§ Lieut.-Colonel CAMPIONasked the Chancellor of the Exchequer whether his attention has been called to the number of errors that are being made by the In- 306W land Revenue officers in regard to demands for payment of Income Tax; whether he is aware that these errors are generally in favour of the Government and not of the taxpayer; and whether he proposes to take any action in the matter?
Mr. CHAMBERLAINMy attention has been called to the matter referred to in this question. As my hon. and gallant Friend knows, an entirely new system of Income Tax graduation and allowances was brought into being by the Finance Act of last year, and although the widest publicity was given to that scheme, it is not surprising that a number of taxpayers failed to take the necessary steps to obtain the allowances to which they became entitled for the first time. It has resulted, therefore, that there have been cases in which tax has been assessed in excess of actual liability, but the number of such cases in relation to the total number of taxpayers has been grossly exaggerated in reports that have appeared on the subject. Steps have been taken to carry out the adjustment of liability in these cases with the least possible delay.
§ Lieut.-Colonel CAMPIONasked the Chancellor of the Exchequer whether the clerks of the Inland Revenue Department receive any remuneration, reward, or promotion in proportion to the amount of taxes they collect?
§ Mr. MILLSasked the Chancellor of the Exchequer if he will inquire into the hard case of thousands of school teachers in the British Isles who are being asked to pay taxes for the year 1919–20 in spite of 307W the fact that these men went straight from college, university, or technical school into the Army or other services and did not begin to earn any salary until being demobilised, therefore being entitled to assessment on a three years' basis?
Mr. CHAMBERLAINI presume that the hon. Member has in mind the case of school teachers in the service of the various local education authorities. These persons are properly chargeable to Income Tax under Schedule E on the actual amount of their emoluments for the year of assessment. The basis on which their present liability to tax is being computed has, therefore, not been affected in any way by their absence on war service.
§ Mr. A. HERBERTasked the Chancellor of the Exchequer whether he is aware of the hardship to district nursing associations of having to pay income tax on the cottages and homes in which their nurses live; and whether he will take steps to extend the exemption, already granted to hospitals, to district nursing associations?
Mr. CHAMBERLAINMy hon. Friend's suggestion that exemption from Income Tax under Schedule A should be granted in respect of premises owned by district nursing associations and used for the accommodation of their nurses is part of the general question of the Income Tax exemptions that are granted to charities —a difficult matter, which was under consideration by the Royal Commission on the Income Tax. That Commission made several recommendations on the subject (see Section XIV of Part III of their Report), including a recommendation which touches upon the proposal now made by my hon. Friend. Due consideration will be given to that recommendation when it proves possible to consider as a whole the views expressed by the Royal Commission on the main question of the exemptions from Income Tax accorded to charities.