andDr. FitzGerald asked the Minister for Finance if a person must disclose his return on prize bonds to the Revenue Commissioners.
Ceisteanna—Questions. Oral Answers. - Prize Bonds.
10.
Section 172 of the Income Tax Act, 1967, obliges every individual, on being so required by an inspector of taxes, to furnish a return of all the sources of his income, the amount of income from each source and such further particulars as may be required.
So far as prizes in respect of prize bonds are concerned there is no tax liability except where the bonds are in the beneficial ownership of a person or persons carrying on a trade consisting wholly or partly of dealing in securities. The question whether any person is carrying on such a trade is one of fact to be determined in the light of the circumstances.
In the normal case of an individual holding bonds, the prizes would not be chargeable to tax. If, however, a question is raised by an inspector as to the source of accumulated moneys and he is informed that these are prizes from prize bonds, he is entitled to ask that evidence of this be produced. This is to ensure that moneys so accumulated are not the result of undisclosed profits or understated income.