HC Deb 07 November 1950 vol 480 cc748-9
14. Mr. Gammans

asked The Secretary of State for War if a decision has yet been reached regarding the payment of Income Tax by British officers, non-commissioned officers and other ranks seconded to the Malay Regiment.

Mr. Strachey

I would refer the hon. Member to the statement by my right hon. Friend, the Chancellor of the Exchequer, on 3rd July, in which he made it clear that it was not proposed to exempt British officers and other ranks from the payment of United Kingdom rates of Income Tax, no matter where they are serving.

Mr. Gammans

Is it not a fact that these officers are not paid out of United Kingdom funds? Is there any other precedent for an officer in that position being charged British rates of Income Tax which the Colonial civil servant, paid under exactly the same circumstances, is not called upon to meet?

Mr. Strachey

Yes, Sir. This does not apply to the Malay Regiment alone. It applies to all this type of forces.

Mr. Keeling

If a civil servant paid by the Malayan Treasury does not pay British Income Tax, why should a soldier?

Mr. Strachey

These officers are only seconded for this duty.

Mr. Keeling

Who pays them?

Mr. Strachey

They differ in different cases, but even if they are paid out of local funds they are subject to United Kingdom Income Tax. That is perfectly true, and I think it is inevitable in present circumstances.

Mr. Keeling

Why?

Sir Wavell Wakefield

Is The Secretary of State aware that this is a very real grievance amongst the Army officers concerned who feel that they are being discriminated against? Cannot the right hon. Gentleman take steps to stop this feeling of grievance?

Mr. Strachey

I do not agree that there is discrimination.