§ Sir I. Alberyasked the Chancellor of the Exchequer whether he is satisfied that the present method of collecting Income Tax at source from wage-earners is efficient, and that the tax could be collected under the present system if there were, at a later date, a material fall in the earnings of those concerned?
§ Sir K. WoodThe answer to the first part of the Question is in the affirmative. As regards the second part, there must 1957W always be an interval between the receipt of wages and the collection of the tax appropriate to the wages, and I do not consider that the difficulty to which my hon. Friend refers has been materially increased by the introduction of the deduction scheme.
§ Sir I. Alberyasked the Chancellor of the Exchequer, why reclaims of Income Tax made by wage-earners, whose tax has been deducted at source, are only considered every six months; and why repayments do not commence until seven months later?
§ Sir K. WoodClaims for repayment of Income Tax deducted from wages are dealt with as soon as the title to repayment is established which may be before the period of six months is completed. My hon. Friend will appreciate that where the title depends on the total income for the year it may be impossible to make repayment until after the end of the Income Tax year.