This concerns pre-trading expenditure which will now be allowed. Various accountancy devices had to be found to allow people get pre-trading corporation expenses, etc. Was this found to impose a severe burden?
SECTION 25.
Question proposed: "That section 25 stand part of the Bill".
The small task force report and others presented it to us as a barrier cost. As the Deputy knows, one could not claim any of these costs, which were quite substantial in many cases. That is the reason they are in this plan, with many other items which were a requirement before one could formally begin trading. They were soaking up scarce capital for which there was no tax relief.
Question put and agreed to.
NEW SECTION.
I move amendment No. 42:
In page 41, before section 26, to insert the following new section:
"26.—For the avoidance of doubt it is hereby confirmed that in the computation of taxable profits of a trade an initial payment made as part of a lessee's contractual arrangements with a lessor of agricultural machinery shall be wholly deductible in the year in which it is paid whether or not it is made in cash or in the form of a trade in allowance.".
Events have more or less overtaken this amendment. Difficulties arose as a result of a change in practice on the part of the Revenue Commissioners relating to the trade in values, hire purchase and lessee-lessor arrangements. The Revenue Commissioners have had a series of negotiations in the past number of months and, as far as I am aware, everybody is now happy with the new arrangements. There is probably no need for the amendment but I would like the Minister to comment on it. The problem may be resolved as a result of various meetings between the Revenue and the Irish contractors' association. Am I correct?
I understand that is the case. I will confirm that on Report Stage. I am told there is a written agreement.
As far as I am aware, it happened only recently.
Amendment, by leave, withdrawn.
Amendments Nos. 43 and 44 not moved.
Before we move on, I want to give notice, by way of complying with Standing Orders for Report Stage, that I intend to table amendments to section 18 of the Finance Bill in regard to film relief.
Section 26 agreed to.
Sections 27 and 28 agreed to.