702.0641/61
The Ambassador in Great Britain (Dawes) to the Secretary of State
[Received February 7.]
Sir: I have the honor to state that on July 6, 1929, Consul General Halstead informed the Embassy that His Majesty’s Inspector of Inland Revenue had requested the American Consul at Bristol to complete and return an income tax form, giving the details of all income received other than official emoluments. Consul Willson pointed out to Consul General Halstead that this was the first time such a request had been made of his office, and asked for instructions in the matter.
A member of the Embassy brought up the case in conversation at the Foreign Office, and on August 21st an informal note was received by the Embassy, which I quote below:
“We have referred the matter to the Inland Revenue Department who have ascertained that the request for a return was made by His Majesty’s Inspector of Taxes for Bristol D. 1 District, in accordance with the practice approved by the department and that as foreign consuls are not expected to furnish any return in respect of their official fees and emoluments, the application to Mr. Willson was properly limited to a request for details of all income received by him other than his official emoluments.
“I ought perhaps to add that while foreign consuls in this country are by concession allowed relief from income tax in respect of their official fees and emoluments, they enjoy no special relief in respect of income from any other source, in regard to which they are treated like ordinary private individuals.”
It was subsequently stated by the Foreign Office, in conversation, that the Inland Revenue people felt they could not make an exception since the law gave them no discretion in the matter with respect to consular officers’ income from sources other than official.…
The Embassy has been informed by Consul General Davis, under date of January 27, 1930, that the Inspector of Taxes has again requested the American Consul at Bristol to complete an income tax [Page 142] return or give an explanation as to why the return has not been submitted. I am given to understand that Consul Willson has a private income apart from his official salary, and that to pay income tax on this would embarrass him, especially in view of the high income tax in this country.
In view of the conversations with the Foreign Office, I have the honor to request the Department’s cable instructions as to whether the American Consul at Bristol should be advised to complete his income tax return, according to the request of the local authorities at Bristol.
I have [etc.]
Counselor of Embassy