§ 71. Mr. FRANK GRAYasked the Chancellor of the Exchequer why it is necessary to have a separate department for the purpose of Super-tax; and can ho state the cost of such a department to the country?
75. Mr. GRAHAM WHITEasked the Chancellor of the Exchequer whether he will consider the advisability of reorganising the administration of Income Tax and Super-tax, in order that both taxes may be assessed at the same time by the same officials?
§ Mr. BALDWINThere are obvious advantages in the present system of the separate administration of the Super-tax, for example, complete secrecy and uniformity of treatment and practice. Some countervailing advantages might no doubt be expected under a system which enabled liability to Super-tax to be dealt with locally, but even a partial decentralisation of the Super-tax would involve rearrangements of and additions to staff at considerable cost. In these circum- 1991 stances, quite apart from any other considerations which might have to be reviewed at a later stage, I cannot see my way to introduce any proposals in the direction suggested in the questions. If the hon. Members' questions are to be taken as connoting the merging of the Income Tax and Super-tax charges into one, I would refer them to paragraph 573 of the Report of the Royal Commission on the Income Tax (Cmd. 615 of 1920). They will find there set forth reasons which, in my judgment, preclude the adoption of any such proposal.
§ Mr. GRAYIs it not a fact that the activities of the Super-tax Department are based solely upon information received from the Income Tax authorities and constant inter-communication which passes between the two?
§ Mr. BALDWINThat may be substantially true, but I do not think it alters the answer.
§ 72. Mr. F. GRAYasked the Chancellor of the Exchequer the numbers of applications received by the Inland Revenue authorities for the year ending 5th April, 1922, for the repayment of Income Tax deducted at the source; the estimated cost to the Inland Revenue relating to these claims; and whether it is proposed to introduce legislation removing the complications and defects of the present law relating to Income Tax?
§ Mr. BALDWINThe number of claims for repayment of Income Tax received in Great Britain in the 12 months ended 31st March, 1922, was 1,525,413. No record is available as to the proportion of these claims that related to Income Tax deducted at the source, nor is it possible to isolate the cost of dealing with claims from that incurred in the other duties of the Inland Revenue Department. As regards the last part of the question, I would remind the hon. Member that necessary reforms of the Income Tax were authoritatively reviewed by the Royal Commission on the Income Tax, which reported in 1920. Many of the proposals of that Commission have already been enacted; others I hope to find an opportunity of proposing in due course.
§ Mr. BALDWINPerhaps the hon. Member will put that question down?
§ 81. Dr. CHAPPLEasked the Chancellor of the Exchequer whether, in the interests of graziers in Scotland, he will consider any alteration in assessment to Income Tax in the case where the Tax Commissioners assess both tenant grazier and the landlord when the grazing is let for the season, but the landlord only when he grazes his own land?
§ Mr. BALDWINThe tenant graziers to whom I understand the hon. Member to refer are not assessable under Schedule B of the Income Tax Acts, but are assessable under Schedule D on their profits like other traders.
In this connection I would refer the hon. Member to the decision of the Irish High Court in the case of McKenna v. Herlihy, which is reported in 7 Tax Cases at page 620. I see no adequate reason for introducing an alteration of the law in this connection.
§ 87. Sir KEITH FRASERasked the Chancellor of the Exchequer if, in view of his decision to appoint a committee to consider the simplification of Income Tax forms and the reduction of their number, he will state the terms of reference to the said committee; and whether it will be empowered to take evidence?
§ Mr. BALDWINI am not yet in a position to make a further statement.