HC Deb 23 June 1904 vol 136 c978

To ask Mr. Chancellor of the Exchequer whether a firm carrying on business in one or more places in South Africa which arranges for an agency in London to facilitate business, and to expedite the sending of machinery and goods to South Africa, thus becomes liable to pay income-tax on all or any part of its profits.

(Answered by Mr. Austen Chamberlain.)It would depend entirely upon the character of the business entrusted to the agency. If the agency merely supervised the execution of orders issued by the firm in South Africa, it is probable that no liability would be incurred. But if it acted on its own responsibility, and entered into contracts on behalf of the firm, then liability would be incurred in respect of the profits arising on such contracts.