To ask the Minister for Finance whether he is aware that demands for Income Tax have been received by Rural District Councils in respect of cottages erected under the Labourers (Ireland) Acts, and in view of the fact that in practically all these schemes the Revenue derived from rents is not sufficient to meet the repayment of loans and other current expenses, but requires a subsidy from local rates, he would state whether such demands for Income Tax are properly payable by District Councils.
CEISTEANNA—QUESTIONS. - INCOME TAX ON COTTAGES.
Demands for Income Tax are made on the ground that the net liability for Income Tax is based on the valuation of the cottages. A deduction is allowable in respect of the amount of interest included annually in the repayments by District Councils. This allowance can be obtained on due proof as to the amount of interest being furnished to the Inspector of Taxes. No allowance can be made in respect of repayments of loans or other current expenses. Subject to the deductions referred to above the demands for Income Tax are properly payable.