INCOME TAX PROCEDURE (EMERGENCY PROVISIONS) BILL. (Hansard, 7 September 1939)

§ LORD TEMPLEMORE

My Lords, I beg to move that this Bill be now read a second time. The Bill is a matter of machinery and of one operative clause. Its effect is to allow modification during the war period: and to such extent as conditions may render necessary, of the strictly territorial basis of function which obtains in Great Britain under the existing Income Tax Act. At present if the functions are not performed the machinery comes to a standstill and, under the existing law, there is no one who can claim to perform them within each territorial area as substitute for the existing authorities. Pivotal in the organisation are the General Commissioners of Income Tax for each division in the county and it will be clear that the ceasing to function even for a temporary period of any appreciable duration of such a body of Commissioners must be a very serious matter. Also it has to be recognised that such a contingency is not too remote under modern war conditions to be guarded against. A further need is that a tribunal shall be available for taxpayers who, under stress of personal or business circumstances, may have migrated.

The method proposed to deal with the matter is that of substitution. Under the existing law it is possible for the taxpayer under Schedules D or E, and in certain cases under Schedule B, to exercise the option to have his appeal heard by the Special Commissioners instead of by the local Commissioners for his division. Also, he may elect, under Schedule D, to be assessed by the Special Commissioners. Both of these options are subject to a time limit. The Bill proposes that the Special Commissioners will be available, as possible substitutes, freely, in the whole field, whereas now they can only be used after the exercise of an option. Another substitution which the Bill envisages is to take the General Commisisoners, acting for another division, as substitutes for the Commissioners acting for a division, who, in the circumstances anticipated, might not be able to act. Probably the Special Commissioners would be more frequently used, as they are a mobile tribunal and therefore no doubt could do the work more conveniently. The Bill proposes both lines of substitution and, whichever is adopted, 1034 the two governing factors must be the forwarding of the King's business combined with consideration of the taxpayers' convenience.

The other functions which the Bill considers are those of the assessor and of the Additional Commissioners. They have certain statutory duties to perform and the Bill provides that each Inspector of Taxes shall be available in an emergency as a supplementary, or, in the last resort, as an alternative resource for carrying on these duties. I think the only other point I need mention is that in Clause 2 it is laid down that the Bill does not apply to Northern Ireland. The reason for this is that the scheme of General and Additional Commissioners does not extend to Northern Ireland; in that area the assessing functions are by law placed in the hands of surveyors and the Special Commissioners, and the Special Commissioners are the appeal authority. I beg to move.