§ Mr. Rhys Daviesasked the Chancellor of the Exchequer whether, in view of the recent decision in the case of Forsyth versus The Crown that sickness or disablement benefit paid by a friendly society to a member is liable to Income Tax, any action is proposed to secure the exemption of all such benefits from liability to Income Tax?
§ Sir K. WoodThe decision in the case referred to was that continuing benefits received over a period of years under contracts with an assurance company and a friendly society constituted annual payments for Income Tax purposes, and I see no prima facie reason why such receipts, when forming part of a total income that is above the exemption limit, should be exempted from Income Tax. I am, however, having the judgment of the learned judge carefully considered.