HC Deb 01 May 1922 vol 153 cc1130-1
Motion made, and Question proposed,
- (a) Interest at the rate of 5 per cent, per annum without deduction for Income Tax shall be charged on Excess Profits Duty and Munitions Exchequer Payments, in the case of any such duty or payments which became payable on or before the first day of January, nineteen hundred and twenty-two, as from that date, and in the case of any such duty or payments becoming payable after that date, as from the expiration of two months from the date on which the duty or payments was or were assessed; and
- (b) In computing profits or income for the purposes of assessment to Income Tax, no deduction shall be allowed in respect of interest so payable."
Sir F. BANBURY
This is rather a long Resolution, but I gather that it means that where a person who owes money under the Excess Profit Tax does not pay he shall be charged 5 per cent, interest until he does pay.
Sir R. HORNE
It means a good deal more than that. The payment may be spread over five years, and it allows great latitude to a person who is a debtor. In consideration of the privilege, he is to be charged 5 per cent, during the period in which he is in default.
Does that apply only to Excess Profits Duty?
Sir R. HORNE
Only to Excess Profits Duty, of course.
Does not the right hon. Gentleman think that in view of the fall in the bank rate 5 per cent, is a rather usurous rate of interest to charge?
We can discuss that to-morrow.
Question put, and agreed to.