Finance Act, 1978
|
Industrial and provident societies. |
19.—With effect as on and from the 1st day of April, 1978, the following section shall be substituted for section 30 of the Corporation Tax Act, 1976 : | |
“30.—(1) The provisions of section 218 (industrial and provident societies: interpretation) of the Income Tax Act, 1967 , 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 the deletion of ‘yearly’ in subsection (3) (a). | ||
(4) 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 fully made as respects any year of assessment, the society shall not be entitled to any deduction under section 81 (5) (e) (taxation of rents under short leases: deduction of loan interest) or section 219 (1) (deduction as expenses of certain sums, etc) of the Income Tax Act, 1967 , 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. | ||
(5) (a) In section 219 (deduction as expenses of certain sums, etc.) of the Income Tax Act, 1967 — | ||
(i) 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 | ||
(ii) in subsection (4) (c) for ‘any year of assessment’ there shall be substituted ‘any chargeable period’. | ||
(b) The amendments made by paragraph (a) of this subsection shall not have effect in relation to income tax for the year 1975-76 or any earlier year of assessment.”. |