HL Deb 02 August 1966 vol 276 cc1210-1
LORD GRIDLEY

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

[The Question was as follows:

To ask Her Majesty's Government whether they arc aware that the supplementary pension granted by Her Majesty's Government to a former Colonial civil servant, and paid out of United Kingdom funds, is being taxed by the Government of Ceylon.]

LORD BESWICK

Yes, my Lords. The Ministry of Overseas Development were recently informed of this and the matter is being taken up with the Ceylon Government through the British High Commission in Colombo.

LORD GRIDLEY

My Lords, is this not symptomatic of my first Question? On what grounds would Her Majesty's Government consider the Ceylon Government had occasion for taxing a supplement to a pension paid overseas in respect of United Kingdom funds?

LORD BESWICK

My Lords, I should prefer to get the full facts about this before making any comment. At the moment, we have only one side of the case and are making other inquiries. I would say to the noble Lord, however, as a matter of principle, that if it were found that a payment made by the United Kingdom Government to a United Kingdom citizen domiciled in the United Kingdom had been subject to tax by another Government, that position would be quite intolerable.