§ Mr. WATT (Glasgow, College)To ask Mr. Chancellor of the Exchequer, whether, if income-tax is paid by employers on profits estimated before bonuses are distributed to the heads of their departments, the tax is again exigible when these employees are presented with the bonuses.
(Answered by Mr. Asquith.) Bonuses paid to employees are usually deducted as a business expense in estimating the assessable profits of the employer. If, however, the Board of Inland Revenue are satisfied that the employer has paid the tax himself the practice is not to-charge the bonus again in the hands of the recipient.