PZ 6064/32 'Mr C C Garbett: liability to British Income Tax during period of employment under Iraq administration' [‎88r] (69/88)

Ve n
tX* ^
Mr. C.C. GarbetVs income-tax.
ttm*
r^Oecretory of State,
I have asked Mr. Pedlar of the Colonial Office, who
is at present dealing with the case, to let us have a
X . L r, U>JJL
copy of the Colonial Office letter of 30th May to which Mr.
GarbetVs letter is a reply. I understand, however, that it
is merely a reaffirmation of the Treasury decision of 1929,
to the effect that the assessment to income-tax on Mr.
Garbett in respect of the year 1921-22 must stand. The case
is dealt with in papers P. 2191/20 in the file below, but the
facts may be briefly recapitulated as follows. Mr. Garbett
was sent to Iraq on special duty as Civil Commissioner to
- y i )
the High Commissioner at Baghdad in October 1920* on a salary
of Rs.2500 per mensem, to which the Treasury raised no
objection, on the understanding that the expenditure was a
charge on Mesopotamian funds.
From 1st April, 1921, however, half the cost of the
High Commission was borne by British revenues, and the
officers employed appear to lave become assessable to
United Kingdom income-tax in respect of 50% of their
salaries. Mr. Garbett protested against the decision to
charge him to income-tax, which was not communicated to him
until 1923, but after prolonged discussion, in which the
Colonial Office and this Office supported Mr. Garbett’s
claim to be relieved of theliability, the Treasury'
replied that they would not be justified in asking
Parliament to vote the amount of the tax to or on behalf of
the officers concerned, of whom Mr. Garbett was one.
If it is the case that a moiety of Mr. Garbett’s
salary was from 1st April, 1921. actually F id from United
Kingdom revenues, the decision to assess him to income-tax
in/