§ 54. Sir RICHARD COOPERasked the Chancellor of the Exchequer if the great increase in rents of houses in Glasgow, in some cases amounting to an increase of 100 per cent. over pre-war rents, is subject to Excess Profits Tax; and, if not, will he consider the national advantage of making them so?
§ Mr. BONAR LAWHouse rents fall within the scope of the Excess Profits Duty only when they constitute receipts of a business. It will, however, be. remembered that the power to increase the rents of small houses has been curtailed for the period of the War by the Increase of Rent and Mortgage Interest (War Restrictions) Act, 1915.
§ Mr. PRINGLEHas the right hon. Gentleman's attention been called to the fact that the Act is being evaded by colourable sales of houses?
§ Mr. BONAR LAWThat was mentioned to me by an hon. Member yesterday for the first time, and I promised myself to look into it.
§ Sir R. COOPERCan the right hon. Gentleman not take some steps by which the Treasury will secure some of the excess profits now beings made by land lords in Glasgow, where rents have been put up so high?
§ Mr. BONAR LAWI can assure the hon. Gentleman that I shall be very glad to get any additional source of revenue of that kind, but it is very difficult to deal with questions of this nature.
§ Mr. ROWLANDSIs the right hon. Gentleman aware that colourable sales of houses are taking place, not only in Scot land, but in England, especially in munitions areas?
§ 56. Mr. BILLINGasked the Chancellor of the Exchequer whether his attention has been called to the announcement that the proprietor of the "Sunday Herald" newspaper is prepared to distribute the sum of £ 50,000 among readers of this journal who are injured during air raids; whether he is aware that many thousands of pounds have been spent in giving publicity to this announcement in the columns of other newspapers; and whether the propitiator of this journal will be permitted to deduct either the £ 50,000 or any part thereof, and the cost in connection with giving publicity to this offer, from moneys which would in the ordinary course be due from him to the Treasury under the Excess Profits Tax?
§ Mr. BONAR LAWI cannot discuss details of the liability of an individual taxpayer. The case will be dealt with in the ordinary course by the Commissioners of Inland Revenue in conformity with law.
§ Mr. BILLINGWill the right hon Gentleman state definitely whether or not the proprietor of a business is at liberty to distribute £ 50,000 among readers or clients, and take that sum out of excess profits and rob the country of that amount in the process?
§ Mr. PRINGLEIs the right hon. Gentleman not aware that in advertising to increase circulation these newspaper proprietors are simply attempting to do what is impossible in view of the shortage of paper, and can he not take action both in regard to this paper and the "Sunday Pictorial," of which a member of the Government is the proprietor?
§ Mr. BONAR LAWThat is an entirely different question, and deals with the restriction of the issue of paper. As regards the other question, it is obvious that one of the difficulties of the Excess Profits Duty is that a firm only loses one-fifth of any extra expenditure which it incurs. I can assure my hon. Friend that the Inland Revenue Commissioners have a pretty close regard to these matters.
§ Mr. BILLINGWill the right hon. Gentleman answer that part of the question which definitely asks whether this sum of £ 50,000 is regarded as excess profits or not?
§ Mr. BONAR LAWI really think my answer made it plain that that is a question of law to which it would be impossible for me to give any reply.
§ 57. Mr. BILLINGasked the Chancellor of the Exchequer whether he is aware of the ever-increasing number of public companies who are falsifying their profits by writing down their stock to a purely fictional figure, by effecting unnecessary alterations and elaborate additions to their premises, by replacing machinery in lieu of writing off the usual depreciation, and generally taking all steps within their power to prevent the country from benefiting from the income which should be derived under the Excess Profits Tax; whether he proposes to take any steps to prevent this recurring; and whether the Government are taking any steps to punish any parties found to be guilty of evading the spirit of the Act?
§ Mr. BONAR LAWThe liability to Excess Profits Duty is computed according to fixed statutory rules, and is not affected by variations in the accountancy practice of different businesses. Proper provisions have been made for dealing with questions arising through alterations, additions, and replacements.
60. Sir GILBERT PARKERasked the amounts of excess profits received from the ships of the fishing industry for the last three years, respectively
§ Mr. BONAR LAWNo information is available as to the incidence of this tax in the case of the various classes of tax payers, and, in view of the labour involved in the preparation of detailed statistics of this character, I cannot in existing conditions undertake a classification of the various groups of trades and businesses from which payments of Excess Profits Duty have been received.