58. Mr. E. P. Smithasked the Chancellor of the Exchequer whether he is aware that, under U.S.A. income tax laws, brain-workers, such as writers and others, who may have been engaged on a particular piece of work for some years and then sell it for a lump sum are allowed, for purposes of taxation, to spread their remuneration over the period of production instead of, as here, having to account for it in the single year of receipt; and whether he will consider introducing some similar system in this country.
§ The Chancellor of the Exchequer (Sir John Anderson)I am aware of the provision of U.S.A. Income Tax law to which my hon. Friend refers, but I am afraid that I cannot see my way to adopt his suggestion that a similar provision should be introduced in this country. Such a provision would involve a departure, in the case of fluctuating incomes of particular professions, from the general principle of the United Kingdom Income Tax system under which income is taxable as and when it arises.
Mr. SmithWill the right hon. Gentleman bear in mind that our present system presses heavily upon British authors, who are a poor but highly deserving section of the community? Will he not consider it a little further?
§ Sir J. AndersonWe all realise that it presses very heavily.