§ 79. Lieut.-Colonel HOWARD - BURYasked the Financial Secretary to the Treasury whether he can state what are the provisions that have been made to prevent the payment of a double Income Tax in the Irish Free State and in this country; at what rate Income Tax is charged in the case of a resident in the Irish Free State who owns 4 per cent. (tax free) War Bonds; can he also state at what rate Income Tax is charged in the case of residents in England who own Irish investments or who draw their income from Irish property; and what steps in these cases is it necessary to to take in order to avoid the payment of a double Income Tax?
§ Major BOYD-CARPENTERArrangements have been made under which relief will be allowable from British Income Tax and Irish Free State Income Tax respectively on doubly taxed income at such rates as together will equal the lower of the two rates of tax (including Super-tax) to which the taxpayer is liable. These arrangements are embodied on the British side, in the relief in respect of Double Taxation (Irish Free State) Declaration, 1923, and, on the Irish Free State side, in the Double Taxation (Relief) Order (No. 1), 1923. Wherever practicable the relief from British Income Tax will be allowed from the tax payable, so that the taxpayer will pay only the net tax after allowance of the relief. Where this course is not practicable, the relief may be claimed by way of repayment. British Income Tax is not chargeable on the dividends of the 4 per cent. tax-compounded War Loan or the 4 per cent. tax-compounded National War Bonds, whatever the residence of the owner.
§ Mr. A. V. ALEXANDERHave the Somerset House authorities now ceased to operate in Dublin, and is there suitable separate machinery set up in Dublin to collect the Income Tax?
§ Major BOYD-CARPENTERI am afraid that I cannot answer that question.