I asked the Minister for Finance to-day whether he was aware that in a number of cases where appeals are now pending against additional assessments under Schedule D to the Special Commissioners of Income Tax, Inspectors of Taxes are serving notices threatening proceedings through the solicitors of the Department of Inland Revenue; whether he was aware that this has had the effect of preventing taxpayers from proceeding with their appeals from the additional assessments and from having their appeals investigated by the Special Commissioners of Income Tax. It was obvious from the Minister's reply that the facts had not been placed before him by the officials. In the hope of stopping this scandal before it gets beyond control, I gave notice that I would raise the matter on the Adjournment. The facts are: At present a number of notices of additional assessments under Schedule D have been served on taxpayers. From those additional assessments, there is a statutory right of appeal. It follows that there is a statutory right to have all appeals heard and disposed of within a reasonable time. Any other interpretation would be absurd. Nobody could for a moment suggest that if the taxpayer has a right of appeal under a statute, he has not also the right to have his appeal heard and determined within a reasonable period. What are the facts? The Commissioners of Inland Revenue, through their inspectors, claim in the first place, the right to say when the appeal is to be heard. They get a notice of appeal and instead of handing it over to the appellate tribunal to be dealt with, they keep it wrapped up and only hand it over when it suits them to have the case heard. They claim also the right to say if the appeal is to be heard at all.
The appeal is taken to the Special Commissioners. Once the notice of appeal is served, the Special Commissioners are seized of the appeal and it is for them to say when it will be heard. But the Inspectors of Taxes now claim the right to take away from the appellants the right to have their appeals heard and determined. They claim this further right: When notice of appeal reaches the Inspector of Taxes, he sends a notice threatening the appellant with proceedings—proceedings solely brought about by reason of the fact that the parties have exercised their statutory right of appeal. The Inspector seeks to penalise them and seeks to blackmail them—because that is what it amounts to—by telling them that if they go on with the appeal he will take proceedings against them. If that occurred in an isolated case, I could understand it. It has not occurred in an isolated case. I do not want to expose any particular taxpayer or to leave him open to a dose of income tax treatment. I know what would occur to him, but I will just give you one instance. It is not an isolated instance. Having heard this instance, I shall ask the Minister for Finance to say if this system is known to him and, if so, whether he approves of it or not. A taxpayer appealed on the 10th October from an additional assessment. The appeal would ordinarily come on for hearing some time this month. What happens to him? He gets a letter like this:
A statement of your liability to income tax in respect of the year 19— was sent to you as far back as November, 1930.
This is the case of a citizen who is exercising his statutory right of appeal.
As you appear to be unwilling to meet your just obligations to the State, I regret there is no option but to submit the papers to the Solicitor's Department for whatever proceedings are considered necessary in connection with the incorrect returns of total income that have been furnished for a number of years.
This man has served notice of appeal. He wants to get it heard and he is told by an income tax official that he is not going to get it heard. He is told "If you dare to take advantage of the right the law gives you, we will make you pay for it." There is the threat. But he is given an opportunity of repentance.
I wish, therefore, to give you a further opportunity of reconsidering the matter and shall defer taking any action for ten days from this date.
What does that mean? "Withdraw your appeal; be a good boy; take your salts; if you don't you will pay the penalty." I protest against proceedings of that sort. They are unfair to the taxpayer. They are a disgrace to the Department from which they emanate. I should like to ask the Minister for Finance if he is aware of the steps now being taken to stop the appellants from exercising their statutory right. I want to know if he approves of those steps, and if he does not, what he proposes to do to put an end to what is a scandal and a disgrace to the Government and to the Revenue Commissioners.
