§ 62. Mr. OSWALD LEWISasked the Chancellor of the Exchequer if his attention has been called to the fact that 591 within the past six months three companies, involving several millions of capital, for long registered here and paying Income Tax in this country, have now registered local Argentine companies to avoid the payment of British Income Tax; and whether he will consider the possibility of modifying the Income Tax laws for oversea concerns in such a way as to diminish the inducement at present existing to transfer the control of such companies to others registered in foreign countries?
§ Mr. PETHICK-LAWRENCEI am afraid I cannot undertake to give any information regarding the Income Tax affairs of particular companies, or make any comment as to the circumstances under which the control of any particular business has been transferred abroad. I may point out, however, that in many cases the transfer of control of concerns carrying on business abroad occurs by reason of the acquisition of the concern by foreign interests rather than because of any question of taxation. The latter part of the question involves a very wide and general issue which does not lend itself to discussion by way of question and answer; but I would refer the hon. Member to paragraphs 39 and 40 of the report of the Royal Commission on the Income Tax, and will send him the extract in question.
§ Sir JOHN GANZONIIs not the hon. Gentleman aware that this general, and not individual, practice of companies hitherto registered here being registered abroad leads also to loss of contracts coming to this country?