§ 100. Captain FAIRFAXasked the Chancellor of the Exchequer if his attention has been drawn to the system by which American film production houses register their distributors here as separate companies, show no profits, and pay no tax; if he will inquire into this and consider providing that copies of all contracts between exhibitor and renter should be sent to the Revenue Department so that earnings of foreign films could be calculated and taxed; and, failing this, if he will take other steps to tap this source of revenue?
§ Mr. CHURCHILLI would refer my hon. and gallant Friend to the provisions of Rules 7 and 8 of the General Rules of the Income Tax Act, 1918, which provide against such an abuse. I will consider the suggestion contained in the latter part of the question as my hon. and gallant Friend desires.
§ Sir F. MEYERIs the right hon. Gentleman aware that to consent to such a course would be contrary to the commercial treaty?
§ Mr. CHURCHILLMy attention has been called to the matter, and I have said that I am considering the whole subject.