The following rule shall be substituted for Rule 10 of all the rules for Schedules A, B, C, D, and E in the First Schedule to the Income Tax Act, 1918:—
Nothing in these rules shall render a non-resident person chargeable in the name of a broker or agent in respect of profits or gains arising from sales or transactions carried out through such broker or agent, provided that the broker or agent be carrying on a bona fide broker's or general commission agent's business receiving adequate commission not less than the customary remuneration in that class of business and is not an agent whose only agency or brokerage business is the regular agency or representation in the United Kingdom of such non-resident person.—[Mr. Dennis Herbert.]
§ Brought up, and read the First time.
§ Mr. DENNIS HERBERT
I beg to move, "That the Clause be read a Second time."
It is only necessary for me to formally move this new Clause in order to express the hope that a question of immense importance to the City of London, and which is supported I believe by Members of all parties in this House, will receive the sympathetic attention of the Chancellor of the Exchequer before the Report stage. It is a matter which has been discussed with the Revenue officials, and I believe they and those who are supporting the proposal are at one in the particular object they desire to achieve. The only question at issue is really the form of words to be used. This question of the taxation of non-residents through the agency of the United Kingdom has frightened away a lot of the entrepot trade of the City of London. I hope the Chancellor of the Exchequer will tell me that he will consider some amended form of the proposal before the Report stage.
§ Mr. CHURCHILL
These are complicated matters which have often been discussed in this House. I find that there is a strong opinion in favour of the general course recommended by the hon. Member and by the others, and I find on examining the question at the Treasury that there is a great feeling that the present state of the law is practically 470 unenforceable and that there would be no great loss to the Revenue if this concession was made. It would not affect the Estimates to any appreciable extent. In these circumstances while I can give no undertaking to-night I will promise to have the matter brought up in one form or another on Report stage with a view of arriving at the sense of the House on a matter in regard to which I know feelings will be curiously divided.
§ Question, "That the Clause be read a Second time," put, and negatived.
§ The following New Clause stood on the Order Paper in the name of Mr. RAWLINSON: