HL Deb 10 July 1963 vol 251 cc1377-8

2.45 p.m.

LORD FRANCIS-WILLIAMS

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether they are now in a position to state what is the tax position regarding the substantial sums paid by some newspapers to prostitutes, adulterers, criminals and other notorious persons for their purported confessions; whether these payments are subject to tax as professional earnings, or whether the perpetrators of these dubious confessions are allowed to claim the rewards from them as casual profits and make fortunes by capitalising on their notoriety with the aid of such newspapers.]

THE MINISTER OF STATE FOR FOREIGN AFFAIRS (THE EARL OF DUNDEE)

My Lords, sums paid by newspapers for purported confessions would normally give rise to liability to tax under Case If or Case VI of Schedule D. Case II of Schedule D covers taxation of professional earnings, including sums paid by a newspaper to professional authors or journalists for the publication of material written or dictated by them. Case VI covers the profits of anyone who is not a professional author or journalist, but who writes a single commissioned article or series of articles for the Press.

LORD FRANCIS-WILLIAMS

My Lords, I thank the noble Earl for his Answer. When he says "would normally", does this mean that there are abnormal circumstances in which this liability would not apply?

THE EARL OF DUNDEE

My Lords, there may be abnormal circumstances, but I do not think it would be a good thing to draw attention to methods by which taxation could be evaded.

LORD FRANCIS-WILLIAMS

My Lords, may I draw the noble Earl's attention to one of the more recent utterances of a lady who has been very much in the news recently, Miss "Mandy" Rice-Davies, who declared, "Just like Christine, I evade heavy tax now I am in the money", to which she added brightly, "I reckon I have negotiated about 'ten grand' to date, and that is only the start"?

THE EARL OF DUNDEE

My Lords, I have not noticed that, but I daresay someone from the Inland Revenue may have done so.

BARONESS SUMMERSKILL

My Lords, would the noble Earl be more specific? What will be the position with regard to these two ladies?

THE EARL OF DUNDEE

My Lords, I could not give any particular case. I have given the general position under Schedule D.