§ SIR GEORGE BADEN-POWELL (Liverpool, Kirkdale)asked Mr. Chancellor of the Exchequer, Whether, under present Regulations, persons resident in the United Kingdom are liable for Income Tax on all profits arising or accruing from any profession, trade, employment, or vocation carried on outside the United Kingdom, whether such profits are remitted to the United Kingdom or not; whether residents in the United Kingdom are not liable for Income Tax on incomes derived from interest on Government or other securities, or from possessions held outside the United Kingdom, unless such incomes are transmitted to the United Kingdom; and, whether there is any reason for the continuance of this differential treatment under the several schedules?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. GOSCHEN) (St. George's, Hanover Square)The question of the liability of persons residing in the United Kingdom to be charged Income Tax on profits derived from the sources named, whether remitted to this country or not, has been recently the subject of a case stated for the opinion of the High Court. The High Court held that they were liable; but the Court of Appeal reversed the decision of the Court below, and the case is still under the consideration of the Inland Revenue Commissioners. Persons residing in the United Kingdom who are the owners of Foreign or Colonial Securities or Possessions are liable to Income Tax only on the amounts received in this country. Whether there be any differential treatment in the two cases depends upon the ultimate settlement of the point of law involved.