§ * MR. COHEN (Islington, E.)
I beg to ask Mr. Chancellor of the Exchequer whether he is aware that although the interest on the four per cent. debentures of the Jamaica Railway was not paid till April, 1900, it actually became payable at various dates during, and prior to, January, 1900, when the interest became due. And whether Sir Henry Primrose, chairman of the Board of Inland Revenue, has officially instructed the various agencies paying dividends that income tax is to be deducted at the rate in force when the dividend became due.
§ * SIR M. HICKS BEACH
The Income Tax Acts do not impose any liability to duty in respect of income derived from sources outside the United Kingdom' unless or until such income is received in this country. Payment of the arrears of interest referred to was not obtained nor obtainable in this country prior to the 6th April last, and consequently no liability to income tax in respect of it arose until the current year. In these circumstances the interest is chargeable under the provisions of the Income Tax Acts with the rate of duty in force, for the current year. The hon. Member is under some misapprehension if he supposes that any official instructions have been issued inconsistent with the terms of this reply.