asked the Minister for Finance if he has any means of ascertaining if the rebate of corporation profits tax which has recently become available to companies is being used by them by way of investment in their enterprises or is being distributed by way of extra dividend.
Ceisteanna—Questions. Oral Answers. - Corporation Profits Tax.
28.
I have no means of ascertaining how moneys arising from the recently announced reduction in company taxation are being utilised by companies. In my statement on the economic situation made to this House on 27th October last I announced a number of measures—including that relating to company taxation—specifically designed to provide a moderate stimulus to economic activity. The repeal of the October, 1970, increase in company taxation had been pressed for on the ground that the new level of taxation bore excessively on company profits and thus adversely affected domestic investment. The company taxation measure was therefore designed to serve as a stimulus to economic activity by permitting of increased investment in the current year in that the tax provisions currently being made by companies can be reduced. I might add that I expect that increased investment will take place consequent on additional funds becoming available to companies as a result of this measure.