MINUTE
66
Mr Stubbs
In deducting Income Tax from salaries of officers on leave of absence we act in our capacity of Commissioners of Income Tax and under the provisions of the Income Tax Acts and the regulations of the Inland Revenue Board. I would therefore suggest that as it is not possible for the Secretary of State to give a decision on the matter which would be binding on the Inland Revenue you should inform Mr Chatham that his application should be addressed to the Secretary of the Inland Revenue at Somerset House as the matter concerns the Inland Revenue and is not one in which the Secretary of State can interfere.
2. The practice which we have adopted on charging Income Tax on all the salary paid by us and not upon salary received since the date of arrival in this country, appears to us to be the only possible way of following the Income Tax Acts schedule D. 4. There is nothing in the Income Tax Acts to suggest that in calculating Income Tax any notice is to be taken of the fact that the period for which the sum paid accrued was spent out of England. Of course if the officer does not reside altogether 6 months in the financial year he is not liable to pay Income Tax but that question is not here raised. I may add that the Hon'ble. O. Howard raised precisely the same question when we charged him Income Tax on payments which were made in respect of periods during which he was in Northern Nigeria and that the Inland Revenue referred the matter to us for our observations.