Sub-sections (5) and (6) of Section thirty-nine of the Income Tax Act, 1918, (which give exemption from Income Tax in respect of income derived from the funds of approved societies and other authorities under the Acts relating to National Health Insurance), and Section thirty-three of the Finance Act, 1921 (which grants exemption from Income Tax for funds of special and supplementary schemes under the Unemployment Insurance Act, 1920), shall, notwithstanding the constitution of the Irish Free State, have effect so far as relates to Income Tax for the year 1923–24, as though the references therein to enactments relating to National Health Insurance and to the Unemployment Insurance Act, 1920, respectively, included references to the enactments in force in the Irish Free State relating to National Health Insurance and to Unemployment Insurance, respectively, and as though the reference in the said Sub-section (5) to the Irish Insurance Commissioners included a reference to the authority charged with the administration in the Irish Free State of the enactments
relating to National Health Insurance and to the body of trustees constituted for the purposes of the Government of Ireland (Adaptation of Health Insurance Acts) Order, 1922."—[Sir W. Joynson-Hicks.]
§ Brought up, and read the First time.
§ Sir W. JOYNSON-HICKS
I beg to move "That the Clause be read a Second time."
This new Clause will give exemption for one year only to certain funds belonging to the National Health Insurance of the Irish Free State. Under National Health Insurance, large funds were collected, a certain proportion of which belongs to the Irish Free State. These funds are now in course of division. Different securities will be allotted to Great Britain and different securities will be allotted by agreement to the Irish Free State. That has not been completed and cannot be completed for a few months, and in the meantime Income Tax is chargeable under the present law on the whole of these securities. I therefore propose this Clause to deal fairly by the Irish Free State and prevent Income Tax being charged on one year only during the process of the division of these funds. We have been in communication with the Irish Free State, and they have agreed to bring in a Clause in their Finance Bill making a reciprocal provision in case any securities belonging to us may be discovered in the Free State.
§ Sir J. BUTCHER
I wish to ask whether it is not a fact that certain Indian and Colonial securities standing in the Bank of Ireland are taxed by the Irish Free State? Will the Financial Secretary to the Treasury take care that, in any reciprocal arrangement, we make sure that these funds will not be taxed by the Irish Free State?
§ Sir W. JOYNSON-HICKS
Any funds in Ireland belonging to the approved societies are, by arrangement made with the Irish Free State, to be exempted.
§ Sir F. BANBURY
Will my right hon. Friend not consider that, if he has an opportunity of getting any money out of the Irish Free State, he had better take it?
§ Question, "That the Clause be read a Second time," put, and agreed to.
§ Clause read a Second time, and added to the Bill.