§ 68. Sir A. FELLasked the Chancellor of the Exchequer if an individual deriving his entire income of £100 a year from dividends on ordinary shares in a company, liable to Corporation Tax, will in fact be taxed to the extent of £5 or £10 as the case may be on such £100; and, as this will be a tax on income, will he be able to recover such tax from the income tax authorities in the same way as he now recovers the 6s. in the £ deducted from his dividends?
Mr. CHAMBERLAINThe Corporation Tax is not devised as a tax upon the 1030 individual, but as an impersonal tax upon the profits of a company chargeable thereto prior to distribution. No question of recovery by an individual shareholder can arise.
§ Sir A. FELLThen the ordinary man who has a small income from shares will have this deduction from his income and will not be able to recover it?
Mr. CHAMBERLAINHe will not be able to recover, but I cannot be taken as assenting to all my hon. Friend's premises.
§ Mr. MARRIOTTWill it not be as a fact a tax on the income of such persons?
Mr. CHAMBERLAINI suggest that it is more convenient to argue these questions in Committee on the Finance Bill than at question time.
§ 73. Sir A. FELLasked the Chancellor of the Exchequer if land, mortgage, investment, and trust companies which are not engaged in any trade or manufacture either in Great Britain or abroad will be liable to Corporation Profits Tax?
Mr. CHAMBERLAINLimited liability companies of the character referred to by the hon. Member will be liable to the Corporation Profits Tax.