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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."