§ MR. COGAN (Wicklow, E.)To ask Mr. Chancellor of the Exchequer whether occupiers of land who have purchased their holdings under the Land Purchase Acts in Ireland are liable to be assessed or to pay Income Tax under Schedule A on that portion of the annuity which is classed as interest as distinguished from sinking fund; and, if, so assessed, they have paid Income Tax on the full amount of the annuity, whether they are entitled to reimbursement by the Land Commission or the Treasury on so much of the annuity as may be regarded as interest on borrowed money and not repayment of capital.
(Answered by Mr. Asquith.) Occupiers of land who have purchased their holdings under the Land Purchase Acts in Ireland are primarily liable to be assessed on the annual value of their holdings, but no charge is made where the tenant purchaser's total income from all sources is proved to be less than £160. Where a tenant purchaser's total income from all sources is not proved to be less than £160, his holding is charged to Income Tax on the annual value; but, as the purchase annuity payable to the Land Commission is paid without deduction of Income Tax, it is the practice of the Inland Revenue Department, where possible, 364 to reduce the assessment by the amount of the interest included in the annuity. If in any case reduction has not been granted prior to payment of the tax, the tenant purchaser can obtain a refund by applying to the Surveyor of Taxes for the district in which the property is situated.