HC Deb 11 July 1956 vol 556 cc461-2
Mr. H. Brooke

I beg to move, in page 19, line 27, at the end to insert: (3) A return required under either of the foregoing subsections shall, if the trade or business or other activity is carried on by an unincorporated body of persons, be made and delivered by the person who is or performs the duties of secretary of the body, and the notice shall be framed accordingly. This Amendment is designed to remedy a weakness in the Revenue's powers to obtain from unincorporated bodies of persons returns of payments made in respect of services rendered or in respect of copyright. The kinds of bodies most likely to be affected by the Amendment are musical societies, clubs, and the like. I am advised that in the case of such bodies it would not be sufficient to serve a notice requiring a return on the body as such, but a notice would have to be served on each of the members individually. In the same way, if the return were not rendered, it would not be possible to recover a penalty except by instituting proceedings against each of the members individually.

That would be an impossible procedure, and the purpose of the Amendment accordingly is to provide that in the case of unincorporated bodies, the secretary or the person performing the duties of secretary, and not the body as such, shall be liable to make the return.

Amendment agreed to.

Mr. H. Brooke

I beg to move, in page 19, line 43, at the end to insert: or

  1. (c) particulars of any payment made in a year of assessment ending more than three years before the service of the notice requiring him to make the return."
This Amendment is to fulfil a pledge which was given in Committee in answer to an Amendment which was moved by my right hon. and learned Friend the Member for Kensington, South (Sir P. Spens). The purpose of the Amendment is to provide that the power to call for the returns of payments made shall not extend to payments made in any Income Tax year ending more than three years before the service of the notice requiring the returns. When my right hon. and learned Friend moved the Amendment in Committee the Government accepted it in principle, but had to point out that it was not quite technically satisfactory because there was not the power to go back to the beginning of a suitable Income Tax year.

We do not think that there will be any danger to the Revenue in this change. We have examined what was said about it. Certain criticisms were expressed in Committee. Nevertheless, we think that this is a wise and sensible course to take, and it will be in line with that which was laid down by Section 27 of the Finance Act, 1951.

Amendment agreed to.