§ 53. Mr. STEWARTasked the Chancellor of the Exchequer whether, in view of the fact that certain firms resident outside the United Kingdom, selling their goods through agencies in this country, often invoice their goods at such a high price to their representatives that no profit appears in their books on this side, although the transactions are really profitable, the Inland Revenue can see their way to assess such agencies for Income Tax upon a percentage of their turnover, in view of the fact that competing British 575 firms have to bear full Income Tax which their foreign competitors are able to evade?
§ The CHANCELLOR of the EXCHEQUER (Mr. McKenna)I may remind my hon. Friend that Section 31 of the Finance (No, 2) Act, 1915, was introduced largely with the object of meeting the class of case he appears to have in mind and I may refer him more particularly to Sub-sections (4) and (5).
§ Mr. BILLINGIn view of the excess profits made throughout the whole of the country, will the right hon. Gentleman consider the advisability of making an inquiry into the whole question of excess profits?
§ Mr. McKENNAThe Excess Profits Tax has no bearing on the question on the Paper.