HC Deb 21 August 1916 vol 85 cc2274-5
85. Mr. ANNAN BRYCE

asked the Chancellor of the Exchequer whether Income Tax at the rate of 5s. in the £ is being levied on the dividends of certain South African companies on which there has already been charged taxation imposed by the Union of South Africa for war purposes, and therefore of the nature, of Income Tax, to the extent of 5s. in the £; and, if so, whether such levy is in accordance with the provision of the Finance (No. 2) Act, 1916, whereby Income Tax is in such eases limited to 3s. 6d?

Mr. McKENNA

I have no information as to the particular dividends to which my hon. Friend refers, but the procedure suggested in his question would be in accordance with the provisions of the Finance Act, 1916. If the hon. Member will refer to Section 43 of the Act he will find that the relief in respect of Colonial Income Tax is to be given by way of repayment. I may add that the Board of Inland Revenue are already considering the possibility of arranging for the allowance of the relief by deduction from the payment of British Income Tax, thus obviating claims for repayment in cases which may lend themselves to the adoption of such a course.

86. Mr. BRYCE

asked the Chancellor of the Exchequer if he received from the Prime Minister of Australia a Memorandum on the subject of a deputation which waited upon him on the 22nd June regarding double. Income Tax, together with the written opinion of the Australian Prime Minister on the points brought before him by the deputation; and if he will lay a copy of such Memorandum and of the observations of the Australian Prime Minister thereon upon the Table of the House?

Mr. McKENNA

The changes suggested by the deputation referred to and forwarded by the Prime Minister of Australia related to Amendments to the Finance Bill which were moved by my hon. Friend. Both these Amendments were negatived, and I have nothing to add to the statements in debate made by the. Financial Secretary and myself

Mr. BRYCE

Would the right hon. Gentleman say what the opinion of the Prime Minister of the Commonwealth was on the point embodied in this Memorandum which he sent?

Mr. McKENNA

I do not accurately remember at the moment, but I know that the Prime Minister was in general agreement with the Amendments moved by my hon. Friend.

Mr. BRYCE

Is there any objection to laying the Memorandum of the Prime Minister on the Table?

Mr. McKENNA

I must look at it first.