asked the Minister for Finance if, in view of the delay in the payment of dividends on Government securities for which the banks are agents and the consequential hardship to those in receipt of such dividends, he will consider the remission of income tax to offset such hardships.
Ceisteanna—Questions. Oral Answers. - Government Securities Dividends.
17.
I cannot see my way to introduce legislation which would grant the relief suggested by the Deputy.
Does the Minister not accept the fact that those who have invested their money in Government securities have been at a considerable loss whereas with the State the reverse is the case as they did not have to pay the dividends during that period? Therefore, will he not consider remitting the income tax for that period so that eventually they would be quits?
Many people have suffered inconvenience and some people have suffered hardship as a result of the bank closure but the suggestion made by the Deputy would be of benefit primarily to the more affluent people and to corporations as distinct from the less affluent.
The Minister should realise that many small investors have money in Government securities and that real hardship is being imposed. He proposes to tax people on money which they have not got. Surely that is not good enough?
I repeat that to give relief of the kind suggested by the Deputy would be of benefit primarily to wealthy people and large corporations, insurance companies and the like. Small investors, especially those who are on very low incomes, would not benefit by the relief suggested by the Deputy.
Question No. 18.
(Cavan): If the Minister is not prepared to do as suggested by Deputy Esmonde, will he consider paying interest on the dividends that have been withheld for six months with losses to people in modest income groups?
I have given some thought to steps that might be taken in this regard but the solution suggested by the Deputy is not feasible.
(Cavan): Can the Minister think of a better one?
I have given a great deal of thought to it but I have not come up with any better.
(Cavan): I hope the Minister does.