Oral Answers to Questions — Income Tax.

– in the House of Commons at on 23 November 1920.

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Photo of Dr Bouverie McDonald Dr Bouverie McDonald , Wallasey

56.

asked the Chancellor of the Exchequer if he will issue instructions to the collectors of Income Tax to the effect that they must render a complete statement of all amounts due by Income Tax payers at one time, and not, as is the present custom, extending the notices over a period of weeks?

Photo of Mr Stanley Baldwin Mr Stanley Baldwin , Bewdley

I assume that the case which my hon. Friend has in mind is the case in which a taxpayer has several sources of income—possibly in different parts of the country—and therefore receives a number of demands for the payment of Income Tax. The issue of more than one demand in such circumstances is a necessary corollary to the system of taxation at the source which, as my hon. Friend is doubtless aware, is the vital factor in maintaining the yield of the Income Tax.

Photo of Dr Bouverie McDonald Dr Bouverie McDonald , Wallasey

Is the right hon. Gentleman aware that, while in many cases, one envelope with two enclosures would be quite sufficient, on the other hand, no fewer than three envelopes and six enclosures have been sent to different individuals? If that were avoided, there would be a great saving to the country?

Photo of Mr Stanley Baldwin Mr Stanley Baldwin , Bewdley

I will note what my hon. Friend proposes.

Mr. T. WILSON:

57.

asked the Chancellor of the Exchequer whether, in view of the increased amount of income that is exempt from Income Tax, employers in industries in which the standard rate of wage is below the amount exempted from tax are still called upon to make quarterly returns of the amount earned by each employé?

Photo of Mr Stanley Baldwin Mr Stanley Baldwin , Bewdley

I would refer the hon. Member to the Third Schedule to the Finance Act, 1920, from which he will see that, following upon the new Income Tax graduation, Section 105 (1) (b) of the Income Tax, 1918, has been amended, £150 being substituted for the previous figure of £130. The employers' ordinary returns of their employés' earnings are now not required to include cases in which the remuneration does not exceed £150 for the year or, in the case of the quarterly returns of weekly wage earners is less than £37 10s. for the quarter.

Mr. WILSON:

Could not the right hon. Gentleman go a little further and make it quite clear that a married man is entitled to certain abatements?

Photo of Mr Stanley Baldwin Mr Stanley Baldwin , Bewdley

I think that that is generally known.

Mr. WILSON:

Could there not be stated on the return the amounts that married men are entitled to?

Photo of Mr Stanley Baldwin Mr Stanley Baldwin , Bewdley

I think that that would throw a great burden of work on the employer I will consider it.