§ Sir S. ROBERTSasked the Financial Secretary to the Treasury (1) whether an Income Tax payer can be compelled to accept an earned income allowance; and, if so, under what authority;
(2)under what authority the Inland Revenue authorities require the consent of a company to the apportionment of earned income allowances on its directors' fees;
(3)whether he is aware that a tax payer whose earned income consists of directors' fees on which the companies pay the tax, and who also makes farming losses, is personally worse off than if there were no earned income allowance at all; and, if so, can he remedy this?
Mr. SAMUELI will answer these three questions together. If earned income relief has been claimed in such a case, and the company pay tax on the salary after deduction of the relief, repayment must clearly follow on the same lines. But if the director gave notice 1283W that he did not claim earned income relief, and the company were willing to fall into line and to subsidise his farming losses by paying tax on the full salary without earned income relief, repayment would be made on that basis.