IRISH FREE STATE.

Waikato Times, Volume 109, Issue 18349, 8 June 1931, Page 10

IRISH FREE STATE.

NEW RESIDENTS. LOWER TAXATION THE LURE. (From a Correspondent). DUBLIN. April .18. ■Recent months have shown a definite flow towards residence in Ireland. I heard on good authority of one English agent who had disposed of five English places for dual residents. The higher rate of taxation in Great Britain and fear of still further burdens in the next Budget is, of course, the compelling cause. It is only natural that the earlier movements should be mainly confined to dual residents—that is, to those who have a house in each country, and who know what sole residence involves. The benefit to Irish revenue should be considerable. At present a dual resident pays the higher rate of tax, and each country shares, roughly, in proportion. Under sole Irish residence tiie taxpayer pays the lower rata of 3s, but the State gets the full proceeds irrespective of the origin of the income. The advantages, both direct and indirect, of a well-to-do resident class are so great that many even advocate the complete abolition of surtax. The present return from this tax, about £600,00, is not substantial, and at first sight the concession would seem good business. The issue is not, however, so simple and detached. The reactions on British finance would have to be considered, and it is unlikely that a British Chancellor would quietly submit to the flight of his golden geese. It is possible that the use of tax concession with such deliberate intention would imperil the double taxation relief' agreement, under which an Irish resident pays no 'British tax on income arising in the United Kingdom. Like all questions of tax evasion, the matter becomes more involved and less attractive the closer it is examined. As, however, there are to my personal knowledge many people who are seriously contemplating a change of residence to Ireland, it is well to understand the full implications involved. To obtain the benefit of our lower tax rates, the cut must be clean and absolute. A tiny flat, a furnished room on the other side, even habitual visits, will involve dual residence and taxation at the higher rates. The tax authorities are most vigilant in this matter, and demand details of all visits made to England or Northern Ireland. House Shortage. Then there is the question of housing. There are few nice, compact, labour saving houses with good stabling to be found. There are a number of large mansions in the market, but most of them will be costly to recondition and maintain. Many of the lesser-sized country houses have now passed with land into the hands of farmers. They might in some cases be purchased if alternative accomodation was provided. In many cases it would probably cost no more, and it would be more convenient for incomers to build exactly what they need.

The fiscal separation of the two countries, which it will be the policy of successive Irish Governments to make wider, will tend more and more to social self-dependence. Even with motors, which have widened local neighbourhoods, country life has .imitations, and there must be some form of town society for a full life, it is, therefore, quite likely that Dublin will, in course of time, recover some it its old glories, and become a social centre for the well-to-do. At the present moment two wellknown society ladies are attempting lo form a meeting ground for the more intellectual and nationally minded of Dublin residents. Social Rapprochement. It must be confessed that attempts towards social fusion made up to now have not been a success. The lack of an established table of precedence lias been one difficulty, and there have been further embarrassments in matters of toasts and allegiance. It is, therefore, all the more gratifying to see social rapprochement coming spontaneously in another way. This was very evident on the occasion of President CosgraveV visit to Clonmel last week. All classes came together to bid him welcome. He dined with a leading county family at a once Unionist stronghold, where, some forty-five years ago, Joseph Chamberlain was an honoured guest. A feature of special interest was the dance and reception given by the ladies of the Cumann nan Gaedheal Party, among whom members of the leading gentry were prominent. The function was a great success, and may well be copied in othor districts. Hitherto the party organisation has worked unseen, with rather furtive suspicion, and none too successfully. It now appears in the full noonday light, inviting and receiving the cooperation of all classes of supporters in friendly social intercourse. This blending would not have been possible a few years ago. Even now it requires a certain .amount of moral courage on both sides, and for the very reason that it has come so easily and naturally, it marks a real advance in national development. it is also a tribute to the personal popularity of the President himself.