HC Deb 12 June 1894 vol 25 cc924-6
SIR G. BADEN-POWELL

I beg to ask the Chancellor of the Exchequer whether Her Majesty's Government have received any communications from Foreign or Colonial Governments protesting against the new Estate Duty being levied upon property situate in those foreign countries and British Possessions; and, if so, will he state which Governments have already sent in such protests; and will he at once lay upon the Table of the House the text of these protests?

THE CHANCELLOR OF THE EXCHEQUER (Sir W. HARCOURT,) Derby

No representation has been received from any foreign country on this subject. A representation has been received at the Colonial Office to-day. I have not had time to read it, but it will receive most careful consideration. I will point out, as I have said before, that there is not and never has been any proposal to tax any property in the colonies which is not at present subject to taxation.

MR. GIBSON BOWLES

Would the Bill not, in some instances, increase the taxation eight times; is not the tax now only 1 per cent.?

SIR W. HARCOURT

I do not agree with the hon. Member's figures. It is quite true that property in the colonies will under the Bill be subject to higher taxation, just as property in England will be subject to higher taxation. But there is no property of any kind in the colonies taxed for the first time under this Bill. I only mention that, because it has been said that this is a proposal similar to that which led to the American War. A statement of that kind was absurd and hardly worthy of notice.

MR. J. LOWTHER (Kent, Thanet)

Has there ever been any protest against the existing taxation? Is not this the first time that a tax has been imposed against the colonies in the face of their protest?

SIR W. HARCOURT

The protest is going to be considered. I only want to make it quite clear that we are making no proposal to tax any colonial property which is not and has not been for many years subject to taxation.

SIR G. BADEN-POWELL

By "subject to taxation" does the right hon. Gentleman mean subject to taxation by the Imperial Parliament or by the Colonial Parliaments?

SIR W. HARCOURT

By this Parliament.

SIR G. BADEN-POWELL

Is there nothing in this new taxation which affects any property in the colonies which was not affected by the taxation of, say, last year?

SIR W. HARCOURT

You may see the words in the Bill. It taxes only property which is now subject to Legacy and Succession Duty.

MR. GIBSON BOWLES

Is not the right hon. Gentleman under a misapprehension as to the words of the Bill? Are not the words "or would be liable" to the Legacy and Succession Duty but for the relationship of the persons; and will not that affect property coming to a widow on which not a farthing of duty is now paid?

SIR W. HARCOURT

It is only persons domiciled here who are taxed at all. The words to which the hon. Member refers are necessary in order to meet the case where persons are exempt altogether. What I want to be clearly understood is that the proposal only is to tax property which now is taxable with Legacy and Succession Duty. We tax nobody in the colonies at all. The rationale of the thing is this: that in the view of the law all classes of property are assumed to be where the person is domiciled. Therefore, in the eye of the law we are not taxing foreign property at all. We are perfectly prepared before the Bill leaves this House to come to a thoroughly good understanding on this subject with the colonies. Any idea of our attempting to force taxation upon the colonies in their own country independently of their own Legislatures is a thing of which we have never dreamt, and which I venture to say the Bill does not do.

MR. ARNOLD-FORSTER (Belfast, W.)

Were not the previous taxes in every case imposed upon the colonies before they received their independent Legislatures?

SIR W. HARCOURT

No, I think not. I think there have been alterations in the Succession Duty since that date.