§ Mr. SANDERSasked the Chancellor of the Exchequer if he is aware that the form for assessment of Super-tax is being sent to many persons who are not liable to that tax; whether the Commissioners are authorised to demand from such persons a return giving full particulars of 359 their income from all sources; and whether a statutory declaration from such persons that they have not incomes exceeding £4,000 a year is sufficient answer to the Commissioners?
§ Mr. HOBHOUSEAs I explained in reply to my hon. Friend the Member for King's Lynn on the 6th instant, the service of notices for Super-tax returns is governed by considerations of presumed or possible liability. The answer to the second part of the question is in the affirmative under the provisions of Section 72, Sub-section (2) of the Finance (1909–10) Act, 1910; but in those cases in which the figures inserted on page 3 of the form of return do not primâ facie disclose liability the question of requiring statements in detail is decided according to the circumstances of each case. The third part of the question does not therefore arise.
§ Mr. LAWSONWhat official presumes the liability to Income Tax?
§ Mr. HOBHOUSEThe Special Commissioners.
§ Mr. DILLONIs the right hon. Gentleman aware that these notices have been sent out wholesale to people who notoriously do not come within thousands of the Super-tax limit, and whether in cases of that kind a simple denial and a statement of the actual income will be accepted?
§ Mr. HOBHOUSEI am certainly not aware that the form has been sent out to persons whose incomes do not by thousands reach the limit. On the contrary, I think the Special Commissioners and the Inland Revenue authorities usually have been as careful as they could in difficult circumstances only to send it to those people who they have good reason to think come within the taxable limit.
§ Mr. GIBSON BOWLESCan the right hon. Gentleman tell us what are the grounds upon which the Commissioners think a person is liable?
§ Mr. HOBHOUSEI should probably find it as difficult to define the thoughts of the Income Tax authorities as I should those of my bon. Friend.
§ Mr. GEORGE YOUNGERIs it not really the fact that the information about these persons is supplied to the Special Commissioners by the local assessors, who have fair cognisance of the matter?
§ Mr. HOBHOUSEThat is so very largely, and I have said so already in answer to a question.
§ Mr. JAMES HOPEAre the returns of persons who are not liable made use of by the Inland Revenue authorities for any purpose other than that of Super-tax?
§ Mr. HOBHOUSENot that I am aware of.
§ Mr. PETOWill the right hon. Gentleman say whether a simple denial of the fact that a person's income is above the Super-tax limit and a statement of the amount of Income Tax be accepted by the Inland Revenue?
§ Mr. HOBHOUSENo; in answer to a question two or three days ago my right hon. Friend said he would not be so satisfied.
§ Mr. MARKHAMasked the Chancellor of the Exchequer whether he is aware that the Income Tax officials are still sending out misleading notices with respect to the relief allowed in the case of earned incomes, notwithstanding that attention has already been called to the same; and whether, seeing the Finance Bill provides that when the income from all sources does not exceed £3,000 a claim for relief is allowed on the earned income, he will say why his Department continues to issue notices directly contrary to the provisions of the Finance (1909–10) Act, 1910?
§ Mr. HOBHOUSEThe forms of return for the year 1910–11 were necessarily printed, and in a large number of cases issued to the public prior to the passing of the Finance (1909–10) Act, 1910. In all cases where a taxpayer appears to be entitled to claim the further "earned income" relief afforded by that Act, a supplementary form has been or will be issued to him before 30th September.
§ Mr. MARKHAMIs the right hon. Gentleman aware that the inaccurate notices were sent out by the Treasury only last week?
§ Mr. HOBHOUSENo; I was not aware of that.
§ Mr. MARKHAMWell, I will send you one.
§ Mr. GIBSON BOWLESHas the right hon. Gentleman any means of checking the inaccuracies and extravagances of these unbridled Excisemen?
§ Mr. HOBHOUSEI can assure my hon. Friend that they are not unbridled.
An HON. MEMBERWill the right hon. Gentleman take steps to have repaid the money that has been paid to the Treasury through these misleading notices?
§ Mr. HOBHOUSENo. I do not think that any money has been paid through misleading notices. These notices were under the power contained in Section 3 of the Consolidated Customs Act (1890), and there was no illegality at all.
Captain COOPERWill the right hon. Gentleman take steps to see that no misleading notices are sent out before the Finance Bill is passed this year?
§ Mr. HOBHOUSEI do not think that these notices were misleading.