Dinny McGinley
Question:63 Mr. McGinley asked the Minister for Finance if he will reconsider his decision not to include a company (details supplied) as a manufacturer of goods trade for the purposes of the Taxes Consolidation Act 1997. [13211/03]
Written Answers. - Business Expansion Scheme.
I have been informed by the Revenue Commissioners that they have reconsidered their decision, but they are unable to regard the company concerned as carrying on a qualifying trade for the purposes of the business expansion scheme. The term qualifying trade is defined in the legislation governing the scheme and includes a trade consisting of the manufacture of goods within the meaning of Part 14 of the Taxes Consolidation Act 1997. The relevant provision in Part 14 is section 443 (6) (a)(i) and this states that goods which result from processes consisting principally of activities including cutting and packaging cannot be regarded as manufactured goods for the purposes of the Taxes Acts.
The washing, cutting and packaging of potatoes would be such a process. Therefore the activity involved is not the manufacture of goods within the meaning of the Taxes Acts and the company is not carrying on a qualifying trade for the purposes of the business expansion scheme.