HC Deb 19 December 1912 vol 45 cc1702-3W
Major GASTRELL

asked the Chancellor of the Exchequer if he can state how many persons have been overcharged Income Tax, during the year 1911–12, in respect of earned income in consequence of their failing to make the claim for relief before the 30th September of the year in which the tax accrues; and will he direct such a modification of the Income Tax forms as shall make the taxpayer completely aware of all his rights 1o exemption or abatement, and of the precise method of enforcing them?

Mr. LLOYD GEORGE

The number of persons charged at the ordinary rate of Income Tax for the year 1911–12 in consequence of their failure to claim the earned income rate before the 30th September, 1911, would be comparatively small, but I have no information as to the exact number. The conditions under which exemption, abatement, or earned income relief may be obtained are already prominently indicated on the form of Return. For the further assistance of the taxpayers a special notice as to the time limit for claims for the earned income relief will appear at the top of the first page of the forms for the year 1913–14.

Major GASTRELL

asked the Chancellor of the Exchequer whether he is aware that there have been several cases this year in which the claimant, in the month of August, 1911, filled up page 1 of Income Tax Form No. 38 or 38A, while inadvertently omitting to fill up page 3 thereof, claiming relief in respect of earned income, only received the form back from the assessor of Income Tax with the mistake pointed out, in the month of December, and was consequently driven by the assessor's delay to a later day than the 30th September for making his claim for relief, and was consequently charged at the rate of 1s. 2d. instead of at the rate of 9d. in the £ in respect of earned income; whether he is further aware that the Secretary of the Treasury has in such instances refused any reconsideration of the overcharge made; whether he will state why this reconsideration was refused; and whether he will direct the Treasury in future to reconsider all cases where the delay in application for relief has been caused by the delay in ascertaining the error of the Income Tax assessor?

Mr. LLOYD GEORGE

I understand that there have been cases this year in which Income Tax payers have signed the declaration on page 1 of the Form number 38A, to the effect that they did not claim exemption, abatement or relief, and have, on this being pointed out by the assessor, as the result of his examination carried out after 30th September, claimed relief on the ground that the declaration was made inadvertently. In such cases the relief in respect of earned income has been refused, on the ground that a plea of error or oversight in so important a matter on the part of the taxpayer could not be accepted as a justification for setting aside the statutory date limiting the period during which claims for relief must be made. The responsibility for putting forward the claim before that date rests entirely with the taxpayer, and not with the assessor. I do not consider that there is sufficient ground for altering the present practice with regard to such cases.