43. Mr. F. HALL (Dulwich)
asked the Secretary to the Treasury if his attention has been called to the correspondence which has passed between the Special Commissioners of Income Tax and the Lava Rink, Limited, as to the assessment 694 of the company for Income Tax purposes; if, although the company has in point of fact incurred a trading loss in each of the years 1911, 1912, and 1913, they have been called upon to pay Income Tax on an assessment obtained by taking an average of the results over a period including years in which a profit was earned; if the company has applied for a return of the taxes overpaid; and what action is proposed to be taken in the matter?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Montagu)
Yes, Sir, the company has been assessed on the Statutory basis, and has profited in the past by the average rule, but that rule is now redressing the balance in favour of the Exchequer. For the year 1913–14 it appears to be open to the company to claim some relief under the provisions of Section 23 of the Customs and Inland Revenue Act, 1890, and they have already been informed of the steps they should take if they desire to obtain such relief.
Mr. F. HALL
Is it not a fact that these people have given full information to the Treasury with regard to their position during the last three years, and is the Treasury satisfied that they have lost money on each year's trading, and, if so how can they be asked to pay Income Tax?
§ Mr. MONTAGU
I have given the hon. Member an indication of the relief to which the company may be entitled. If he will inform himself as to the average rule he will see that they have been legally charged Income Tax.