Dáil Éireann debate -
Tuesday, 17 Jun 1924

Vol. 7 No. 25

COMMITTEE ON FINANCE. - SECTION 4 (RELIEF IN RESPECT OF CERTAIN STOCKS, SHARES AND RENTS).

The PRESIDENT

I beg to move:—

To insert immediately before section 4 a new section as follows:—

"For the purposes of any assessment to income tax for any year which is made on or after, or has not become final and conclusive before, the 13th day of June, 1924, or of any deduction on account of income tax for any year, any increase of or addition to any salary, remuneration, pension, annuity, or stipend by way of war bonus, and any other like temporary increase or addition granted in order to meet the rise in the cost of living, shall be, and shall be deemed always to have been, chargeable to tax as salary, remuneration, pension, annuity, or stipend, as the case may be, and not as perquisites."

This has reference to the method of charging the cost of living bonus. It appears that some action was taken in England which might be interpreted here in the same manner, which I think would be unfair. This amendment regulates the matter so that it will be fair in all the circumstances. It makes it chargeable against the year in respect of which the cost of living bonus was granted.

Question—"That the new section be inserted before Section 4"—put and agreed to.

New section ordered to stand part of the Bill.

Motion made—"That Section 4 stand part of the Bill."

Mr. JOHNSON

Before passing from this section I would like to know whether any information is available as to the effects of reliefs of this kind— which I understand are reciprocal—as to whether there is more given away than is received in the interchange between the British Treasury and the Free State Finance Ministry. The matter was raised last year, and I think we were not able to get any information because of the absence of statistics. I hope we are in a position now to clear up the effects of these reciprocal arrangements, so as to know whether it would not be advantageous, both from the point of view of revenue and social policy, to encourage investment in Irish industries, or rather, shall I say, to discourage investment in British industries. We are, I think, by implication encouraging Free State investors to put their money into English securities and, unless we are able to show that there is some advantage to the revenue, I think we ought not to continue these remissions on income from investments, where those investments are in British securities. Further information, at least, on this general matter is required and I suggest that this is an opportunity for obtaining it.

Mr. BLYTHE

On the general question that Deputy Johnson has raised, I have been myself looking for figures about it, and I learn that in about three or four months' time we will be able to know exactly what amount we have repaid or allowed during the past financial year. By that time the work of dealing with the year will have sufficiently advanced to enable us to know exactly what is the direct and immediate cost to us of the reliefs. At any rate, we repay or allow a great deal less than is allowed or repaid by the British Government, and so far as that aspect is concerned we gain a good deal in the exchange. There is, however, the wider question, which Deputy Johnson calls the social question. That is a matter that will have to be carefully considered. Owing to the close proximity of the two countries, and to the fact that they had been one fiscal entity up to the present, there certainly was no alternative but to allow reliefs in a great many cases—not only in cases like this, but over the general system. But we will have to consider whether, on the whole, it is advantageous to give all the facilities that such a system does give to the owner of money in this country to invest abroad rather than making it much more easy for him to invest at home. I certainly think we could have done nothing but make the arrangement at the time we did, because otherwise the upset, the hardship and the injustice would have been very great. In making any change I think we would have to allow time for arrangements to be made. As soon as I get the figures I will give the information to the Dáil.

Question—"That Section 4 stand part of the Bill"—put and agreed to.

Section 5 ordered to stand part of the Bill.