asked the Secretary of State for War whether the pay of officers domiciled in Germany as part of the Army of Occupation is refunded to the Imperial Government by the German Government; whether, although their pay ultimately comes from German and not from Imperial funds, they are charged British Income Tax thereon, whilst officers seconded to the Foreign Office for duty with the various commissions in Germany receive their pay tax-free because it comes from German and not from Imperial funds; and whether it is intended that the amount deducted as Income Tax from the pay of officers of the Army of Occupation in Germany be refunded to them as and when pay is refunded to the Imperial Government by the German Government?

The officers in question draw their Army pay from British funds, and their consequent liability for Income Tax under Schedule E is not affected by any general financial arrangement with the German Government under which the cost of the Army of Occupation is recoverable from the German Government. There is, therefore, no intention of refunding the tax.