§ 67. Mr. R. McNEILLasked the Chancellor of the Exchequer whether he is aware that the apprehension caused by the incidence of double Income Tax on Colonial companies having their registered offices in England, that such enterprises would be driven to remove the conduct of their business from this country, is proving well founded; whether he is aware that a large Australian company has decided for this reason to remove its head office to Australia; that an important tin company has removed its head office to Switzerland; that several Indian companies have similarly removed their principal places of business from London; whether the Board of Inland Revenue has yet found it possible to arrange that the partial relief afforded by the Finance Act, 1916, shall be by way of deduction from the payment of British Income Tax instead of by repayment by the taxpayer; and whether he can make any statement calculated to arrest the process of removal from this country of the businesses affected by double Income Tax?
§ Mr. McKENNAI am aware that certain companies have transferred the control of their businesses from this, country. Arrangements have been made by the Board of Inland Revenue under which the relief afforded by Section 43 of the Finance Act, 1916, in respect of Colonial Income Tax, will be allowed wherever possible by way of deduction from the payment of United Kingdom Income Tax instead of by way of repayment. As has previouly been stated in this House, the subject of double Income Tax will receive further detailed consideration by an Imperial Conference and by the Committee on Income Tax which is to be set up after the War. In the meantime, practical experience of the-actual operation of Section 43 will furnish a mass of valuable material which will be available in connection with a future investigation of this difficult and many-sided subject.
§ Mr. D. MASONCan the right hon. Gentleman inform the House when this Imperial Conference is likely to take place?
§ Mr. McKENNANo, Sir.
§ Mr. McNEILLCannot the right hon. Gentleman hold out any hope of a policy in the immediate future which will arrest these removals?
§ Mr. McKENNANo, Sir; I am afraid the subject is one I could not undertake to enter into at the present time, but I can assure the hon. Gentleman that it is not only engaging attention, but is causing; constant anxiety to the Board.
§ Mr. McNEILLIs the right hon. Gentleman aware that the anxiety of the Board is not preventing businesses going from this country?
§ 68. Mr. McNEILLasked the Chancellor of the Exchequer whether he has yet looked at the memorandum which he received from the Prime Minister of the Commonwealth of Australia on the subject of a deputation which waited on him on the 22nd of June regarding double Income Tax, together with the written opinion of the Australian Prime Minister on the points brought before him by the deputation; and whether he will now lay the memorandum and the written opinion referred to upon the Table of the House?
§ Mr. McKENNAThe Papers mentioned by the hon. Member were not in the nature 339 of a general statement, but were, in fact, sent to me personally and with specific reference to the proposals which I had introduced in the Finance Bill and which were afterwards' debated by, and received the sanction of, this House. The hon. Member may recollect that the changes suggested by the deputation related to Amendments to the Bill which were moved by my hon. Friend the Member for Inverness Burghs and both of which were negatived. In these circumstances I hardly think it is necessary to lay the documents referred to, but I shall be happy to ask the Prime Minister of the Commonwealth whether he has any objection to my giving a copy to any hon. Member who may wish to see these Papers.
§ Mr. MCNEILLBut did not the right hon. Gentleman hold out hope to the hon. Member for Inverness Burghs last August that he would lay these Papers?
§ Mr. McKENNAI do not think BO. If I did make any promise of that kind, subject to the consent of the Prime Minister of Australia, I will do so at once, but I do not think I did.