§ MR. FELL (Great Yarmouth)To ask Mr. Chancellor of the Exchequer if he has taken into consideration the way in which income-tax is levied on the profits of companies and corporations without allowing for necessary writing off of capital and provision of reserve fund; and whether he proposes to amend the law to carry into effect such a change.
(Answered by Mr. Lloyd-George.) The proposed change could not be made without infringing the essential principle of the income-tax, viz., that the tax should be levied on the full profits of a business, without reference to the purposes to which such profits are applied.