§ 2.56 p.m.
§ Lord Boyd-Carpenter asked Her Majesty's Government:
§ Whether income tax is collected in respect of strike pay paid by a trade union to members who are on strike.
§ Lord Boyd-CarpenterMy Lords, does that Answer mean that a man who is doing his job suffers deduction of tax from his pay but that if he goes on strike he obtains tax-free emoluments? How long can he go on doing so?
The Earl of CaithnessMy Lords, the position is that strike pay is not taxable because it is not income for any tax purpose since it is classified as effectively return of trade union subscriptions, which are generally paid out of taxed income.
§ Lord MolloyMy Lords, in instances where Ministers of the Crown, in particular in another place, are unable to continue with their financial transactions and independent agencies do so on their behalf, are those transactions also subject to income tax from each and every Minister?
The Earl of CaithnessMy Lords, the noble Lord veers quite a long way from the Question on the Order Paper.
Lord Bruce of DoningtonMy Lords, if the noble Earl believes that the tax reforming zeal of his noble friend Lord Boyd-Carpenter needs encouragement, will he consider asking his right honourable friend the Chancellor of the Exchequer to amend the existing tax law? Under the current arrangements executives earning £1 million a year are enabled so to arrange their affairs that they pay no tax.