§ 50. Mr. HURDasked the Chancellor of the Exchequer what amount of Super-tax remained unpaid at the close of the last financial year, and by how many persons?
§ Mr. CHURCHILLThe amount of Super-tax for the year 1925–26 which was assessed by 31st March last was£47,500,000, and of this sum£32,500,000 was paid by 31st March. The figure of£47,500,000 represents, I may say, a much higher proportion of the year's charge than was attained in previous years. I regret that the information asked for in the latter part of the question is not available.
§ Mr. CHURCHILLI could not answer that without notice.
§ Mr. SNOWDENI understand that the right hon. Gentleman said the amount of Super-tax last year was£30,000,000 odd. Can he explain the discrepancy between the sum assessed and the much larger sum collected?
§ Mr. CHURCHILLNo, I said the amount of Super-tax for the year 1925–6 which was assessed. by 31st March last was£47,500,000, and of that amount£32,500,000 was paid by 31st March.
§ Mr. SNOWDENAs the difference between the figures is still very large, can the right hon. Gentleman explain?
§ money allowed in discount on these hills for the same periods?
§ Mr. CHURCHILLWith the hon. Member's permission, I will circulate the figures in the OFFICIAL REPORT.
§ Following are the figures promised:
§ Mr. CHURCHILLWe are comparing different things. It would be more convenient to deal with a matter of that kind in Debate.
§ Mr. PALINGWas it the fact that these wealthy people had not paid their taxes that determined the right hon. Gentleman to bring an Economy Bill to rob 15,000,000 workers?
§ 52. Mr. THURTLEasked the Chancellor of the Exchequer if he is aware that, as the law now stands, a company may make a bonus distribution of debenture shares to a person liable for Super-tax, and that such debentures may afterwards be redeemed for cash, and the cash thus received is not liable to Super-tax and if he intends to take any steps to fill this gap in the law governing Super-tax?
§ Mr. CHURCHILLI am aware that the effect of recent judicial decisions is that a bonus distribution by a company in the form of an issue of its debentures does not in certain circumstances constitute income of the recipients for Supertax purposes. Where this is the position it would appear that the subsequent redemption of the debentures would not normally entail liability. I am not prepared at the present time to express an opinion as to the desirability of legislation on the subject.
§ Mr. THURTLEWill the right hon. Gentleman give a, general assurance that in this and in all other respects he will press the attack home on the Super-tax payers with the same vigour as he has pressed it on the insured persons?
§ Mr. CHURCHILLI think the increasing efficiency of the collection of Super-tax should be a complete answer to that question.
§ Colonel WEDGWOODIs not this a method of securing evasion of the payment of proper taxation; and what steps does the right hon. Gentleman propose to take in order to put an. end to this new method of evading legitimate taxation?
§ Mr. CHURCHILLAt regular intervals, on the presentation of the Finance Bill, the Chancellor of the Exchequer is accustomed to propose certain measures for stopping such leakages as from time to time make their appearance in our system of taxation. Whether this particular leakage is of sufficient dimensions to require immediate treatment is a matter on which I have nothing to say at present.
§ Mr. T. WILLIAMSAs the leakage for the last financial year amounts to 25 per cent., will the right hon. Gentleman consider closing this very wide door in his next Budget?
§ Mr. CHURCHILLThe hon. Member is under a misapprehension when he says the leakage amounts to 25 per cent. Super-tax and Income Tax are collected as expeditiously as possible throughout the year, and the rapidity of collection is increasing every year.