§ 67. Sir G. Jeffreysasked the Chancellor of the Exchequer whether the pay, the training expenses allowance and the annual bounty, recently announced for the T.A., or any of these, will be subject to Income Tax.
§ Mr. DaltonYes, Sir.
§ Sir G. JeffreysIs the Chancellor aware that this may be a great drawback to recruiting for the Territorial Army, and will he state whether it is proposed to levy this Income Tax by means of the P.A.Y.E. system, and, if so, who is to keep the accounts and who is to make the deductions?
§ Mr. DaltonWe do not want, of course, to impose any drawback on recruitment, but, as a matter of fact, I think that the hon. and gallant Gentleman will find that expenses in this case, as in the case of civilian employment, are such as would naturally fall under the tax. We have been anxious not to discriminate in any way and, as I have said, I think that he will find that that is the arrangement. As to the method of payment, perhaps he will put down a Question, to which I will let him have an answer.