§ 69. Mr. HOHLERasked the Chancellor of the Exchequer whether he is aware that chief petty officers and other officers of the Navy are being assessed to Income Tax on the allowance made them for food and lodging in cases in which they are not victualled on the Navy; whether there is anything to justify this in the Income Tax Acts; if so, will he take steps to alter the law; and, if not, will he direct the practice to cease and order a refund of the moneys improperly demanded?
§ Mr. BONAR LAWThe money allowances to which my hon. and learned Friend refers are chargeable to Income Tax equally with the rest of the emoluments of these officers. I would remind him of the general principle of the law that allowances in money are chargeable to Income Tax, whereas allowances in kind are not so chargeable, and I could not undertake to introduce legislation modifying this principle.
§ Mr. HOHLERDoes not my right hon. Friend realise the great injustice of this, and will he take steps to increase the allowance?
§ Mr. BONAR LAWI did my best, when I examined the matter, to look into the question of reductions. It is not a simple matter. The money spent on food is part of the regular salary of these officers.