The Gazette 1958-61

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insured intended to take proceedings against the claimant and that in the circumstances the offer in settlement must be withdrawn.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