§ 49. Sir NICHOLAS GRATTAN-DOYLEasked the Chancellor of the Exchequer what rate of discount is offered for Income Tax paid prior to the due date and what rate is offered for Super-tax so paid; and whether he will consider, with a view to accelerating payment and reducing the costs of collection, increasing the encouragement to pay before the due date?
§ Mr. CHURCHILLSection 159 of the Income Tax Act, 1918, provides for the allowance of discount on prepayments of Income Tax charged under Schedule D at the rate of £2 10s. per cent. per annum. 233 The law makes no provision for the allowance of such discount in the case either of Super-tax or of Income Tax under other Schedules. A suggestion similar to that contained in the, last part of my hon. Friend's question was considered by the Royal Commission on the Income Tax which reported in 1920, and was rejected by them. The subject is dealt with in paragraphs 607 to 611 of the Report of the Commission.