asked the Minister for Finance if he will give a gross estimate of the total amount in income tax lost to the State for the year ended 31st March, 1962, arising out of the 1926 agreement under which companies controlled in Great Britain and Northern Ireland are exempt from Irish income tax in respect of profits earned in the Twenty-Six County area, basing his figures, if need be, on the returns furnished, for the purpose of ascertaining liability for corporation profits tax; and whether any estimate can be furnished of the amount lost in estate duty through the holding by residents in Great Britain and Northern Ireland of shares in companies which are owners of high profit-earning chain-stores, factories, banking, insurance and other finance institutions in the Twenty-Six Counties.
Ceisteanna—Questions. Oral Answers. - Income Tax Loss.
5.
As regards the first part of the question it is not possible to give any figures showing the effect on the revenue of the reciprocal Agreement in respect of Double Income Tax concluded between the Government of this country and the British Government in 1926 because there are various incalculable factors to be taken into account. I am satisfied, however, that the continuance of that Agreement is in the interests of this country.
I am not clear as to what the Deputy has in mind in the second part of the question, but I should explain that shares held by residents in Great Britain and Northern Ireland in Irish companies fall within the charge to Irish Estate Duty.