Dáil Éireann debate -
Thursday, 8 May 1930

Vol. 34 No. 13

Financial Resolutions—Report.

Minister for Finance (Mr. Blythe)

I move that the Dáil agree with the Committe in Resolution No. 1:—

(1) That income tax shall be charged for the year beginning on the 6th day of April, 1930, at the rate of three shillings in the pound.

(2) That surtax shall be charged for the year beginning on the 6th day of April, 1930, at the same rates as those at which it was charged for the year beginning on the 6th day of April, 1929.

(3) That the several statutory and other provisions which were in force during the year beginning on the 6th day of April, 1929, in relation to income tax and surtax shall, subject to the provisions of Part II of the Finance Act, 1929 (No. 32 of 1929), have effect in relation to the income tax and surtax to be charged as aforesaid for the year beginning on the 6th day of April, 1930.

(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).

Mr. MacEntee

Would it be in order to say something dealing with the general Budget statement on this Resolution?

An Ceann Comhairle

I think not. On Resolution No. 1 it would be in order to speak with regard to income tax and surtax. The Deputy will have an opportunity, on the Second Stage of the Finance Bill, to make a statement of the nature he has referred to.

Mr. MacEntee

We have so often pleaded the case of the small income taxpayer in connection with these Resolutions that it seems almost superfluous to repeat what has been said on former occasions. I think we must, however, on behalf of almost three-fifths of the income taxpayers, express our keen disappointment that the Minister for Finance has not seen fit to meet the case made, not only from our Benches, but from the Labour and the Independent Benches. I really think if the Minister had given some consideration to the incidence of income tax, in so far as it relates to the large and the small taxpayer, he would, notwithstanding the opinion he expressed on the Budget statement, see his way, either by some increase in the standard rate or by fixing, as we suggested last year, a limit in respect of the allowance for children, to meet the case that we made for these increased allowances.

Again, there is the question of discrimination in regard to income derived either as profits or as dividends from Irish undertakings. We on this side of the House feel that one of the greatest incentives which the Minister could give either to Irish investors or business men to employ their capital here would be to extend some concession in regard to income tax. That need not be so large as to impose an appreciable burden on the State, but we feel that any indication on the part of the Minister that enterprise of this kind would receive his sympathetic consideration would have reactions which would be all to the good of industrial development here. Beyond that, I do not intend to detain the House very long, particularly in the circumstances in which we have been meeting these days, and in which these Resolutions are being considered.

When the Finance Bill is before the House on the Second Stage, we may take an opportunity of referring to some of the abuses in the present administration of the Act. I hope to hear from the Minister some justification for the steps which the Revenue Commissioners are taking to collect income tax at the present moment, particularly for the procedure relating to those cases where fraud is either alleged or where false returns are made. We are informed that the fact has been concealed from the taxpayer that, in cases where a wrongful return has been made, if the taxpayer subsequently withdraws that wrongful return and substitutes a correct one, he is not subject to any penalty. We are informed that that practice is not made known to the public and that in consequence many people, under the impression that they were liable to penalties in respect of returns that, if they were aware of the law, they would have taken steps to amend, have, rather than incur penalty, accepted the alternative of allowing a full investigation dating back many years before 1922. That and some other matters we will take an opportunity of raising on the Second Stage of the Finance Bill.

Question put and agreed to.

Mr. Blythe

I move that the Dáil agree with the Committee in Resolution No. 2:—

(1) That in lieu of the present customs duties in respect of wine, there shall (subject to the provisions of this Resolution) be charged, levied, and paid as on and from the 2nd day of June, 1930, the following customs duties on all wine imported into Saorstát Eireann, that is to say:—

	s.	d.
Not exceeding 25 degrees of proof spirit, the gallon	3	0
Exceeding 25 but not exceeding 30 degrees of proof spirit, the gallon	5	0
Exceeding 30 but not exceeding 42 degrees of proof spirit, the gallon	12	0
And for every degree or fraction of a degree beyond the highest above charged, an additional duty, the gallon	1	0
Sparkling wine in bottle, an additional duty, the gallon	12	6
Still wine not exceeding 25 degrees of proof spirit in bottle, an additional duty, the gallon	2	0
Still wine exceeding 25 degrees of proof spirit in bottle, an additional duty, the gallon	4	0

(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) That for the purposes of this Resolution wine rendered sparkling or effervescent and bottled in a bonded warehouse shall be deemed to be sparkling wine imported in bottle, and upon delivery for home consumption shall be charged with the duty imposed on sparkling wine by this Resolution.

(4) That in this Resolution the word "wine" includes the lees of wine.

(5) 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).

Question put and agreed to.

Mr. Blythe

I move that the Dáil agree with the Committee in Resolution No. 3:—

(1) That the new import duties which were first imposed by Section 12 of the Finance (No. 2) Act, 1915, and were (with the exception of the duty on records and other means of reproducing music, the duty on blank film on which no picture has been impressed, and the duty on motor cars (including motor bicycles and motor tricycles) and accessories and component parts thereof other than tyres) continued up to the 1st day of May, 1930, by Section 21 of the Finance Act, 1929 (No. 32 of 1929), shall, with the exceptions aforesaid, continue to be charged, levied, and paid on and from the said 1st day of May, 1930, up to the 1st day of May, 1931.

(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).

Question put and agreed to.

Mr. Blythe

I move that the Dáil agree with the Committee in Resolution No. 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, 1930, by Section 22 of the Finance Act, 1929 (No. 32 of 1929), shall continue to be charged, levied, and paid on and from the said 1st day of August, 1930, up to the 1st day of August, 1931.

(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).

Question put and agreed to.

Mr. Blythe

I move that the Dáil agree with the Committee in Resolution No. 5:—

That on and after the 1st day of August, 1930, every person who travels with a mechanically propelled vehicle and goes from place to place or to other men's houses carrying to sell or exposing for sale any goods, wares, or merchandise, or exposing samples or patterns of any goods, wares, or merchandise to be afterwards delivered shall be deemed to be a hawker within the meaning of Section 2 of the Hawkers Act, 1888, and that Act shall apply to such person accordingly, subject to the modification that the duty payable upon an excise licence issued under Section 3 of the said Act to a person to whom the said Act is applied by this Resolution shall be ten pounds, and no such person shall be deemed to be duly licensed under the said Act by reason of his having taken out a licence under the said Act on which a less duty than ten pounds was paid.

Question put and agreed to.

Mr. Blythe

I move that the Dáil agree with the Committee in Resolution No. 6:—

That it is expedient to amend the law relating to customs and inland revenue (including excise) and to make further provision in connection with finance.

Question put and agreed to.

Mr. Blythe

I move that the Dáil agree with the Committee in the Additional Financial Resolution:—

(1) That there shall be charged, levied, and paid for and upon every licence (in this Resolution referred to as a moneylender's licence) to act and carry on business as a moneylender issued under any Act passed or to be passed during the financial year beginning on the 1st day of April, 1930, an excise duty at the following rates, that is to say:—

(a) on a moneylender's licence expiring on the 31st day of July, 1931—ten pounds.

(b) on a moneylender's licence expiring on the 31st day of July in any year, other than the year 1931, and taken out within six months before such expiry—ten pounds.

(c) on any other moneylender's licence—fifteen pounds

(2) That where it is proved to the satisfaction of the Revenue Commissioners that there is in force an excise licence to carry on the business of a pawnbroker at any premises in respect of which one or more moneylender's licences is or are taken out by the individual or individuals carrying on such business the Revenue Commissioners shall,

(a) where only one such moneylender's licence is so taken out, remit or, if the duty has been paid, repay one-half of the duty on such licence, and

(b) where two or more such moneylender's licences are so taken out, remit or, if the duty has been paid, repay one-half of the duty on such one of such licences as is first taken out.

Question put and agreed to.