§ Mr. KEENSasked the Chancellor of the Exchequer whether, following upon the decision of the House of Lords in the case of McDonald v. Shand, any municipal employés have been allowed, in respect of the cost-of-living bonus, the benefit of assessment to Income Tax for the years 1920–21. and 1921–22, under Rule 4, Schedule E, upon the average of the three preceding years; and, if so, in what respect their claims differ from those of other municipal and civil servants who would be excluded by Section 20 of the 908W Finance Bill from the operation of this rule?
Mr. GRAHAMSo far as my present information goes, there was one early case in which three municipal employés were allowed the three years' average in respect of war bonus for the two years 1920–21 and 1921–22. In the light of subsequent and more detailed consideration of the legal position, the Board of Inland Revenue were advised that the claim to the average in cases of this kind could not be sustained in law. I may add that the basis generally adopted by the various bodies of Income Tax Commissioners throughout the country, in the assessment to Income Tax of municipal employés, has always been the amount of the emoluments (including war bonus) of the year of assessment.