HC Deb 28 July 1913 vol 56 cc23-4
56. Mr. CASSEL

asked if Mr. T. Gibson Bowles, who in the action Bowles v. the Bank of England, recovered the Income Tax unlawfully deducted by the Bank from a dividend due to him, has now been called upon by the Commissioners of Inland Revenue to pay to them that same Income Tax; has this been done by the direction of the Treasury and of the Prime Minister as First Lord thereof, or by the Commissioners of Inland Revenue of their own motion without such direction; and, seeing that the action in question, which established an important public principle, cost Mr. Bowles £3,084, including £137 of his law costs which the Treasury refused to pay, though it paid the whole costs of the Bank, and that Mr. Attorney-General undertook that the Provisional Collection of Taxes Act would not have the effect either of robbing Mr. Bowles of the fruits of his action or of laying him open to some sort of counter claim, is it proposed to persist in the claim now made?

The CHANCELLOR of the EXCHEQUER (Mr. Lloyd George)

The assessment has been made by the District Commissioners of Taxes, the proper authorities for dealing with such a matter, under the provisions of the Income Tax Acts. The observation referred to in the last part of the question was directed to any action which might have been taken by the Bank of England, and could not bind the District Commissioners in the exercise of their statutory functions. The Attorney-General on the same occasion, in reply to the hon. and learned Member himself, made it quite clear that Mr. Gibson Bowles could not escape having to pay his Income Tax by having caused to be set aside the practice of deduction without statutory authority.

Mr. CASSEL

Is that an assurance that the provisions of the Provisional Collection of Taxes Act itself will not be used against Mr. Bowles?

Mr. LLOYD GEORGE

I do not quite know that I can say that. He has simply to pay Income Tax like anybody else.

Mr. SWIFT MacNEILL

And he has had a very good run for his money.

57. Mr. CASSEL

asked why the undertaking given by the Chancellor of the Exchequer on behalf of the Government, of which the Prime Minister has been reminded from time to time, to appoint a Select Committee to inquire into the Provisional Collection of Taxes Act has not been carried out; and whether it will be carried out next Session?

The PRIME MINISTER

The Government will take steps to set up a Committee forthwith, unless, owing to the late date of the Session, it is agreed through the usual channels to postpone its appointment till next Session.