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Seanad Éireann debate -
Thursday, 27 Jun 1974

Vol. 78 No. 9

Finance (Taxation of Profits of Certain Mines) Bill, 1974 (Certified Money Bill): Committee and Final Stages.

Sections 1 and 2 agreed to.
Government recommendation No. 1:
In page 4, subsection (3), to delete line 57 and to substitute the following:
expenditure incurred prior to the date of the change in ownership:
Provided that in any case where part of the ordinary share capital of any body corporate is acquired by a Minister of State, such acquisition shall be disregarded in determining whether or not there was or is such a change in ownership as aforesaid.

As I said in reply to the Second Stage, the purpose of this recommendation is to provide that if the State acquires an interest in a mine, which it might by purchase or gift by the mining industry, the right to set off exploration expenses against tax liability will not as a consequence be lost. We are not allowing this right to be enjoyed by anybody unless the person who seeks to enjoy the right has explored the mine. That is to stop anybody going round the country and buying up holes—dead holes or unsuccessful development. This would mean that the State could go in and the benefits would still be there. I think the recommendation, from what I gathered in the debate, will meet the wishes of all Senators.

Recommendation agreed to.
Section 3 agreed to with recommendation.
Government recommendation No. 2:
In page 5, subsection (2), to delete line 54 and to substitute the following:
through another body corporate or other bodies corporate:
Provided that where part of the ordinary share capital of anybody corporate is held by a Minister of State and the remainder of the ordinary share capital of that body corporate is held by another body corporate, the first-mentioned body corporate shall be deemed, for purposes of subsection (1), to be a wholly-owned subsidiary of the last-mentioned body corporate.

This is similar to the previous one and is for the same purpose.

Recommendation agreed to.
Section 4 agreed to with recommendation.
Sections 5 to 18, inclusive, agreed to.
Title agreed to.
Bill reported with recommendations, received for final consideration and ordered to be returned to the Dáil.
Business suspended at 1.15 p.m. and resumed at 2.30 p.m.