5 MAY 1923, Page 12


[To the Editor of the SeEcrATort.1 Sm,—President Cosgrove, speaking in the Dail, stated that, on the supposition that Income Tax in England would be 4s. in the pound and in Ireland 5s., residents in Ireland would have the 4s. deducted at the source in England and would pay the Free State Government the extra shilling. This would be done for all English investments. He then sug- gested that the Free State Government should receive 8s. from that English Income Tax as a free gift frcim England ! Speaking of the Four per cent. tax-free War Itonds, on which the full tax at a 5s. Income Tax (his example) would be for 1100 stock 15 Os. 8d. tax compounded, the /1 Os. 8d. being the Income Tax deducted prior to payment, President Cos- grave said he intended to negotiate with the English Govern- ment to get a share of that 11 Os. 8d. for the benefit of the Free State. He is also negotiating for the free gift of 8s. in the pound, to which I have already alluded. For residents in the Free State the Income Tax on English investments is never to exceed 5s., with the usual allowances for wife, children and half Income Tax for 1225 as well.

Now take the opposite side, of the ease of residents in England with investments in Ireland and see the difference of treatment. Some days ago I received an Income Tax form with an enclosed printed leaflet which clearly states that income derived from Free State sources is not exempt from English Income Tax though there would be a measure of relief, and I was to apply to the local inspector of taxes for information. I went at once to interview him and saw the assistant inspector of taxes, and was informed that it would be treated as Dominion investments. I quoted my own case to him and on his working out the figures found the Income Tax came to over 8s. in the pound.

It is serious enough for me, but it is a desperate situation for some of the Irish refugees whose whole source of income lies in the Free State. It is the final insult to injury offered by the British Government to their loyal Irish subjects. I have little hope of seeing it rectified for the English politician has lost all sense of honour where loyalty is concerned. The unhappy Irish loyalist and his family have stood gallantly by the side of the English, have fought for them and worked for them. Their reward is their blackened, burnt out home- steads, their sons and daughters murdered and ravished, and any pittance left them to be absorbed by the rapacity of the British Government, whilst every benefit is awarded to the seditious and disloyal.—I am, Sir, &c.,