EXCESS PROFITS DUTY.

HC Deb 29 April 1918 vol 105 cc1288-9

56. Mr. G. TERRELL

asked the Chancellor of the Exchequer whether, in the coming Finance Bill, he can see his way to enable directors, managers, and persons who are liable for Excess Profits Duty to have the same rights as regards the refund of the duty from the date of the commencement of the Act as are possessed by the companies and firms who are primarily liable for the payment of such duty?

Mr. BONAR LAW

I am not prepared to accede to my hon. Friend's suggestion. In the case of an employé director an allowance of£2,000 in any year is always made over and above the amount of the pre-war remuneration before any tax is charged. Having regard to the amount of this allowance, there seems to be no reason for granting also a set-off to compensate for any deficiency, below the pre-war remuneration, arising in another year.

57. Mr. TERRELL

asked the Chancellor of the Exchequer (1) whether, in view of the depreciated value of the pound sterling, he will, in the coming Finance Bill, in the case of small limited liability companies, insert provisions for the raising of the datum line above which the Excess Profits Tax comes into operation; (2) whether, in view of the depreciated value of the pound sterling and that a very large number of directors of small limited liability companies are doing the work of their business at pre-war salaries, and who, by the Excess Profits Act, are not entitled to draw increased salaries as part of the general expenses of the business, he will, in the coining Finance Bill, insert provisions enabling relief to be granted in such cases?

Mr. BONAR LAW

As my hon. Friend will recall, a provision for the relief of small businesses was embodied in the Finance Act of last year. I am not aware that circumstances call for a further relief in this connection.

Mr. BILLING

What does the right hon. Gentleman mean by small businesses and small limited liability companies, and where is the line drawn between the small and the large companies?

Mr. BONAR LAW

It is obvious that it would take a long time to answer that question, and he can answer it best himself by looking at the Finance Act.

Mr. BILLING

Is he quite satisfied that the limited liability companies are doing quite well?