§ Mr. RAFFANasked the Chancellor of the Exchequer whether he is aware that in certain districts collectors of Inland Revenue state that they received special instructions to complete the collection of Income Tax by the middle of February, distraining for this purpose if necessary; whether this is a departure from the practice of previous years; and whether, if 189 such instructions have been given, he will consider the advisability of reverting to the practice of previous years, so that hardship may be minimised as far as possible?
§ The CHANCELLOR of the EXCHEQUER (Mr. Lloyd George)The Board of Inland Revenue inform me that they know of no special instructions of the nature mentioned by my hon. Friend. If he will bring to my notice any specific case I will have inquiry made.
§ Mr. JAMES HOPEDoes the right hon. Gentleman propose to adhere to the work of last year, in which the officers were instructed not to collect Income Tax in the year it was due?
§ Mr. LLOYD GEORGEThere was no instruction not to collect Income Tax.
§ Mr. LLOYD GEORGEYes, certainly! I said so already in the House.
§ Mr. BUTCHERasked whether the right hon. Gentleman will state what modifications have been introduced into the practice which obtained in the year 1896 as to the remission of Income Tax paid under Schedules A and B by owners farming their own land in cases where such owners have made losses on farming; and what are the instructions to the surveyors now in force in regard to cases of this character?
§ Mr. LLOYD GEORGEAs the hon. Member is aware, the Legislature has, since the year 1907, conceded a lower rate of Income Tax upon earned income, subject to the fulfilment of certain conditions. In consequence of its being necessary to set off allowances for loss against earned income as far as the earned income admits, repayment of Income Tax cannot be made by remission of the Income Tax charged under Schedule A, which is at the rate of 1s. 2d. in the £, until such part of the claimant's income as might otherwise be chargeable at the 9d. rate or 1s. rate has been exhausted. Consequently, in cases where owners farming their own land and assessed to Income Tax Schedule B at the earned income rate claim allowance on the ground of loss, Surveyors of Taxes have been instructed to insist on a statement of aggregate income in accordance with the provisions of Section 23 of the Customs and Inland Revenue Act, 1890.
§ Mr. BUTCHERWill the right hon. Gentleman lay a copy of the instructions on the Table for the information of that large class of persons who farm their own land?
§ Mr. LLOYD GEORGEI am not clear which instructions the hon. and learned Member means.
§ Mr. BUTCHERI mean the instructions to the surveyors now in force in regard to cases of this character which are referred to in the question.
§ Mr. LLOYD GEORGEI will consider that.