I am in a little difficulty about a matter, as I gave the President notice of a question I wanted to put to him, which he was quite prepared to answer, but he left the Seanad before I had an opportunity of doing so. It was in connection with the Oireachtas (Payment of Members) Bill, as to whether the allowances, or payments, as they are described, are or are not assessable to Income Tax and Super-tax. The question was raised in the Dáil but the answer given was not satisfactory, and was to the intent that the payments would not be assessable to Income Tax. The Minister for Finance, when I spoke to him about it yesterday, seemed uncertain, and he asked me to put the question to him across the floor of the Seanad and that he would be able to give a definite reply. As that reply is not forthcoming, I do not know if I am in order in moving an amendment, or, rather, a recommendation that payments or allowances for expenses of members shall be free from and shall not be assessable to Income Tax and Super tax. The amount involved is not very large, but quite a good many members here, in fact I think everybody, knows that when Income Tax returns come to be investigated by the Inspector of Taxes all sorts of questions, microscopic and otherwise, are put to the individual. If in this particular instance that could be avoided by a resolution of the Dáil, which would definitely fix the matter for all time, I think it would be an advantage. If I am in order I would like to move that in the case of the Payment of Members Bill these payments should not be assessable to Income Tax or Super-tax.
OIREACHTAS (PAYMENT OF MEMBERS) BILL, 1923—FOURTH STAGE. - BILL REPORTED.
AN CATHAOIRLEACH
I cannot find any provision in the Bill dealing with this.
There is no provision in the Bill, but in reply to a question asked in the Dáil, the President, as I read his speech, left it that such payments would not be assessable to Income Tax.
AN CATHAOIRLEACH
I do not like to commit myself to any definite proposition on the subject, but it occurs to me that, unless otherwise provided in the Bill, these payments would have to be taken into account for the purpose of Income Tax and Super-tax. I have asked the Clerk of the Seanad to try and get into communication with the President, so that we may have a statement from him, if only across the telephone, as to what the exact position is in the view of the Government.
I agree with you that they are assessable.
This matter has been debated at some length in the House of Commons, where the law determining the matter and the Statute governing this Bill are the same as the law here at the present. It was clearly laid down in the House of Commons that these are allowances assessable under Schedule D., that the function of the work of the Legislature is an occupation, and that a member is allowed to set off against that an amount to pay expenses. It was accepted by the Income Tax authorities that the expenses more than cover the amount paid, and it was ruled that the payments would not be assessable for Income Tax. If that rule is there under similar laws to those that are now current in the Free State, it seems unnecessary and somewhat undesirable to make special and specific provision in this Bill.
AN CATHAOIRLEACH
I understand from a communication now received from the President that the view taken by the Government is precisely in accordance with what has been stated by Senator Sir John Keane. In other words, that these allowances, being for expenses, are not on that ground assessable either for the purpose of Income Tax or Super-tax.
Thank you.