§ MR. ARTHUR O'CONNOR (Donegal, E.)I beg to ask the Chancellor of the Exchequer if he will state upon what ground income duty is required from a tenant purchaser in Ireland in respect of the amount of principal monies repaid in the purchase instalments; and whether his attention has been directed in this connection to Section 40 of 16 & 17 Vict. c. 34?
§ SIR W. HARCOURTSuch portions of the purchase instalments as represent principal monies are, in fact, repayments of borrowed capital. There is no authority in the Act referred to by the hon. Member, or in any other Act relating to Income Tax, for the allowance— by deduction or otherwise — of the duty on repayments of borrowed capital.