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paid in cash or alternatively that steps should be
taken to safeguard owners against loss
through
depreciation and the absence of a ready market
on
the stock exchange for disposing of Land
Bonds.
Society's "Gazette" and Library
It was decided to engage a library assistant and
that when
the necessary staffing arrangements
have been completed Mr. Gavan Duffy be re
quested to act as editor of the Society's
Gazette
and to report to the Secretary on improvements
including a current law and information service
for case law, statute law, statutory regulations and
other useful
information. The Secretary stated
that letters had already been written to the Chief
Justice and to the Department of Justice asking
that copies of all judicial opinions filed in the
Supreme Court and the Central Office should be
sent to the Society's library free of charge.
Professional Negligence
The Council received a report from a special
sub-committee which discussed with the Society's
insurance brokers the project of a group insurance
scheme for members. It was stated that progress
is slow because of the difficulty of interesting in
surance companies in group insurance as distinct
from individual insurance. Progress was reported
and the committee were asked to continue their
work.
INCOME TAX ON GROUND RENTS
Finance Act, 1969
The law has been radically changed with regard
to the payment of rents following on the abolition
of Schedule "A" and Schedule "B".
The general right to deduct income tax from
rents was contained in Section 18, Income Tax
Act 1967 in respect of rents which did not exceed
. the amount of
the Schedule "A" assessment.
Where a rent exceeded the Schedule "A" assess
ment and was in respect of a long lease, there was
a right to deduct income tax from the full amount
of the rent,
irrespective of
the Schedule "A"
assessment, under the provisions of Section 93,
Income Tax Act 1967.
Landlords were permitted to enter into arrange-
, ments which the Inspector of Taxes to have rents
under long leases paid in full in accordance with
Section 104 of the Act. The corollary was that the
tenant was allowed
the gross amount of
the
ground rent as a deduction for both income tax
and sur tax.
Under the Fifth Schedule Part 1 of the 1969
•Finance Act, Sections 18 and 104 of the Income
Tax Act 1967 have been repealed. Section 93 of
the Income Tax Act 1967 was repealed by Section
29 of the Bill. As a consequence there is in general
no right to deduct income tax from a rent, be it
under a short or under a long lease. The corollary
is
that no allowance
is made for
income
tax
or sur tax to the owner/occupier of a private house
in respect of a ground rent which must now be
paid in full. Where a ground rent is paid out of a
property which is sublet or which is occupied for
the purposes of a trade or profession, the ground
rent will be allowed as a normal business ex
pense.
Section 29 of the Bill retains the right of deduc
tion of income tax with regard to rents payable
out of mines, quarries and other concerns which
are listed in Section 53(1) Case I(b), Income Tax
Act 1967 (formerly number III of Schedule A).
Section 25 of the Act makes it mandatory to
deduct income tax from rents payable directly to
non-residents. There seems to be no distinction
between rents payable under short or long leases.
It would seem that where rents or the proceeds
of rents are paid other than directly to a non
resident, Section 200 would continue to operate
and Irish agents for such non-residents will con
tinue to be liable to income tax in respect of such
proceeds.
These two exceptions apart, all rents must now
be paid in full.
When dealing with
the collection of ground
rents where the tenants have been allowed
to
deduct income tax, arrangements would require
to be made to demand the full amount of the
rent as from the 6th April, 1969.
TO YOUNG SOLICITORS
AND OTHERS
Are you looking for a partner or assistant
or seeking a vacancy? If so, you are invited
to use ths Society's Appointments Register.
Entries may be by name or Box No.
Enquiries to :
The Secretary,
Solicitors' Buildings,
Four Courts,
Dublin.
LAND BONDS
Mr. D. P. Shaw and the Secretary as tepresenta-
tives of
the Society had a meeting with
the
Minister for Lands, Mr. Sean Flanagan, the Land.
Judge, Mr. Justice Teevan, the Secretary of the
42