53. Mr. ALLENasked the Chancellor of the Exchequer whether he will consider extending the method of deductions of tax at source in the case of all foreign artists, composers, and writers deriving income from this country on the same principle as that adopted by the Government of the United States of America?
§ Mr. P. SNOWDENIf the hon. Member is referring to income derived from this country in the form of copyright royalties, I would remind him that tax is already deducted from such royalties in accordance with the provisions of Section 25 of the Finance Act, 1927.
Mr. ALLENIs it not a fact that a large number of highly-paid foreign artists get away without paying?
§ Mr. SNOWDENI do not think that a very large number get away. That matter was raised about two years ago, and my predecessor gave the following reply:
I have given considerable thought to the matter to which my hon. and gallant Friend refers. As I have previous stated, the great bulk of the Income Tax due from foreign artistes performing in this country is ultimately recovered, and I may add that steps recently taken to accelerate the working of the existing Income Tax machine in these cases will still further reduce the comparatively trifling amount of tax which is at present not collected. In these circumstances I do not think it is necessary to adopt my lion. and gallant Friend's proposal, which would involve considerable difficulties in practice."—[OFFICIAL REPORT, 6th December, 1927; col. 1178, Vol. 211.]I have nothing to add to that reply.
§ Mr. DAYIs the Chancellor of the Exchequer not aware that many artists, who come to this country from abroad receive very large salaries, and stay only for six or nine months of the year, and consequently pay no Income Tax?
55. Sir F. HALLasked the Chancellor of the Exchequer whether the circular letter which has recently been sent out by the Inland Revenue authorities to a large number of firms demanding payment of arrears of Income Tax under Schedule D, and threatening serious 1076 action unless payment was made within seven days, was issued with his knowledge; to how many firms the letter was sent; and whether he is aware that certain firms to whom the circular was sent either were not indebted to the extent alleged or had in fact already discharged their Income Tax liabilities?
§ Mr. P. SNOWDENIt is the duty of collectors to act vigorously in the early months of the year in demanding payments of tax that fell due on the 1st January, and the steps which have been taken are neither more nor less than normal. If the hon. and gallant Member will give me particulars of any ease in which it is alleged that improper pressure is being exerted or excessive demands are being issued, I will cause inquiry to be made and will communicate the result to him in due course.
Sir F. HALLCan the right hon. Gentleman say if the statement contained in the first part of this question is correct or not; and, if it is correct, was the notification given upon his instruction?
§ Mr. SNOWDENThe first part of the question asks whether demand notes have been issued requiring payment.
§ Mr. SNOWDENI have no information whatever in regard to threats, and I shall be obliged to the hon. and gallant Member if he has any such information if he will put the case before me. May I add that I really cannot understand why hon. Members opposite should show so much sympathy with people who do not pay their Income Tax. This tax was due on the 1st January, and it is a right and proper thing that an imperative demand should be made for its immediate payment.
§ Mr. CHURCHILLWould the right hon. Gentleman address himself to the exact terms of the question upon the Paper, having regard to the fact that he has received due notice of the question?
§ Mr. SNOWDENI have addressed myself to the question, and I have repeated that I have no knowledge of any threatening letters having been sent out. I have said that the practice during the past three or four months has been perfectly normal, neither more nor less—exactly the practice which was carried out under 1077 the regime of the right hon. Gentleman opposite. May I repeat that, if the hon. and gallant Gentleman will bring to my notice any particular case where there has been incivility or threats, I certainly will have it inquired into.
§ Mr. CHURCHILLDid the right hon. Gentleman himself see the circular letter specifically referred to in the question?
§ Mr. SNOWDENWhy should I go on repeating the same answer to the same question. I have already said that I have no knowledge of any such threatening letter having been sent out.