Corporation Tax Act, 1976

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PART I

General System of Taxation

Introduction for companies of corporation tax in place of income tax, corporation profits tax and capital gains tax.

1.—(1) For the financial year 1974 and each subsequent financial year there shall be charged on profits of companies a tax, to be called corporation tax, at the rate of 50 per cent.

(2) For years of assessment after the year 1975–76 the provisions of the Income Tax Acts relating to the charge of income tax shall not apply to income of a company (not arising to it in a fiduciary or representative capacity) if—

(a) the company is resident in the State; or

(b) the income is, in the case of a company not so resident, within the chargeable profits of the company as defined for the purposes of corporation tax.

(3) A company shall not be chargeable to capital gains tax in respect of gains accruing to it so that it is chargeable in respect of them to corporation tax.

(4) Corporation profits tax shall not be chargeable for accounting periods or parts of accounting periods falling after the 5th day of April, 1976.

(5) In this Act, unless the context otherwise requires—

(a) “company” means any body corporate but does not include—

(i) a health board,

(ii) a vocational education committee established under the Vocational Education Act, 1930 ,

(iii) a committee of agriculture established under the Agriculture Act, 1931 , or

(iv) a local authority, and for this purpose “local authority” has the meaning assigned to it by section 2 (2) of the Local Government Act, 1941 , and includes a body established under the Local Government Services (Corporate Bodies) Act, 1971 ;

(b) “the financial year 1974” means the period of nine months beginning on the 1st day of April, 1974;

(c) “profits” means income and chargeable gains, and “chargeable gains” has the same meaning as in the Capital Gains Tax Act, 1975 , but does not include gains accruing on disposals which were made before the 6th day of April, 1976;

(d) “trade” includes “vocation” and includes also an office or employment;

(e) such other words and expressions as are specified in section 155 (interpretation) have the meanings given by or indicated in that section.