§ Mr. VIVIAN (Birkenhead)
To ask Mr. Chancellor of the Exchequer if loans from banks negotiated through brokers, when the borrower's name is not disclosed to the bank but identified by a number, will be treated as loans made with a bank on which income tax can be repaid to the borrower, the custom with some banks being not to accept the borrower's name from the broker; will these be eligible for reclaim directly by the borrower, or must the broker reclaim and allow the borrower; is it to be understood that the Exchequer does not claim double income tax under any circumstances where interest is paid out of taxed interest, when such payments can be identified; and will returns for reduced 9d. income tax under the new Act have to give in detail every item of taxed interest paid and received, or will totals be accepted from persons in financial business.
(Answered by Mr. Asquith.) The practice referred to in the first part of the Question is one which has so far not come under the notice of the Board of Inland Revenue, and they would prefer to have a concrete case before them before they offer an opinion as to the course that should be pursued in such circumstances. The Board of Inland Revenue endeavour, so far as they can, to avoid double assessments on the same income. But it must be remembered that relief in respect of tax on payments 86 of interest is confined to payments of annual interest. Full particulars of all interest paid and received are now required in the case of persons claiming exemption or abatement under the existing law, and presumably the same course will have to be followed in the case of the new relief to be granted to earned incomes.