Vol. 488 No. 1
78 Mr. Rabbitte asked the Minister for Finance if he will make a statement on the outcome of his meeting with the Irish League of Credit Unions on 16 February 1998; the membership and terms of reference of the working group on the taxation of credit union members; and if he will make a statement on the matter. [5532/98]
Following my meeting with representatives of the Irish League of Credit Unions, it was agreed to continue the corporation tax exemption for the surplus income of credit unions, to drop the proposal in the Finance Bill to apply DIRT to deposits, to drop the proposed requirement for the reporting of dividends of credit unions where these exceed £500 per annum, and to remove the existing reporting requirement in relation to deposit interest over £500 per annum. These measures will require amendments to the Finance Bill. I will accordingly introduce such appropriate amendments when the Bill is on Committee Stage later this week.
It was also agreed that a working group will be set up with the league under an independent chairperson to examine the taxation of returns on credit union savings, bearing in mind the special and particular nature of the credit union movement, its contribution to society and the wider taxation issues involved. The working group will report its findings to me by 30 September 1998.
My Department is currently undertaking consultations with the Irish League of Credit Unions regarding the composition of the working group and a suitable chairperson. I am satisfied these proposals will offer a reasonable basis for addressing the issue of credit unions taxation.
