§ 34. Mr. Silvermanasked the Chancellor of the Exchequer how many persons paid from public funds are in receipt of salaries and/or other emoluments free of Income Tax; what is the annual loss to the Treasury thereby occasioned; whether this policy or practice will be discontinued; and whether there have been any recent changes?
§ The Chancellor of the Exchequer (Sir Kingsley Wood)Except in the case of a 2065 limited and relatively very small number of cases, persons in receipt of salaries or other emoluments paid from public funds are liable to Income Tax in the ordinary way, and there has been no recent change of policy in that regard. This rule is only departed from for wholly exceptional reasons, and the cases are financially insignificant.
§ Mr. SilvermanCan the right hon. Gentleman say how many such exceptional cases there are, and what is the amount involved?
§ Sir K. WoodThere are very few, and I did not. want to trouble the Departments to give me the returns. The cost to the Treasury is insignificant.
§ Mr. SilvermanWill the right hon. Gentleman say why there should be any such cases?
§ Sir K. WoodThere is a certain number of cases of non-British persons whose services are being utilised for war purposes and who have come over and are helping us.
§ Mr. SilvermanWhy should they not pay Income Tax like everybody else?
§ Sir K. WoodThey came over here to help us.