§ 64. Mr. HOLTasked whether the Board of Inland Revenue has decided that a firm may deduct a sum not exceeding 10s. per head of its employés from its Excess Profits Duty to be expanded in approved schemes for the recreation of its employés; and, if so, what authority exists for this decision?
§ Mr. BONAR LAWThere is no authority for a firm to make such a deduction as is described in the question, nor is any such deduction made. But annual contributions actually made by a business solely for purposes from which the employés directly benefit, and properly attributable to the periods for which -hey arc charged, are regarded as legally admissible under the general deductions in the computation of taxable profits for the purposes of Excess Profits Duty.