§ *MR. WATERLOW (Islington, N.)I beg to ask Mr. Chancellor of the Exchequer whether his attention has been called to the evidence given by Mr. Hayward, Comptroller of the London County Council, before the Select Committee of the House of Commons on the London County Council tramways this year, in which on Table 1 it shows, for the year 1905–6, £4,000 as the amount of income-tax on a profit of £80,000; whether there is included in this amount of profit the statutory sinking fund; whether it is customary in all reproductive municipal undertakings to assess the sinking fund as part of the profit of such undertakings; and, if so, whether in all Returns to Parliament on the financial results of such municipal undertakings, the sinking fund will be shown as part of the profits earned.
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. Asquith, Fife, E.)I have not seen the evidence of Mr. Hayward to which my hon. friend refers, but I have no doubt the facts are as represented. As regards the assessment to income-tax I under Schedule D, I have already ex- 1510 plained that I am not at liberty to disclose the details in any particular case. With reference to municipal undertakings of a profit earning character generally, I may say that such undertakings are by law assessable on the whole of their profits, no deduction being made for any portion of such profits which may be carried to a sinking fund. The question as to the form of Parliamentary Returns relating to municipal accounts is one for my right hon. friend the President of the Local Government Board rather than for myself.