§ MR. MACIVERasked Mr. Chancellor of the Exchequer, If his attention has 1203 been called to a recently published statement of Mr. Giffen's (Import and Export Statistics, page 43, being a Paper read before the Statistical Society), that the income derived by persons in this Country from foreign investments is not less than seventy-five million pounds annually; whether any considerable portion of this escapes payment of Income Tax, and if any approximate information can be given with regard to the actual figures; and, whether, on the assumption that there is a large deficiency in respect of the Income Tax, which ought in fairness to be payable upon incomes derived from foreign investments, he can see his way to suggest measures for removing that unfair share of the burden of taxation which at present falls, directly and indirectly, upon the industries of this Country?
THE CHANCELLOR OF THE EXCHEQUER (Mr. GLADSTONE)Sir, the hon. Member is perfectly correct in reference to Mr. Giffen's statement. An estimate proceeding from Mr. Giffen is entitled to as much weight and attention as any estimate could possibly be. The Board of Inland Revenue are not cognizant of the basis on which Mr. Giffen has formed his estimate, and they will be glad to welcome from him, or from any quarter, any information that can be supplied in elucidation of this matter. They believe there is a certain amount of evasion of payment of the Income Tax on foreign dividends, and they have under consideration certain proposals, which they think it would be advantageous to submit to Parliament, for the purpose of correcting that evasion; but they do not consider that the difference between the amount actually assessed on Foreign, Colonial, and Indian dividends—namely, £30,000,000—and Mr. Giffen's estimate of £75,000,000 and upwards, is a true representation of the amount which escapes the payment of the tax. They take it at a lower figure than that.