37. Mr. WILLIAM ALLENasked the Chancellor of the Exchequer whether he is aware that a number of foreign companies are being formed by Surtax payers for the purpose of avoiding the tax; whether the practice of forming such companies is a growing one; and whether any computation has been made of the loss caused to the revenue thereby, either by the Treasury or by the special commissioners of Income Tax?
Mr. CHAMBERLAINI am aware of the growth of the practice to which my hon. Friend refers. I cannot give precise figures of the loss of revenue caused by methods of tax avoidance which develop at different times, but, as my hon. Friend will be aware from the past history of this matter, the situation is always closely watched and such appropriate measures as are practicable are taken from time to time as circumstances require.
Mr. ALLENWill the right hon. Gentleman endeavour to introduce an amendment to the Finance Bill which will put a stop to this practice?
§ Mr. HICKSIs anyone allowed to escape his legitimate taxes? If such a company is formed for the purpose of advising people, not what they should pay, but what they should not pay, is it not perfectly legitimate to give such advice?
Mr. CHAMBERLAINAs I understood the supplementary question, it did not relate to illegitimate practices but to practices at present within the law.
§ Mr. H. WILLIAMSIn dealing with this matter will the right hon. Gentleman consider reducing the general level of taxation, so that people shall not be tempted?