asked the Minister for Finance whether he is aware that insurance companies registered outside the Free State are conducting business here, and that their policies bear British revenue stamps; if there is any private arrangement with the British and Northern Governments to refund the relative amount to the Free State, and whether he has power to compel these companies to have their policies for the Free State stamped in the Free State.
Written Answers. - Insurance Companies Outside Free State.
Under the provisions of the Double Taxation Relief Order (No. 1), 1923, an instrument, such as an insurance policy, chargeable with stamp duty both in Saorstát Eireann and in Great Britain, if stamped in one country is, to the extent of the duty which it bears, deemed to be stamped in the other country. The principle has been generally accepted that a document which is signed in the Saorstát in such manner that the signature affixed in the Saorstát completes the document as a binding instrument should be stamped in this country. This principle applies as a rule to fire, accident, employers' liability and other miscellaneous policies, and also to premium receipts and to a large proportion of policy loan agreements. Such documents almost invariably are stamped in the Saorstát accordingly. Life policies issued by British companies are, however, normally completed in every respect in Great Britain, and, as a rule, the stamp duty is, therefore, paid in that country. The arrangement for avoiding double stamp duty under the Order quoted above applies as between the Saorstát and Northern Ireland in like manner as it applies as between the Saorstát and Great Britain. No question of refund arises as between the three Exchequers concerned, and, having regard to the terms of the arrangement, it is obvious that there is no power to compel companies to have documents stamped here which are chargeable with stamp duty to the same extent in Great Britain or Northern Ireland and which, in the normal course of business, are stamped in one or other of those countries before they reach the Saorstát.