HC Deb 31 March 1909 vol 3 cc334-5
Mr. KETTLE

asked Mr. Chancellor of the Exchequer whether the allowances made to officers of the Royal Irish Constabulary for the maintenance of servants are exempted from liability to income tax; and whether this practice has the sanction of Statute and the approval of the Commissioners of Inland Revenue?

Mr. HOBHOUSE

Payment of income tax on these allowances has been waived since they were first granted, and my right hon. Friend does not think there is ground for modifying the existing practice.

Mr. KETTLE

Is the hon. Gentleman aware that these exemptions are expressly contrary to the statute?

Mr. HOBHOUSE

I am not aware of that.

Mr. KETTLE

Under what section are allowances made to officers of the Royal Irish Constabulary for the maintenance exempted from liability to income tax?

Mr. HOBHOUSE

I understand that it has been the practice. I cannot say under what particular section the exemptions are made, but there is no intention to abandon the usual practice.

Mr. KETTLE

Is not this practice a direct contravention of the statute? Has the Treasury the right to overrule the statute?

Mr. HOBHOUSE

There are several cases where the Treasury practice has overruled the statute.

Mr. MOONEY

Can the hon. Gentleman say in what other cases have the Treasury been allowed to overrule the statute except in the case of the officers of the Royal Irish Constabulary?

Mr. HOBHOUSE

There are several other cases.

Mr. BOWLES

Is the House to understand that the Treasury regard themselves as above the law?

Mr. HOBHOUSE

I do not know who started this practice, whether by a Government of my political Friends or not or by a Government supported by the hon. Gentleman. The practice, I may say, has been a long-established one.

Mr. KETTLE

What other taxation in Ireland is the hon. Gentleman prepared to reduce?