asked the Minister for Finance the number of fishermen's producer co-operative societies at present registered in the State; whether it is proposed, as described in the second White Paper on Direct Taxation, to include these in the co-operatives to be made liable to income tax; and, if so, how he reconciles this position with the efforts to organise new fishery co-operatives in various ports.
Ceisteanna—Questions. Oral Answers. - Income Tax Liability of Co-operatives.
1.
A separate classification in respect of fishermen's producer co-operative societies is not maintained in the Registry of Friendly Societies and the information is not, therefore, readily available.
My intention is, however, that the profits of co-operative societies from such activities as transporting, wholesaling, auctioning and processing fish on behalf of fishermen will be exempted from income tax and corporation profits tax.
2.
asked the Minister for Finance the total turnover of the co-operative societies not included in the agricultural, educational, cultural and charitable categories, as described in the second White Paper on Direct Taxation, and the estimated annual return which would result from subjecting these societies to income tax as proposed in the Paper.
The particulars requested are not readily available in the Registry of Friendly Societies but the Deputy may find sufficient information for his purpose in the Annual Report of the Registrar, a copy of which is available in the Library of the House. As regards the second part of the question a precise estimate of the annual return has not been made but I should point out that a main purpose of the proposed legislation is to prevent abuse of the existing exemption which, if not checked, could result in serious loss of tax.