§ 59. Sir W. DAVISONasked the Chancellor of the Exchequer whether he is aware that many taxpayers who have claims against the Inland Revenue under the decision of the Court of Appeal in Granger v. Maxwell are unable to get any satisfaction from the authorities on the ground that the Commissioners of Inland Revenue are considering a further appeal to the House of Lords against the decision of the Court of Appeal; whether it is the intention of the Commissioners to appeal to the House of Lords or not; and if he will give an assurance that the Commissioners' decision in this matter will be expedited as much as possible so that the taxpayers concerned may be enabled to obtain the money which is due to them without further delay?
§ Mr. CHURCHILLThe Commissioners of Inland Revenue have decided not to appeal to the House of Lords, and are taking steps to expedite the repayment of any tax which may prove to be due to taxpayers in accordance with the judgment in this case.
§ Sir W. DAVISONWhile thanking the right hon. Gentleman for his reply, may I ask will he take steps with a view to expediting decisions on the part of the Crown's advisers in these matters, in view of the great hardship which is caused by the delay and by not knowing whether or not the Income Tax authorities intend to appeal to the House of Lords?
§ Mr. CHURCHILLI do not think we can alter the normal procedure, which has been adopted. I do not think there has been any undue delay, but necessary consideration must be given.
§ Mr. JOHNSTONArising out of the original answer, is it the case that interest earned in one year is assessed on the following year, and if in the intervening 12 months the asset itself disappears, no tax is levied upon interest which has actually been paid?
§ Mr. CHURCHILLThat appears to follow, so far, on the lines of the judgment recently given in the House of Lords, but I should like notice before I give my opinion on that point.
§ Mr. JOHNSTONCan the right hon. Gentleman give any estimate of the number of millions of pounds which thus escape assessment in the year?
§ Mr. CHURCHILLI could not possibly do so without very careful inquiry. I doubt if it would be possible to give an accurate figure or even an approximate figure.