HC Deb 29 March 1910 vol 15 cc1156-7
Sir JOHN RANDLES

asked the Chancellor of the Exchequer can he now state the result of his inquiry for advice to the Law Officers as to whether persons who have paid Income Tax during the last few months in the mistaken belief that the Government would carry through the Budget and so legalise the tax before 31st March, will have their payments refunded, should they so wish, on making application to the Inland Revenue officers; and, in the event of Income Tax not being refunded, will interest be paid thereon at the rate of 2½ per cent, for the period such tax has been deposited pending the decision of Parliament as to the imposition of a tax on income?

The CHANCELLOR of the EXCHEQUER (Mr. Lloyd-George)

I have now received the opinion of the Law Officers upon the question raised by the hon. Member. They advise that money paid under the circumstances described cannot be recovered unless and until it became reasonably clear that no Income Tax would be imposed for the year 1909–10, and they are further of opinion that it is not necessary that such tax should be imposed before the end of the financial year. The answer to the last part of the question is in the negative.

Mr. SCOTT-DICKSON

May I ask the right hon. Gentleman what is the meaning of "reasonably clear "?

Captain FABER

asked the Chancellor of the Exchequer if he will state whether he can give a guarantee to the effect that any railway company can, if it transfers the Income Tax now over due, recover the money in the event of the Finance Bill not being passed?

Mr. LLOYD-GEORGE

In the eventuality mentioned by the hon. Member, no question of any guarantee appears to arise, as money paid in anticipation of an Income Tax could only be permanently retained by the Crown if the tax subsequently received statutory authority.

Captain FABER

Arising out of that answer, may I ask the right hon. Gentleman if it is not a fact that the Government cannot be bound by the act of the right hon. Gentleman, and that, therefore, this enormous sum may be lost?

Mr. LLOYD-GEORGE

It has nothing whatever to do with me or any other occupant of the office. It depends entirely whether there will be a Finance Bill which will eventually sanction the collection of the Income Tax. If there is no question of guarantee arises; but, if no Finance Bill is passed sanctioning the collection of the Income Tax, then the money will be returned.

Captain FABER

Then in the event of the Finance Bill not passing, this enormous sum of money will be lost?

Mr. LLOYD-GEORGE

If no Finance Bill is passed sanctioning the collection of the Income Tax, certainly this amount will be lost.