HC Deb 29 June 1917 vol 95 cc679-80
14. Mr. C. ROBERTS

asked the Secretary to the Treasury whether, in the case of controlled establishments having foreign book-debts which they have been unable to collect owing to the War, a due reserve will be allowed before computing the profits of the company for the purpose either of the Excess Profits Tax or the munitions levy?

Mr. BALDWIN (Joint Financial Secretary to the Treasury)

Where in these circumstances a reserve has been made, the payment of an appropriate amount of Excess Profits Duty is allowed to remain in abeyance, and a like course will be followed for munitions levy.

15. Mr. ROBERTS

asked the Secretary to the Treasury whether, in the case of controlled establishments holding moneys in the countries of neutrals or of our Allies, the valuation of such moneys for the purpose of determining the profits of the company, whether for Excess Profits Tax or Munitions Levy, shall be taken at the rate of exchange current on the date at which the account is made up?

Mr. BALDWIN

Ordinarily the course suggested by the hon. Member would be adopted, but in any case in which an obviously inequitable result would be produced, suitable alternative methods would be considered.

16. Mr. ROBERTS

asked the Secretary to the Treasury whether, when application is made to the Inland Revenue Commissioners for allowances on account of depreciation or obsolescence of machinery or any other assets belonging to controlled firms, he can give an undertaking that such allowances shall not be at less favour able rates than the controlled firm has used in those years by which its standard profit is computed without prejudice to any exceptional consideration that may be due to circumstances caused by the War?

Mr. BALDWIN

I can hardly conceive that there are circumstances—save in the most exceptional cases—in which at less favourable rate of allowance for wear and tear of machinery or plant would be appropriate during the war period as compared with the pre-war period. If the hon. Member has any specific case in mind, perhaps he will furnish me with particulars.