HC Deb 30 April 1928 vol 216 cc1333-4
42. Mr. W. THORNE

asked the Financial Secretary to the Treasury what the Inland Revenue Department will have to pay in legal costs in respect of the unsuccessful demand for £11 11s. 9d. Income Tax from a Scottish fanner; and the reason why the authorities appealed to the House of Lords after two unanimous decisions in the farmer's favour when the amount involved was only £11 11s. 9d. and no question of principle arose?

Mr. SAMUEL

I am at present unable to state the cost of the proceedings in the case referred to in the question. I can assure my hon. Friend that every care is exercised and the best legal advice available is taken before any case is carried to the Courts.

Mr. THORNE

Is the hon. Gentleman aware that 10 K.C.s were engaged in the case and six of them were engaged by the Crown, and did the Attorney-General plead on behalf of the Department?

Mr. SAMUEL

I do not think that is correct. It appears there has been a misunderstanding. Before the case was taken to the House of Lords, it was understood that costs would be paid by the Crown.

Mr. THORNE

Will the hon. Gentleman be prepared to circulate a detailed statement in connection with the case?

Mr. SAMUEL

The importance of the case is of such a kind that it was necessary to get a decision of the Courts. Before the case was taken to the House of Lords an arrangement was made that all costs would be paid by the Crown.

Lieut.-Commander KENWORTHY

Is the hon. Gentleman aware that in that case the taxpayer finds the costs? In this case, I understand they reached over £3,000.

Mr. SAMUEL

That may be, but in this case the costs are not as stated. It was necessary to have the point cleared up by a Court of Law.

Mr. THORNE

Do you not think it a wicked waste of money to spend £3,000 in that direction?

Mr. SAMUEL

That is not the point.

Mr. THORNE

It is my point anyhow.

Mr. SAMUEL

The scale of costs is one for the legal profession, and I cannot deal with it, nor do I agree that the amount was as stated. Here was a very important point that had to be cleared up.

Mr. LANSBURY

Did the lawyers receive trade union wages?

Mr. SAMUEL

I am not prepared to admit that the amount stated by the hon. Member is correct. I cannot undertake to accept his statement of the amount.

Mr. THORNE

Give us a detailed statement later on.