asked the Minister for Finance if he is aware that the Amalgamated Engineering Union, the headquarters of which are in London, have a Superannuated Reserve Fund for the benefit of its members for the purpose of facilitating them in the purchase of their houses; whether he is aware that citizens of the Saorstát who are members of this Union and who have contributed to the said Reserve Fund through its Irish Branches are now deprived of the advantage of securing loans for that purpose owing to the difficulties that exist with the Saorstát regarding Income Tax; if he will state whether the Reserve Fund from which such loans are advanced is exempt from Income Tax under English law, and if he will consider the matter of granting similar exemption of payment of the Income Tax on mortgage interest, viz., 5s. in £1, to citizens of the Saorstát for the purpose referred to.
CEISTEANNA.—QUESTIONS. [ORAL ANSWERS.] - AMALGAMATED ENGINEERING UNION.
The difficulties referred to in the question arise from the operation of Section 39 of the Income Tax Act, 1918, in the altered circumstances resulting from the setting up of the Saorstát. The Section referred to exempts, inter alia, from Income Tax under Schedule D, all mortgage interest forming part of the funds of a trade union, registered in the Saorstát, which are applicable or applied solely for the purpose of provident benefits. As the Amalgamated Engineering Union is not registered in the Saorstát, the interest on the loans made by it to its Irish members does not come within the exemption conferred by the said Section.
I understand that the reserve fund out of which the Union advances loans is exempt from British Income Tax under the provisions of Section 39 of the Income Tax Act, 1918. This results from the fact that the Union is registered in Great Britain and that the Income Tax authorities in that country are in a position to see that the other provisions of the Section referred to, as to the application of the funds, are complied with.
There is no authority in the law prevailing in the Saorstát for granting the exemption from Income Tax referred to in the last part of the question.
Can the Minister say whether he has in contemplation any legislation to regularise the position of trades unions and friendly societies regarding registration in the Saorstát?
I understand that the Minister is prepared to consider the question of bringing in legislation with that object.