§ 63. Mr. MALONEasked the Financial Secretary to the Treasury whether the Inland Revenue Department has any Regulations, and, if So, what are the Regulations, whereby the transfer of stocks and shares by the original holder to a nominee are recorded and duly notified to the inspector of taxes of the district in which both the original holder and the nominee reside?
§ Mr. PETHICK-LAWRENCENo, Sir.
§ 64. Mr. MALONEasked the Financial Secretary to the Treasury whether he is aware that the Inland Revenue Department has a regulation whereby accredited brokers and dealers in stocks and shares, in selling cum dividend, prior to or during the period the books of a company are closed to make out dividend warrants, are permitted to issue to buyers of such securities vouchers to enable them to reclaim tax deducted at source in all cases where the sellers receive the company dividend warrant and voucher for reclaim of tax deducted at source; and what check has the Inland Revenue Department to prevent the seller presenting the company's voucher for the reclaim of tax, bearing in mind that the buyer also receives a duplicate voucher from the broker or dealer for the reclaim of tax?
§ Mr. PETHICK-LAWRENCEI am aware of the practice described in the question. The prevention of fraud is a subject that is constantly Engaging the attention of the Revenue Department, and my hon. Friend may be assured that, although for obvious reasons I cannot disclose the methods adopted, the danger of this particular form of fraud is not overlooked.