asked the Minister for Finance whether in the case of pensions payable by Saorstát Eireann under Clause 10 of the Treaty and paid to persons resident in countries outside the British Commonwealth income tax is deducted at the source, and whether in the case of such pensioners resident in Great Britain or Northern Ireland income tax is deducted at the source.
CEISTEANNA—QUESTIONS. ORAL ANSWERS. - INCOME TAX ON PENSIONS.
TOMAS MAC EOIN
In the case of all pensions payable at a public office, including pensions under Article 10 of the Treaty, income tax is deductible at the time of payment by virtue of No. 11 of the rules applicable to Schedule E of the Income Tax Act, 1918. This is the general position. In the case, however, of pensioners who satisfy the Revenue Commissioners that they are resident in Great Britain or Northern Ireland and are not resident in Saorstát Eireann for 1926-27, and later years, the position for those years is governed by the Double Income Tax Agreement which was confirmed by the Finance Act, 1926. Under that Act such pensioners are entitled to total relief from Saorstát Eireann income tax by way of repayment or otherwise. Where practicable, i.e., when the title to relief is established in time, exemption is granted at the source and the pension is paid in full.