§ MR. COHEN (Islington, E.)
To ask Mr. Chancellor of the Exchequer whether the Treasury has represented to the bondholders of the Jamaica Railway Company that the deduction of income tax under Schedule C of the Income Tax Acts should be made at the rate in force at the date on which the interest is† See (4) Debates, CIV., 1019.1338 received in this country by the agent entrusted with its distribution; and whether he is aware that it is the practice of the Bank of England and other agents, acting under instructions of the Board of Inland Revenue, to make such deduction at the rate in force, not at the date on which it is received but at the date on which the interest becomes due; and whether he will state which of these two principles of deduction of income tax is correct.
(Answer.) The Treasury have written to the bondholders of the Jamaica Railway Company to the effect stated in the first paragraph. I would refer the hon. Member to a reply I gave to a Question in the House on 17th July, 1900, on the subject, † The principle of assessment laid down as applicable to the Jamaica Railway Company is applicable to all similar cases, and this is clearly pointed out in the instructions issued by the Board of Inland Revenue. The Board have no reason to think that the practice of the Bank of England does not conform to their instructions, nor do they know of any ease where the practice of other agents is at variance with them.—(Treasury.)