The Gazette 1967/71

the Income Tax Act 1967 was repealed by Section 29 of the Bill.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. 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 TO YOUNG SOLICITORS AND OTHERS

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