§ Mr. Lubbock
asked the Chancellor of the Exchequer why tax is deducted at source from small maintenance payments made under voluntary agreements, whereas payments made under a court order are gross.
§ Mr. Barber
In general under the Income Tax Acts Income Tax is deductible at the source from annual payments, including maintenance payments made by a husband to his divorced or separated wife under deed or agreement. This rule has been relaxed by Statute in the case of small maintenance payments made weekly under court order; the main purpose of the relaxation was to avoid administrative difficulties which had arisen in enforcement proceedings when payment had fallen into arrear. This consideration does not apply to small maintenance payments made under private agreements.