Can the Minister give us any indication now as to the possible arrangements likely to be made under this Double Taxation Relief Act?
COMMITTEE ON FINANCE. - INCOME TAX.
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.