§ 53. Mr. TAYLORasked the Chancellor of the Exchequer if British companies and individual traders who lost property or money as a result of the nationalisation of property in Russia were allowed to write oft in full the amount of such losses before arriving at the amount of Excess Profits Duty or Income Tax due to the Exchequer; and, if so, whether he can state the amount so written off as bad debts since 1917?
§ Mr. CHURCHILLThe losses to which I gather the hon. Member refers would be largely capital losses not allowable for purposes of Excess Profits Duty and Income Tax. For the rest, the question of allowance depends so much upon the facts of individual cases and involves such a variety of considerations that it is not possible to deal with the point within the limits of an answer to a question. No statistics are available which would enable me to reply to the second part of the question.
§ Mr. TAYLORAm I to understand from the right hon. Gentleman that the trading losses of British firms in Russia would be available for allowances for writing off; that in regard to factories owned by British firms in Russia the capital value is allowed to be written off in calculating the Excess Profits Duty?
§ Mr. CHURCHILLI have to be very careful in answering questions which may have a legal consequence. The effect of my answer was that the losses referred to would be largely capital losses and not-allowable for the purpose of Excess Profits Duty and Income Tax.
§ Mr. TAYLORMay I press for a reply as to whether in regard to the losses of industrial undertakings in Russia belonging to British firms, the value of these losses was allowed to be written off before the Excess Profits Duty was arrived at?
§ Mr. CHURCHILLI have given an answer which would indicate that, as a general rule, such losses would not be allowable for the purpose of Excess Profits Duty and Income Tax.