§ SIR ALFRED HICKMAN (Wolverhampton, W.)I beg to ask Mr. Chancellor of the Exchequer if he will state the reasons why income derived from payments for interest made by municipal authorities is charged with the full duty of 1s. in the pound for the whole period in respect of which the same is payable, whereas income derived from similar payments made by public companies or private persons is calculated at the increased rate only since the date when the increased duty was imposed.
§ * SIR M. HICKS BEACHThe distinction, which leads to a difference of treatment in respect of income tax, between income derived from payments for interest made by municipal authorities, and income derived from similar payments made by public companies or private persons, lies in the fact that in the latter case the interest is paid out of profits and gains assessable to income tax, while in the former it is (as a rule) paid, or partly paid, out of rates, which are not so assessable. In this latter event Sub-section 3 of Section 24 of the Customs and Inland Revenue Act, 1888, applies, and this distinctly prescribes that the rate of income tax shall be that in force at the time of payment. I may be allowed to add I think that some public inconvenience is caused by the existing difference of treatment in this matter, and I propose to examine the possibility of adopting a uniform system.
§ MR. BARTLEY (Islington, N.)Will regard be had to the case where there is obviously a charge in excess, like the Jamaica railway debentures?
§ * SIR M. HICKS BEACHNo. I do not think that was a case of excessive charge.