INCOME TAX DEFAULTERS (Action)

Mr D. S. Marshall asked the Financial Secretary whether he has taken any action against these defaulters; in how many cases has action been taken; and for what amount.

Mr T. M. Hart: Sir, in every case all possible action is taken to recover the tax due. Efforts are made to establish contact with the taxpayer and to persuade him to pay what is due. Legal action is not practicable as the taxpayer passes out of the jurisdiction of the colony courts as soon as he leaves the colony.

It is regretted that information as to the number of cases in which action has been taken and the amounts recovered is not available and can only be obtained with great difficulty.

Mr Marshall: If it please you, Sir, surely the Financial Secretary is conscious of the fact that there is a reciprocity of judgments agreement between us and the United Kingdom, and most of these defaulters return to the United Kingdom. Why -

Mr Speaker: Order. I take it that the hon. Member is coming to a supplementary question?

Mr Marshall: If it please you, Sir, I would ask whether he would consider taking action in the courts of England against these defaulters.

Mr Hart: I am sure the hon. Member has been aware, Sir, although he has perhaps forgotten, that there is a well established convention of private international law that, as a matter of public policy, the courts of one State will not enforce the judgments of a revenue nature of another State. For that reason, it has not been possible to take legal action in the courts of the United Kingom.

Mr Lim Choon Mong: Mr Speaker, Sir, in other countries a person has to show an income tax clearance before -

Mr Speaker: Order.