HC Deb 12 June 1956 vol 554 cc319-21

Motion made, and Question proposed, That the Clause stand part of the Bill.

7.0 p.m.

Mr. Houghton

This Clause will help not only the Inland Revenue, but will help particular types of taxpayers who have special difficulties and whose affairs will be better dealt with by bodies which can specialise. In his Second Reading speech, the Financial Secretary said: The intention is to use this power to make directions only in relation to professional entertainers, and then, in their case, the right to assess them in the specified offices will not normally be exercised in the case of those who work outside London-like the resident Blackpool comedians."—[OFFICIAL REPORT, 9th May, 1956; Vol. 552, c. 1238.] I think that that is wise, although I do not think there need be any particular inhibition against concentrating assessments of a particular type of taxpayer. even though they may be working or living outside London or outside the area into which they are to be directed.

Also, that by dealing with assessments of professional entertainers in one office, or one or two offices, it will be possible for the Inland Revenue to come to some arrangement with agencies and those responsible for engaging entertainers, whom they are paying fees, for the payment of tax on account. Half the trouble in these cases, as the right hon. Gentleman has just said, is that this is a precarious occupation. Very large fees are paid for a time, which is followed perhaps by a period of unemployment, or a period of less prosperous employment. In many cases money comes plentifully for a time and it is easily spent so that there is not then a reserve to meet tax liability. The concentration of assessments will enable some care to be taken of the interests of these taxpayers who very often are their own worst enemies, or who perhaps have no competent persons looking after their Income Tax affairs.

To reconstruct Income Tax liability over the past frequently leads to what may appear, or actually be, an amount of tax owing simply because there is not the information on which correct assessments could be made. From an administrative point of view and the point of view of the taxpayers themselves. I believe that this method will be a good thing. It will enable them to be dealt with by Inland Revenue officers who know all about the entertainment industry in just the same way as assessments of seafarers are concentrated in a district.

In Cardiff Marine, for example, those going to sea can be dealt with by an office which keeps track of the movement of ships, the ports they go to, and when they go. This would be a similar arrangement by which those in the entertainment industry may deal with one office and agencies can render accounts and give information about their movements. The agencies will know when they have gone abroad and when they are coming back. An isolated assessment of this kind of taxpayer can be a nuisance in an office which is dealing with mineworkers, or cotton weavers and other people who are unlike those in the entertainment profession.

Mr. H. Brooke

I am obliged to the hon. Member for Sowerby (Mr. Houghton) for what he has said about this Clause and, broadly, I am in agreement with him. I think that this Clause will be of value. He will appreciate that these powers are taken in general terms. Indeed, it would have been unpleasant and almost libellous to single out one industry for the attention that might be directed towards it under this and the previous Clause, but, as I said in my Second Reading speech, we are intending at present to apply these powers only in limited classes of cases. We may find they would be of value over a wider field, but it is primarily for these purposes that we need them.

I think it will be found that the honest taxpayer—the great majority, fortunately, are honest—will gain rather than lose by having his affairs dealt with in an office which is fully acquainted with the changes and chances and special needs of the profession. The dishonest taxpayer may not gain by that, but, after all, that is part of our object. We want to help those who are perfectly honest with the Inland Revenue to claim and to receive all the allowances to which they are entitled.

We wish, also, to be able to concentrate our attention through a few offices on members of the profession who are—shall I say—not quite so up to date or precise in making returns. I very much hope that this Clause will fulfil the good wishes which the hon. Member and, I think, the Committee as a whole will extend to it.

Clause ordered to stand part of the Bill.