28 / 338
wrote stating that their insured intended to take
proceedings against the claimant and that in the
circumstances
the offer
in
settlement must be
withdrawn. Members submitted that the matter
raised a general issue affecting solicitors dealing
with insurance companies.
It was decided to take
the matter up with the insurance company and to
ask for their views.
Sale of ground or head rent. Certificate of
discharge of income tax
MEMBERS raised a question which arose between the
vendor and purchaser as to the right of the pur–
chaser to receive from the vendor a certificate of
discharge of income tax under section 6, of the
Finance Act, 1928 in the following circumstances.
A purchased a ground rent from B who applied to the
Inspector of Taxes for the certificate. The inspector
wrote on June i8th that the proposed sale was the
sale of a ground rent and that as B was not, and
that the prospective purchaser A, will not be
charged a tax by
direct
assessment under schedules
A and B
the certificate was unnecessary.
The
inspector stated that section 6 was designed
to
safeguard purchasers of property against claims
on them for tax charged or chargeable on the
vendor of such property by direct assessment. The
following statement is taken from Mr. Grogan's
book on Income Tax :
Tax under schedules A and B may be
collected, recovered and levied by the collector
by distress from the persons charged or from
the occupier of the property charged or upon
the premises in respect of which the assessment
is made and all goods and chattels to whom–
soever the same belong found upon any such
premises may be distraint and sold for the
recovery of any such tax. Tax under schedule A
may also be collected, recovered and levied
by the collector, from the landlord or immediate
lessor of the premises charged, whether he
is named in assessment or not.
But where
the assessment has been made on the tenant
or occupier, the landlord or immediate lessor is
'
'
only liable in default of payment by the person
assessed and for so much only of the tax as
is chargeable in respect of the rent payable
yearly to him for the premises (Income Tax,
1918 section 199).
If any person, whether
named in the assessment or not, liable for
schedule A
tax default
in payment of tax
leviable on him, the collector may issue a
certificate to
the under-Sheriff empowering
him to seize any goods, etc., belonging to the
defaulter which he finds upon the property in
respect of which tax is charged.
It would
appear that this section includes the right to
seize leasehold property. The danger of the
generality of
those provisions created
for
landlords and purchasers has been remedied,
partially at any rate, by the Finance Act, 1928
section 6 which provided that a lessor or an
immediate
lessor or
the purchaser of any
property chargeable under schedules A or B
is entitled on application to the Inspector of
Taxes to a certificate that all income tax charged
under the schedules for all years prior to 6th
April preceding the application has been paid.
Where such certificate has been obtained, the
occupier of the property or the purchaser for
valuable consideration without notice of fraud,
etc., is protected against distraint.
The Council were of the opinion that the query
submitted by members raised a general question
of conveyancing practice.
Section 6 appears
to
impose a liability on the Inspector of Taxes to
give the certificate if requested by the landlord or
the immediate lessor or occupier of the property.
It is difficult to see how the owner of a head or
ground rent would have any property on
the
premises subject to
tax which could be subject
to distraint unless he subsequently bought in the
lessee's interest and occupied the property himself.
As regards the facts of the particular case submitted
by members the Council were of the opinion that
as neither vendor nor purchaser is liable for direct
assessment, and as the Inspector in a letter dated
June 18th so stated, there appears to be no practical
necessity for the certificate except in the unlikely
event of the purchaser's expecting to have property
of his on the premises out of which the rent is
payable, which property might be subject to distraint
for any arrears of schedule A tax.
The Council
however pointed out that the question is one on
which members must satisfy themselves.
DINNER DANCE
A DINNER-DANCE for members and their friends
will be held in the Ballroom, the Shelbourne Hotel
on Thursday, 2oth November the date of the
Ordinary General Meeting.
Further particulars
will be published in the August issue of the Society's
Gazette.
Applications from members will be dealt
with in order of receipt. Members may apply for
tickets for friends.
The price of tickets will be
one guinea each to include dinner and dance.
INDUSTRIAL AND COMMERCIAL
PROPERTY (PROTECTION)
(AMENDMENT) ACT, 1958
THH following are the main provisions :
(i) Section 154 of the Act of 1927 as amended
by section 8 of the (Amendment) Act, 1957 which