2. It may add to an extent not exceeding 10 per cent, to the Income Tax, Death Duties, or Customs Duties other than the duties on beer and spirits, imposed by the Imperial Parliament.
3. It may levy any new taxes, other than new Customs Duties.
4. It may reduce any tax levied in Ireland, with the exception of certain Stamp Duties.
The Imperial Treasury will collect the revenue arising from any increases in taxation enacted by the Irish Parliament in the exercise of these powers; and an addition will be made to the Transferred Sum of such amount as the Joint Exchequer Board may determine to be the produce of the additional taxation. Similarly, if taxation, is reduced by the Irish Parliament, a deduction will be made from the Transferred Sum corresponding to the loss of revenue due to the repeal of a tax or to collection at the lower rates.
The Irish Exchequer will therefore gain or lose by any increase or decrease in taxation enacted by the Irish Parliament, and the net revenue of the Imperial Exchequer will remain unaffected by such changes.
If Excise or Customs Duties are imposed at different rates in Great Britain and Ireland respectively, provision is made for the adjustment of the taxes paid in respect of articles passing from one country to the other.
As administrative difficulties might arise in certain cases if the 10 per cent. limitation mentioned above were in terms to prohibit additions to the taxes in question to an extent of more than 10 per cent. of the rates of tax, the Bill effects the object in view by enacting that only such proceeds of the tax as do not exceed 10 per cent. of the yield of the Imperial tax shall be transferred to the Irish Exchequer.
The Bill makes no specific reference to the powers of the Imperial Parliament to levy taxation in Ireland. The provision in clause 1 that the supreme power and authority of the Parliament of the United Kingdom shall remain unaffected retains the existing powers of the Imperial Parliament in this regard.
Transfer of the Reserved Services to the Irish Government.
After six years, the control of the Royal Irish Constabulary will pass to the Irish Executive. The Irish Parliament is empowered to assume at any time, with twelve months' notice, legislative and executive control with respect to Old Age Pensions, to National Health Insurance, or to Unemployment Insurance, together with Labour Exchanges. When any such transfer of Reserved Services is effected, the financial burden will be assumed by the Irish Exchequer, and an addition will be made to the Transferred Sum corresponding to the financial relief given to the Imperial Exchequer.