Special Committee Corporation Tax Bill, 1975 debate -
Wednesday, 25 Feb 1976

SECTION 93.

Mr. R. Ryan

I move amendment No. 29:

In page 87, to delete subsections (10) and (11).

Subsections (10) and (11) follow the lines of subsections (1) (b) and (2) of section 77 as drafted and operate to restrict the allowance for charges when paid out of exempt profits as defined in subsection (1) of section 93. As the Committee Stage amendment to section 77 has been adopted to preserve the existing position in relation to charges payable out of Shannon income, the restrictive effect on charges of the two subsections is not needed and the subsections accordingly require deletion.

Amendment agreed to.

Question proposed: "That section 93, as amended, stand part of the Bill."

Mr. R. Ryan

This section continues existing provisions and it provides that dividends and other distributions paid out of exempt farming profits arising before 6th April, 1974, or out of exempt profits from woodlands, or from the sale of the services of a stallion will not carry a tax credit and, in the hands of an individual, will be disregarded for income tax purposes and will rank as exempt profits when received by a resident company.

Mr. Haughey

It is just to deal with exempt profit from the point of view of tax credit?

Mr. R. Ryan

That is right. It is the same principle as that which applied previously.

Question put and agreed to.