The Gazette 1930-33

NOVEMBER, 1932]

The Gazette of the Incorporated Law Society of Ireland

21

MR. DANIEL C. MANGAN, Solicitor, died on the 2nd October, at Lewis Road, Killarney. Mr. Mangan, who served his apprenticeship to the late Mr. Maurice McCartie, of Killarney, was admitted in Hilary Sittings, 1928, and practised in Killarney. MR. WILLIAM MCFERRAN, Solicitor, died on the 19th day of October, at his residence, Pier View, Sandycove, County Dublin. Mr. McFerran was admitted in Michaelmas Sittings, 1882, and was a member of the firm of H. and W. Stanley, of 59 Dawson Street, Dublin. INCOME TAX DEDUCTIONS. Interest payable out of Land Bonds. The following correspondence has passed : The Incorporated Law Society of Ireland, Solicitors' Buildings, Four Courts, Dublin, 26th August, 1932. Dear Sir, I have received a letter from a practising Solicitor of the Irish Free State containing the following paragraph : " LAND ACT, 1931. " There are a number of cases in which I " receive interest on Land Bonds from the " Land Commission in estates which have " become vested under the above Act. I have " recently received some pay orders for the " half-year to 1st July, 1932, in respect of " dividends accrued during that period, and " I find that the Land Commission have " deducted income tax for the period at the " rate of 5/- in the £, although as a matter " of fact the new rate of tax did not come " into operation until the 5th of April last. " When paying the owners on the redemption " price of some fee farm rents I deducted " 5/- in the £, and my action has been " questioned. I would be very much obliged " if you would let me know whether the Land " Commission are correct in the deduction " which they have made, and for any other " information which you can give me." I addressed a letter of enquiry on the above matter to the Secretary of the Land Com– mission, and in reply he informs me that in the case of interest on Immature Land Bonds the deduction for income tax is made by the

Land Commission in accordance with instruc– tions issued by the Revenue Commissioners, and that, therefore, the point raised by my correspondent should be submitted to their Department. You would much oblige me if you would put me in a position to reply satisfactorily to my correspondent. I remain, Dear Sir, Faithfully yours, W. G. WAKELY, Secretary. The Secretary, Revenue Commissioners, Dublin Castle. Office of the Special Commissioners of Income Tax, Dublin Castle, 29th August, 1932. A Chara, With reference to your letter of the 26th instant, I have to inform you that tax on interest on Land Bonds is chargeable under Schedule C of the Income Tax Act, 1918, at the rate in force for the year in which the interest is payable, e.g., 5/- in the pound as regards interest payable in the current year. The rules affecting the charge are contained in the First Schedule to the Finance Act, 1924. As regards deduction of tax from interest on the redemption prices of charges such as Quit Rent, Mortgages, etc., while the deduction of tax is primarily a matter between the person making the deduction and the recipient of the interest, the Revenue Commissioners would for the purpose of repayment claims, etc., deal with it as follows : Where dividend on Land Bonds repre– senting the purchase money is paid to the Vendor under Section 27, Land Act, 1923, or Section 36, Land Act, 1931, the Vendor appears to be liable for payment of the charges such as Head Rent, Mortgage Interest, etc. It is directed in Sub-section 4 of Section 36 that interest " shall be payable to the person in possession or receipt of the income of such superior interest by the person liable to discharge such superior interest."