§ 73. Lieut.-Colonel ARCHER-SHEEasked the Chancellor of the Exchequer under what statutory authority assessing authorities, in computing liability to United Kingdom Income Tax under the rules of cases 4 and 5 of Schedule D of the Income Tax Act of 1918, convert the income from foreign securities at the mean rate of exchange for the year, in view of the fact that the rates of exchange have been fluctuating between very wide values; and whether he can introduce provisions in this year's Finance Bill to convert moneys received abroad at a more equitable and accurate exchange by converting amounts at the average rate for the month in which they are received instead of the average rate for the year?
§ Sir R. HORNEAs was explained in the answer to my hon. and gallant Friend's question on this subject on the 14th instant it is understood to be the general practice of the assessing authorities in cases of the kind to which he refers to convert into sterling at the mean rate of exchange for the year. The Income Tax Acts do not give express directions in such matters of detail and the assessing authorities are not, of course, precluded from adopting some other basis for conversion into sterling where the facts of any particular case warrant a modification of the general practice. Moreover, any taxpayer who is dissatisfied with the Income Tax assessment upon him can appeal to the appropriate body of Income Tax Commissioners.
§ Lieut.-Colonel ARCHER-SHEEDoes not the right hon. Gentleman see that with the tremendous fluctuations of exchange to take an average over the whole year is very unfair to individual Income Tax payers, and that it will be more fair to take the average every month, and in order to do so regularly, would it not be 1544 right to introduce some provision in the Finance Bill in order to give effect to it by statutory authority instead of following the rule-of-thumb method which at present exists?
§ Sir R. HORNEMy hon. and gallant Friend will understand that the authorities are in the service of the Commissioners and not of the Inland Revenue. Accordingly, I cannot control what they do; but it is always competent for any Income Tax payer to appeal to the Commissioners to have this conversion made at the rate of exchange by the month if he thinks it is better for him.