§ *MR. KENNEDY (Westmeath, N.)I bag to ask the Chancellor of the Exchequer whether he is aware that an assessment of income tax has been made on interest received by the Meath County Council on credit balances in the hands of its county treasurer, pursuant to Section 2 of the County Treasurers Act, 1867; and that this income is applied by the county council to the relief of the destitute poor in lieu of poor rates; and whether he will direct the Commissioners of Income Tax to cancel this assessment.
§ SIR M. HICKS BEACHInquiry is being made into the circumstances of this case. Assuming, however, that the facts are as stated, the proper course for the Meath County Council to adopt, if they were dissatisfied with the assessment, was to appeal against it to the Commissioners for Special Purposes, from whose decision a further appeal lies to the county court judge. If the county council have failed to give notice of appeal within the time prescribed by law, it will not now be possible to alter the assessment for the current year. But it is not in my power to give the directions suggested in this question.
§ *MR. KENNEDYThe question is, are they liable to pay income tax on this interest which they receive on their credit balances, and which, is applied to the relief of the poor? Is money applied to the relief of the poor liable to income tax?
§ SIR M. HICKS BEACHI should be rather surprised if it is so, but it is a legal question, and it is impossible for me to reply to it.
§ *MR. KENNEDYI can assure the right hon. Gentleman, as chairman of the county council, that it is so.