Financial Resolutions. - Resolution No. 5—Income Tax and Corporation Profits Tax.

I move:—

(1) That section 30 of the Finance Act, 1960 (No. 19 of 1960), shall be amended—

(a) by the addition at the end of subsection (1) of "and also to a company claiming relief under the said Part III otherwise than by virtue of those sections", and

(b) by the insertion in subsection (4) of "or relief under Part III of the Act otherwise than by virtue of those sections (as may be appropriate)," before "in so far".

(2) That where section 30 of the Finance Act, 1960, applies by virtue of the amendments specified in the foregoing paragraph, it shall have effect in respect of transactions and successions occuring after the 19th day of April, 1961.

This provides for the insertion of Section 30 of the 1960 Act to prevent a person getting round the Act. This is to enable us to apply Section 30 of the 1960 Act to activities concerned with exports. The principal thing to draw attention to here is that a company might sell out to another company for export and it would be possible that a manufacturing company might sell at a loss and, therefore, pay no income tax here on the profits which would accrue to the exporting company where no interest would be paid. We should have applied that to all Acts, but it was overlooked.

The real point here is one which depends entirely on the phraseology of the Fianance Bill, and we shall be discussing that later.

Resolution put and agreed to.