§ Mr. Molsonasked the Chancellor of the Exchequer when an agreement was made with Southern Ireland providing that Southern Irishmen temporarily resident in this country should not be taxed by the British but only by the Southern Irish Government; what is the estimated net loss to the Exchequer resulting from this agreement; how soon it can be denounced; 2185W and whether he will give notice forthwith to denounce it at the earliest possible moment.
§ Sir J. AndersonThe double taxation agreement obtaining between this country and Eire was concluded on 14th April, 1926, and was confirmed by Section 23 of the Finance Act, 1926. The agreement is on a reciprocal basis, and not unilateral as my hon. Friend's Question would seem to suggest. Under the agreement, each country exempts from its tax persons who are not resident within its territory but are resident in the other country, while in the case of persons who are resident and taxable in both countries double taxation relief is given by both. No figures are available of the amounts of income exempted or relieved by the two countries. The agreement continues to have effect so long as legislation confirming it is in force in both countries, and I see no sufficient reason for terminating it.