asked the Minister for Finance if he is aware that the Revenue Commissioners are sending out final demand notices in respect of income tax due on dividends of the national loans in 1970; and that such dividends had not been paid to the loan holders; and that because of this some loan holders have been suffering considerable financial embarrassment and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Income Tax on Loan Dividends.
20.
Interest on national loans is chargeable to income tax under Case III of Schedule D and the tax is payable on or before the 1st January in the year of assessment.
Payment of interest on national loans due on or after 15th May, 1970, was unavoidably delayed because of the banks closure. Payment commenced to be made on the 22nd October, 1970, and was completed by the 27th January, 1971, when the interest payments were brought up to date.
As the tax in respect of these interest payments was legally due on 1st January, 1971, the Revenue Commissioners in the normal course of their duties issued final demands for tax still unpaid at that date and they did so in the week commencing the 25th January, 1971. I should point out that in all cases first moieties of the delayed interest had been paid by that date.
Can the Minister assure us that no action was taken in regard to any holder of national loans who had not been paid by the Government and who got a final assessment notice?
I understand that no such action was taken. However, the Deputy will appreciate there were only two days in question.