69. Captain CAZALET
asked the Chancellor of the Exchequer the total sum of arrears of Income Tax and Surtax, separately, owing to the Exchequer up to the latest convenient date?
In the case of Income Tax the only estimate that I can furnish in respect of arrears outstanding for past years is the amount of those arrears which it is estimated will be collected during the current financial year. At the 30th September last this amounted to about £15,000,000. As regards Surtax, including Super-tax, it was estimated at the 30th September last that the amount of tax then in assessment for past years, which will ultimately prove to be collectible after allowing for reductions and discharges, was about £6,000,000.
§ 80. Mr. HANNON
asked the Chancellor of the Exchequer the amount of Income Tax paid by co-operative societies under Schedule A during the financial year 1930–31 and the gross and net assessments on which this tax was assessed?
I regret that this information is not available. The statistics collected regarding the Income Tax Schedule A are not classified according to the ownership of the property under charge.
§ Mr. HANNON
Is my right hon. Friend contemplating any change in the taxation of co-operative societies?
§ 84. Mr. CLARRY
asked the Chancellor of the Exchequer what will be the position in 1932–33 of taxpayers assessable 1245 under Schedule E who, in this year 1931–32, have voluntarily accepted a reduction in their emoluments; and will they, in 1932–33, be assessed upon the basis of the actual balance of emoluments of 1931–32 after the waiver or on the full contractual emoluments, although part of them have been voluntarily surrendered?
I assume that my hon. Friend has in mind the case of a taxpayer assessable to Income Tax under Schedule E who, without any question of subsequent recoupment, agrees to accept a reduction of his emoluments for a part or the whole of the year 1931–32. In such a case the Income Tax liability for the year 1932–33 would be based on the actual emoluments of the employment for the year 1931–32. I would, however, remind my hon. Friend that, as stated by my predecessor on the 29th September last, the Income Tax Acts do not authorise any relief from Income Tax in respect of voluntary gifts which a taxpayer may make out of his income.
§ Mr. CLARRY
Is it not the case that a taxpayer who voluntarily waived part of his contractual emoluments would be in a worse situation than a taxpayer who had had to accept a forced reduction?
That really depends upon the form in which the arrangement is made. If it takes the form of a new contract, then the taxpayer will pay on the reduced emoluments.
§ 85. Mr. POTTER
asked the Chancellor of the Exchequer if he is aware that foreign fishery-vessel owners landing fish in this country make no contribution to our national taxation in respect of the earnings arising out of the proceeds of sale of such fish; and whether he will take steps to have such earnings ascertained and assessed for Income Tax purposes?
It is understood that foreign owners of fishery vessels who land fish in this country normally sell through general commission agents and cannot therefore be charged to tax through those agents under the existing law. I would remind my bon. Friend that the exemption of the general commission agent was confirmed and extended by the provisions of Section 17 of the Finance Act, 1925, and that powers 1246 were taken in Section 17 of the Finance Act, 1930, to agree with other countries for the reciprocal exemption from Income Tax of certain profits arising through agencies.