§ 55. Mr. THURTLEasked the Chancellor of the Exchequer whether, in considering his proposals for future taxation, he will consider the possibility of imposing an additional tax on the profits of companies which, after allowing for all prior charges, show earnings in excess of 20 per cent. on their ordinary share capital
§ Mr. CHURCHILLThe ordinary share capital of a company does not by any means necessarily provide a real test of the value of its revenue producing assets. I am advised that this complication would involve expenditure on administration out of all proportion to the yield which might be expected from any moderate rate of tax. Moreover, it would be neither equitable nor in the public interest to favour speculative companies who had greatly watered their share capital at the expense of those who had conducted their business on conservative and prudent lines.