§ Sir L. Lyleasked the Secretary of State for the Colonies whether a decision has yet been reached concerning payment of interest on holdings of Singapore municipal loans to people resident in this country and dependent on such interest for their living; and whether such payments when made will be taxed at source?
§ Colonel StanleyAs the former Under-Secretary of State for the Colonies stated on 5th August, interest on Malayan municipal dollar loans will be paid subject to certain reservations. My hon. Friend will appreciate that, in the very special circumstances, the examination of the large number of applications for the payment of such interest has involved a great deal of careful work. The greater part of this work has now been completed and payments in respect of interest on the loans will be made very shortly. The question of deduction of Income Tax is one for the Chancellor of the Exchequer, but I am advised that tax will be deducted from payments representing interest made in this country to stockholders resident here, but not from ex gratia payments made to the dependants in this country of stockholders resident abroad. Where there is a title to repayment of Income Tax a claim should be made to the Inland Revenue authorities who are arranging to deal specially with such claims.