§ 48. Sir J. POWERasked the Chancellor of the Exchequer the arrears of Income Tax outstanding on 1st April, 1927 and 1926, respectively?
§ Mr. CHURCHILLIt is estimated that at 31st March, 1927, the amount of Income Tax due but not paid was about £29,500,000. The corresponding figure at the 31st March, 1926, is now estimated to have been about £32,000,000.
§ Mr. THURTLECan the right hon. Gentleman say what proportion of the outstanding money is Super-tax?
§ Mr. CHURCHILLI think this question deals with Income Tax. I could no doubt answer a question on that subject.
§ 49. Mr. H. WILLIAMSasked the Chancellor of the Exchequer whether expenses towards the cost of opposing applications for safeguarding under the 210 Board of Trade White Paper are allowed as a trade expense in connection with the assessment of Income Tax?
§ Mr. CHURCHILLThe Inland Revenue authorities do not regard the expenses to which my hon. Friend refers as admissible as a deduction for Income Tax purposes.
§ Mr. WILLIAMSMay I ask why they did not regard ordinary trade expenses like these as admissible?
§ Mr. CHURCHILLI understand they treat it as capital expenditure.
§ Mr. WILLIAMSIs this capital expenditure, even if the application is not successful?
§ Mr. CHURCHILLOh, yes, a lot of capital expenditure is unsuccessful.
§ 52. Mr. H. WILLIAMS (for Sir JAMES GRANT)asked the Chancellor of the Exchequer whether the expenses of a firm towards an application under the Merchandise Marks Act is allowable as a trade expense for Income Tax purposes?
§ Mr. McNEILLI presume that my hon. Friend is referring to the Merchandise Marks Act passed in December last, in which case the point raised in his question could hardly have yet come up for consideration by the Income Tax Commissioners in connection with the assessment of liability to the tax. If, however, my hon. Friend has a case in mind in which the question has arisen and will send me the necessary particulars, I will gladly have the matter investigated and communicate the result to him in due course.
§ Mr. WILLIAMSMay I ask the Financial Secretary whether he is aware that the cost of applications under the Safeguarding procedure is not allowed as an expense, and that firms are desirous of knowing whether they will be able to charge as an expense the cost of an application under the Merchandise Marks procedure?
§ Mr. McNEILLI will bring the subject of my hon. Friend's question to the attention of my right hon. Friend.
§ Lieut. - Commander KENWORTHYWill firms who oppose these applications also be allowed this expense in the same way?
§ Mr. McNEILLI could not answer that question without notice.
§ Lieut.-Commander KENWORTHYIs not what is sauce for the goose sauce for the gander also?
§ Mr. MACQUISTENMay I ask what is the practice with regard to litigation? Are those expenses regarded as expenses out of income or out of capital?