§ 34. Sir ROBERT HAMILTON
asked the Chancellor of the Exchequer whether he is aware that it is the practice of 1531 inspectors of taxes to issue annually to bankers, solicitors, and others, forms requiring returns to be made of all sums of interest received by them on behalf of clients or customers, and thereafter to issue notices of assessment to Income Tax on such sums; that inconvenience and loss is caused by the fact that such forms are issued only once in each year; and whether he will instruct inspectors of taxes to issue such forms quarterly, and also to authorise the inspectors of taxes at any time on production of certificates of interest collected to assess the Income Tax thereon, and issue notices of assessment and receive payment of the tax?
I assume that the hon. Member refers to the returns required under Section103 of the Income Tax Act, 1918. I am not aware that the existing procedure under which the return forms are issued annually causes inconvenience and loss. Under the provisions of the Income Tax Acts the assessments are made annually, the basis of assessment is normally the amount arising in the preceding year, and the tax is payable in one sum on 1st January. In these circumstances an annual return is clearly appropriate, and I see no reason for any such changes in the law as the hon. Member's proposals would involve.