§ 24. Colonel Sir C. YATEasked the Financial Secretary to the War Office what steps have been taken to put a stop to the deduction of English Income Tax from the pay of officers serving in Mesopotamia who are paid in rupees?
§ Sir A. WILLIAMSONI would refer the hon. and gallant Member to the answers given by my right hon. Friend the Chancellor of the Exchequer in reply to questions by the hon. and learned Member for York on the 4th and 18th November last. British officers serving in Mesopotamia are now paid in sterling, not in rupees. Indian Army officers are paid in rupees. Liability to British Income Tax is determined, not by the basis on which the pay is fixed, but by the service from which the pay is defrayed. Emoluments defrayed from Imperial Funds are subject to deduction of British Income Tax.
§ Sir C. YATECannot the War Office do anything to put a stop to this very inequitable differentiation in the treatment of officers on service in Mesopotamia?
§ Sir A. WILLIAMSONI do not think we can.