§ 6. Mr. Croninasked the Chancellor of the Exchequer if he will take steps to ensure that in future payments of compensation for loss of office will be liable to taxation, bearing in mind that this has been recommended by the Royal Commission on the Taxation of Profits and Income.
§ Mr. SimonThe hon. Member will not expect me to anticipate my right hon. Friend's Budget statement.
§ Mr. CroninIn the course of deliberations between now and Budget day, will the hon. and learned Gentleman ask the Chancellor to bear in mind that it is now becoming a growing scandal that directors of large firms receive tax-free sums varying between £30,000 and £80,000 for loss of office, which is often quite voluntary, and that these sums are often merely a disguised form of private income? Would 1491 it not be appropriate to stop this abuse at a time when large numbers of workers are being dismissed at a week's notice?
Mr. H. WilsonIs the hon. and learned Gentleman aware that we have had that Answer from him and his predecessor for four years, ever since the Royal Commission unanimously recommended that it should be dealt with in its Report of June, 1955? Is he aware that there is a strong feeling on both sides of the House about the fact that the recent court decision assessing liability in a case against British Railways, arising out of a very serious accident, provided that there should be a deduction for estimated Income Tax requirements? Is not it grossly unfair that in that case Income Tax is in effect deducted and in this case the sum is tax-free and represents several years, or indeed decades, of tax-free income?
§ Mr. SimonMy right hon. Friend is aware of the case in the House of Lords to which the right hon. Gentleman refers. As to my Answer, I have been saying it only during the pre-Budget period and the right hon. Gentleman will not expect me to say more than that today.