§ MAJOR RASCH
I beg to ask the Chancellor of the Exchequer under what section of the Income Tax Acts the Board of Inland Revenue have refused to refund to British residents abroad interest on foreign and Colonial loans; and whether, under such a rule, colonists residing in one colony and having such investments in another are mulcted in English income tax?
§ THE CHANCELLOR OF THE EXCHEQUER
I am not quite clear as to the meaning of the first part of the honourable Member's Question, but I may say that, if the interest on foreign or colonial loans is payable in this country, the person paying it is required, under sections 29, 88, and 96 of the Income Tax Act of 1842, to deduct income tax. The answer to the second part is in the affirmative as regards loans, the interest on which is payable here.