§ 48. Sir Ian Fraserasked the Chancellor of the Exchequer if he is aware that coach and wagon drivers and others in Morecambe have, during the past two months, been re-coded under Pay-As-You-Earn with an additional assessment of £25 for tips; and under which of his regulations this has been done.
§ Mr. GaitskellYes, Sir. The Regulation is No. 7 (1) (b) of the Income Tax (Employments) Regulations, 1950 (S.I. 1950, No. 453).
§ Sir I. FraserDoes the right hon. Gentleman appreciate how very much this practice is resented, and can he justify a flat rate which obviously must be unjust to many if it is just to any?
§ Mr. GaitskellI am afraid I cannot agree that enforcing the law for Income Tax on individuals is necessarily unfair.
§ Sir I. FraserHow can a flat rate apply to many different emoluments, amounts and circumstances?
§ Mr. GaitskellIt is open to the individuals concerned to appeal against the assessments.
§ 57. Sir W. Smithersasked the Chancellor of the Exchequer on what basis the Gas Council is assessed for Income Tax and Super Tax; how much is due to the Treasury for the first year's working; and if he will make a statement.
§ Mr. GaitskellI cannot disclose information about the affairs of particular taxpayers, but the hon. Member is no doubt aware that the Gas Council is liable for Income Tax on exactly the same basis as a privately-owned concern carrying on the same activities.
§ 58. Mr. Douglas Houghtonasked the Chancellor of the Exchequer whether the pay of Z Class reservists during their 15 days' training this summer is to be included in the recipient's Income Tax return to be completed after 5th April, 1952; and when tax will be payable on this income.
§ Mr. GaitskellThis pay should be included in the recipient's return of income for the year 1951–52. In the case of reservists whose civilian pay is subject to deduction of tax under P.A.Y.E., the tax on training pay will normally be collected during the year 1953–54.
§ Mr. HoughtonDoes my right hon. Friend agree that it is desirable to avoid this long timelag in taxing this small amount of pay which will be received by the Z Class reservists during their 15 days' training? When we reach the Finance Bill will he consider exempting this pay from Income Tax altogether?
§ Brigadier MedlicottHow does the Chancellor justify his attitude of meanness over a matter of a small amount like this with profligate expenditure on the Festival of Britain?
§ Mr. GaitskellThis income is subject to tax according to the law.
§ 62. Mr. Errollasked the Chancellor of the Exchequer whether agreement to the extra-statutory concessions given in the 93rd Report of the Commissioners of His Majesty's Inland Revenue for the year ended 31st March, 1950, was obtained from all the Local Commissioners of Income Taxe.
§ Mr. GaitskellNo, Sir.
§ Mr. ErrollAre individual local commissioners free to refuse. to grant these extra-statutory concessions if they so wish?
§ Mr. GaitskellI should like to have notice of that. These extra-statutory concessions are of a general character and therefore fall outside the sphere of the commissioners.
§ Mr. ErrollAs these are quite specific, have the commissioners agreed to implement them in their own districts?
§ Mr. GaitskellIt is very difficult to interfere with the freedom of commissioners in this matter.
§ Mr. ErrollHow can it be interfering with them when only their agreement is asked for?