R.a.F. Personnel, Canada (Income Tax).

Oral Answers to Questions — National Finance. – in the House of Commons on 17th March 1942.

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Photo of Mr William Leach Mr William Leach , Bradford Central

asked the Chancellor of the Exchequer at what rate Income Tax is levied on British airmen in Canada with pay at 1.75 dollars per day; what is the valuation of their emoluments; how arrears of payment come about when the tax is collected fortnightly; and why many of the men are not given details of the amounts levied?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

As the answer is of considerable length, I will, with my hon. Friend's permission, circulate it in the OFFICIAL REPORT.

Following is the answer:

The amount of Income Tax, if any, payable by British airmen in question who are serving in Canada and paid from R.A.F. funds would depend on the Income Tax allowances to which the airmen were entitled and might be affected by the amount of their other income. I am not sure that I understand my hon. Friend's reference to valuation of emoluments, but the rate of exchange at present adopted in these cases for the purpose of fixing the Income Tax assessment is 4.5 Canadian dollars to the £. With regard to the last two points in the Question, Income Tax on official pay is required to be deducted out of the pay as and when it is paid. The deductions made in the early part of an Income Tax year beginning on the 6th April are estimated on a provisional basis by reference to the available information regarding the airman's title to Income Tax allowances. Any necessary adjustments in the provisional deductions are made when the airman's liability can be finally computed.

After the final computation of liability has been made details of the assessment are furnished, but unavoidable delays may arise, for example, through the late rendering of returns, through the movements of the individual, or through communication difficulties. It is, of course, open to any airman to consult his paying officer as to the basis on which tax deductions are being made from his pay; or to write either to the Air Ministry, Income Duty Section, Stroud, or the Chief Inspector of Taxes, Departmental Claims Branch, Llandudno, with regard to his liability. If my hon. Friend has any particular cases in mind, I will cause inquiries to be made if he will send me full details.