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Report of Proceedings of Tynwald Court REPORT OF PROCEEDINGS OF TYNWALD COURT Douglas, Wednesday, June 22, 1960 Present: The Governor (Sir Ronald Resolved.—that for the year commencing the 6th day of April, 1960, and .ending the Garvey, K.C.M.G., K.C.V.O., M.B.E.). 5th day of April. 1961. the standard rate of In the Council: The Lord Bishop (Rt. income tax shall be the rate of 4s 6d in the £. Rev. Benjamin Pollard, T.D., D.D., Hon. members will know that the M.Sc.), Deemster B. W. Macpherson, the Income Tax Act, 1954, provides that the Attorney-General (Mr G. E. Moore), standard rate of income tax should be Sir Ralph Stevenson, G.C.M.G., Messrs determined by resolution of Tynwald, G. H. Moore, Alfred J. Teare, M.B.E., and the resolution before the Court is J. H. Nicholls and E. B. C. Farrant, that the standard rate of income tax M.B.E., with Mr E. R. St. A. Davies, should be 4s 6d in the £ for the present M.B.E., Government Secretary and financial year. Clerk to the Council. In the Keys: Mr Moore: I beg to second and The Speaker (Mr H. K. Corlett, 0.B.E.), reserve my remarks. Messrs T. F. Corkhill, T. H. Colebourn, E. N. Crowe, J. L. CaUlster, H. H. Mr Colebourn: I didn't speak on the Radcliffe, H. C. Kerruish, Lt.-Cdr. J. L. surtax motion yesterday, Your Excel- Quine, Messrs J. C. Nivison, W. E. lency-- Quayle, H. S. Cain, A. H. Simcocks, Mr Corkhill: For good reasons? C. C. McFee, T. A. Coole, G. C. Gale, A. S. Kelly, A. Cecil Teare, J. Edward Mr Colebourn: For obvious reasons, but I was amazed to hear the figure of Callister, T. A. Corkish, R. C. Stephen, £77,000 quoted as being arrears of J. M. Cain, 0.B.E., W. B. Kaneen, E. C. surtax. I think that is a rather Irving and J. B. Bolton, with Mr F. B. amazing sum when one considers the Johnson, M.A., Secretary to the House smallness of the amount of money that of Keys and Clerk to Tynwald. does come in by surtax. The Governor: I am sorry to interrupt the hon. member, but we shall be INCOME TAX—RATE (UNCHANGED) coming to the question of surtax. This LEVIED only relates to income tax and perhaps the hon. member will confine his The Governor: Hon. members of the remarks to income tax. Court we will procede with the No. 1 agenda, item No. 4, Income Tax for Mr Colebourn: I am coming to income Manx Residents. I call on the learned tax. Your Excellency. Attorney-General. The Governor: Good. The Attorney-General: Your Excel- Mr Colebourn: I wonder whether we lency, I beg to move' the resolution could have the figure for the amount standing in my name:— outstanding for assessments of income Whereas by section 1 of the Income Tax tax? (No. 1) Act, 1954, it is enacted that the stan- dard rate of income tax to be levied shall be The Governor: Does no other hon. determined by resolution of Tynwald. member wish to speak? Income Tax—Rate (Unchanged) Levied, TYNWALD COURT, JUNE 22, 1960 1307 The Attorney-General: Your Excel- where the Manx income tax assessment lency, it is inevitable that where a staff has to be taken into account by the Eng- of an income tax office is small for the lish companies for the whole of their amount of work they have to do, that organisation. That again, inevitably, there should be a certain amount of takes a certain amount of time. With backlash in the issuing of assessments. regard to surtax, the amount collected Equally, where a person sends in his for the year ended 5th April, 1960, was accounts and the Assessor raises any only £14,764, yet the arrears of surtax question on them, there is an inevitable collected during the same year in res- pect of previous years amounted to no delay while the Assessor's queries on less than £71,782. It is just one of the 'accounts are investigated and those things that it is inevitable there answered and the result is that it is should be a certain amount of delay and quite impossible and always has been yet I agree that the arrears figure is impossible for all assessments either of very large. I can say from my personal income tax or surtax to be made during knowledge that the Assessor and his the year for which the assessment staff have made a determined effort and applies. If the hon. member for Castle- are continuing to make a determined town will see in the Government effort to reduce the arrears so that in a Treasurer's observations at page 3 the few years' time the positions will be total collected during the last financial nearer but never actually the amount year ended 5th April, 1960, was to be collected during the year. It can approximately £271,000—that was out- never come completely to the amount standing and collected, and £326,000 to be collected in the year, but the odd of the previous year's was also out- Assessor is making a determined effort standing and collected. There is, of to do so. Without being critical of the course, a further minor point which procedure I think I should mention a arises. When assessments are made,. it small point on this matter of staff. does not necessarily say that the tax Within the last few months two mem- will be paid immediately, and the proce- bers of the Assessor's staff who are well dure is, I think, well known to lots of qualified in their jobs have applied for people. Assessments are made, and consideration for promotion to positions after due course of time if the assess- of better classification in other Govern- ment is not paid, a further form is sent ment departments and they have been out, and then comes the red form, in- successful. Now everyone wishes to forming persons concerned that they give to every civil servant an oppor- might be placed in other hands, and tunity to improve their position but then comes the stage at which out- from the Assessor's point of view two standing assessments are placed in the of his skilled men have gone to other Attorney-General's hands for collection departments. It would be wrong to and the Attorney-General has to endea- resist that but it increases the Asses- vour to collect it. There is an inevit- sor's difficulties for the persons he will able delay before the sums which have have in replacement have not had time been outstanding do, in fact, reach the to get the skill in their jobs essential to hands of the Government Treasurer. carry out the work at the speed the The figure I gave was only in respect of others did. resident income tax. There is also some Mr Corkhill: That could apply to £70,000 outstanding and collected from industry as well. non-residents in respect of the year ended 5th April, 1960, and nearly The Attorney-General: It could, I £29,000 collected for previous years. agree; it is one of those things, but it is There again the same issue arises, parti- worse when the Assessor's staff is small cularly in respect of companies which to lose two men at the same time and are branches of English companies it does create difficulty. Income Tax—Rate (Unchanged) Levied, 1308 TYNWALD COURT, JUNE 22, 1960 Mr Colebourn: Thank you, sir. hon. member for Castletown has said Mr Kaneen: Is not the Assessor's that interest should be charged on difficulty that on the establishment his arrears of tax but I think the difficulty staff is too small. is the assessment is not made in some cases because the office had not been The Attorney-General: In reply to the able to deal with it. hon. member for East Douglas, Mr Kaneen, the Assessor takes the view Mr Bolton: I would like to refer to the that his staff is not as large as it should question of the double taxation agree- be and I take the same view. My own ment. I do not think it is realised by opinion is that if the staff of the the members of this Court or the Assessor's office was increased the cost public generally that that arrangement of the extra staff would be far less than has placed an enormous strain on the the amount recovered in the staff Assessor's Office and members of the getting out assessments quickly. Income Tax Commission have been asked by His Excellency to consider the Mr Colebourn: Is it not a fact then effect of the double taxation arrange- that credit costs money. ment and I think I can say that mem- The Attorney-General: It does. bers of the Commission have been sur- prised by the enormous amount of work Mr Colebourn: That is why I felt involved in getting out assessments. We when I heard the figure that if I had are investigating the whole matter with left my tax over for a year or two, and a view to arriving at some arrange- surtax. I would have made a lot of ment which can be more easily operated money if I had invested it in my own and I hope we may be able in the future business and I think there is a case for to put forward some proposals.
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