Corporation Tax Act, 1976
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Industrial and provident societies. |
30.—(1) The provisions of section 218 of the Income Tax Act, 1967 (industrial and provident societies: interpretation), shall have effect for the interpretation of this section. | |
(2) Notwithstanding anything in the Tax Acts, any share or loan interest paid by a society— | ||
(a) shall be paid without deduction of income tax and shall be charged under Case III of Schedule D, and | ||
(b) shall not be treated as a distribution: | ||
Provided that paragraph (a) shall not apply to any share interest or loan interest payable to a person whose usual place of abode is not within the State. | ||
(3) In computing the corporation tax payable for any accounting period of a society, section 10 (allowance of charges on income) shall have effect subject to— | ||
(a) the insertion of “the appropriate proportion of” in subsection (1) after the word “company” where it first occurs, and | ||
(b) the deletion of the word “yearly” from subsection (3) (a). | ||
(4) For the purposes of section 10 as modified by subsection (3) of this section, “the appropriate proportion” of any amount of charges on income paid by a society in an accounting period means the portion of that amount which bears to the whole the same proportion as the aggregate amount of the society's income and franked investment income for the accounting period bears to what would, but for section 220 of the Income Tax Act, 1967 (disregard of profits or losses attributable to certain transactions), have been the aggregate amount of the society's income and franked investment income for that accounting period: | ||
Provided that in relation to the aggregate amount of interest paid in any accounting period the appropriate proportion of that interest shall not exceed £2,000 if the accounting period is a period of twelve months, and shall not exceed a proportionate part of £2,000 if the accounting period is a period of less than twelve months. | ||
(5) In section 219 of the Income Tax Act, 1967 (deduction as expenses of certain sums, etc.)— | ||
(a) in subsection (4) (b) for “any annual allowance” there shall be substituted “any writing-down allowance”, and for “any year of assessment” there shall be substituted “any chargeable period”, and | ||
(b) in subsection (4) (c) for “any year of assessment” there shall be substituted “any chargeable period”. | ||
(6) Section 220 of the Income Tax Act, 1967 (disregard of profits or losses attributable to certain transactions), is hereby amended by the substitution of the following subsection for subsection (5)— | ||
“(5) Where for any chargeable period any capital allowances or any balancing charges under Part XVI fall to be made in taxing the trade of a society and a proportion of the profits, or as the case may be, the loss of that period is disregarded under this section, the amount of allowances or the amount of charges which, but for this subsection, would have been made shall be diminished in like proportion.”. | ||
(7) All amounts receivable by an agricultural society or a fishery society from the sale of goods, being amounts which are so receivable by virtue of exempted transactions, shall be disregarded for the purposes of section 58 (export sales relief: basis of relief from corporation tax) and in this subsection “agricultural society” and “fishery society” have the same meaning as in section 220 of the Income Tax Act, 1967 . | ||
(8) Section 220 (7) of the Income Tax Act, 1967 , shall apply in relation to corporation tax as it applies in relation to income tax. | ||
(9) On or before the 1st day of May in each year, every society shall deliver to the inspector a return in such form as the Revenue Commissioners may prescribe, showing— | ||
(a) the name and place of residence of every person to whom share interest or loan interest amounting to the sum of £70 or more has been paid by the society in the year of assessment which ended next before the said 1st day of May, and | ||
(b) the amount of such share interest or loan interest paid in that year to each of those persons, | ||
and if such a return is not duly made as respects any year of assessment the society shall not be entitled to any deduction under section 219 (1) (deduction as expenses of certain sums etc.) or 81 (5) (e) of the Income Tax Act, 1967 (taxation of rents under short leases: deduction of loan interest), or section 10 (allowance of charges on income) in respect of any payments of share interest or loan interest which it was required to include in the return, and all such assessments and additional assessments shall be made as may be necessary to give effect to this subsection. | ||
(10) The amendments made by subsections (5) and (6) shall not have effect in relation to income tax for the year 1975-76 or any earlier year of assessment. |