§ 56. Sir J. D. REESasked whether proprietors of indigo factories who receive remittances from India in this behalf are liable to Excess Profits Tax; whether, when all the proprietors are domiciled in England, and the concern is managed by a paid agent in India, profits whether or not remitted to this country are liable to Excess Profits Tax; or whether the exemption in respect of agriculture applies in the case of such enterprises, which have in fact been practically ruined by calculated, continuous, and finally successful German competition?
McKENNAThe answer to the first two parts of the question is in the affirmative. As, however, the pre-War standard of profits may be calculated on a percentage of the proprietors' capital employed in the business, it hardly appears likely that in the adverse circumstances which the hon. Member mentions any taxable excess profits will have been realised.
§ 52. Mr. DU CROSasked the Chancellor of the Exchequer whether it is intended that Excess profits of controlled undertakings shall be assessed under Part III. of the Finance (No. 3) Bill, as well as under Part II. of the Munitions of War Act, 1915?
§ Mr. McKENNAI would refer the hon. Member 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.