§ Major Lyonsasked the Chancellor of the Exchequer what decision has been reached on the computation or exclusion for Income Tax liability of moneys to be expended in War Savings Certificates by employers as Christmas gifts to their employees?
§ Sir J. AndersonI am advised that the value of Savings Certificates given to an employee at Christmas by way of bonus or supplementary remuneration is to be regarded as the employee's income for Income Tax purposes. Where, however, it has been customary for an employer to make Christmas presents in goods to subordinate employees and because of war conditions he decides to make presents of War 'Savings Certificates of equivalent value to the customary gifts of goods, the value of such Certificates is not treated for Income Tax purposes as income of the recipient. In either case, the expenditure on the Savings Certificates is a deduction for Income Tax purposes in computing the employer's profits for assessment under Schedule D.