§ 50. Mr. D. G. SOMERVILLEasked the Financial Secretary to the Treasury whether he is aware that the Inland Revenue authorities are accepting shares or debentures in companies in payment or part payment of Income Tax; whether he can state the amount of such shares and debentures actually received; and what action he is taking to put an end to this practice, in view of the criticism of the policy of the Department in this matter?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)I do not read the Second Report of the Public Accounts Committee, which I assume my hon. Friend has in mind, as criticising the policy of the Inland Revenue Department in this matter. The report stated that shares and debentures should be accepted in settlement of cash tax liabilities only in the last resort and in exceptional circumstances. This has always been the practice of the Department. Up to the 31st March last, shares, debentures, etc., to a nominal value of £2½ millions had been accepted in cases of the kind referred to in payment of Income Tax, Super Tax (and Sur-tax), Excess Profits Duty and Corporation Profits Tax. The yield in cash of these taxes during the period in whicb these special transactions occurred was between three and four thousand millions.
§ Mr. SOMERVILLEHow many firms or persons does that figure cover?
§ Mr. HORE-BELISHAIf my hon. Friend desires that information I shall be obliged if he will put the question down, and I will see if it is possible to answer it.
§ Mr. SOMERVILLEIs this procedure to be continued?
§ Mr. HORE-BELISHACertainly, Sir; it has always been the practice.
§ Mr. RHYS DAVIESIn view of the fact that the Public Accounts Committee 202 declared that this is a very doubtful practice, will the Treasury consider the matter once again to see whether it ought to continue?
§ Sir A. M. SAMUELIs my hon. Friend aware that the Public Accounts Committee made an exhaustive examination with the help of a Treasury witness of this point and came to a conclusion, and recently published its conclusion?
§ Mr. HORE-BELISHACertainly, Sir, I have referred to the conclusion, and it is not as is suggested in the first part of the first supplementary question of the hon. Gentleman opposite. They recommended that this should be done only in the last resource and in exceptional circumstances, and it is only in exceptional circumstances that it is done.