§ 70. Mr. BRIANTasked the Chancellor of the Exchequer whether, under the Finance Act, 1920, Section 24 (1) (c), married women are entitled to a proportion of the married allowance of £225 in addition to the personal allowance of £45; whether he is aware that many assessors throughout the country are failing to make such deductions from the incomes of married women claiming separate assessment, thereby increasing considerably the amount of tax chargeable to them; and whether he proposes to take any action in the matter?
Mr. CHAMBERLAINWhere application for separate assessment to Income Tax has been made by either the husband or the wife, within the time and in the manner prescribed by the Income Tax Acts, the personal allowance of £225 in respect of the married couple together with any increase of that allowance in respect of the wife's earned income, under Sub-section (2) of Section 18 of the Finance Act, 1920, is, under Section 25 (1) (c) of the Act, divisible between the husband and the wife, in proportion to the amount of their respective assessable incomes. I am not aware of any failure to give effect to any reliefs properly allowable in cases of this kind; but if the hon. Member will furnish me with details of any particular case which he has in mind, I shall be pleased to direct the atention of the Commissioners of Inland Revenue to it.
§ 72. Sir J. BUTCHERasked the Chancellor of the Exchequer whether he is aware that officers of the British Army serving in Mesopotamia and drawing India rates of pay are being called on to pay Income Tax at the English rates from 31st 573 March last, whereas officers of the Indian Army serving in Mesopotamia and drawing India rates of pay are paying Income Tax at the India rates, which are lower; whether any allowance is made to British officers serving in Mesopotamia for their wives and families; whether he is aware that the cost of living in Mesopotamia is very high and is increasing, and that the spending value of the rupee there has greatly diminished; and whether he will arrange that officers of the British Army serving in Mesopotamia shall pay Income Tax at the India rates?
Mr. CHAMBERLAINUnder the provisions of the Income Tax Acts officers of the British Army, wherever serving, are assessable to British Income Tax at British rates upon their pay out of Imperial Funds at whatever rates that pay may be calculated. Such officers can, of course, claim the Income Tax allowances to married couples and in respect of children, subject to the pro visions of Section 24 of the Finance Act. 1920.
§ Sir J. BUTCHERIs my right hon Friend aware that under the Indian Income Tax an officer drawing 6,000 rupees a year or less has nothing to pay, and that officers drawing 10,000 to 20,000 rupees a year pays less than a shilling tax? Is that reasonable compared with the British rates?
Mr. CHAMBERLAINOfficers of the British Army are subject to the general taxation laws prevailing in this country. Officers of the Indian Army pay the tax chargeable under the laws of India.
§ Sir J. BUTCHERWould the right hon. Gentleman consider the case of British officers serving in India and receiving Indian rates of pay, who are paying far more than their brother officers of the Indian Army?
Mr. CHAMBERLAINThat may be so, but salaries paid by Votes of Parliament are subject to Income Tax, and I cannot make exceptions in this particular class of case.
§ Colonel YATEAre not these officers in Mesopotamia paid in rupees? Why should British Income Tax be levied on the rupee?
Mr. CHAMBERLAINThe officers whose salaries are chargeable to the Indian Army pay the Indian tax, whatever that may be. The question of my hon. and learned Friend referred to officers of the British Army.
§ Colonel YATEWhy should they pay the British tax? Can the right hon. Gentleman give a reason?