§ Mr. BRACEasked the Chancellor of the Exchequer whether, in those cases in which membership of a trade union is a necessary and universal condition of em- 565W ployment, the whole amount of the year's contribution to the trade union, and not merely that portion applicable to superannuation or funeral benefit, should be allowed as a deduction from the income assessable to income tax, as being an unavoidable and universally incurred expense without which the income could not be earned; and whether the Commissioners of Inland Revenue will issue general instructions on the point to all the surveyors of taxes?
§ Mr. BALDWINSo far as contributions to trade unions relate to superannuation or death benefits, they are admissible as deductions for Income Tax purposes as being in the nature of life insurance premiums. As regards, the other objects to which the contributions may be applied, the Income Tax Acts, do not permit a deduction for expenditure of such a character incurred by any individual, whether directly or through the medium of a trade union or any other association.
§ Mr. BRACEasked the Chancellor of the Exchequer when it is proposed to start the long-promised exhaustive inquiry into the methods and conditions of the Income Tax; whether this inquiry is to take the form of a Royal Commission, a Departmental Committee, or a Select Committee of the House; and whether care will be taken that both women and labour are adequately represented among the members to be appointed?
§ Mr. BALDWINIt is proposed to set up a Royal Commission of Inquiry into the Income Tax almost immediately. The suggestion made in the last part of the question is not being lost sight of.
§ Mr. RAPERasked the Chancellor of the Exchequer whether, in view of the increase in the cost of maintenance and repair of houses, he will consider the question of increasing the allowance made in the assessment of such property to Income Tax from one-sixth to one-third of the annual value, more especially in regard to houses of the annual rental value of £40 and under?
§ Mr. BALDWINThe point raised in this question is one which will have to be considered by the coming Royal Commission on the Income Tax. In these circumstances it would be premature to make any statement.
§ Sir MAURICE DOCKRELLasked the Chancellor of the Exchequer what 566W augmentation of the Inland Revenue collecting staff has been rendered necessary owing to the Bank of England and Bank of Ireland ceasing to collect Income Tax from the interest paid on Government loans; what is the percentage of cases in which these disbursements of interest are never brought into account for Income Tax, and, assuming that they are all ultimately brought into account, what is the average period during which they have been outstanding, and how many millions of pounds are on the average so outstanding; and will he, whenever it becomes possible, revert to the nation's former practice of deduction of Income Tax at its source?
§ Mr. BALDWINIt is too early as yet for the Board of Inland Revenue to judge what additions to their technical and clerical staff will be required permanently to deal with the work to which my hon. Friend refers, and up to the present they have confined themselves to engaging some 300 temporary clerks. The change in the method of collection involves the postponement of the receipt of the tax by the Exchequer for an average period of rather more than fifteen months. I have no available data as to the percentage of cases which escape assessment or as to the amount of duty outstanding. I have noted the suggestion made by my hon. Friend in the last part of the question.