§ MR. PULESTONasked Mr. Chancellor of the Exchequer, Whether, if the Budget statement is not made before Easter, the right of banks and other corporations to deduct the Income Tax on dividends will be interfered with; and, whether any instructions will be issued to the officers of the Customs as to levying imposts on the expiry, on the 5th of April, of the Law now in force?
THE CHANCELLOR OF THE EXCHEQUER (Mr. GLADSTONE)Sir, the Board of Inland Revenue intend to advise the agents intrusted with the payment of dividends to retain from dividends payable immediately after the expiry of the current year the Income Tax at 5d. in the pound, the rate for the current year. This course will be recommended as much for the convenience of the recipient as in the interests of the Revenue. In the event of this course not being acquiesced in, it will be necessary to introduce a provision into the Customs and Inland Revenue Act, 1882, similar (mutatis muatandis) to the provision in Section 51 (2)introduced into the Inland Revenue Act, 1880, imposing the whole Income Tax for the year l882–3 on the quarter's or half-year's dividend paid after the passing of the Act in cases where the 1668 first quarter's or half-year's dividend may have been paid free of Income Tax. Parliament will also be asked to indemnify, as in 1880 (51, Section 3, 43 & 44 Vict., c. 20), the agents, who may-deduct the tax in anticipation of the Act.