14/04/1923: Double Taxation (Relief) (Order No. 1), 1923.

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No. O.S. 2 of 1923.

WHEREAS it is enacted by the Double Taxation (Relief) Act, 1923 (No. 8 of 1923), that wherever under any law from time to time in force in Great Britain or in Northern Ireland, any tax is for the time being payable in respect of a subject of charge in respect of which a corresponding tax is payable in Saorstát Éireann, it shall be lawful for the Executive Council of Saorstát Éireann to enter into a provisional arrangement with the British Government and, if the case shall so require, with the consent of the Government of Northern Ireland for the granting of relief in cases where there is a charge both to the Irish Free State Tax and to the British Tax in respect of the same subject matter:

AND WHEREAS it is further enacted by the Act aforesaid that it shall be lawful for the Governor-General of the Irish Free State by order made on the advice of the Executive Council to confirm any such provisional arrangement as aforesaid, and that thereupon such provisional arrangement shall, as from the date of such order or any later date specified in such order, but subject to the provisions of that Act, have effect as if enacted in that Act:

AND WHEREAS under the laws now in force in Great Britain, Income Tax, Super-Tax, Estate Duty and Stamp Duties are payable in respect of subjects of charge in respect of which corresponding taxes are payable in Saorstát Éireann:

AND WHEREAS under laws now in force in Northern Ireland, Estate Duty and Stamp Duties are payable in respect of subjects of charge in respect of which corresponding taxes are payable in Saorstát Eireann:

AND WHEREAS the Executive Council has entered into the Provisional Arrangement set out in the Schedule to this Order with the Government of Great Britain for the granting of relief in cases where there is a charge both to the Income Tax, Super-Tax, Estate Duties, and Stamp Duties payable in Saorstát Éireann, and to the like taxes and duties payable in Great Britain in respect of the same subject matter:

AND WHEREAS the Government of Northern Ireland has consented to the extension to Northern Ireland of the terms of the Parts II and III (which relate to Estate Duty and Stamp Duties) of the Provisional Arrangement set out in the said Schedule to this Order:

NOW I, T. M. HEALY, Governor-General of the Irish Free State, on the advice of the Executive Council of the Irish Free State, and in pursuance and by virtue of the Double Taxation (Relief) Act, 1923 (No. 8 of 1923), and of all other powers me thereunto enabling do hereby order and declare as follows:—

(1) The Provisional Arrangement set out in the Schedule to this Order is hereby confirmed.

(2) The Provisional Arrangement aforesaid shall have effect as from the 6th April, 1923, as respects Part I of the Schedule, and as from the 1st April, 1923, as respects Parts II and III of the Schedule.

(3) This Order may be cited as the Double Taxation (Relief) Order (No, 1), 1923.

(Signed) T. M. MEALY,

Dublin,

This 14th day of April, 1923.

SCHEDULE.

PROVISIONAL ARRANGEMENT FOR RELIEF IN RESPECT OF DOUBLE TAXATION.

PART I.

Income Tax (including Super-tax).

(a) Relief shall be allowed from British Income Tax in accordance with and under the provisions of section twenty-seven of the Finance Act, 1920, subject to the proviso that for the purpose of determining the Dominion rate of tax, the first paragraph of sub-section (8) (d) of that section shall not apply, but the rates of Irish Free State Income Tax and Super-tax respectively shall be ascertained in the same manner as the rates of British Income Tax and Super-tax respectively are required to be ascertained by the second paragraph of sub-section (8) (d) of that section.

(b) The Irish Free State Government shall grant relief from Irish Free State Income Tax at the lower of the two rates following, viz.:—

(i) the rate of relief from British Income Tax allowable under section twenty-seven of the Finance Act, 1920, as modified by this arrangement; and

(ii) the excess of the Irish Free State rate of Income Tax (or, where Irish Free State Super-tax is payable, the excess of the sum of the rates of Irish Free State Income Tax and Super-tax) over the rate of relief from British Income Tax allowable as aforesaid.

(c) This arrangement applies to Income Tax (including Supertax) for the year of assessment commencing on the sixth day of April, nineteen hundred and twenty-three and subsequent years.

PART II.

Estate Duty.

(a) Where the Commissioners of Inland Revenue are satisfied that Estate Duty is payable in the Irish Free State by reason of a death of a person dying on or after the first day of April, nineteen hundred and twenty-three in respect of any property situate in the Irish Free State and passing on such death, they shall allow a sum equal to the amount of that duty to be deducted from the Estate Duty payable in Great Britain in respect of that property on the same death.

(b) Where the Revenue Commissioners of the Irish Free State are satisfied that Estate Duty is payable in Great Britain by reason of a death of a person dying on or after the said first day of April in respect of any property situate in Great Britain and passing on such death, they shall allow a sum equal to the amount of that duty to be deducted from the Estate Duty payable in the Irish Free State in respect of that property on the same death.

(c) Any question as to whether any property is to be treated for the purpose of this arrangement as situated in Great Britain or in the Irish Free State, shall be determined according to the laws in force in England and Ireland on the sixth day of December, nineteen hundred and twenty-two.

(d) This arrangement shall apply as between Northern Ireland and the Irish Free State in like manner as it applies as between Great Britain and the Irish Free State until the Government of Northern Ireland signify that they have withdrawn their consent to such application.

PART III.

Stamp Duties.

(a) Where on or after the first day of April, nineteen hundred and twenty-three, an instrument is chargeable with Stamp Duty in Great Britain and in the Irish Free State, and has been stamped in one of those countries, the instrument shall, to the extent of the duty it bears, be deemed to be stamped in the other country.

Provided that, if the Stamp Duty chargeable on any instrument in such other country exceeds the Stamp Duty chargeable in respect of that instrument in the country in which the instrument has previously been stamped, the instrument shall not be deemed to have been duly stamped in such other country unless and until stamped in accordance with the laws of that country with a stamp denoting an amount equal to such excess.

(b) Where composition for Stamp Duty is made or agreed to be made in one of such countries, any instrument which by virtue of the composition is exempt from the payment of duty in that country shall, on and after the said first day of April, be treated in the other country as having been stamped in the first-mentioned country with a stamp denoting the amount of duty which, but for the composition, would have been chargeable on that instrument.

(c) This arrangement shall apply as between Northern Ireland and the Irish Free State in like manner as it applies as between Great Britain and the Irish Free State, until the Government of Northern Ireland signify that they have withdrawn their consent to such application.

(Signed) T. M. H.