§ 63. Mr. PETOasked the Under-Secretary of State for War whether any decision has been arrived at with regard to deduction of Income Tax from the pay of officers serving in West Africa and other parts of the British Empire who are under the War Office; and whether, in view of the second paragraph of Schedule D, Section (2), of the Income Tax Act of 1853, as these officers are not exercising their profession within the United Kingdom, the profits and gains arising from the exercise of the profession should not be subjected to the deduction of Income Tax?
§ Mr. FORSTERArmy officers' pay is assessable to Income Tax not under Schedule D of Section (2) of the Income Tax Act of 1853, but under Schedule E, under which Schedule their liability is not restricted to service in the United Kingdom, and their pay is taxable wherever issued.
§ Mr. PETOHas the hon. Gentleman considered that part of my question which refers to the pay of officers serving in West Africa, and does he propose to continue the deduction of Income Tax from the pay of those who are under the control of the War Office, while those who are serving under the Colonial Office, as well as Civil servants similarly placed, are free from Income Tax altogether?
§ Mr. FORSTERI will make further inquiries.