§ 43. Colonel DAYasked the Chancellor of the Exchequer if he is aware that two musical plays appearing in the West End of London have, during the past 12 months, paid royalties to the American holders of the rights of the same to the extent of over £100,000; will he state what steps, if any, are taken by the Treasury to see that Income Tax is paid on the same; and will he consider the introduction of legislation to 1250 see that, in future, these amounts are taxed at their source?
§ Mr. McNEILLAs the hon. and gallant Member will appreciate, I am not in a position to furnish information with regard to particular cases of Income Tax liability. On the general question raised in regard to legislation my right hon. Friend is not prepared to make any statement at present.
§ Colonel DAYIs the right hon. Gentleman aware that at the present time 14 theatres in London are producing American plays, and royalties to the extent of between £300,000 and £400,000 are going to American authors without being subject to Income Tax?
§ Mr. McNEILLI am very sorry to hear it.
§ 55. Mr. MACLEANasked the Chancellor of the Exchequer whether, seeing that American and foreign authors and dramatists producing plays in Britain escape payment of Income Tax, except when they remain in Britain six months, whereas British dramatists are taxed when producing plays in America, he is considering the imposing of Income Tax on all foreign dramatists producing plays and artistes and musicians performing in Great Britain; and whether he has estimated the amount likely to be raised in this manner?
§ Mr. McNEILLThe hon. Member is under a misapprehension. Tax is legally chargeable on these sources of income irrespective of the question whether the taxpayer visits this country or of the length of his stay. The problem is that of the machinery for collection of the duty in certain cases. I cannot say more than that this matter is engaging the attention of my right hon. Friend.