Special Committee Corporation Tax Bill, 1975 díospóireacht -
Wednesday, 18 Feb 1976

SECTION 26.

Mr. R. Ryan

With the permission of the Chair, I will deal with amendments Nos. 9 and 10 together.

I move amendment No. 9:

In page 32, in subsection (4), line 3, after " Case IV of Schedule D " to insert the following:

" for the year of assessment in which the subsequent accounting period ends on an amount the income tax on which at the standard rate for the said year of assessment is equal to the amount of the said tax credit and this assessment shall be ".

These are two drafting amendments similar to those proposed in regard to section 25. Subsection (4) provides for the " claw-back " of relief by means of an assessment to income tax under Case IV of Schedule D. The first amendment clarifies the position in relation to section 26 and the form such assessment must take.

The second amendment is to ensure that the amount included in such assessment shall not be treated as income for any other purpose.

Amendment agreed to.

Mr. R. Ryan

I move amendment No. 10:

In page 32, after subsection (5), to insert a new subsection as follows:

" (6) Any amount on which by virtue of this section income tax is charged on a company by an assessment under Case IV of Schedule D shall not be regarded as income of the company for any purpose of the Tax Acts."

Amendment agreed to.

Question proposed: " That section 26, as amended, stand part of the Bill."

Mr. R. Ryan

The operation of this section will not effect any significant change in the law or on the impact of taxation on corporations.

Mr. Colley

I suppose the Minister is obliged for purposes of accuracy to say " any significant change " but, of course, he immediately raises questions in our minds when he says it.

Mr. R. Ryan

It is my natural caution. Before Deputy Colley came in, it was accepted that there is a change in the machinery but the change of impact is not significant. It is only 0.04 per cent.

Question put and agreed to.