I move that the Bill be now read a Second Time. The mainpurpose of the Bill is to give legislative effect to my budgetary proposals for the coming financial year of which the Dáil has already approved by adopting the Financial Resolutions which I submitted to the House. The Bill, in addition, covers a number of minor matters to which I will refer.
Section 1, of course, is the ordinary charging section relating to income-tax and surtax. Section 2 increases the rate of relief in respect of a premium on an insurance policy taken out after the 21st May, 1953, with any insurance company or friendly society registered, managed and controlled in the State. The rate of relief in this case will be up to two-thirds of the standard rate of income-tax instead of the former maximum of half the standard rate.
Section 3 will operate to authorise the granting of a measure of relief in respect of the foreign income of certain persons, who, while formerly resident outside Ireland, have settled down in this country. The proposed relief is confined to foreign income where in any case affected, the total tax, both here and abroad, on the foreign income is shown to be greater than the tax which would have been payable on it had the taxpayer being solely resident in the country of origin of the income.
Section 4 gives effect to the new scale of entertainments duty in lieu of the scale now in operation under subsection (3), Section 10, of the Finance Act, 1948. As I mentioned in my Budget speech, the existing scale is anomalous at several stages of its gradation. The new scale, while removing these anomalies, avoids increasing the duty on any current admission charges and, in fact, affords some relief at the lower levels. It may happen, however, that the existing duty under the section may be increased at some points beyond the level of the highest admission charges at present in force and to cover this purely theoretical possibility of an increased in the charge, I propose, in order to comply with the financial procedure of the House, to move an additional Financial Resolution before the Committee Stage of the Bill.
Section 5 provides for the exemptionfrom entertainments duty of amateur exhibitions of basket ball and cycle roller racing promoted by their respective controlling bodies or by clubs affiliated thereto. Section 6 provides for the repayment of one-half of the entertainments duty paid in respect of entertainments which are wholly cinematographic performances and which, while not qualifying for existing exemption in respect of entertainments which are wholly of an educational character, can be said to be educational in the sense that they encourage or facilitate the study of languages. It provides for relief where at least one-third of the entertainment consists of Irish language films or where one-half consists of films in, for example, a continental language.
Section 7 provides that where under the existing law exemption from entertainments duty in a rural area ceases to operate by reason of a change in population, such exemption shall not cease abruptly upon the publication of a new census but shall be continued for two years after such publication. The section also provides that as regards the 1951 Census the period of two years shall commence as from the 1st September, 1953.
Section 8 provides for a further period the continuance of certain exemptions from corporation profits tax hitherto afforded to certain public utility concerns (such as railways), to building societies and to the Agricultural Credit Corporation. Section 9 provides for the postponement of payment of income-tax on foreign income where the taxpayer is unable, because of currency restrictions in the country in which the income arises, to remit the income to this country.
Section 10 is merely a constructional section and is self-explanatory. Section 11 is a section which corresponds to Financial Resolution No. 2 and is designed to combat an evasion of stamp duty by means of the exchange of land of unequal value, the difference in value being paid over in cash. Under the existing law, as I explained in my Budget statement, a transaction of this kind is not a conveyance on sale and consequently the increasedrates of stamp duty imposed some years ago may be escaped.
Section 12 provides for a refund of stamp duty in certain cases where persons have paid stamp duty on conveyance or leases at the 25 per cent. rate and have subsequently ascertained that as they were Irish citizens at the time of executing the instrument they need have paid only at the lower rate in force for Irish citizens.
Section 13 is an annual section which provides for the adjustment for the remaining 29 years, by reference to actual expenditure, the provisional annuity for 30 years fixed last year on the basis of the estimate for voted capital services fixed under Section 22 of the Finance Act, 1950, and further fixes provisionally the new annuity, also for 30 years in respect of the estimated expenditure on such services in 1954. Section 14 implements the undertaking given in connection with the Fifth National Loan and which arranged that the stock of the loan would be accepted at its face value with due allowance for accrued interest in lieu of cash in the payment of death duties subject to certain conditions. Section 15 is one which should gratify Deputy Sweetman because it provides that the 30th September will be the latest date for the presentation to the Dáil of the finance accounts instead of the 30th June as heretofore. Section 16 is the customary section placing all taxes and duties under the care and management of the Revenue Commissioners. Section 17 deals with the Short Title.