HC Deb 11 May 1927 vol 206 cc389-90W
Lieut.Colonel JAMES

asked the Financial Secretary to the Treasury (1) at what date the practice was adopted of deducting Income Tax from the awards granted by the Royal Commission on Awards to Inventors before payment to the claimant; what has been the practice in regard to the numerous and substantial awards granted previous to such date; whether in the payment of such taxes the costs were allowed by way of abatement or exemption from tax; and the total amount to date of the awards by the Royal Commission, and the percentage of this sum paid to claimants cum-tax and ex-tax, respectively;

(2) with regard to the Royal Commission on Awards to Inventors, if he will state the number of cases in which Income Tax has been deducted from the award before remitting the amount to the claimant; the number of cases in which the full award was paid to the claimant, leaving him, to deal direct with the Income Tax authorities as to his liability to any taxation; the number of cases in which a refund of the proper costs incurred by the claimant in obtaining the award has been made; and the number of cases it has been complied with, such costs being relieved by taxation?

Mr. McNEILL

From the time when the Royal Commission on Awards to Inventors was set up, Income Tax has in proper cases been deducted from payments made on their recommendation in so far as such payments represent emoluments of offices or sums paid in respect of the user of patents. The tax so deducted has been computed by reference to the full amount of the emoluments or royalties without allowance for any legal costs which may have been incurred in connection with proceedings before the tribunal. The total amount of the awards recommended by the Royal Commission is £1,261,863, but the other information asked for by my hon. And gallant Friend is not available. In no case has a refund of costs incurred by a claimant in obtaining an award been ordered by the Commission.