DOUBLE TAXATION RELIEF (Hansard, 16 December 1947)

§ Mr. Assheton (City of London)
It is a very long time since the Virgin Islands have been discussed in this House, and I would like to ask the Financial Secretary a question or two. We on this side of the House very much welcome this series of double taxation relief orders, which are in accordance with the principle on which the Board of Inland Revenue are now working. I want to ask about the Virgin Islands because when I was there some years ago I was not aware that there was any taxation there. I do not know whether the Financial Secretary has been at the pains to find out whether that is still the situation. At that time there was only one official, the Commissioner, and he also occupied the posts of magistrate, coroner, registrar, provost-marshal, postmaster, registrar for births, deaths and marriages, civil marriages officer, registrar of shipping and medical officer. I believe he is retired now. At that time there was 1625 no taxation in the Virgin Islands. I would like to inquire what the present rate of Income Tax is in the Virgin Islands, and what other taxes there are at present coming within this Order which apply in the Virgin Islands?

§ The Financial Secretary to the Treasury (Mr. Glenvil Hall)
The short answer to the right hon. Gentleman is that the Virgin Islands form part of a number of islands knows as the Leeward Islands, and although it may be true that all the taxes listed in this agreement are not at present levied in the Virgin Islands themselves, nevertheless they are levied in some other part of the Leeward Islands. I am sorry that I cannot tell the right hon. Gentleman what he wants to know. If I had had notice that he was going to raise this matter, I would have obtained the information for him. I will still do so if I may, and communicate to him privately what the actual rate of Income Tax is in the Virgin Islands. I am sorry to say that I have not that information by me at the moment. I regret it, but that is the case.

§ Colonel Crosthwaite-Eyre (New Forest and Christchurch)
Could the Financial Secretary tell us what exactly is meant under this Agreement by Clause 9 of the Schedule.

§ Mr. Hall
That is the Presidential tax?

§ Colonel Crosthwaite-Eyre
Yes.

§ Mr. Glenvil Hall
The Clause reads as follows: An individual who is a resident of the United Kingdom shall be exempt from Presidential tax on profits or remuneration in respect of personal (including professional) services performed within the Presidency in any year of assessment if—

(a) he is present within the Presidency for a period or periods not exceeding in the agregate 183 days during that year, and

(b) the services are performed for or on behalf of a person resident in the United Kingdom, and

(c) the profits or remuneration are subject to United Kingdom tax."
The operative part of that Clause is (c): "If the profits or remuneration are subject to United Kingdom tax." This is an Agreement to avoid double taxation. If, in this regard, and for the purposes of this particular income, a person is subject to United Kingdom tax, he does not pay 1626 both. He gets tax relief from the Presidential tax which may otherwise be levied as a result of income which comes to him as a result of being associated with the Presidency.

§ Colonel Crosthwaite-Eyre
While I agree that the Financial Secretary has given a very good explanation of Clause 9 (1), it does not seem to me to cover Clause 9 (2).

§ Mr. Glenvil Hall
I can only say that these things are reciprocal, and that if a United Kingdom resident need not pay both taxes under this Agreement obviously in the same way a resident in the Virgin Islands would not pay United Kingdom taxes.