HC Deb 21 February 1924 vol 169 cc2039-40W
Mr. TOOLE

asked the Chancellor of the Exchequer whether the fact that an assessment to Income Tax becomes binding on the subject if not appealed against within 21 days, while it may be opened by the Revenue Department at any time within six years, has been considered by him; and, if so, whether any steps will be taken to give relief to the taxpayer in this respect?

Mr. SNOWDEN

I would remind my hon. Friend that this matter was discussed and dealt with in the course of last year's Finance Bill. He will find, for example, that Section 24 of the Finance Act, 1923, provides for relief, subject to the rules and conditions prescribed, in certain cases of error or mistake, and that a period of three years is allowed for claiming the relief. Further, the difficulties as regards appeals, which arose out of the new Property Tax (Schedule A) and Inhabited House Duty assessments for 1923–24 were met by special provisions embodied in Section 27 of that Act.

In addition, I would refer my hon. Friend to Sub-section 3 of Section 136 of the Income Tax Act, 1918, which provides generally as follows: If it be shown to the satisfaction of the general commissioners that owing to absence, sickness or other reasonable cause, any person has been prevented from appealing in due time, or from attending at the hearing of an appeal on the day fixed for that purpose, they may postpone the hearing of his appeal for such reasonable time as they think necessary, or may admit the appeal to be made by any agent, clerk or servant on his behalf. If my hon. Friend has in mind any particular case of hardship, which is not met under the existing law, I shall be pleased to look into it if he will let me have the necessary particulars.

Mr. TOOLE

asked the Chancellor of the Exchequer if he is aware that the Commissioners of Inland Revenue, in cases where the Courts have decided that they have proceeded on a wrong basis in making their assessments in the past, are claiming their right, under the existing state of the law, to make future assessments on the correct basis, with out taking into consideration or reopening the past erroneous assessments, notwithstanding that by so doing the subject is admittedly taxed on a greater amount than he would have been had the correct method of assessment been in operation from the commencement; and whether any steps will be taken to alter such practice?

Mr. SNOWDEN

I am not quite clear as to the type of case to which my hon. Friend refers but if he will furnish me with a concrete instance of what he has in mind I will have the matter looked into and communicate with him.

Sir H. BUCKINGHAM

asked the Chancellor of the Exchequer if he will take steps to provide that in all cases the basis of assessment of Income Tax shall be the income of the preceding year, seeing that the adoption of such a method would lead to economy in administration and is demanded by a large number of taxpayers?

Mr. SNOWDEN

I presume that the hon. Member's suggestion is primarily concerned with profits from trade, etc., assessed to Income Tax under Schedule D. The proposal which he is now reviving will receive my consideration, but he will not expect me in a matter of this kind to anticipate my Budget statement.