§ 39. Lieutenant - Colonel WALTER GUINNESSasked the Secretary of State for War whether Income Tax is no longer being deducted from war gratuities; and, if so, what is the reason for the refusal to refund the tax in those cases where the tax has been withheld on the payment of the gratuity?
§ Mr. BALDWINIn view of the answer on this subject given on the 13th February to the hon. and gallant Member for Ripon arrangements were made that, pending legislative sanction for the proposed relief, Income Tax should not be deducted in respect of the gratuities in question. In the case of gratuities from which tax had already been deducted repayment can be made when the necessary sanction has been obtained.
§ Lieutenant-Colonel GUINNESSWhat is the distinction between having legal sanction for repaying Income Tax deductions on gratuities illegally made, and giving the full gratuity?
§ Mr. BALDWINIt is impossible for us to sanction refunds without statutory authority, but it has been possible to make the other payments by administrative order.