HC Deb 18 April 1950 vol 474 cc30-2
51. Mr. Hollis

asked the Chancellor of the Exchequer whether, under his regulations, if an author arranges that money due to him for literary work for a foreign company is paid not to him but to a recognised British charity, he is then liable for Income Tax and Surtax on that money.

Mr. Jay

Yes, Sir.

Mr. Hollis

Is the hon Gentleman aware that if an author assigns the rights of a work to a charity, he is, apparently, not liable for Surtax? Is there a valid reason why there should be a distinction between the two different transactions?

Mr. Jay

I gather from the hon. Gentleman's Question that in this case the money was due to the writer in question for literary work. In that case he is liable for tax whatever he desires to do with the money.

Mr. Hollis

The Question was specific. It asked whether, if an author allows money due to him from a foreign company to be paid instead to a recognised British charity-in which case he never sees the money himself-he is liable for Income Tax and Surtax on that money?

Mr. Jay

It depends on the precise arrangement by which he does it.

Mr. Godfrey Nicholson

Is it not a fact that when somebody is paid to broadcast over the B.B.C., he can ask for the fee due to him to be paid to a charity, in which case the person concerned is not liable for tax?

Mr. Jay

That is another question.

55. Mr. Boyd-Carpenter

asked the Chancellor of the Exchequer why the Pay-As-You-Earn liability of a number of employees of a Surbiton firm, particulars of which have been sent to him, has been raised notwithstanding that their pay remains the same.

Mr. Jay

I have written to the hon. Member.

Mr. Boyd-Carpenter

Is the hon. Gentleman aware that his letter does nothing except disclose a practice under which the Inland Revenue raise a man's tax liability in an attempt to obtain the return of an Income Tax return form; and is it not a fact that in this particular case drastic action was taken without any inquiry being made as to whether the taxpayer had received the demand at all?

Mr. Jay

That is not what my letter says at all. It says that unless, after repeated reminders, the taxpayer makes the necessary claims, it is not possible to allow them.

Mr. Boyd-Carpenter

Is it not a fact that in this case no inquiry was made whether the demand form had been received before this drastic action was taken?

Mr. Jay

In this case repeated reminders were sent, and therefore I think it reasonable to assume that they were received.

Mr. Boyd-Carpenter

Oh, no.

56. Mr. Erroll

asked the Chancellor of the Exchequer how awards to mine rescue squads are treated for Income Tax purposes under his regulations.

Mr. Jay

Payments received by mine rescue workers are liable to tax as remuneration of their employment.