§ 43. Mr. AUSTEN CHAMBERLAINasked the Chancellor of the Exchequer if the Inland Revenue circular to bankers and others of 2nd April, 1913, was issued by direction or sanction of the Treasury, and, in view of the statement therein that in cases where interest or dividends have been paid since 5th April last without deduction of Income Tax not yet imposed upon to furnish the names and addresses by law, bankers and others will be called of persons to whom such interest or dividends have been paid in full, in order that Income Tax may be recovered under Section 14 (2) of the Revenue Act, 1911, from the next payment made or as a debt, will he state how the tax will be recovered from foreigners resident or domiciled abroad; whether such foreigners can be required to make a return under Schedule D; and whether, in case no future payment is due to such foreigners, there is any power to recover from them the duty as a debt?
Mr. ROBERTSONThe answer to the first part of the right hon. Member's question is in the affirmative. With regard to the remainder, where payment has been made on account of any dividend, interest, or other annual profits or gains previously to the passing of the Act imposing the tax for the year and where Income Tax has not been charged thereon or deducted therefrom, assessments may be made under Section 14 (1) of the Revenue Act, 1911, on the recipients. I am, however, unable to say that the machinery under this Section would be 1931 effectual in every case of a person resident abroad. As regards rent, interest, or annuity, or other annual payment, the person liable to make such payments is authorised (Section 14 (2) to make any deduction on account of Income Tax which he has failed to make previously to the passing of the Act imposing the tax for that year on the occasion of the next payment, and is also entitled, should there be no future payment from which the deduction may be made, to recover the sum which might have been deducted as if it were a debt.
§ Mr. CASSELHow are they to make these lists in the case of coupons to bearers?
§ Sir G. YOUNGERDid the Law Officers express any opinion on this circular before it was issued?
§ 57. Mr. MILLSasked the right hon. Gentleman whether, when Income Tax has, in consequence of its not having been imposed by Act of Parliament, not been deducted at the source in the present year, he proposes by the procedure under Section 14 of the Revenue Act, 1911, to require a return under Schedule D during the year 1914 and to obtain payment of the tax on 1st January, 1915; and has he considered that under this procedure the payment of the tax may be delayed for nearly two years?
Mr. ROBERTSONMy right hon. Friend is advised that when the Income Tax has been imposed for the year 1913–14 there will be power under Section 14 of the Revenue Act, 1911, to make an assessment for that year on dividends, interest, or other annual profits and gains from which tax has not been deducted in the circumstances mentioned. The duty on that assessment would be payable on on before 1st January, 1914.
§ Mr. CASSELHow does that apply to deductions which have been made before the Resolution imposing the Income Tax is passed?