I move amendment No. 56:
In page 57, subsection (1), line 46, after "trade" to insert "or business".
SECTION 39.
Amendments Nos. 56 and 57 in the name of An tAire are related and may be discussed together.
Amendment agreed to.
I move amendment No. 57:
In page 57, subsection (1), line 47 after "trade" to insert "or business, as the case may be,".
Amendment agreed to.
I move amendment No. 58:
In page 57, subsection (1), line 50, after "Schedule D" to insert "or in accordance with the provisions of section 43 of the Corporation Tax Act, 1976".
Could I have an explanation of amendment No. 58 please?
Section 39 of the Bill removes an anomaly whereby foreign banks, insurance companies and other foreign businesses in the financial sector trading through branches in the State are not charged to corporation tax on income from Government securities. Section 39 provides that such companies will be chargeable to corporation tax on income from gilts acquired on or after budget day. There could possibly be some doubt as whether the phrase "chargeable to corporation tax under Case 1 of Schedule D" would apply to income from Government securities acquired after budget day where the recipient is a life assurance company. The amendment addresses the possibility of such an argument by including a direct reference in Section 39 to Section 43 of the 1976 Act. In this way the amendment ensures that Section 39 will have its full intended effect.
Amendment agreed to.
Section 39, as amended, agreed.
I wish to give notice that I will be putting down an amendment to Report Stage on this. The amendment will clarify the scope of the section with regard to the type of securities covered. I mentioned gilts but there are matters other than gilts and I want to clarify that matter.