§ 74. Mr. FINNEYasked the Chancellor of the Exchequer whether he is aware that the Income Tax on profits is not a tax on actual profits after proper allowances have been made for depreciation and obsolescence of assets, but is a tax which, owing to the methods of computation now employed, is a tax on the necessary working expenses or the capital of a business; whether the Treasury are taking steps to require that stocks of material held by manufacturers shall for I tax purposes, be valued at a higher figure than they have been valued in the past; whether the result of this will be that a fictitious profit will be created which will be subject to the tax and which will have the effect of seriously undermining the financial security of firms whose businesses have in the past been conducted on sound principles; and, if so, whether he will make the necessary arrangements in the Finance Bill or otherwise for the purpose of preventing the evils referred to?
§ Mr. BONAR LAWThe incidence of taxation in relation to the matters referred to does not lend itself to discussion by way of question and answer. I may perhaps remind the hon. Member that in connection with the Excess Profits Duty I have undertaken to issue a White Paper with reference to the valuation of stocks, and that the allowances for depreciation and obsolescence will be discussed tomorrow on the Finance Bill.
§ Mr. WARDLEWhen will that White Paper be issued?
§ Mr. BONAR LAWI promised to have it issued in plenty of time to consider it before the discussion. I shall issue it as soon as possible.