Dáil Éireann díospóireacht -
Wednesday, 7 May 1969

Vol. 240 No. 5

Financial Resolutions. - Financial Resolution No. 9: Turnover and Wholesale Tax.

Minister for Finance (Mr. Haughey)

I move:

(1) That section 46 of the Finance Act, 1963 (No. 23 of 1963), shall, with effect as on and from the 8th day of May, 1969, be amended by the insertion of the following definition after the definition of "hotel":

"‘moneys received' includes—

(a) money lodged or credited to the account of a person in any bank, savings bank, building society, hire purchase finance concern or similar financial concern, and

(b) money, other than money referred to in paragraph (a) of this definition, which, under an agreement, other than an agreement providing for discount or a price adjustment made in the ordinary course of business or an arrangement with creditors, has ceased to be due to a person,

and money lodged or credited to the account of a person as aforesaid shall be deemed to have been received by the person on the date of the making of the lodgment or credit and money which has ceased to be due to a person as aforesaid shall be deemed to have been received by the person on the date of the cesser."

(2) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

Mr. Haughey

These are just technical tightening up measures. In other words, we want to bring into the scope of the turnover tax and the wholesale tax payments made by set off and payments credited to a person's account in the financial institutions.

Mr. Sweetman

Is it right to do that from today? It will take some time for people to adjust trading methods accordingly. There will be invoices going out.

Mr. Haughey

I have a saver for that situation. They will be able to pass this on.

Mr. Cosgrave

Why is it included in the Financial Resolutions? Normally it would appear as a section in the Finance Bill.

Mr. S. Collins

He does not expect to be introducing the Finance Bill.

Mr. Haughey

We are increasing the wholesale tax now so that some commodities will be attracting the 17½ per cent from today. In these circumstances people might be encouraged to leave debts outstanding. We want to bring that money in immediately.

Mr. Sweetman

Where is the saver the Minister spoke of? I do not see it.

Mr. Haughey

The change will not affect price adjustments made in the ordinary course of business.

Mr. Sweetman

Where is that?

Mr. Haughey

It is part of the law. This change will not affect those things. It will affect only two types of transaction—the set-off, or where you leave money due to you by a financial institution.

Mr. Sweetman

I am sorry, I am not able to follow the Minister.

Mr. Haughey

Normally the wholesale tax is paid on cash received. We are adding two categories to that of cash received—debts paid by set-off, or the case where a person, instead of collecting money due to him, leaves it in the bank or where a person who sold under a hire purchase arrangement leaves the money with the hire-purchase company and does not collect it.

Mr. Cosgrave

Why impose the new tax in this case from tomorrow?

Mr. Haughey

Because it is intended to prevent avoidance of the wholesale tax it applies from now.

Mr. Cosgrave

But the rest of the wholesale tax goes on from 1st June.

Mr. Sweetman

The Minister wants to get this in before the election.

Mr. Haughey

Not likely. It is purely a technical matter.

Mr. Cosgrave

Only the Revenue Commissioners understand it.

Mr. Haughey

I understand it. I am making it perfectly clear.

Mr. MacEntee

It is a matter which can be discussed on the Committee Stage of the Finance Bill.

Mr. Sweetman

The Deputy will not be here then.

Question put and agreed to.