27. Major HOREBELISHAasked the Secretary of State for the Colonies whether he will state why it is that the agreement men employed in Bermuda Dockyard have to pay Income Tax on the full amount of their earnings, including Colonial pay and also on their allowance given in lieu of quarters, in addition to paying vastly increased prices on all commodities owing to the import taxes charged on these by the local government, thus causing these men to be doubly taxed, whereas men engaged in employment locally are not called upon to pay any tax, no matter what their earnings, to the British Government or to the local government; and will he cause the present procedure to be ameliorated?
The PARLIAMENTARY SECRETARY to the ADMIRALTY(Mr. Davidson)I have been asked to reply. Income Tax is chargeable under Schedule E (see Finance Act, 1922, Section 18) upon the emoluments of persons serving under the 1429 Admiralty. The Acts relating to Income Tax do not provide for any relief to be given to persons serving abroad except in the case where a Colonial Income Tax is chargeable locally concurrently with the British tax. I regret I am unable to recommend any special exemption in favour of men employed at Bermuda
Major HOREBELISHAIs it not the fact that there is a difference between these two classes of men, and will the hon. Gentleman say the reason why?
Mr. DAVIDSONYes. The reason is that: Admiralty employées are liable to British Income Tax, whereas local employées arc. not, as there is no Income Tax in Bermuda