§ 73. Sir J. BUTCHERasked the Chancellor of the Exchequer under what legislative enactment British officers serving in Mesopotamia and receiving Indian rates of pay are charged with British Income Tax, which is many times greater than Indian Income Tax; and whether British officers serving in India are liable to British or to Indian Income Tax?
Mr. CHAMBERLAINAs I informed my hon. and learned Friend, in reply to his question of the 4th November on this subject, officers of the British Army, wherever serving, are assessable to British Income Tax at British rates upon their pay out of Imperial funds. For the relevant law on this matter I would refer my hon. and learned Friend to the subjects of charge under Schedule E of the Income Tax Act, 1918, and in particular to the provisions of Rule 6 (e) and Rule 18 (2) applicable to that Schedule.
§ Sir J. BUTCHERIn framing the Budget next year will the right hon. Gentleman make provision for removing what appears to be a very serious hardship to British officers?
Mr. CHAMBERLAINI cannot admit the assumption that underlies the question that it is a very serious hardship to a British officer to be taxed like any other British citizen.