, 1997, be amended by the substitution for subsection (7) of the following subsection:
"(7) For the purposes of subsection (5)-
(a) subject to paragraph (b) where an accounting period begins before the 6th day of April, 1997, and ends on or after that date, it shall be divided into one part beginning on the day on which the accounting period begins and ending on the 5th day of April, 1997, and another part beginning on the 6th day of April, 1997, and ending on the day on which the accounting period ends and both parts shall be treated as separate accounting periods,
and
(b) where an accounting period, including a part of an accounting period treated under paragraph (a) as a separate accounting period, begins before the 3rd day of December, 1997, and ends on or after that date, it shall be divided into one part beginning on the day on which the accounting period, or the part of an accounting period, as the case may be, begins and ending on the 2nd day of December, 1997, and another part beginning on the 3rd day of December, 1997, and ending on the day on which the accounting period, or the part of an accounting period, as the case may be, ends and both parts shall be treated as separate accounting periods.”.
(4) THAT this Resolution shall have effect as on and from the 3rd day of December, 1997.
(5) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).