§ 70. Lieut.-Colonel POWNALLasked the Chancellor of the Exchequer whether the Board of Inland Revenue has 256 circularised every bank in Great Britain and Northern Ireland requesting them to make the necessary deductions for Income Tax from all dividends received by them on behalf of a certain category of clients; and, if so, under what authority were the banks requested to become collectors of Income Tax without the authority of their clients?
§ Mr. SNOWDENEvery person entrusted with the payment of foreign or Colonial interest or dividends is required by law to deduct and account to the Revenue for the Income Tax in respect thereof. A person not resident in this country can claim relief from Income Tax on these sources of income; also, a person not ordinarily resident here can claim exemption from Income Tax on income from certain issues of British Government securities. The circular to which the hon. and gallant Member refers did not contain any directions requiring bankers to perform any act in relation to Income Tax that they were not already by law required to perform. It was issued in order to set out, for the guidance of bankers and their customers in preparing Income Tax claims for exemption or repayment, the relevant law on the subject of residence and ordinary residence in this country for Income Tax purposes, and to explain the official view in this matter.