66. Major-General Sir JOHN DAVIDSONasked the Chancellor of the Exchequer if his attention has been drawn to a memorandum recently issued regarding the deduction of Income Tax for the years 1930 and 1931, stating that where on payment of a dividend, other than such a preference dividend as aforesaid, Income Tax has, under Rule 20 of the General Rules, been deducted therefrom by reference to a standard rate greater or less than the standard rate for the year in which the dividend became due the net amount received shall, for all the purposes of the Income Tax Act, be deemed to represent income of such an amount as would, after deduction of tax by reference to the standard rate last mentioned, be equal to the net amount received, and for the said purposes there shall be deemed to have been paid in respect of that income by deduction tax of such an amount as is equal to the amount of tax on that income computed by reference to the standard rate last mentioned; and if he will take such steps as may be necessary to render these instructions more explicit and intelligible to the taxpayer?
§ Mr. P. SNOWDENThe passage cited by the hon. and gallant Member is itself a quotation of the terms of a Resolution framed in Committee of Ways and Means on 14th April. The use of technical language cannot, I fear, always be avoided in legislation on technical subjects. This Resolution affects only a small proportion of taxpayers, and I am sure the staff of the Inland Revenue Department 372 will be most ready to help any taxpayers who may find it necessary to consult them as to its application to their particular circumstances.
Sir J. DAVIDSONWill the right hon. Gentleman have such instructions issued to the Treasury as will prevent the issue of such unintelligible and ridiculous jargon in future?
§ Major the Marquess of TITCHFIELDDoes the right hon. Gentleman himself know what this means?
§ Mr. SNOWDENAs my right hon. Friend said a few minutes ago, if I had chalk and a blackboard here I think I could make it perfectly clear.