§ MR. G. BENTINCKasked the First Lord of the Admiralty, Whether Income Tax is charged to officers in the Navy upon the reimbursement of travelling expenses, and other monies expended by them when on service, and afterwards repaid to them; and, if so, since when such has been the practice, and by what authority such deduction is made?
§ MR. GOSCHENThe case, Sir, is as foilows:—I am informed that there has not been any instance where the amount disbursed by any officer for railway or cab fares and hotel bills has been taxed. But when an officer, instead of showing hotel bills, or stating in detail the amount of actual expenses incurred, has claimed the maximum rate allowed by the regulations to cover the cost of subsistence while travelling, that allowance has been taxed. This was done in consequence of the view expressed last year by the Inspector of Taxes, that all money allowances in addition to pay were, as a rule, liable to the income tax assessment. In consequence of this opinion a letter has been addressed to the Inland Revenue Department asking for an authoritative decision on the question, and the Admiralty are still awaiting a reply.