MR. GIBSON BOWLESI beg to ask Mr. Chancellor of the Exchequer whether, as is stated by Mr. A. W. Soward, of the Legacy and Succession Duty Department, at page 8 of his "Handbook to the Estate Duty," the Inland Revenue authorities have followed the opinion of the law officers of the Crown in claiming and exacting estate duty upon the death of a tenant for life of settled property who had bonô fide released his interest more than 12 months prior to death, save where the life interest was bonô fide released before the Finance Act, 1894, came into operation; whether the effect 413 of the saving clause thus introduced into the practice has been that the duty has been claimed and exacted when the deceased died after the Act came into operation, and the life interest had also been released after the Act, while the duty has not been claimed or exacted when the deceased died after the Act but the life interest bad been released before the Act; whether he will state on what date and on what grounds the Board of Inland Revenue came to the decision to adopt in part and to reject in part the advice of the law officers of the Crown; and whether it is in accordance with the usual practice for Revenue Departments, acting by the direction and control of the Treasury, to act only upon the advice of the law officers with such variations us they deem expedient?
§ THE CHANCELLOR OF THE EXCHEQUERThe honourable Member correctly describes the practice of the Board of Inland Revenue and its effects in the instance which he takes. The practice in question has been in force since July, 1895. The Board of Inland Revenue have not rejected the advice of the law officers of the Crown, but it is their duty to apply that advice, to the best of their judgment, to the different cases that may arise; and it was on account of the extreme difficulty of doing this in this particular matter that we have throughout desired to obtain an interpretation of the law by the proper tribunals.
MR. GIBSON BOWLESIn reference to that answer, mar I ask if the right honourable Gentleman will cease the practice? He says the practice was adopted in July, 1895. He was then in office; may I ask if it was done by his direction?
§ THE CHANCELLOR OF THE EXCHEQUERIt was certainly done with my sanction, and in order to meet cases of great hardship.