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Dáil Éireann debate -
Friday, 13 Apr 1923

Vol. 3 No. 2

COMMITTEE ON FINANCE. - INCOME TAX.

That notwithstanding any provision contained in any Act of the Parliament of the late United Kingdom of Great Britain and Ireland, the interest on all securities issued by the Government of the United Kingdom aforesaid, subject to the condition that the interest thereon should be exempt from income tax, shall be liable to the income tax for the time being charged in Saorstát Eireann, but subject to any arrangement for relief which may for the time being exist with the Government of Great Britain under or by virtue of the Double Taxation (Relief) Act, 1923 (No. 8 of 1923), or otherwise.
And it is declared that it is expedient in the public interest that this resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.

Can the Minister give us any indication now as to the possible arrangements likely to be made under this Double Taxation Relief Act?

Yes; if the rate of tax in England was 4s. in the £, and if the rate here in Saorstát Eireann was 5s. in the £, a Free State resident receiving income from English investments would pay 5s. in the £ on his income, and, broadly, the effect of the arrangement with the British Government is that of this 5s. the Free State Exchequer will get 3s. and the British Exchequer will get 2s.—that is the general effect, I may say. The Deputy will realise that the actual figures will vary according to the circumstances of individual cases. I should mention that the order giving effect to the Double Taxation arrangement is about to be laid upon the Table, and I propose to circulate that Order and a memorandum giving an explanation of the arrangements.

In the case of British investments free of income tax—the 4 per cent. for example, would a person who receives that money have to pay 5s. in the £ in this country?

That is the purpose of this resolution.

Resolution No. 3 put and agreed to.
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