§ 22. Mr. PETOasked the Chancellor of the Exchequer whether he has observed that by Section 141 of the Income Tax Act of 1842 £4 per cent. was provided to be allowed on the prepayment of Income Tax, and that by Section 10 of the Revenue Act, 1889, this discount on prepayment of Income Tax was reduced to £2 10s. per cent.; whether any alteration in this latter rate of discount has since been made; and, if not, if it is of any advantage to the Treasury to obtain early collection of Income Tax, if he will consider the advisability of altering the rate of discount to some rate more nearly in accordance with the rate the Treasury have to pay for the issue of Treasury Bills and Government loans?
Mr. McKINNON WOODI am aware of the provisions of Section 141 of the Income Tax Act, 1842, and Section 10 of the Revenue Act, 1889. No alteration in the rate of discount has been made since 1889, and I do not think it is desirable to make any alteration at present.
§ Mr. PETOMay I ask the right hon. Gentleman to give me an answer to that part of the question that asks whether it would not be an advantage to the Treasury to secure the earlier collection of Income Tax and other taxes?
Mr. McKINNON WOODOf course, the Treasury wishes the punctual collection and payment of all taxes, but, considering the amount of pressure thrown upon the staff at the present time it would not be an advantage to have to make special accounts for small amounts.
§ Mr. PETODoes the right hon. Gentleman think that 21/2 per cent. discount is likely to secure his object when 41/4 can be obtained from Treasury Bills?
Mr. McKINNON WOODIf the amount is a large one, Treasury Bills will be used as an instrument for investing money.