asked the Chancellor of the Exchequer whether he is aware of the great inconvenience and trouble to both individuals and companies caused by double taxation now in operation between the Irish Free State and Great Britain; and whether, in conjunction with the Irish Free State, he will appoint a Committee to consider and recommend an Amendment to Section 27 of the Finance Act, 1920, by which the system of double taxation will be simplified?

Mr. GRAHAM:

The existence of double taxation is an inevitable result of the establishment of the Irish Free State as a separate Dominion, The system of relief in force is based on recommendations of the Royal Commission on the Income Tax made for the Empire as a whole after an exhaustive examination of the problem. The practical difficulties of the system, which I know to be considerable, are at the moment much magnified by the temporary inexperience of taxpayers as to its working, and the difficulties will certainly decrease. The development of the matter is being carefully watched, but I think it would be premature to adopt the hon. Member's suggestion.

Will the hon. Gentleman put himself into communication with the Income Taxpayers' Society, when he will find that a large number of complaints have been made of the terrible delays which occur to people in getting back the over Income Tax which they have already paid?

Mr. GRAHAM:

Representations have been made on this point, but I am afraid it is a little difficult at the moment to modify the Section embodied after great deliberation in the Act of 1920.

Will the hon. Gentleman consider the advisability, instead of the individual having to apply to both Governments for repayment, of an arrangement between the two Treasuries leaving only the extra 6d., or whatever is the amount of the difference between the two, to be demanded from the individual instead of having to pay Income Tax twice?

Mr. GRAHAM:

These matters are under consideration, and I will certainly look into that suggestion.

Does not the hon. Gentleman think it a pity that the Government should lose this opportunity of setting up another Committee?