§ Mr. REESasked whether, under the Finance Bill, in assessing to Income Tax, deductions will be allowed on account of interest on money borrowed in India, British Colonies, or foreign countries, from banks or institutions not having their head offices in this country, in order to finance business carried on in the United Kingdom?
§ Mr. HOBHOUSEThe Income Tax Acts expressly prohibit any deduction of annual interest in estimating the profits and gains of an adventure or concern in the nature of trade assessable under the first case of Schedule D. But, if my hon. Friend has in mind the liability of an individual to Super-tax, the answer is that yearly interest, annuities, or other annual payments made out of the profits of such individual, would be deducted in estimating his income for Super-tax purposes.
§ Mr. REESasked whether, under the Finance Bill, shareholders, other than servants of the Crown, resident in India, in a limited liability company registered under the Companies Acts, 1862 to 1900, trading in India, will be entitled as heretofore to recover English Income Tax by way of exemption or abatement subject to their income from all sources within the United Kingdom not exceeding the prescribed amount?
§ Mr. HOBHOUSEIf the companies referred to are such as fall within the decision of the House of Lords in the case of San Paulo (Brazilian Railway Company, Limited) v. Carter, the answer is in the negative.