asked the Minister for Finance whether he is prepared to consider reverting to the arrangement which was in force prior to 1926, when the Saorstát collected income tax from all manufacturers and traders operating in the Saorstát, whereas under the new arrangement outside competitors carrying on business in the Saorstát do not pay income tax to the Saorstát on their Irish profits.
Ceisteanna—Questions. Oral—Answers. - Double Income Tax.
The Deputy's question presumably has reference to the arrangements with the British Government in respect to double income tax, embodied in the Finance Acts of 1926 and 1928. If so, the answer is in the negative. The Double Taxation Relief Agreement with the British Government embodied in the Double Taxation (Relief) Order (No. 1 of 1923) and virtually superseded by the 1926 Agreement, gave rise to so many difficulties and complexities that it was almost universally condemned by Saorstát taxpayers, and in my opinion there can be no question of reverting to it. There is, of course, no provision under which a foreign commercial concern trading in the Saorstát can claim exemption from Saorstát income tax in respect of its Saorstát profits, unless it can bring itself within the scope of the 1926 Agreement with the British Government.