§ 69. Rear-Admiral ADAIRasked the Parliamentary Secretary to the Admiralty whether, seeing that in the case of Income Tax charged on lodging allowances in pre-War days the rate charged, if any, was the full rate of Income Tax and that the lodging allowances were estimated to provide only just such accommodation as is suitable for the officers concerned, he will say whether these allowances have been increased proportionately to the increased rents now charged; if so, are the increases such as to meet the higher Income Tax now charged; and under what statutory enact- 41 ment is Income Tax now charged on the lodging allowances which are made in cases of fixed appointments?
§ The PARLIAMENTARY SECRETARY to the ADMIRALTY (Mr. Amery)The average increase of the present rates of officers' lodging allowance over the pre-War rates is about 51 per cent. The answer to the second part of the question is in the negative. No salaries or allowances are paid with reference to Income Tax; to do so would be, in effect, to nullify the principle that Income Tax is paid on income derived from public sources in the same way as on income from private business. As regards the third part of the question, lodging allowance is taxable as an emolument of office, under the Rules applicable to Schedule E of the Income Tax Act, 1918.