HC Deb 02 February 1881 vol 258 cc4-5
MR. M'COAN

asked Mr. Chancellor of the Exchequer, Whether it be a fact that, the income tax in Ireland being assessed on the old tenement valuation of 1846–8, and not, as in England, on the actual rental, this tax is in Ireland paid on only about two-thirds of the rental derived from land, while in England it is paid on the full rental received; and, whether it is true that the landed interest in Ireland in this way annually escapes payment of income tax on a sum exceeding £4,700,000?

MR. GLADSTONE

It is undoubtedly a fact that the Income Tax in Ireland is assessed upon the valuation commonly known as Griffith's valuation, and that in consequence it is assessed upon a sum? which is variable, and usually under the actual rent, differing therein from the Income Tax in England, which is levied absolutely upon the actual rent, and to a certain extent from the Income Tax in Scotland, which, though levied upon the full rent, is subject to reduction in respect of what are commonly called public burdens. It is now 27 years since the Income Tax was imposed on Ireland, and I am the person responsible for this inequality. I was the Chancellor of the Exchequer of the day when the Income Tax was charged upon Ireland; and it was not from any desire to give undue favour to landlords, so far as my recollection goes, that the Irish landlords then obtained the advantage of paying a sum generally under the full rent. It was this. The Income Tax in Ireland was new, and the difficulties of levying it were represented to be insurmountable, and my impression is that the Irish Members, landlords and non-landlords, cordially joined in placing it on Griffith's valuation, and not on the full rent. The hon. Gentleman asks me a Question which would be practically determining the exact sum by which Griffith's valuation falls short of the full rent. I know, or have the means of knowing, Griffith's valuation; but I have no means of knowing the full rent.

MR. A. M. SULLIVAN

I beg to ask the right hon. Gentleman, Whether he will take into consideration a proposal to make the landlords pay the Income Tax on the rents which they exact from their tenants?

MR. GLADSTONE

Upon a Question of that kind, which involves a new financial proposal, I must ask the hon. and learned Member to give Notice.

MR. A. M. SULLIVAN

I shall, Sir.