§ LORD GEORGE HAMILTON
asked the First Lord of the Treasury, Why an Income Tax at the rate of 6½d. in the pound was charged by order of the Board of Inland Revenue upon half-yearly dividends paid between the passing of the Customs and Inland Revenue Act of August 10th 1882 and the 5th October following; and, whether such proceeding is not in conflict with the 9th section of the said Act, by which it is directed that where any dividends are due or payable half-yearly in the course of the said year (the 6th April 1882 to 5th April 1883, inclusive), the first half-yearly payment shall be deemed to have been or be chargeable with the duty of 5d. in the pound in place of the 6½d. actually levied, and if the result of this levy of 1½d. Income Tax six months in 1836 advance of the date at which it was legally due, brought within the financial year ending I April 1833, payments which would otherwise have been realised by the subsequent financial year?
§ MR. COURTNEY
Sir, by the desire of my right hon. Friend, I propose to answer this Question. (1.) Income Tax at the rate of 6½d. in the pound was charged upon half-yearly dividends paid between the passing of the Customs and Inland Revenue Act of August 10, 1882, and the 5th of October following, in accordance with the general provisions of the law for charging the tax of the year from the 6th of April, 1882, to the 5th of April, 1883, at the rate of 6½d.; (2.) the Proviso to the 9th section, 45 & 46 Vict. c. 41, was not intended to override these general provisions, but was introduced to secure the additional rate of tax, in cases where half-yearly or quarterly payments had been made between the 6th of April, 1882, and the passing of the Act with a deduction of 5d. only; (3.) the estimate of the probable produce of the extra tax of 1½d.—namely, £2,262,000, as stated by the Chancellor of the Exchequer in the House on the 26th of July, 1882, contemplated that the Income Tax on all dividends payable up to the 31st of March, 1883, should be subject to the full rate of 6½d. in the pound. The estimated produce of the arrears of the additional 1½d. to be received in 1883–4 has not been placed at a higher figure than that contemplated in July, 1882, except so far as it was influenced by the improved yield per penny of the assessments for the year 1882–3 since ascertained.
§ LORD GEORGE HAMILTON
gave Notice that, on the Report of the Resolution, he would call attention to what was a violation of the law.