HC Deb 09 March 1910 vol 14 cc1473-4
Mr. NORMAN CRAIG

asked what is the total amount deducted from dividends on Government stocks by the Directors of the Bank of England; to whose credit the amounts so deducted now stand; and what arrangements have been made to secure to the Exchequer the benefit of the interest earned, or capable of being earned, on the amount so deducted.

Mr. LLOYD-GEORGE

I presume the hon. Member refers to the deductions made since the prorogation of Parliament last Session, which amount to about £197,000. The amount has been placed to the credit of a suspense account, and the amount so held in suspense is earning no interest.

Mr. NORMAN CRAIG

asked whether the amounts deducted by public companies for Income Tax have been so deducted with the concurrence of the Commissioners of His Majesty's Treasury; whether the amounts so deducted have been received by the Exchequer; and, if not, what arrangements have been made to secure to the Exchequer the benefit of the interest earned or capable of being earned on the amounts so deducted?

Mr. LLOYD-GEORGE

The deduction of Income Tax from the dividends of public companies is a matter of arrangement between the companies and their shareholders, and the concurrence of the Treasury is not required. It cannot be stated to what extent the amounts so deducted have been included in the duty received by the Inland Revenue and paid over to the Exchequer.

Mr. ALFRED LYTTELTON

Is that consistent with the assertion of the Prime Minister just now that Income Tax is not separable?

Mr. LLOYD-GEORGE

I have said these funds are not collected at all. That is the exact point of the answer. It simply means that the companies who deduct the amount are retaining it. In some cases I have no doubt they are paying it over, but they do that voluntarily.

Mr. ALFRED LYTTELTON

Is the Inland Revenue receiving some of these sums with the authority of the right hon. Gentleman?

Mr. LLOYD-GEORGE

I have already stated that. I should not like to say that some of these companies have not paid over some of the sums which they have deducted. It is purely a voluntary offering.