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Dáil Éireann debate -
Tuesday, 3 May 1927

Vol. 19 No. 19

ORDUITHE AN LAE—ORDERS OF THE DAY. - FINANCIAL RESOLUTIONS—REPORT.

The following resolutions were reported from the Committee on Finance:—
1.—(1) That income tax be charged for the year beginning on the 6th day of April, 1927, at the rate of three shillings in the pound.
(2) That super-tax shall be charged for the year beginning on the 6th day of April, 1927, at the same rates as those at which it was charged for the year beginning on the 6th day of April, 1926.
(3) That the several statutory and other provisions which were in force during the year beginning on the 6th day of April, 1926, in relation to income tax and super-tax shall have effect in relation to the income tax and super-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1927.
(4) It is hereby 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, 1927 (No. 7 of 1927).
2.—(1) That notwithstanding anything in Section 5 of the Income Tax Act, 1918, the total income from all sources of any individual who, if legislation is not passed to the same effect as this resolution, would have been entitled for the year beginning on the 6th day of April, 1926, to relief from double taxation in respect of income tax including super-tax exceeding in amount one-half of the total amount of income tax (before deduction of any relief in respect of life assurance premiums or any relief from double taxation in respect of income tax including super-tax granted under the Finance Act, 1926 (No. 35 of 1926)) and super-tax payable by him for that year shall for the purpose of super-tax for the year beginning on the 6th day of April, 1926, be estimated as if the modifications of the Income Tax Acts contained in paragraph 1 of Part II. of the First Schedule to the Finance Act, 1926, had had effect for the year beginning on the 6th day of April, 1925.
(2) That if an individual has been assessed to super-tax for the year beginning on the 6th day of April, 1926, for an amount less than that which he would have been liable to pay if legislation had been in force to the same effect as this resolution, the Special Commissioners shall have power to make an additional assessment for the purpose of adjusting his liability in accordance with the provisions of this resolution.
3.—(1) That the new import duties which were first imposed by Section 12 of the Finance (No. 2) Act, 1915, and were (with exception of the duty on records and other means of reproducing music and the duty on blank film on which no picture has been impressed) continued up to the 1st day of May, 1927, by Section 11 of the Finance Act, 1926 (No. 35 of 1926) shall, with the exceptions aforesaid, continue to be charged, levied, and paid on and from the said 1st day of May, 1927, up to the 1st day of May, 1928.
(2) That whenever the Revenue Commissioners are satisfied that any cinematograph film imported into Saorstát Eireann is of an educational character, they shall, subject to compliance with such conditions as they think fit to impose, exempt such film from the payment of the duty on cinematograph films included in the duties mentioned in this resolution.
(3) That the provisions of Section 8 of the Finance Act, 1919, shall apply to the duties mentioned in this resolution with the substitution of the expression "Saorstát Eireann" for the expression "Great Britain and Ireland."
(4) It is hereby 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, 1927 (No. 7 of 1927).
4.—(1) That the additional duties on dried fruits which were first imposed by Section 8 of the Finance (No. 2) Act, 1915, and were continued up to the 1st day of August, 1927, by Section 12 of the Finance Act, 1926 (No. 35 of 1926) shall continue to be charged, levied, and paid on and from the said 1st day of August, 1927, up to the 1st day of August, 1928.
(2) That the provisions of Section 8 of the Finance Act, 1919, shall apply to the duties mentioned in this resolution with the substitution of the expression "Saorstát Eireann" for the expression "Great Britain and Ireland."
(3) It is hereby 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, 1927 (No. 7 of 1927).
5.—(1) That whenever the Revenue Commissioners are satisfied that any articles liable to any duty under Section 19 of the Finance Act, 1924 (No. 27 of 1924) imported into Saorstát Eireann on or after the 22nd day of April, 1927, are so imported for further manufacture and subsequent exportation, they may, subject to compliance with such conditions as they may think fit to impose, permit such articles to be imported without payment of the duty imposed by the said Section 19.
(2) It is hereby 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, 1927 (No. 7 of 1927).
6.—(1) That as from the 9th day of May, 1927, there shall be allowed on the due exportation or the due shipment for use as stores of any goods in the manufacture or preparation of which in Saorstát Eireann any imported oatmeal chargeable with duty under Section 7 of the Finance Act, 1926 (No. 35 of 1926) has been used, a drawback equal to the duty paid under the said Section 7 in respect of the quantity of such oatmeal which appears to the Revenue Commissioners to have been used in the manufacture or preparation of such goods.
(2) That in allowing drawback under this resolution the Revenue Commissioners with the consent of the Minister for Finance may, in order to facilitate trade, modify or dispense with all or any of the requirements of Sections 104 and 106 of the Customs Consolidation Act, 1876, as to the giving of security and the examination of the goods.
(3) It is hereby 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, 1927 (No. 7 of 1927).
7.—(1) That in lieu of the present Customs duties in respect of matches there shall be charged, levied and paid as on and from the 22nd day of April, 1927, the following Customs duties on all matches imported into Saorstát Eireann, that is to say:—
Boxes or other containers:—

Containing not more than 10 matches

s.

d.

Per 1,000 containers

5

2

Containing more than 10 but not more than 20 matches

Per 1,000 containers

10

4

Containing more than 20 but not more than 50 matches

Per gross (144) containers

3

10

Containing more than 50 but not more than 75 matches

Per gross (144) containers

5

9

For every additional 25 or part of 25 matches over 75

Per gross (144) containers

1

4

(2) That in lieu of the present excise duties in respect of matches there shall be charged, levied, and paid as on and from the 22nd day of April, 1927, the following excise duties on all matches made in Saorstát Eireann, that is to say:—
Boxes or other containers:—

Containing not more than 10 matches

s.

d.

Per 1,000 containers

5

0

Containing more than 10 but not more than 20 matches

Per 1,000 containers

10

0

Containing more than 20 but not more than 50 matches

Per gross (144) containers

3

8

Containing more than 50 but not more than 75 matches

Per gross (144) containers

5

6

For every additional 25 or part of 25 matches over 75

Per gross (144) containers

1

3

and so in proportion for any less quantity.
(3) It is hereby 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, 1927 (No. 7 of 1927).
8.—That it is expedient to amend the law relating to Customs and Inland Revenue (including Excise) and to make further provisions in connection with Finance.

I move: "That the Dáil agree with the Committee in resolution No. 1."

This is, I take it, the resolution regarding the rate of income tax and super-tax to be charged in future. I hope it will be possible on the Committee Stage of the Finance Bill to persuade the House that a change in the incidence of income tax should be made—that the position of the less wealthy taxpayers should be met, as compared with that of the more wealthy, and that some further remission should be made in respect to children being educated and in respect to higher rates of exemption. I do not propose to discuss the matter with any fullness now, but I hope it will be possible to bring forward amendments which will be acceptable to give effect to those two propositions.

Question put and agreed to.
Question—"That the Dáil agree with the Committee in resolutions 2, 3, 4, 5, 6 and 7"—put and agreed to.

I move: "That the Dáil agree with the Committee in resolution No. 8."

There is one small matter I wish to direct the Minister's attention to before he finally passes the draft of the Finance Bill. In the Income Tax Act, 1918, Section 39, subsection (2), it is provided:

A registered trade union which is precluded, by Act of Parliament or by its rules, from assuring to any person a sum exceeding £300 by way of gross sum, or £52 a year by way of annuity, shall be entitled to exemption from tax under Schedules A, C and D in respect of its interest and dividends which are applicable and applied solely for the purpose of provident benefits.

One would assume that the assessment under Schedule A on the premises of a trade union used for the purpose of the union in carrying out its provident benefits would fall to be exempt from income tax under that section. But it seems that there has been a decision on the part of the administrators of income tax that a trade union which has such premises and lets them for rent is exempted from tax upon the rental, but if it uses those premises for its own purposes—for the purpose of provident benefit—it is not entitled to such exemption. That is to say, if two trade unions were in a fairly similar position and they exchanged premises, they could both be exempted, but if they occupied their own premises for these purposes the exemption is not allowed. There seems to be an anomaly which I would say was clearly never intended, and I wish the Minister to consider whether it is not possible to amend the Act—at least to make the Act so clear that the Income Tax or Revenue Commissioners would not be able to interpret it in this way, which acts as a penalty, one might say, upon a trade union which uses its own premises instead of renting them.

This is a matter to which my attention has not been directed so far, and I can only promise that I will look into it, and if I see no sound reason against it I will take the appropriate action.

Question put and agreed to.
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