HC Deb 31 May 1916 vol 82 cc2712-3

asked the Financial Secretary to the Treasury whether, in order to induce the sale or loan of bonds, it has been decided to apply the penal rate of Income Tax, namely, 7s. instead of 5s. in the £, to dividends on the Common Stock of the Canadian Pacific Railway or any Canadian securities; and whether clear instructions on this point will be issued to bankers and stockbrokers?


The additional tax applies only to the income of securities which the Treasury is willing to purchase. It does not, therefore, apply to Canadian Pacific Railway Common Stock, which the Treasury is prepared to accept upon deposit but not to purchase. It is not at present intended to include in the, purchase list any Canadian securities which carry voting rights.


Will this penal interest be applied to a person who does not wish to deposit such securities as Canadian Pacific Common Stock?


It will only apply in respect of those stocks which the Treasury purchase. If the Treasury do not purchase Canadian Pacific Common Stock the tax will not apply to the holders of that stock. By mistake Canadian Common Stock was quoted in one list published as stock that the Treasury wished to buy, but that mistake has now been corrected.