§ Mr. G. BARKERasked the Chancellor of the Exchequer how many persons have been fined or imprisoned for not paying Income Tax during the year 1920?
Mr. CHAMBERLAINA person who neglects or refuses to pay tax charged upon him by virtue of the Income Tax Acts is, when summary proceedings are taken against him for recovery of the tax as a civil debt, liable, like the ratepayer, to be committed to prison, on proof of means and in default of payment, by the local justices. I cannot state the number of taxpayers thus committed to prison by orders of the various bodies of justices throughout the country, but it is relatively very small. There are no fines for non-payment of tax assessed in these cases.
§ Sir S. JOHNSONasked the Chancellor of the Exchequer whether, in relation to proposed changes of the law as to Income Tax, he will consider sympathetically the suggestion that pensions awarded to soldiers' widows should neither be assessable nor taxable when below £200 per annum?
Mr. CHAMBERLAINThe pensions in question are by law chargeable to Income Tax, but are subject to the allowance in respect of earned income under Section 16 of the Finance Act, 1920, and, of course, equally with other assessable income, to the personal allowance and other Income Tax reliefs. As at present advised, I do not see my way to adopt the suggestion contained in the question.