HC Deb 26 April 1928 vol 216 cc1159-61

Motion made, and Question proposed, That an agreement making such alterations in the agreement made the fourteenth day of April, nineteen hundred and twenty-six, between the British Government and the Government of the Irish Free- State in respect of double Income Tax as may be necessary in consequence of the alterations in the British Income Tax Acts effected by the British Finance Act, 1927, and of the alterations contemplated in the Irish Free State Income Tax Acts be confirmed."—[Mr. A. M. Samuel.]


Two years ago, a very elaborate agreement was arrived at between the Free State authorities and the British Government, and I should like to ask the Chancellor of the Exchequer what are the alterations contemplated in the Irish Free State Income Tax that will be brought into force under this Resolution? As the right hon. Gentleman knows, people living in the Irish Free State and also in this country are subject to double Income Tax, with certain rebates, and I would like to ask him whether the present conditions are to be continued in exactly their existing form, and what are the principles of the new Resolution which he is proposing to-day? Can he tell me exactly what they are, as the present system is very complicated? Is he going to make them more simple, or can he say whether there is likely to he additional difficulties in getting the rebates?

The FINANCIAL SECRETARY to the TREASURY (Mr. Arthur Michael Samuel)

Broadly speaking, the effect of the relief provisions of the new Agreement is to make the double resident liable, in all, to Super-tax, Income Tax and Surtax for 1925 to the same extent as if that taxpayer had been resident only in the country with the higher rates of tax. The Resolution makes practically no alteration in the position under the Agreement of April, 1926. As I anticipated that my hon. and gallant Friend would ask a question of this kind as to the Agreement which the Chancellor of the Exchequer signed yesterday, and as it is complicated, I have taken the precaution of writing a précis, which gives an explanation of the position, and, with the permission of the Committee, I will read it: The new Agreement gives double Income Tax relief to double residents for the year 1928 on a different basis from that on which relief would have been given if the Agreement of the 14th April, 1926, had remained in force unaltered. Under the 1926 Agreement, relief would have been given for 1928 by reference to double Income Tax and Super-tax payable for that year. Under the new Agreement, which has been rendered necessary by the introduction of Surtax, relief for 1928 will be given as follows:

  1. (a) relief from double Super-tax payable for that year, and
  2. (b) relief by reference to double Income Tax and Surtax payable for that year.
Relief under paragraph (b) will be given in two instalments—against the Income Tax payable on the 1st January, 1929, and the Surtax payable on the 1st January, 1930, respectively. No change of principle has been made. In order that my hon. and gallant Friend may be in full possession of the explanation, I will send him a copy of the précis.

Question put, and agreed to.

Resolutions to be reported upon Monday next

Committee to sit upon Monday next.