HC Deb 27 April 1911 vol 24 cc1954-8
MARQUESS of TULLIBARDINE

asked the names of Scottish railway companies that were required to pay Income Tax by the statutory date this year, and the names of those for whom the time was extended?

Mr. HOBHOUSE

Under Statute Income Tax is payable by railway companies in Scotland on or before the 1st January, and application for the payment of the tax was made to them, as to other taxpayers, in the ordinary course.

MARQUESS of TULLIBARDINE

In view of the fact that the Chancellor of the Exchequer has stated that this temporary remission of Income Tax is the regular practice in former years, may I ask that the Scottish companies may for the sake of fairness have priority in future years in the same circumstances of over budgetting?

Mr. HOBHOUSE

It is rather a long question, and I should like to see it before I can answer it. It seems to me entirely not in accordance with any facts known to me.

MARQUESS of TULLIBARDINE

I was quoting the Chancellor of the Exchequer.

Mr. HOBHOUSE

I do not recognise the quotation.

Mr. STEEL-MAITLAND

asked the Secretary to the Treasury the amount of Income Tax due in respect of the year 1910–11, exclusive of Super-tax, which was not paid into the Exchequer on 31st March, 1911; what was the approximate percentage which this sum bears to the total amount of Income Tax, exclusive of Super-tax, due for the same year; and what were the similar percentages for the years ending 31st March, 1905, 1906, and 1907?

Mr. HOBHOUSE

I beg to refer the hon. Member to my reply to the hon. Baronet, the Member for the City of London, on the 18th instant, by which he will see that we cannot give the information desired in the two first parts of the question.

Mr. STEEL-MAITLAND

Does the right hon. Gentleman realise the distinction between my question and that of the hon. Baronet the Member for the City of London (Sir F. Banbury), who inquired the proportion of money received by the Income Tax Commissioners, whereas I have asked for the amount which was not paid into the Exchequer—two separate things.

Mr. HOBHOUSE

The hon. Gentleman asks me "the amount of Income Tax due in respect of the year 1910–11, exclusive of super-tax which was not paid into the Exchequer." First of all, I should have to find out what was the amount of Income Tax which was due.

Mr. STEEL-MAITLAND

Will he give me the best approximate percentage which this sum bears to the total amount of Income Tax, exclusive of Super-tax due for the same year—the word approximate being put in the question for the purpose.

Mr. HOBHOUSE

It it is quite clear what the difference between his question and that of the hon. Baronet is, but when you deal with figures at the Treasury it is better not to deal with approximate figures. As soon as I have the actual figures I will give them, but until then I will not give approximate figures.

Mr. STEEL-MAITLAND

Will he give us these approximate figures before the question of Income Tax is discussed in Committee?

Mr. HOBHOUSE

No; I have already said I will not give approximate figures.

Mr. STEEL-MAITLAND

Will he give us the actual figures before the matter is discussed in Committee?

Mr. HOBHOUSE

Yes, if that is possible, but it depends upon the date at which the figures are discussed in Committee.

Mr. STEEL-MAITLAND

asked at what dates in the years 1905, 1906, 1907, and 1908 Income Tax was received by the Inland Revenue from each of the eight railway companies already announced; and on what dates were these sums, or their approximate equivalent, paid into the Exchequer in each of those years?

Mr. HOBHOUSE

The second moiety of the Income Tax payable by the companies in question was received from them by the Inland Revenue in the four years specified between the 20th and the 30th March, except in two cases, where the dates were 31st March and 1st April. Payment to the Exchequer was made on the following day. For the year 1909–10, the second moiety was not paid by the railway companies nor by the taxpayers generally until after the close of the financial year, except in one case, where payment was made on 29th March.

Mr. STEEL-MAITLAND

Was the money paid into the Exchequer before the end of the financial year in those cases for the years stated in my question, and not for the subsequent year that the right hon. Gentleman mentioned?

Mr. HOBHOUSE

Yes, wherever it was received in time to do so.

Mr. STEEL-MAITLAND

asked whether there were any companies, firms, or persons, other than the eight railway companies already announced, to whom requests have been made not to pay Income Tax till after 31st March?

Mr. HOBHOUSE

I beg to refer to my reply to the hon. Member for the Brent-ford Division of Middlesex on the 20th instant?

Mr. STEEL-MAITLAND

Has the right hon. Gentleman not received any further information since that date, or made any further inquiry?

Mr. HOBHOUSE

No. There was no need to make any further inquiry and I have received no further information.

Mr. SNOWDEN

asked why persons who have failed to pay small sums of Income Tax have had their goods distrained while at the same time large and wealthy companies have been advised that they might delay payment; and if this differentiation of treatment was adopted with the knowledge or under the instructions of the Treasury?

Mr. HOBHOUSE

If the hon. Member will consult my reply of the 20th instant to the hon. Member for the Kingswinford Division he will see that there is no justification whatever for the suggestion contained in the question.

Mr. SNOWDEN

Is it not a fact that small Income Tax-payers for some weeks past have been and are now being distrained upon?

Mr. HOBHOUSE

I do not know of any actual instances, but I am willing to assume that certain small payers who have not paid have been distrained upon, and that has been done in every year that I know of. In no case that I know of, though I have heard of them, have any such proceedings been taken until a period of grace was given long in excess of the period mentioned in connection with the railway companies.

Mr. HARRY LAWSON

Is the right hon. Gentleman not aware, from the proof furnished to him, that there has been exceptional severity in many districts this year?

Mr. HOBHOUSE

No, I am not aware of it. The hon. Member sent me five cases, in one of which there was absolute refusal to pay any Income Tax at all. These were sedulously collected from an area containing some millions of people.

Mr. SNOWDEN

Is it not a fact that at the time these small Income Tax-payers were distrained upon the Income Tax due from the railway companies had not been paid, and no distraint was made on the property of the railway companies for it?

Mr. HOBHOUSE

No, it is not true. What happened was this. In the case of the railway companies, as I have repeatedly explained, their payments were due on 20th March. Collection was ordered by an officer of the Inland Revenue to make them by 30th March, ten days after the date when it was due. That was by an accident delayed until three or four days after that date, making fourteen days in all. In no case that I know of has distraint been made upon any person until more than two months has elapsed after the date when it was due.

Mr. HARRY LAWSON

Has the right hon. Gentleman the smallest warrant for saying the cases to which he refers were sedulously collected from several millions of people, and if so, what?

Mr. HOBHOUSE

My warrant for saying it is this. The hon. Member stated the fact to the House. I asked him to collect and send me any cases he had. He sent me five cases, one of which was a point-blank refusal to pay. There were four other cases, which represented, I suppose, all that he could collect out of not merely the Mile End district, which he represents, but a large portion of the East End of London.

Mr. HARRY LAWSON

As the statement has been made—

Mr. SPEAKER

This is rather a subject matter for debate than for question and answer.

Mr. STEEL-MAITLAND

asked on what system are the periodic instalments of their remuneration paid to collectors of Income Tax?

Mr. HOBHOUSE

Provided the collector's duties are satisfactorily performed, an advance of half of his normal remuneration is made on 1st of Febraury, when the date of closing the collection is 28th February; of one-third on 1st February and one-third on 1st March, when the date of closing is 31st March; and of one-fourth on 1st February, 1st March, and 1st April respectively, when the date of closing is 30th of April.

Mr. STEEL-MAITLAND

Have not the sums withheld from the full payments in usual years been withheld in the same proportion this year?

Mr. HOBHOUSE

I do not quite understand the question. No departure has been made this year from the practice of former years.