There is a recommendation from the Seanad in connection with the Finance Bill as follows:—
"Seanad Eireann recommends the insertion after the word `shall,' Section 4, line 5, of the words `as and from the 1st day of October, 1923.' "
Members will recollect that in dealing with this question of the 4 per cent. tax-compounded securities the Double Relief Taxation Order does not apply, and some criticism was indulged in here when we announced that it was our intention to tax this particular security, and it was urged that it was unfair to persons who had invested. For some years this security had been paid free of income tax. In the case of persons paying super tax this security is assessed at a price which would be the actual yield from the security if income tax were deducted. From this particular tax we would get no income whatever, and we gave notice that from a particular date this security would be liable to assessment and to a deduction for income tax here. The effect of that would be that this particular security would pay double income tax. It is tax compounded so far as the British are concerned, and subject to tax here it would mean that the British would get the benefit of the maximum deduction, and we would get the income tax on the actual sum. The case was put that very considerable amounts of money were invested in this country in this particular security. We did not impose any tax on the dividend paid in April, and it appears that there were three issues— February, March and April. The dividend is paid twice yearly, and it falls due on the 1st of August, the 1st September and 1st October. We allow the April dividends to be paid free of income tax, and those who have investments in that particular series would have an advantage over the holders of the other series, and it is quite possible that with a large sum involved—I think the total investment is in the neighbourhood of two millions—there might be difficulty in disposing of this security and investing in another. The Seanad asks that we should allow the dividends payable on the 1st August and 1st September to be paid without any deductions. I agreed to that, and the motion I now move is:—
"That the Dáil agree with the Seanad in the said recommendation."