asked the Minister for Finance if his attention has been drawn to a statement made by the Chairman of the Provident Building Society at the annual general meeting that the high rates of income tax levied on building societies retarded their progress; and, if this is so, if he will take steps to remedy this situation in view of the urgent need for house building.
Ceisteanna—Questions (Resumed). - Income Tax Payments by Building Societies.
61.
I have seen the statement referred to by the Deputy. I do not agree that the rate of income tax levied on building societies has in any way retarded their progress. I should like to emphasise in this regard that, so far as income tax law is concerned, the profits of building societies are chargeable simply at the rate prescribed generally for the year by the Oireachtas. All the major Irish building societies have voluntarily entered into an administrative arrangement with the Revenue Commissioners which is to last until after next year and under which a society's liability is computed on a special basis. I should add that, while this is a matter which is due for review in connection with the Budget of 1968, the profits of building societies are exempt from corporation profits tax.