SUPER-TAX (GREAT BRITAIN AND IRISH FREE STATE).

HC Deb 23 June 1924 vol 175 cc38-9

79. Sir W. DAVISON

asked the Secretary of State for the Colonies whether he has been able to make arrangements with the Irish Free State authorities to avoid the double assessment for Super-tax in both Great Britain and the Irish Free State of all property in both countries in the case of persons who have property in the Free State as well as in Great Britain?

Mr. GRAHAM

I have been asked to reply to this question. I would refer the hon. Member to the reply which was given to a question asked by him on the 2nd June. As I explained in that reply, under the arrangements made between this country and the Irish Free State for giving relief in respect of double taxation of income, the effective rate of Supertax charged is taken into account in determining the individual's appropriate rate of tax for purposes of relief. I fear that it would not be practicable to make arrangements which would avoid the making of assessments to Super-tax in both countries in the case of persons who are liable to that tax under the laws of both countries.

Sir W. DAVISON

Is it not a fact that the hon. Gentleman said that he would go into the matter in order to see if some arrangement could be arrived at with the Free State in order to avoid the hardship which may result in a person being mulcted for a tax on more than his income?

Mr. GRAHAM

Certainly, and that promise at the moment is being carried out. The hon. Member, however, seems to have confused the mere assessment, which, of course, must be made under the laws of both countries, with the payment of the tax, which is a very different thing. On the question of payment, we are now trying to arrive at an arrangement.

Lieut. - Colonel HOWARD - BURY

Could not the Financial Secretary come to some inter-Departmental arrangement by which the assessments made in each country could be mutually arranged so that the larger of the two amounts has to be paid?

Mr. GRAHAM

I am quite willing to consider that suggestion in connection with the present negotiations, but as the Income Tax law stands in different countries, it is very difficult to avoid two aces of assessments being made, and I think justice is being done if we arrive at an agreement with regard to the actual payment.