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Shopkeepers And Income-Tax

Volume 180: debated on Wednesday 14 August 1907

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To ask Mr. Chancellor of the Exchequer whether, in the assessment of income-tax under Schedule D upon shopkeepers, the house in which they carry on their business, as regards rent and valuation, is taken into account in such assessment; whether it is usual when the assessment is made by the surveyor of taxes, and when such assessment is paid in due course by the shopkeeper, for such surveyor to make a fresh application months afterwards for tax under Schedule A upon the same premises and for the same year; whether he is a ware that the surveyor of taxes at Cookstown has directed one of his collectors to call upon certain shopkeepers who had paid income-tax under Schedule D, as aforesaid, and, without previous notification, demand payment peremptorily of income-tax upon the difference between the rent and valuation; and whether he proposes to take any action in the matter. (Answered by Mr. Asquith.) Income-tax under Schedule A is payable in respect of premises used for business purposes as of other premises; but, in estimating the profits of a business for assessment under Schedule D, a deduction is allowed for the amount of the net Schedule A assessment. The tax under Schedules A and D is, as far as possible, collected concurrently. A long interval could only occur under exceptional circnmstances. The surveyor is not aware of any case in which a peremptory demand has been made which has not been preceded by the ordinary demand note for payment.