§ 48. Sir Wavell Wakefieldasked the Chancellor of the Exchequer by what authority British personnel seconded to Pakistan and paid by Pakistan are subject to British Income Tax, although nonresident in Britain and subject to various forms of indirect taxation in Pakistan.
§ Sir S. CrippsBritish personnel seconded to Pakistan are, in general, paid from British Service Votes and are liable to United Kingdom tax on their pay, like other members of the Forces serving abroad, under Rules 6 and 18 of Schedule E of the Income Tax Act, 1918. In some special cases the individuals are paid by Pakistan and are not liable to United Kingdom tax so long as they are not resident in the United Kingdom.
§ Sir W. WakefieldIn view of the fact that certain retired Indian personnel on the British special list are subjected to 204 Indian and Pakistan rates of tax, and as their sources of income are exactly the same as the category of personnel described in my Question, why should not this category also be subject to Pakistan or Indian Income Tax and not to British Income Tax?
§ Sir S. CrippsPerhaps the hon. Member will put down that Question.
§ Mr. LowIs it not the case that these men are also liable to Pakistan Income Tax? Is there not an appropriate double Income Tax arrangement for them?
§ Sir S. CrippsThere are negotiations proceeding with regard to double Income Tax.