§ 44. Mr. JOWETTasked the Chancellor of the Exchequer whether he is satisfied that his proposal to tax extra profits made during the War will cover profits on the sale of ships sold since the outbreak of war, and will preclude the possibility of the enhanced prices realised on such sales being treated merely as realisation of capital and not as profit?
§ The CHANCELLOR of the EXCHEQUER (Mr. McKenna)I would refer my hon Friend to the reply I gave yesterday to a similar question put by the hon. Member for West Ham.
§ 59. Sir J. JARDINEasked the Chancellor of the Exchequer whether he is aware that many limited companies owning india-rubber estates in India, Ceylon, the Straits Settlements, and Netherlands India have, until the War began or after that date, distributed no dividends because the trees had not reached the age when they can be tapped and in some cases had to borrow money on mortgage or debentures during this period; and whether, under the Finance Bill, refund of money so borrowed will be deducted before the Excess Profits Tax is leviable?
§ Mr. McKENNALiability to repay borrowed capital does not constitute a ground for deduction from excess profit, but the conditions affecting the development of estates may be a factor for the consideration of the Board of Referees in connection with any application for an increase of the percentage standard for the class of business to which my hon. Friend refers.
§ 65. Mr. LOUGHasked the Chancellor of the Exchequer whether businesses which have been placed under control by the Minister of Munitions will be liable to pay the Excess Profits Tax?
§ Mr. McKENNAI would refer my right hon. Friend to the reply which I gave on the 30th ultimo to the hon. and learned Member for the City of York. I am causing a copy of this reply to be sent to him.
§ Mr. McKENNAIf the right hon. Gentleman will read the answer which I have sent to him he will find it is fully 1788 answered, and the House has already had the answer.
§ 66. Mr. LOUGHasked whether enter prises owned and carried on by municipal authorities of the nature of a trade or business will be liable to pay the proposed duty on excess profits?
§ Mr. McKENNAThe answer is in the affirmative.
§ 67. Mr. LESLIE SCOTTasked whether it is intended to be provided by the Finance (No. 3) Bill that where a person, firm, or company earns an income by carrying on businesses of a like class in various towns or localities but has been hitherto assessed to and paid Income Tax in respect of each such business separately, the profits shown by such several assessments in pre-war years may be aggregated for the purpose of comparing the profits of the War year, and thereby ascertaining whether the income of such person, firm, or company, taken as a whole, is liable to pay Excess Profits Duty under the Bill?
§ Mr. McKENNAThe answer is in the affirmative.