HC Deb 27 March 1911 vol 23 c900

asked if the directors of certain banks where it has been the constant custom for many years to pay the Income Tax of their employés, and also hitherto to allow to their employés any abatements of Income Tax due to them, are retaining for the benefit of such banks the abatements due to employés who have children under sixteen years of age; and will he introduce legislation, if necessary, so that employés shall receive the benefit of the abatements referred to?


I have had my attention drawn to cases of the kind referred to by the hon. Member. It is clearly contrary to the intention of the Government in allowing the abatement for children under sixteen years of age that this relief should go to benefit the employer instead of the employé on whose behalf it was granted. I may, however, add that the root of the mischief appears to me to lie in the growing practice under which Income Tax is borne and paid by persons other than those legally chargeable with the tax, a practice which is directly contrary to the Income Tax Acts.