Income Tax (Non-Resident Foreigners).

Part of Oral Answers to Questions — National Finance. – in the House of Commons on 4th August 1942.

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Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Yes, Sir, but I am quite unable to accept the implications contained in my hon. Friend's Question. The effect of the Defence (Finance) Regulations is that any debt due in the sterling area by a person resident elsewhere can only be paid by the remittance of foreign exchange or by the use of sterling funds properly due and transferable to a resident outside the sterling area. It is therefore not permissible for residents in the sterling area to pay debts on behalf of non-residents except with such funds. I am satisfied that this provision is necessary in order to protect the country's foreign exchange position. Under these circumstances I think that my hon. Friend will agree that the inquiries in this case were properly and reasonably made in order to secure satisfactory evidence to show that the funds in question were properly due and transferable to nonresidents and could therefore be used to discharge their obligations.