§ 72. Mr. PENNEFATHERasked the Chancellor of the Exchequer whether the Excess Profits Tax will, in any event, be charged on any pre-war profits which form part of the estate of any member of His Majesty's Forces who has either been killed or incapacitated on duty, and who has relied upon such pre-war profits either for the maintenance of his dependants or for his own future subsistence?
§ Mr. McKENNAWithout following my hon. Friend into hypothetical cases, I may explain that over the lifetime of the tax there will be equalisation of the charge, so that an excess over the standard in one accounting period can be cancelled by an equivalent deficiency below the standard in another accounting period. If the first accounting period includes pre-war months, the last accounting period may include post-war months.
§ Mr. PENNEFATHERHas the right hon. Gentleman noticed that the question relates to pre-war profits which form part of the estate of an officer or soldier who has been killed, and, in these circumstances, how can another accounting period occur?
§ Mr. McKENNAThe beneficiary of a deceased person will get the benefit, only he would have to pay the percentage upon it.