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Dáil Éireann debate -
Thursday, 10 Dec 1959

Vol. 178 No. 8

Committee on Finance. - Finance (No. 2) Bill, 1959—Committee and Final Stages (Resumed).

Sections 7 and 8 agreed to.
SECTION 9.

I move amendment No. 7:

In subsection (1), page 6, line 30, to delete "deducted" and substitute "deductible."

This is consequential.

Amendment agreed to.
Section 9, as amended, agreed to.
Section 10 agreed to.
SECTION 11.

I move amendment No. 8:—

In subsection (1), page 7, line 29, to delete "subsection (1) of this section" and substitute "paragraph (a) of this subsection".

This is a drafting amendment. As the section is drafted, it would bring in the whole of the subsection when in fact it was intended to bring in only paragraph (a).

Amendment agreed to.
Section 11, as amended, agreed to.
Sections 12 and 13 agreed to.
SECTION 14.

I move amendment No. 9.:

In subsection (4), page 9, line 47, to delete "1958" and substitute the following:

"1958, subject to also including any relief under section 2 of the Finance Act, 1954, any deduction under Rule 9 of the Rules applicable to Schedule E and any deduction in respect of wear and tear or obsolescence of any machinery or plant allowable under Rule 6 or 7 of the Rules applicable to Cases I and II of Schedule D."

As the House knows, Section 14 provides for the remission of one half year's tax for 1960-61 for taxpayers coming within the scope of P.A.Y.E. and subsection (4) sets out the manner in which the remission of tax for 1960-61 is to be calculated. In the computation of the tax to be remitted, the taxpayer is to be granted all the personal reliefs to which he is entitled. As the Bill stands personal relief is defined as having the same meaning as in Section 9 of the Finance Act, 1958. That Section, however, dealt with the apportionment of personal reliefs between husband and wife and consequently did not include allowance for a widow or widower. This allowance will, now, be included for the purpose of the present Section and the proposed amendment secures this by providing, in the first instance, for the calculation under personal reliefs of any relief under Section 2 of the Finance Act, 1954.

Amendment agreed to.
Section 14, as amended, agreed to.
Sections 15 and 16 agreed to.
SECTION 17.
Question proposed: "That Section 17 stand part of the Bill."

I want to raise a point on this section and perhaps this is the handiest way of raising it. The position is perfectly clear in respect of a life policy which has been in existence on 5th April of any year but where a life policy is taken out during the course of a year, how is the allowance made for that? Is there an amended certificate of allowance? Does the employee concerned apply to the inspector and say: "Here is my life policy which I have now taken out and will you therefore issue me with an amended certificate of allowance?"

That is satisfactory, so far as that is concerned. However, subsection (4) deals with deductions within the meaning of the Third Schedule. What is done in relation to a fluctuating deduction such as overdraft interest? Nobody can tell at the beginning of the year what overdraft interest will be payable.

In that case, a provisional estimate is made at the beginning of the year. That is all one can do.

A provisional estimate would be made and a variation would be made later on? I can understand that.

It is covered by paragraph (b) of subsection (3) of Section 6.

I thought it was in this one it was covered.

I shall read it if it will help the Deputy:

Any reference to the total tax payable for a year shall be construed as a reference to the total tax (including sur-tax) estimated to be payable for the year in respect of the emolument, subject to a provisional deduction for allowances and reliefs.

The word "reliefs" covers overdraft interest payable?

Can the Minister help me on this? Is the taxpayer entitled at any time during the year, when it becomes patently clear that the relief for overdraft interest he will have has increased considerably, to apply during the course of the year for an amended certificate, or must he wait? Supposing the rate of overdraft interest was increased, quite clearly then the estimated basis on which the relief was provisionally given would be varied. Can he apply at that stage for an amended certificate or must he wait till the end of the year?

He can apply as the need arises.

In this section, provision is made for life insurance premiums, et cetera. Is there provision in this for a premium paid in respect of a policy under the Health Insurance scheme, relief for which was introduced in the 1955 Finance Act?

Insurance premiums paid under voluntary health insurance are already tax free. They are already deducted and relief is already given in full in respect of them.

May I put it this way: in respect of a voluntary health insurance premium, under the Finance Act, 1955, that premium is deducted from the income before the income is assessed. In respect of a life insurance policy, the premium was not heretofore deducted from the income before it was assessed, but after the income was assessed, the taxpayer was allowed tax relief based on the premium and that is why the two were dealt with differently in this section. Is that the correct answer?

Is it covered?

It is covered.

Is that the correct answer?

That is correct.

Question put and agreed to.
Section 18 agreed to.
Title agreed to.
Bill reported with amendments.
Agreed to take remaining Stages to-day.
Bill considered on Report.

I move:

That paragraph (a) of Section 4 be deleted.

I move the amendment for the purpose of extracting some information from the Minister. I want to know what is the amount of the Schedule E income tax for the last year for which the Minister has the information for the categories that are included in paragraph (a)?

This relates to the tax paid by civil servants and others with Section 4 (a). It is about £2,000,000.

Therefore, on that basis, they are paying about £1,000,000 more than Bill Fleming who is in the E.S.B.

Amendment, by leave, withdrawn.
Bill received for final consideration and passed.

This is a Money Bill within the meaning of Article 22 of the Constitution.

Can the Minister give us any indication of when the regulations under the Bill are likely to be circulated to the public?

About the middle of January.

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