§ Mr. GEORGE YOUNGERasked the Chancellor of the Exchequer whether his attention had been called to a printed circular addressed to a firm in Glasgow on 19th January last, by the surveyor of taxes of the third district, asking that copies of the company's, accounts be forwarded to him for the year for which these, were last made up, together with a statement of particulars showing how the amount of assessable profits returned was arrived at from the accounts; whether he was aware that this circular further asked that to save trouble in future a copy of these accounts should be sent annually to the surveyor as soon as they were ready; and whether he could state by whose authority this circular was issued?
§ Mr. LLOYD-GEORGEMy attention had not been called to the circular referred to until the hon. Member forwarded it to me, but I am aware that surveyors in Glasgow and elsewhere issue printed letters to companies requesting to be furnished with copies of accounts and other information as indicated in the question. Such requests are issued by the surveyors, with the knowledge and approval of the Board of Inland Revenue, as tending to the convenience of both taxpayers and officials.
§ Mr. GEORGE YOUNGERDoes the right hon. Gentleman realise that these circulars, which are being addressed regularly to traders in Glasgow and elsewhere, are naturally accepted by the traders as legalised circulars; and does he not think it a wrong thing that the surveyors of Inland Revenue should send circulars which they have no legal authority to issue, asking for documents which they have no right to demand?
§ Mr. LLOYD-GEORGEI do not agree that the surveyors have no right to issue these circulars. They have no right to issue them accompanied by any threat of penalty. I have seen the circular; it is purely a courteous request for information. I should have thought it was to the general interest, seeing that all parties are agreed that the Income Tax must be reimposed, that facilities should be given to enable it to be collected when the time arrives.
§ Mr. GEORGE YOUNGERThe important point is that the "courteous request" is always supposed to be reinforced by legal authority.
§ Mr. LLOYD-GEORGEAfter all, it is addressed to intelligent Scotsmen, who know perfectly well that there is no threat of penalty at all. As a rule, when there is a penalty attached, notice is given on the circular itself.
§ Mr. GEORGE YOUNGERThough there is no question of penalty, is not the right hon. Gentleman aware that the threat generally takes the form of an increased assessment for Income Tax?