§ 51. Mr. MACQUISTENasked the Chancellor of the Exchequer whether he is aware that the Italian Government has decided to levy Income Tax upon companies only on the sums distributed in dividends and not upon sums reinvested by way of reserve in the companies' businesses, and that the same practice has for a long time been in existence in Holland, and that thereby thrift, industry, and employment are stimulated; and will he, in the ensuing Budget, grant abatements of tax to all British companies upon profits placed by them to reserve and reinvested in the businesses?
§ The CHANCELLOR of the EXCHEQUER (Mr. Churchill)I have as yet no official confirmation of the Press reports of the Italian proposals on this subject, but I am aware of the provisions of the law thereon in Holland. As regards alterations in our own system of Income Tax, my hon. and learned Friend will not expect me to anticipate my Budget statement.