asked the Minister for Finance the reason a group water scheme committee (details supplied) in County Galway have received demands for corporation tax; and the amount of tax demanded.
Written Answers. - County Galway Water Scheme Tax Demand.
701.
I am advised by the Revenue Commissioners that groups engaged solely in the provision of group water supply schemes are treated as not liable to tax on these activities. Income arising from other sources is, however, chargeable to tax in the ordinary way.
In the absence of returns of income estimated assessments were made for the three years ended 5 April 1982 in respect of other income receivable by the group scheme in question. Appeals were lodged against the assessments for the two earlier years and demands for tax are not being issued for those years pending the outcome of the appeals. There was no appeal against the assessment for the year 1981-82 and demands for tax in the amount of £725 have been issued in the normal way. If the members of the scheme consider that the assessments for that year are excessive, the secretary may apply to the inspector of taxes for the admission of a late appeal. The inspector will, on request, advise him of the information required in support of any such late appeal application.