Special Committee on the Finance Bill, 1992 debate -
Monday, 11 May 1992

SECTION 23.

Mr. Quinn

I move amendment No. 41:

In page 38, between lines 27 and 28, to insert the following:

"Provided that this section shall not apply where——

(i) a prospectus as defined in section 16 (1), of the Finance Act, 1991 was issued on or before 28th January, 1992 and the project to which the prospectus relates was advertised in the national newspapers on or befor that date,

(ii) development works as defined in section 1 of the Value-Added Tax Act, 1972 have commenced prior to 29th January, 1992,

(iii) all capital contributions are made to the partnership by 31st August, 1992,

(iv) the hoiday cottages are completed by 31st March, 1993, and,

(v) the capital allowances claimed in 1992/93 and subsequent years do not exceed 10 per cent per annum.".

Mr. B. Ahern

Deputy Quinn spoke on this at great length the last night and the early considerations were coming in at that stage. I want to give notice that I will be putting down amendments on Report Stage to sections 23 and 24 to give transitional relief on certain holiday cottages.

Mr. Roche

Briefly, there is a little inappropriateness in Deputy Quinn's amendment in relation to a prospectus or an agreement with Bord Fáilte. In my constituency, 20 bona fide bungalows are being built and will not require a prospectus because it is a partnership.

Mr. Quinn

It is covered by my amendment to section 23.

Mr. Roche

I would ask the Minister to be conscious of the fact that some small bona fide partnership operations are based on the 50 per cent relief currently available.

Mr. Quinn

The Minister has indicated he will bring in amendments on Report Stage that will deal with the substantive issue of transition.

Mr. B. Ahern

Some people may say that there will be a transitional amendment and they have a field they want to develop in the future; but they can forget it; I am only prepared to look to people who put together substantial developments.

Mr. Quinn

Not something that is in mid air.

Mr. G. Mitchell

Any scheme that was started at the time.

Mr. B. Ahern

Perhaps Deputies will wait until Report Stage.

Amendment, by leave, withdrawn.

Section 23 agreed to.

NEW SECTION.

Mr. B. Ahern

I move amendment No. 42:

In page 38, before section 24, to insert the following new section:

24.—(1) Part XXXII of the Income Tax Act, 1967, is hereby amended—

(a) by the insertion after section 467B (inserted by the Finance Act, 1989) of the following section:

‘467C.—(1) Any debentures, debenture stock, bonds, notes, certificates of charge or other forms of security issued after the passing of the Finance Act, 1992, by Bord Gáis Éireann shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 466 and that section shall apply accordingly.

(2) Notwithstanding anything contained in this Act, in computing for the purposes of assessment under Schedule D the amount of the profits or gains of Bord Gáis Éireann for any period for which accounts are made up, there shall be allowed as a deduction the amount of the interest on debentures, debenture stock, bonds, notes, certificates of charge or other forms of security which, by direction of the Minister for Finance given under section 466 as applied by this section, is paid by Bord Gáis Éireann without deduction of tax for such period.',

and

(b) by the insertion in subsection (1) of section 474 after ‘467B,' (inserted by the Finance Act, 1989) of ‘467C,' and the said subsection (1), as so amended, is set out in the Table to this subsection.

TABLE

(1) This section applies to any stock or other security on which interest is payable without deduction of income tax by virtue of a direction given by the Minister for Finance in pursuance of section 467, 467A, 467B, 467C, 471, 472 or 473 or section 59 of the Finance Act, 1970 or section 92 of the Finance Act, 1973.

(2) (a) Paragraph (d) of section 19 of the Capital Gains Tax Act, 1975, is hereby amended, as on and from the passing of this Act, by the insertion after ‘the Electricity Supply Board,' of ‘Bord Gáis Éireann,' and the said paragraph (d), as so amended, is set out in the Table to this subsection.

(b) As on and from the passing of this Act, section 41 of the Finance Act, 1982, in so far as it relates to Bord Gáis Éireann, shall not apply or have effect.

TABLE

(d) debentures, debenture stock, certificates of charge or other forms of security issued by the Electricity Supply Board, Bord Gáis Éireann, Radio Telefís Éireann, the Industrial Credit Corporation p.l.c., Bord Telecom Éireann, Irish Telecommunications Investments p.l.c., Córas Iompair Éireann, The Agricultural Credit Corporation Limited, Bord na Móna, Aerlínte Éireann, Teoranta, Aer Lingus, Teoranta or Aer Rianta, Teoranta.".

Amendment agreed to.