HC Deb 17 April 1961 vol 638 cc813-4

I propose to legislate to get rid of some minor anomalies that flow from the fact that a large proportion of wage and salary earners, dealt with under P.A.Y.E. are never formally assessed. A taxpayer who happens not to have been assessed at the ordinary time can claim to be assessed for past years which had been treated as settled and by so doing, can get the benefit for those years of some new interpretation of the law. But others who, for any reason, were assessed in the ordinary course cannot reopen their liabilities. I propose to include a Clause which will prevent the reopening of what in substance were settled liabilities. I also intend to make it impossible in future to avoid tax by paying special remuneration and relating it to a year which is out of date for assessment, in other words, more than six years back. I do not think that that is an unreasonable proposition.

The existing law requires that formal Schedule E Income Tax assessments must be made in all oases where an employee is liable to Surtax. In many cases, owing to personal allowances, no Income Tax is payable. To make a formal assessment carrying no tax in these cases is a waste of time and staff. It is also confusing and irritating to the taxpayer. I propose, therefore, to repeal this requirement. It will, however, still be open to any taxpayer who wishes to have a formal assessment to require it.

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