Finance Act, 1932

PART IV.

Corporation Profits Tax.

Alterations of corporation profits tax.

47.—(1) In respect of every accounting period ending after the 31st day of December, 1930:—

(a) sub-section (3) of section 52 of the Finance Act, 1920 , shall be construed and have effect as if, in the definition of the word “company” contained in that sub-section, the words “so constituted that the liability of its members is limited” were omitted and the words “nor a private company the liability of whose members is unlimited nor any corporate body which by its constitution is precluded from distributing any profits amongst its members” were added to the said definition at the end thereof;

(b) the expression “public utility company” wherever it occurs in section 33 of the Finance Act, 1929 (No. 32 of 1929), shall not include any company which carries on any gas, water, electricity, tramway, or hydraulic power undertaking, and that section, as extended by section 30 of the Finance Act, 1931 (No. 31 of 1931), shall be construed and have effect accordingly;

(c) sub-section (1) of section 52 of the Finance Act, 1920 , shall be construed and have effect as if for the words “five per cent.” now contained therein there were substituted the words “seven and one-half per cent.”;

(d) section 31 of the Finance Act, 1928 (No. 11 of 1928), shall be construed and have effect as if for the words “seven and one-half per cent.” now contained in sub-section (1) thereof there were substituted the words “ten per cent.”;

(e) neither sub-section (2) of section 45 of the Finance Act, 1925 (No. 28 of 1925), nor sub-section (2) of section 30 of the Finance Act, 1926 (No. 35 of 1926), shall apply and in lieu thereof paragraph (a) of the proviso to section 52 of the Finance Act, 1920 , shall be construed and have effect as if for the words “five hundred pounds” wherever those words occur in that paragraph there were substituted the words “five thousand pounds.”

(2) In the case of every accounting period beginning before and ending on or after the 1st day of January, 1931, the profits arising in the accounting period shall be apportioned between the part of the period which is before that date and the part of the period which is after the 31st day of December, 1930, in proportion to the respective lengths of those parts, and—

(a) no tax shall be charged on so much of the profits apportioned to the first-mentioned part of the period as bears to ten thousand pounds the same proportion as such first-mentioned part of the period bears to twelve months, and

(b) no tax shall be charged on so much of the profits apportioned to the second-mentioned part of the period as bears to five thousand pounds the same proportion as such second-mentioned part of the period bears to twelve months, and

(c) in the case of a company incorporated by or under the laws of Saorstát Eireann and in the case of a foreign company which has satisfied the Revenue Commissioners that the conditions prescribed by sub-section (2) of section 31 of the Finance Act, 1928 (No. 11 of 1928), have been fulfilled, the proportion of the profits of the first-mentioned part of the period which remains chargeable shall be charged at the rate of five per cent., and the proportion of the profits of the second-mentioned part of the period which remains chargeable shall be charged at the rate of seven and one-half per cent., and

(d) in the case of a foreign company which has not satisfied the Revenue Commissioners that the conditions prescribed by sub-section (2) of section 31 of the Finance Act, 1928 (No. 11 of 1928), have been fulfilled, the proportion of the profits of the first-mentioned part of the period which remains chargeable shall be charged at the rate of seven and one-half per cent., and the proportion of the profits of the second-mentioned part of the period which remains chargeable shall be charged at the rate of ten per cent.

(3) Sub-section (2) of section 45 of the Finance Act, 1925 (No. 28 of 1925), and sub-section (2) of section 30 of the Finance Act, 1926 (No. 35 of 1926), shall not apply in respect of any accounting period to which either sub-section (1) or sub-section (2) of this section applies.

(4) Any additional corporation profits tax payable by virtue of the alterations in the law made by this section in respect of an accounting period ending after the 31st day of December, 1930, may be assessed and recovered notwithstanding that corporation profits tax has already been assessed in respect of that period.

(5) In this section the expression “accounting period” has the same meaning as it has in the enactments relating to corporation profits tax.