Finance Act, 1941
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Relief in respect of foreign income tax in certain cases. |
3.—(1) Where an individual has paid under the Income Tax Acts by deduction or otherwise, or is liable under those Acts to pay, income tax, or income tax and sur-tax, for any year of assessment in respect of any part of his income arising in a country to which this section applies and shows to the satisfaction of the Revenue Commissioners— | |
(a) that he has paid external income tax in the said country in respect of the said part of his income, and | ||
(b) that he was, prior to the said year of assessment, resident in the said country to which this section applies for a continuous period of not less than ten years or for a number of discontinuous periods amounting in the aggregate to not less than ten years, and | ||
(c) that for the said year of assessment he was or is domiciled, resident, and ordinarily resident in the State, and | ||
(d) that, in respect of the said year of assessment, he is not entitled to claim relief from double taxation under Article 2 of the Agreement set out in the First Schedule to the Finance Act, 1928 (No. 11 of 1928), and is not eligible for relief under the next preceding section of this Act, | ||
the Revenue Commissioners may grant to such person in respect of the said year of assessment such relief as is in their opinion just, but not exceeding whichever of the following amounts is the lesser, that is to say, one-half of the amount of his Irish income tax for the said year of assessment or the amount of external income tax paid or payable by him in the said country in respect of the said part of his income after deduction of any relief to which he may be entitled in that country. | ||
(2) In the foregoing sub-section of this section— | ||
the expression “the amount of his Irish income tax” means the amount of tax appropriate to the income of the individual referred to in the said expression arising in a country to which this section applies, such tax being computed at a rate determined by dividing, by the amount of the total income from all sources of the said individual for the relevant year of assessment, the amount of income tax or income tax and sur-tax payable under the Income Tax Acts by the said individual for the said year of assessment in respect of his total income before the granting of any relief under this section; | ||
the expression “external income tax” means a tax which is chargeable and payable under the law of a country to which this section applies and appears to the Revenue Commissioners to correspond to income tax or sur-tax chargeable under the Income Tax Acts. | ||
(3) This section applies to the following countries, that is to say, the United States of America, the Dominion of Canada, the Commonwealth of Australia, the Dominion of New Zealand, the Union of South Africa, and Newfoundland, and also to every country which is a British possession within the meaning of Schedule C of the Income Tax Act, 1918. |