§ MR. JOHN REDMOND (Waterford)
On behalf of the hon. Member for Dublin, College Green (Mr. J. L. CAREW), I beg to ask Mr. Chancellor of the Exchequer upon what ground a discrimination is made against American life assurance companies of high standing in respect of remission of Income Tax on income applied in support of life policies; and, whether he will provide for the remission of Income Tax on all life premiums paid to any companies doing business in Great Britain and Ireland in accordance with the regulations of the Board of Trade?
§ *THE CHANCELLOR OF THE EXCHEQUER (Sir MICHAEL HICKS BEACH,) Bristol, W.
The discrimination is based on the provisions of the Act 16 and 17 Viet., cap. 91, as interpreted by the Court of Appeal in the case of "Colquhoun v. Heddon" (Law Reports, 25 Q.B.D., 129), and I am not at present disposed to propose an alteration in the law. The difference of treatment does not rest on merely technical grounds. Persons who insure in British companies are advantaged by rebate of Income Tax on their premiums, but the companies themselves pay Income Tax on their investments. Foreign companies who hold investments abroad are advantaged by having no Income Tax to pay on their investments, and there is, therefore, no claim for remission of the tax on the premiums paid.