HC Deb 02 March 1948 vol 448 cc207-8
56. Air-Commodore Harvey

asked the Chancellor of the Exchequer if the £4,500 compensation paid by B.S.A.A.C. to Air Vice-Marshal Bennett is free of tax.

Sir S. Cripps

I cannot supply the hon. and gallant Member with information regarding the Income Tax affairs of a particular taxpayer.

Air-Commodore Harvey

Does the right hon. and learned Gentleman realise that this concerns the taxpayers' money? If a man has worked for a company for only 18 months and gets £4,500 compensation, surely the country is entitled to know whether that sum is free of tax?

Sir S. Cripps

All questions of taxation are concerned with what may potentially be the public's money, but it has always been the rule that no statement will be made as regards the Income Tax affairs of an individual.

Mr. Bowles

Will the right hon. and learned Gentleman tell the House whether, under the law of this country, an amount of money paid as compensation for loss of office is free of Income Tax? That is all we want to know.

Sir S. Cripps

No, Sir. It is for the courts to interpret the law.

Wing-Commander Hulbert

Did the right hon. and learned Gentleman, as the temporary custodian of the public purse, give his consent to this payment?

Sir S. Cripps

No, Sir.

Mr. Bowles

May I ask the right hon. and learned Gentleman whether, in view of his long experience of the courts, he knows what the law is on this point?

Sir S. Cripps

Nobody ever knows the law until it has been declared by the supreme tribunal, the House of Lords.