§ 38. Mr. GEORGE TERRELLasked the Chancellor of the Exchequer whether he is 434 aware of and has authorised the practice of the Income Tax Commissioners to require people to furnish information of their business transactions which the Commissioners are not authorised by law to demand, and, in the event of neglect to furnish such information, to assess such people at an excessive scale and to leave them to the remedy and expense of an appeal; and whether he will give instructions for its discontinuance?
§ The CHANCELLOR of the EXCHEQUER (Mr. Lloyd George)I am not aware of the practice to which the hon. Member refers, but if he will give me particulars of an actual case, I shall have inquiry made into the matter. I may state that on an appeal the Commissioners for general purposes of the Income Tax have power to require from the appellant a schedule containing such particulars as they shall demand.
§ 39. Mr. GEORGE TERRELLasked by what authority, if any, the Income Tax Commissioners now refuse to allow the deduction from the profits of trading concerns of the fees and expenses paid in procuring grants of letters patent; whether, until the present year, such fees and expenses have not been regarded as proper trading expenses; and whether the Income Tax Commissioners have any authority to surcharge in respect of deductions made and allowed in previous years' accounts?
§ Mr. LLOYD GEORGEThe fees and expenses referred to are not admissible deductions under the Income Tax Acts, and it has been the practice for many years past to refuse to allow them. Where there has been an undercharge in any assessment, there is power to make an additional assessment within the limit of time prescribed in the Income Tax Acts.