asked the Minister for Finance if he is aware (1) that distraints are being widely enforced for the non-payment of arrears of Income Tax, Corporation Profits Tax, and Excess Profits Duty, such arrars relating ten years prior to the financial year 1922/'23; (2) that first and additional assessments are now being made in respect of Income Tax and Corporation Profits Tax for years prior to 1922/'23, and for Excess Profits Duty for years prior to 1920; and that Inspectors of Taxes and the various Collectors are not alone pressing for the payment of these arrears so assessed, but are also asking for the infliction of penalties by the Appeal Commissioners by reason of the taxpayers' delay in disclosing sources of income to the British Government during the years to which these now made first and additional assessments apply; if he will state under what legal authority arrears are collectable; if these arrears are to be accounted for or paid over to England when collected or otherwise; if these arrears when collected are to become the absolute property of the Free State Exchequer without set-off, accounting or payment of their amount, either now or at any future time to England under the Treaty Article 74, or otherwise.
WRITTEN ANSWERS. - INCOME AND CORPORATION PROFITS TAX.
srd
(1) I am aware that distraints for arrears of Income Tax are being widely enforced. While no cases involving Corporation Profits Tax, Excess Profits Duty or Income Tax covering so great a period as ten years prior to the financial year 1922-23 have come to my notice, the powers of recovery must be used without regard to the period covered by the arrears.
(2) Regarding the assessments referred to in the question, these will continue to be made where the circumstances require and permit of such assessments being legally made. On the question of penalties, the attitude of the Revenue Commissioners has been fully set out in the notices which appeared in Irish newspapers on the 2nd August, 1923, and towards the end of October, 1923. Where taxpayers have assisted the Revenue Commissioners by voluntary disclosure, within a reasonable time, of sources of income previously undisclosed, the Commissioners are prepared to waive the penalties. Where disclosure is not voluntary the Commissioners cannot grant the same consideration as in the case of a voluntary disclosure.
(3) The legal authority for collecting arrears is contained in Section 1, sub-sections (1) and (2) of the Irish Free State Agreement Act, 1922, paragraph 2 (ii) of the Order in Council, dated 1st April, 1922, and the Irish Free State Constitution Act, 1922 (Clause 80 of the Constitution).
(4) The answer to this is in the negative.
(5) The arrears become the absolute property of the Saorstát Exchequer. The reference to Article 74 of the Treaty is not understood, but the question of a set-off of the arrears does not arise.