I move:—
(1) That where, by virtue or in consequence of a settlement and during the life of the settler, any income is, in any year of assessment, paid or payable or accumulated to or for the benefit of a child of the settlor, such income shall, if at the beginning of such year such child is under the age of twenty-one years and is unmarried, be treated for the purposes of the Income-tax Acts as income of the settlor for that year and not as income of any other person.
(2) That where, by virtue of paragraph (1) of this Resolution, any income-tax or surtax becomes chargeable on and is paid by a settlor, such settlor shall be entitled to recover from any trustee or other person to whom the income is payable by virtue or in consequence of the settlement the amount of the tax so paid, and for that purpose to require the Revenue Commissioners to furnish to him a certificate specifying the amount of the income in respect of which he has so paid tax and the amount of the tax so paid, and every certificate so furnished shall be conclusive evidence of the matters of fact stated therein.
(3) That where a person obtains, in respect of any allowance or relief, a repayment of income-tax in excess of the amount of the repayment to which he would, but for paragraph (1) of this Resolution, have been entitled, an amount equal to the excess shall be paid by him to the trustees or other person to whom the income is payable by virtue or in consequence of the settlement and, where there are two or more such trustees or other persons, in such proportions as the circumstances may require.
(4) That if any question arises as to the amount of any payment or as to any apportionment to be made under the next preceding paragraph of this Resolution, such question shall be decided by the Special Commissioners whose decision thereon shall be final.
(5) That any income which, by virtue of this Resolution, is treated as income of any person shall be deemed to be the highest part of his income.
(6) That no repayment shall be made under Section 25 of the Income-tax Act, 1918, on account of tax paid in respect of any income which has by virtue of this Resolution been treated as income of a settlor.
(7) That as on and from the 6th day of April, 1937, paragraph (c) of sub-section (1) of Section 20 of the Finance Act, 1922, and the subsequent provisions of that section in so far as they relate to the said paragraph (c) shall cease to have effect in respect of any settlement to which this Resolution applies.
(8) That this Resolution applies to every settlement, wheresoever made or entered into and whether it was made or entered into before or after the passing of this Resolution.
(9) That in this Resolution— the word "child" includes a stepchild, an adopted child, and an illegitimate child, the word "settlement" includes any disposition, trust, covenant, agreement, or arrangement, and any transfer of money or other property or of any right to money or other property, the word "income" where it firstly and secondly occurs in paragraph (1) of this Resolution and wherever it occurs (otherwise than in the expression "income-tax") in paragraphs (2) and (3) of this Resolution and where it firstly occurs in paragraph (5) of this Resolution and where it occurs in the expression "any income" in paragraph (6) of this Resolution includes any income chargeable to income-tax by deduction or otherwise and any income which would have been so chargeable if it had been received in Saorstát Eireann by a person resident or ordinarily resident in Saorstát Eireann but does not include income arising under a settlement in a year of assessment for which the settlor is not chargeable to income-tax as a resident in Saorstát Eireann.
(10) 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).
This is the Resolution dealing with the evasion of income-tax by means of settlements on children.