§ MR. MACFARLANEasked Mr. Chancellor of the Exchequer, If, on further advice, he adheres to the statement that the case of William Hilton, of Hemel Hempsted, decided in the year 1808, is a precedent in favour of the claim to charge Income Tax upon profits which are not imported into the United Kingdom, or if it is a fact that the case of William Hilton, decided on appeal by the local Income Tax Commissioners, is a precedent against such a claim, and that such decision was never appealed against by the Board of Inland Revenue?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. CHILDERS)Sir, I have looked very carefully into the two cases which I quoted in the debate on the Motion of the hon. Member to amend one of the clauses of the Customs and Inland Revenue Bill. The case of Cankrien, which occurred in 1808, is perfectly clear. He claimed not to be assessed on certain profits made abroad; but his claim was disallowed, and the tax was paid. The case of Hilton, in 1806, was as follows. He had paid the full tax in 1804 and in 1805; but I find that in 1806 the Local Commissioners relieved him from the tax on certain profits made abroad, and desired the particulars as to the year 1805 to be transmitted to the Board in London, with a view to his being allowed a repayment. The Board declined to do so, replying that they were—
Not aware that the Commissioners have any authority to remit the duty;and adding—Every trader living in Great Britain is answerable for the whole profits of trade arising in another country.I find, however, that the Board had at that time no power to dispute a remission actually made by Local Commissioners. But as to the law there is no question, the words being that the tax is to be levied on—The annual profits or gains arising or accruing to any person residing in the United Kingdom from any kind of property whatever, whether situate in the United Kingdom or elsewhere, and for and in respect of the annual profits or gains arising or accruing to any person residing in the United Kingdom from any profession, trade, employment, or vocation, whether the same shall be respectively carried on in the United Kingdom or elsewhere.