§ Commander Sir EDWARD NICHOLLasked the Chancellor of the Exchequer if he will consider the injustice of the present levy of 6s. in the £ Income Tax on all dividends deducted at the source; and whether, in view of the income from interest on these amounts received by the State, some consideration will be given by allowing interest on sums recoverable, which usually take twelve months to recover?
Mr. CHAMBERLAINI cannot admit that the position is as my hon. and gallant Friend suggests. Relief in respect of Income Tax deducted from dividends is, where possible, granted by set-off against direct assessments on the taxpayer, and, where circumstances do not admit of this, interim claims are allowed when half the income of the year has been received. Moreover, I would remind my hon. and gallant Friend that interest is not charged on arrears of Income Tax due from the taxpayer to the State. In general, the machinery of collection and repayment is a subject into which the Royal Commission on the Income Tax will inquire.