§ MR. R. N. FOWLERasked the First Lord of the Treasury, Whether his attention has been called to a Letter of the Inland Revenue Department, stating that dividends payable on the 1st of next month should have Income Tax deducted at the rate of sixpence in the pound; and, whether he could state by whose authority such instructions were given?
MR. GLADSTONEI have seen the letter to which the hon. Gentleman refers, and on inquiry I find that it is not a Circular intended to give authoritative directions, but that it is intended rather as a recommendation to parties as to the course which it is hoped will be most convenient. I am assured by the Board of Inland Revenue that they have al- 966 ways taken upon themselves the responsibility of advising persons who have to make payments subject to deduction for Income Tax—of course, they cannot compel them—to act on the Resolution of the House of Commons, and thereby save trouble to themselves and others. The course now taken is in strict conformity with the practice on former occasions; but I am also informed that it is not practicable to make the rule uniform; and I believe it is certain no deductions will be made on the dividend on the public funds due on the 5th of July in conformity with the practice of the Inland Revenue Department.