asked the Minister for Finance whether in view of the large sums paid in commission by insurance companies in this country to part-time agents he will in future require the insurance companies to make returns to the taxation authorities of amounts so paid, and thus bring the position of part-time agents vis-à-vis the taxation authorities into line with the position of full-time insurance agents, who have at present returns of their commission made by their companies and have the tax on their commission deducted under PAYE.
Ceisteanna—Questions. Oral Answers. - Commission Payments to Part-time Insurance Agents.
25.
Section 9 of the Finance Act, 1960, requires insurance companies, and other concerns, to make returns of commissions paid to part-time agents and such returns are being supplied to the Revenue authorities.
Would the Minister say whether he has received representations from any source in recent months with regard to this matter?
Representations from where?
From any responsible source in connection with the insurance matter, to the effect that a sum of between £400,000 and £600,000 is being lost to the Exchequer through evasion of tax.
I got a circular in the matter which may have been sent to all Deputies; I do not know. The particulars were not true. The companies must make returns of all commission paid and income tax is chargeable in the ordinary way on it.
May we take it, so, that if an accountant or some other person, who acts in his personal or private capacity, as an agent, makes a return, there is tax paid on his commission?
Yes.
Even though the commission may be returned in some cases to agents as discount on some of their ordinary insurance?
I take it that discount would have to be returned also. I am not sure about that.
Perhaps the Minister will look into that aspect, where commission is paid as a discount?
It is the Irish companies who are the culprits in this.
Why is the Deputy so hard on the Irish companies?
I am only asking the Minister to be fair to all companies. The Irish companies are the people carrying this out and if they carried out their responsibility to the State, there would be a lot of money coming into the Exchequer in income tax.
Why is the Deputy so hard on Irish companies?
Surely, when the courts have condemned Irish companies, the Minister should not blame me for blaming them.
The Deputy's general attitude is to blame the Irish insurance companies.