asked the Minister for Finance whether he is aware that, under the present application of the Finance Acts, taxpayers under schedules D. and E. are in certain circumstances assessed for tax on notional incomes greater than they in fact receive; if he will take immediate steps to ensure that in appropriate cases such assessments are adjusted; and if he will arrange to have this practice terminated.
Ceisteanna—Questions. Oral Answers. - Finance Acts—Schedules D. and E.
Assessments to income-tax under schedules D and E are not based on notional income but on the actual income arising either in the chargeable year or in some other period. The assessments are generally based on the income of the year preceding the year of assessment and consequently for any particular year the assessment may be either greater or less than the amount of the tax-payer's income for that year. I am not at present prepared to introduce legislation to alter the existing basis of assessment. No doubt the question involved is one which will be considered in due course by the general commission of inquiry into the income-tax.