§ Brigadier-General CROFTasked the Secretary of State for War whether the bonus paid to those forming the Armies of Occupation in lieu of increased pay is exempt from Income Tax; and, if not, whether he is aware that such taxation will result in certain officers and men who have been previously exempt having to pay Income Tax on their pay, and others will have to pay increased rate, which will result in their being worse off than before on account of the bonus?
§ Mr. BALDWINThe "extra remuneration for those retained on military service" is not exempt from Income Tax. Any person, in whatever employment, who receives extra remuneration, and whose income is thereby brought beyond the exemption limit, is necessarily subject to the operation of the Income Tax law by reference to the amount of his real income; that is, the income as so increased, but the hon. and gallant Member is under a complete misapprehension in supposing that the effect of the Income Tax charge can possibly be to make any such person actually worse off by reason of his additional remuneration.