Income Tax (Property-Owning Companies).

Oral Answers to Questions — National Finance. – in the House of Commons on 27th January 1942.

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Photo of Mr Reginald Sorensen Mr Reginald Sorensen , Leyton West

asked the Chancellor of the Exchequer whether he is aware that large sums of Schedule A Income Tax, collected by property-owning companies and others from small householders paying an inclusive rent, are sometimes held for several months to the financial advantage of the receivers, and not always available when payment should be made; and whether, in view of the contrast between this and the compulsory deduction of tax from weekly wages, he will take steps to require such Income Tax to be transferred at once to the Exchequer, either by means of weekly or monthly purchase of Tax Reserve Bonds, or otherwise?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I see no reason for altering the existing basis of collection of the Income Tax Schedule A. I must point out that the Income Tax Schedule A on income from property for any year is payable on 1st January of that year, irrespective of whether it is paid by the landlord under direct assessment or by the tenant who deducts tax on payment of rent.

Photo of Mr Reginald Sorensen Mr Reginald Sorensen , Leyton West

Does not that mean as well that a certain advantage accrues to the property-owning company to the disadvantage of the tenant?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Perhaps the hon. Member will send me any case he has in mind.