HC Deb 15 March 1904 vol 131 cc1135-6
MR. WEIR

I beg to ask Mr. Chancellor of the Exchequer whether he is aware that the London and Westminster Bank, Limited, as agents for the Cape Government, deducted from dividends paid 15th April, 1903, a sum in excess of the amount due for income-tax; and, if so, will he state what sum in excess of the income-tax was thus paid, and how much has been returned by the Inland Revenue to stockholders.

MR. AUSTEN CHAMBERLAIN

The distribution of the dividends in question was made prior to the Resolution of the House of Commons fixing the rate of income-tax for the year 1903–4, and the bank, therefore, on paying the dividends deducted tax at the rate in force for the previous year, i.e., at 1s. 3d. in the £., or 4d. in excess of the rate subsequently imposed. The bank declined to undertake the adjustment of the excess deduction except upon conditions which the Board of Inland Revenue were unable to accept, and it was therefore left to the individual stockholders to apply to the Board for a refund of the duty overpaid upon their dividends. Repayment has been granted in every case in which application was made.

MR. WEIR

Will the right hon. Gentleman answer the last two Questions?

MR. AUSTEN CHAMBERLAIN

The money has been returned in every case in which it has been claimed, and if any further claims are made they will be paid.

MR. WEIR

How much has been repaid?

MR. AUSTEN CHAMBERLAIN

I am unable to say.

MR. WEIR

I will put another Question down. It has been a case of swindling right and left.