§ 25. Mr. HERBERT CRAIG
asked the Chancellor of the Exchequer whether, for the purposes of Income Tax assessment, traders may exclude from their returns debts due to them from enemy countries at the commencement of the War which have remained unpaid and which are at present irrecoverable and uninsurable?
§ The CHANCELLOR of the EXCHEQUER (Mr. Lloyd George)
In estimating trading profits for the purpose of Income Tax, debts due to the trader may 575 be altogether excluded if they are proved to be bad debts, and under the provisions of Section 50 of the Income Tax Act, 1853, the value of doubtful debts may be estimated.
§ Mr. H. CRAIG
Will the fact that the debts referred to are owing from enemy countries and no steps can be taken to procure their recovery at the moment, be taken as evidence that they are at present in the category of bad debts for the year or for the period of the War?
§ Mr. LLOYD GEORGE
I do not think that that is necessary. The value of the debts will be estimated in the usual way.