Vol. 463 No. 3
87 Miss Coughlan asked the Minister for Finance the activities which are carried on in the quarry industry which are accepted by the Revenue Commissioners to qualify for 10 per cent corporation tax, and if he will make a statement on the matter. [6589/96]
I have been advised by the Revenue Commissioners that in determining whether a particular process constitutes the manufacture of goods they must have regard to the facts of the case and in particular the degree of change in the raw material resulting from the process.
In the case of quarrying, where a company extracts rock from a quarry and crushes it to produce an end product, the Revenue Commissioners have agreed that this type of activity constitutes manufacturing. The company has produced a commercially saleable product which is tangibly different from the original material. By contrast, where a company is engaged in the extraction, washing and grading of sand and gravel, it is considered that these activities are specifically excluded from the scope of manufacturing relief by virtue of section 39 (5) Finance Act, 1980. This type of process does not bring about any appreciable change in the character of the original product.
