§ 54. Sir Irving Albery
asked the Chancellor of the Exchequer whether he is aware of the great hardship caused to many persons of moderate means who are not liable for full Income Tax rates by the deduction of Income Tax at the rate of 10s. in the £from the quarterly dividends paid on certain trustee securities; and why instructions were not issued to make the necessary deduction over the ensuing two quarters instead of making the whole deduction from one dividend payment?
§ Sir J. Simon
The procedure by which insufficient deductions of tax from payments made earlier in the present year are made good so far as possible by an increased deduction from the next subsequent payment is prescribed by the Sixth Schedule to the Finance (No. 2) Act, 1939. and I am not in a position to give instructions that it should be modified as suggested in the question. I would point out, however, that it is not necessary for a person whose income entitles him to relief from Income Tax 33 by way of repayment to wait until the end of the year before making any claim. A claim, which would be promptly dealt with, for a repayment on account can be made as soon as it can be shown that some repayment for the year will be due.
§ 55. Mr. Oliver
asked the Chancellor of the Exchequer whether he will state his intention with respect to persons unable to meet their Income Tax demands by reason of having been compelled, owing to the outbreak of war, to close their practices or businesses or have lost their occupations and are out of employment; and whether it is intended to treat the accrued liability to tax as a deferred debt pending the return of more favourable times for the persons concerned?
§ Sir J. Simon
Under the existing law and practice taxpayers who are unable to meet their Income Tax demands are afforded ample opportunity of representing their case to the authorities concerned with collection, and they are allowed such latitude in payment as the circumstances warrant. In view of the great variety of individual cases that have to be dealt with it is impossible to lay down any specific rule of general application, but the hon. Member may rest assured that any case of hardship will be sympathetically considered.